SURFACE RT FIASCO
Everyone was thinking that the Surface line of tablets was going to pull Microsoft out of its slum. Unfortunately, consumers weren't worrying about the corporation as they were browsing on their iPads or checking email on their Galaxy Note. Sales were so low Microsoft was forced to cut the price of the Surface RT by $150, down to $349. But, the company still wasn't done screwing up. Yesterday, Microsoft wrote off $900 million onto its unsold inventory. This almost billion dollar payment just puts another nail in Microsoft's coffin. Still, the company has the nerve to continually post ads on its social channels to try and make the Surface more attractive. But, it's just too late; customers are too attached to their walled gardens, be it Android or iOS. The Windows 8 operating system and tablets arrived too late in the game. Apple's iPad was out for a full 20 months prior to Microsoft releasing its own line of tablets. That allowed consumers to get nice and cozy in the Apple walled garden as Microsoft sat on its deteriorating market share worrying about its enterprise technology.
STOCK CRISIS
Today, investors ransacked Microsoft's stock price. After starting off generally well, starting at 10:20am, investors began hitting the kill button. The stock fell by $4.04, the equivalent of 11.40%. Today's plummet is the worst for the company since 2000. Microsoft is worth $32 billion less since the Surface RT announcement. “We know we have to do better and this is one reason we made the strategic and organizational changes last week,” Microsoft chief financial officer Amy Hood said today during its Q4 earnings conference call. “We are confident we are moving in the right direction.”
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