It seems that Microsoft’s Surface may be the next on the chopping block, according to estimates from Lenovo, Dell, and Canalys.
Rumors suggest that Microsoft’s Surface won’t make it to 2019
Gianfranco Lanci, the corporate president and chief operating officer at Lenovo surprised everyone at the Canalys Channels Forum. His words were really pessimistic because he believes that while Microsoft is making lots of cash on cloud, Office, and Windows, the company is losing money due to other devices. He also stated that it is really difficult to understand why the company should keep losing money. He believes that running a hardware products business is indeed challenging for Microsoft and that’s why the company should be more careful with this area.
At the same time, Lanci also predicted that Microsoft would shutter the hardware business by 2019.
Dell says that Microsoft will slow down
Marius Haas, Dell’s chief commercial officer, said that the Surface range served its purpose. He thinks that it’s surprising that Microsoft uses its hardware to demonstrate the capabilities of the software.
Canalys believes that Microsoft would exit product line
Canalys’ CEO analyst Steve Brazier thinks that Microsoft’s CEO Satya Nadella would exit the product line because he is more of a software and cloud person. He also spoke about the demise of the phone device. His opinion is that the Surface’s performance is choppy and when the time comes for Microsoft to make cost cuttings, the Surface will be the main target.
We don’t know if all these indications are correct, but these opinions underline an inevitable fact: a lot of confidence has been lost in Microsoft’s willingness to stick with a product line. Instead of strategically investing more in platforms, the company keeps concentrating on high-growth.
Microsoft is optimistic
Microsoft’s response to all these is that the Surface continues to drive category growth and redefine creation, learning, and work. The company plans to innovate and create more devices that provide users with new and compelling experiences.
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