The Surface lineup of Windows tablets are not selling as well as Microsoft hoped. How bad are they doing? Really bad, according to analysis of Microsoft’s annual form 10-K by Todd Bishop of Geekwire.
According to the document, filed with the Securities and Exchange Commission, Microsoft has recorded Surface tablet revenue of $853 million between October 2012 and June 2013, which is the end of Microsoft’s fiscal year. Some number crunching by Geekwire suggests Microsoft sold only 1.7 million Surface tablet units in this eight month period. The amount of money Microsoft made from these sales is eclipsed by the $900 million charge the company recently took for unsold Surface tablet inventory.
To sell through this standing inventory, Microsoft chopped $150 off the price of the Surface RT tablet lineup. The base model now checks in at $349 and is apparently attracting some interest at this price. According to ZDNet, the Surface RT tablets sold out at Walmart following this price drop.