In 2000 Microsoft (NASDAQ: MSFT) endured a 15 percent drop in shares. From that day forward the Windows icon aimed for the stars and succeeded. Until yesterday when jaws dropped as Microsoft witnessed over 12 percent of their stock shares fall.
After the management change announcement, dubbed as ‘One Microsoft,’ and the release of the RT Surface tablet, hopes were high. Unfortunately, hopes don’t pay the bills and results dissipated once the markets closed on Friday. The organization suffered a $900 million loss once the fiscal quarterly reports for 2013 were completed and reported. The organization attributed the loss to what they called “inventory adjustments.”
Microsoft seems to be hanging from the bridge with slippery fingers. The excitement for Windows 8 on the flagship device of the Surface RT was to drum up sales, not tumble over a 12 percent loss. The organization gambled with a chance and is losing very quickly. Windows 8 is ailing in the comfort level of Windows 7 for many users. Its reminiscent of Windows XP and the public’s outcry of Vista.
The Surface RT was slated to make a legendary splash, all signs pointed to “YES to Success!” The biggest feature of the RT was its compatibility with every piece of hardware that was powered by Microsoft. Glares and glum from the development team have only one item to blame. The iPad.
The RT came with a brilliant 10.6 LCD screen, and adapted for those on the go with an attached keypad. It was the one item many consumers grumbled iPad did not have. The RT is under two pounds, has a 2GB memory and runs a sharp resolution of 1366×768 with a PPI of 148. Basically, the RT came dressed to impress. Unfortunately, the iPad just kicks mostly every competitor out of the tablet arena.
Consumers don’t bump into one another asking, “hey is that a Surface RT? A ASUS? Galaxy Tab?” The most generic name for tablets is Microsoft’s biggest nightmare; “iPad.” iPad is synonymous with tablet and there has been no other brand who has edged away that ability of correlation.
iPad continues to brand itself because it is a different experience than their Mac desktops. Apple doesn’t want consumers feeling as if they are carrying their computers around. While some consumers grumble about the iPad sans keyboard, many more compliment the ease and portability it offers. The apps accessible on the iPad is similar to the iPhone, with the ability of movie viewing on a bigger screen.
Windows stumbled over a stone when it came to prepping the RT for portability. The developers basically created a hybrid of tablet and PC. The Microsoft app market has been fledgling for awhile. A greater concentration on licensing apps would be idea before Microsoft continues to tread into the deep waters of the mobile world without an ability to swim.
Now, Microsoft sits in a warehouse full of unsold product, or rather what they call “inventory adjustments,” while iPad continues to flourish. The result of striving to compete, instead of redesign– reflected in shares plummeting to a second all time low of over 12 percent. Microsoft is not ready to admit defeat and quietly, this writer is rooting for them. The Surface RT is a fantastic product, the specs are great. It just seems more suitable for a laptop experience rather than a portable tablet one. Let’s hope Microsoft will learn from a very expensive $900 million mistake.