4 reasons why Microsoft Surface is doomed

The technology website Computerworld recently reported that Microsoft's Surface tablets have caused it to lose $1.7 billion. People outside the company have also begun to discuss when Microsoft will put this hardware series to rest. Although Microsoft has always been very patient with its products, for example, they do not plan to make Bing profitable before the 2016 fiscal year, and Zune was finally canceled five years after its launch. But because of the lessons learned from Zune, Microsoft does have reason to let Surface exit the stage of history in a timely manner.

1. Serious losses

Surface sales have been in the red. Although Microsoft said Surface generated $409 million in revenue last quarter, according to Computerworld's estimates, Surface's main business costs for the quarter reached $772 million, which means Microsoft lost $363 million in this business. TechCrunch pointed out that the actual number may be higher because advertising and marketing expenses are not included.

2. Steve Ballmer has stepped down

Surface was one of the projects promoted by former Microsoft CEO Steve Ballmer, who has now stepped down, and his successor Satya Nadella began laying off 18,000 people shortly after taking office, showing that he is willing to make difficult choices to keep the company vibrant.

3. The tablet market has stabilized

Apple iPad sales have begun to decline, and the overall growth of the tablet market has also begun to slow down. According to IDC's forecast, the tablet market will grow by 12.8% this year, in sharp contrast to last year's 51.8%. Small tablets are the most popular category in the market, and the 12-inch Surface Pro 3 is even larger than the previous generation.

4. Microsoft is no longer a devices and services company

Last month, Nadella said Microsoft will now be centered around "tablets and productivity" and that they will no longer be a "devices and services" company. But that doesn't mean Nadella plans to get rid of Surface. In fact, he called the Surface Pro 3 a "good demonstration" of this new positioning.

But if Surface continues to lose hundreds of millions of dollars every quarter, Nadella's optimism may not last long.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.