Advertisement
Canada markets open in 2 hours 28 minutes

  • S&P/TSX

    21,656.05
    +13.18 (+0.06%)
     

  • S&P 500

    5,022.21
    -29.20 (-0.58%)
     

  • DOW

    37,753.31
    -45.66 (-0.12%)
     

  • CAD/USD

    0.7269
    +0.0006 (+0.08%)
     

  • CRUDE OIL

    81.72
    -0.97 (-1.17%)
     

  • Bitcoin CAD

    85,213.54
    -1,417.07 (-1.64%)
     

  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

  • GOLD FUTURES

    2,397.60
    +9.20 (+0.39%)
     

  • RUSSELL 2000

    1,947.95
    -19.53 (-0.99%)
     

  • 10-Yr Bond

    4.5850
    0.0000 (0.00%)
     

  • NASDAQ futures

    17,711.25
    +52.75 (+0.30%)
     

  • VOLATILITY

    18.01
    -0.20 (-1.10%)
     

  • FTSE

    7,861.94
    +13.95 (+0.18%)
     

  • NIKKEI 225

    38,079.70
    +117.90 (+0.31%)
     

  • CAD/EUR

    0.6807
    +0.0005 (+0.07%)
     

Weak Sales Of Microsoft's Surface RT Tablet Force It To Take A $900 Million Writedown

Jay Yarow
microsoft surface
microsoft surface

Microsoft

Earlier this week Microsoft slashed the price of the Surface RT to $350, down from the original price of $499.

As a result of that price cut, the company is taking a $900 million charge, which is equal to a loss of $0.07 per share.

The charge reflects the new market value of the Surface RTs that are in Microsoft's inventory, the company's IR boss, Chris Suh explained to us over the phone.

He said Microsoft believes this new price point will help it start selling Surface RTs. He says Microsoft remains "100% committed" to the Surface business.

He also stressed that this was a Surface RT problem, not a Surface Pro problem. He says Microsoft doesn't have the same inventory issue with Pro. This suggests that Microsoft either ordered fewer Pros, or demand is better because it's a more powerful tablet and makes more sense for enterprises.



More From Business Insider