Microsoft was in a dire straits recently. The company had a pretty rough week. It announced "disastrous" earnings that sent its stock plummeting 11%.
A big factor for the dismal results was the inventory adjustments for "Surface RT". The write down amounted to US$900 million. However, a Techcrunch report stated that even without this write down, the results would still have been bad for the quarter.
Microsoft believed the Surface RT would have users "clamoring to touch their screens." However, the reality was the "ill-conceived device" confused users. Most of the time, users found that touching a large screen was "just awkward and ultimately useless."
"If the earnings show one thing, it's that outside of its business and enterprise offerings (which delivered relatively good results), Microsoft just doesn't have any products right now that consumers want to buy," said Techcrunch.
Clearly, Microsoft's idea of "Touch first" was wrong. Now Ballmer, the company's head executive, was trying to reorganize the company. The fruits of this planned move will not be seen immediately. "The question now is how long it'll take for Microsoft to get back on the right course."
Join the Conversation