There are few different phrases, idioms, and proverbs that many of us go by. One saying may be more true than any other one: timing is everything. One simple timing error can cause a disaster. Having bad timing can ruin anything from a first date to quarterly sales for a company. Speaking of quarterly sales involving companies, bad timing may be affecting a large company right now. I’m talking about Microsoft’s Surface tablet sales. According to a sales report recently released by the company, the sales for this particular tablet have plummeted quite a bit. Now Microsoft is looking to see what changes need to be made in order to help bring sales for the Surface back up.
While the earnings report was looking pretty rough at a 44% drop in sales, the previous quarter prior to this was the holiday season quarter. Having said that, that can only attribute to so much loss in revenue. I mean we are talking going from $893 million down to $500 million in sales. It almost leaves something to be desired by the market itself in a way. Apple saw some decline as well. 33% loss in revenue is still bad, but Microsoft’s 44% loss is just hard to overlook.
You have to figure that since almost a billion dollars of Microsoft’s revenue came from their Surface Tablet back in 2013, you’d think such a decline like that wouldn’t be possible unless something detrimental happened with the product. Even though, hardware wise, there may be nothing wrong with the product itself, there are still some factors that Microsoft may just now be taking into consideration.
The Surface 2 is now one of the last few devices from Microsoft running Windows RT. For those of you who don’t know, Windows RT is a version of Windows OS that is made to optimize performance on tablets at the cost of running older apps on the software. This is where this becomes a problem. There are so many other tablets out on the market currently that are running with Windows 8.1 instead of Windows RT. To the average consumer, having the latest operating software on your tech is a big deal. If they are getting that from another company, then Microsoft is going to lose money. Aside from the Surface 2 lacking in the OS department, there is yet another big thing missing from the Surface line up. The name is small, but the demand is pretty big. A “Surface Mini.”
Yes, you may as well be selling the masses a smaller version of the exact thing that they already have, but if people keep buying it it’s just going to become that much more appealing. With Apple still leading the pack, and products like the iPad Mini and Nexus 7 out on the market currently, Microsoft is being left in the dust with nothing to show for it. However, rumors are beginning to circulate that Microsoft may just get with the times and release something soon. Possibly by mid-May, we could see a new Surface Mini.
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That may not help though. Another thing to consider is that Apple and it’s software now have access to Microsoft’s Office programs. This was a big deciding factor for most when trying to see what product would be deemed as more “productive” for the customer, and could have hurt Surface sales.
The odds are definitely not in Microsoft’s favor at the moment, as far as the Surface tablet goes. If they don’t do something dramatic with the new Surface Mini, they should only expect their revenue for the Surface line to continue declining.