In the last quarter Microsoft revealed a 26% drop in income from the sale of Surface computers.
Recent reports published in China accuse one of Redmond’s major suppliers, ODM Pegatron Technology, of having reduced orders, a direct consequence of falling sales, but that may not necessarily be a bad thing.
Of course, something like this may have happened because of the delay in launching a new version of Surface Pro, but we cannot help but think that one of Microsoft’s main intentions with the Surface line may have been achieved.
As we all know, Microsoft profits much more from software sales than hardware, but Satya Nadella’s company has decided to start making PCs, laptops and 2-in-1 to ‘inspire’ manufacturers to follow their ideas.
Proof of this is that the price of their products is considerably higher than the competition – strategy adopted not to ‘cannibalize’ the sale of their own customers, of course.
Despite this, Chinese website Digitimes pointed out that Microsoft expects an increase in hardware profits by the end of the year, as a result of the launch of the Surface Laptop , which hit the market at $999 (slightly more affordable than The Surface Pro).
That is, selling more or less Surfaces, in the end, Microsoft is profiting the same way. We hope that the excellent sales results of the competition will not discourage the company from always following innovations, that it will continue to launch quality products that ‘inspire’ the evolution of the technology market.
In other news, Microsoft confirmed the rumors by announcing today that as part of a reorganization plan, it intends to discontinue thousands of positions within the company.
The Redmond giant, which will focus more on cloud services , is expected to terminate the contract by at least 3,000 positions , with redundancies impacting mostly the sales force (about 10 percent of the positions selected for the cut ).
Speaking of the number of laid-off employees, The Verge says it’s “already in the thousands” – but it’s worth noting that numbers have not been officially released or confirmed by Microsoft.