In July 18, Microsoft announced a US$900 million write-down that reflected the unsold inventory of the company's Surface RT. Its poor market performance signified that it was not received well by consumers. Analysts said that the tablet boasted with excellent technical specifications however, Microsoft failed to gain buyers due to the company's weakness in reaching out to customers.
The problem in branding was not so simple for Microsoft. The consumer base of Microsoft included business and IT customers including the average buyers. Analysts believed that if Microsoft did not clutter the boxes of its products with minute details of technical specifications, upgrade offers and features, a tech-savvy buyer would have held it next to an iPad's box and not know which one to buy. The ability to provide a simple photo of the device with the most needed information about it would allow Microsoft to get the attention of the common consumers. However, analysts added that the internal reorganization of the company would help it change how its products were branded. It would attain a better reception for its Surface tablets and possibly vie against Apple products if it would change its branding strategy.
Microsoft reported that its revenue for the quarter was up 10% from last year. The company's earnings were nearly US$5 billion in contrast with a US$492 million loss in 2012. Also, its profit was almost 30% higher compared with its reported profits in 2012.
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