Known for providing a wide range of products and services related to the field of computing, Microsoft is regarded as one of the most valuable companies today and is also the largest software maker when measured by revenues. The company was dominant in the personal computer operating system market and still is, although personal computers are declining in popularity. Likewise, it also has a strong position in the office suite markets. Apart from that, the company also ventured into the rapidly growing smartphone market with its Windows Phone and the tablet market with its Surface tablets.
The bright sight for the company is that its Windows Phone 8 is managing to beat BlackBerry for the number 3 spot in the competitive smartphone market, with Samsung and Apple taking the first and the second position respectively. But, in the tablet market, Microsoft doesn’t seem to have fared well at all. The software giant had been troubled by increasing competition from Google and Apple in its markets. The declining sales of personal computers pushed the company into making a foray into the tablet market. Thus, Microsoft launched the Surface tablets in 2012.
However, the major problem with these tablets was that they were priced too high for too little features. There are thousands of tablets available in the market, based on the Android OS, which offer a multitude of features at a very affordable price tag. Even the strategy of cutting prices did not boost the sales of the Surface that had already been underwhelming. The company had refused to admit the failure of this product so far. But, now it seems that Steve Ballmer has come clean. The Chief Executive of the company half-heartedly and belatedly admitted that the company had made too many tablets that it could manage to sell.
In the same town hall meeting of Microsoft, Steve Ballmer also admitted that the company isn’t selling the expected copies of Windows 8. Ballmer stated that they had manufactured a few more tablets than they could sell. However, this is an understatement because the software corporation had to write off $900 million of unsold inventory comprising of Surface RT tablets. Based on this figure, it can be estimated that the company has around 6 million unsold tablets and this oversupply cannot be called few at all.
Now, the company is holding a fire sale for selling out the unsold inventory. The company has sliced off the price of the tablets by 30%. However, this doesn’t mean that the firm has given up on the tablets because it has been reported that Microsoft is testing a new generation of these tablets, which will have improvements. The company has to make some really huge improvements and cut back on its price to ensure that the next generation manages to sell. The same is applicable to Windows 8, which did not fare well the way its predecessor Windows 7 had and is a disappointment.
The history of Waqar Hassan’s work as a Blogger, SEO Writer, Technical Writer, Social Media Expert, and Resume Writer reflects the adaptability he can offer through his work. He heads Burgeoning Technologies, an IT and Web Company and manages several blogs including OnzineArticles.com and TechBurgeon.com. He can be followed @HassanGill on Twitter.