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Asus CEO On Windows RT: "We're Out."

Posted by Unknown on from the some-companies-like-making-money dept.

symbolset writes "AllThingsD's intrepid reporter Ina Fried has an interview up where Asus chairman and CEO Jonney Shih says they will not make any more Windows RT devices until Microsoft proves demand for the product. This leaves Dell as the only OEM who has not sworn off Windows RT. Dell is seeking to take itself private, relying on a $2 billion loan from Microsoft." Turns out people want things that are the size of a laptop to work as well as a laptop.

8 of 246 comments (clear)

  1. maybe next time lose the lockdown by X0563511 · · Score: 5, Insightful

    So that you can make hardware that doesn't depend on MS?

    --
    For large sets, this will be our guide even unto death, for the LORD will work for each type of data it is applied to...
    1. Re:maybe next time lose the lockdown by Anonymous Coward · · Score: 5, Informative
      According to Microsoft's annual 10-K report to the US Securities and Exchange Commission (SEC), published on Tuesday, their total Surface revenue for all of fiscal 2013 amounted to just $853m. That's nearly $50m less than the $900m charge Redmond took when it discounted its remaining Surface RT inventory by $150 per box.

      And that's not all. That $900m writedown was related to Surface RT only, but the $853m revenue figure includes sales of Surface RT and Surface Pro combined.

      Further down in its 10-K filing, Redmond reports that it upped its sales and marketing budget for the Windows Division in 2013 by a jaw-dropping $1bn, which included an $898m increase in advertising costs "associated primarily with Windows 8 and Surface."

      Got that? Microsoft spent more in a single year advertising the Windows 8 and Surface launches than it took in from Surface sales that same year.

      And remember, none of this was even spread over an entire calendar year. Microsoft's fiscal 2013 ended on June 30. It launched Windows 8, Windows RT, and Surface RT on October 26, 2012. The Surface Pro launch came later, in February. But whichever way you slice it, Microsoft managed to mow through an $898m marketing budget in just eight calendar months – and consumers still didn't take the bait.

      Strangely enough, Slashdot does not consider this news...

    2. Re:maybe next time lose the lockdown by SDF-7 · · Score: 5, Informative

      Unless you are Neil McAllister, it would be nice if you'd signify that you're quoting his article in The Register rather than just plagiarize it.

      Compare http://www.theregister.co.uk/2013/07/30/microsoft_surface_sales_disaster/ for all but the last sentence.

  2. A tablet isn't a PC. That's the point. by xtal · · Score: 5, Insightful

    How many MBAs does it take to miss that mind-boggingly obvious fact?

    Here's some free advice if anyone important is reading this (haha):

    Want to be wildly successful? Go invest a lot of time and money into figuring our how to make a 8.5 x 11" replacement for paper. That includes being able to write and draw engineering diagrams with a 0.2mm tip.

    I've wanted one of those forever, I'd be willing to bet a lot of professionals out there have the same problem - the ipad is close, but not quite big enough, and it doesn't have written input.

    "Me too" doesn't cut it. Have some vision, Microsoft. I dare you.

    --
    ..don't panic
    1. Re:A tablet isn't a PC. That's the point. by Scutter · · Score: 5, Insightful

      It would be nice if tablet designers, OS designers, and app coders stopped treating tablets like media consumption devices and started treating them like actual replacements for people who need to do actual work. Try working on a spreadsheet on one. Yes, you can do it. Yes, it's a colossal pain in the ass. Wanna reset a password in Active Directory from your tablet? If you're on Android or iPad, there's MAYBE one or two apps that can do it and then not very well. Oh, but if you want to listen to music on the crappy little speakers, there are about a thousand music players out there. There are any number of freemium games out there, too.

      Tablets are fine for what they are, but you can't sell them as a productivity tool without actually designing it as one, and that's what Microsoft tried to pull with Windows RT.

      --

      "Tell me doctor, with all of your defenses, are there any provisions for an attack by killer bees?"
  3. Re:No killer app by guytoronto · · Score: 5, Funny

    A version of MS Office which supports touch poorly is not a killer app.

    Well, it killed the Windows RT tablet pretty well.

  4. Re:Makes sense by UnknowingFool · · Score: 5, Insightful

    Also even if Asus was in it still, there are millions of RT units from MS sitting out there unsold to compete with. I would say that someone at MS was wildly optimistic about RT projections or very bad at math. While we don't know the actual number some estimates have it at 6M unsold RT units. Surface RT was launched Oct 26, 2012 and was only sold at MS stores which only number two dozen or so. 6,000,000 units / 25 stores / 275 days / 12 hours means a MS store would have to sell 72 Surface RT units optimistically. And those are in addition to the ones already sold. I don't think that even Apple stores sell that many iPads during holiday season. What was someone thinking?

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  5. Can't Believe Microsoft Thought it was a Good Idea by macromorgan · · Score: 5, Insightful

    The main strength of Windows was its ability to maintain an impressive amount of backwards compatibility. A few applications aside, things I bought 10 years ago still work on my Windows 8 x64 machine (without virtualization or emulation). To attack two well entrenched competitors Microsoft went in guns blazing without what is historically been the most compelling feature of Windows. I have an MBA, and even I saw this coming...