Micorsoft shares have slumped 7 per cent as the Software giant has admitted that poor Surface tablet sales have cost it $900 million
It’s been just under a year since Microsoft unleashed its Surface tablet on the world, and the world, it seems, has been rather luke warm in its response.
The software giant admitted on Thursday in an investor call that the poor sales of its tablet since its launch last year in October have cost the company $900 million in “inventory adjustments”. Following this announcement, Microsoft’s shares plunged 7 per cent to $33.10 at the end of trading yesterday.
Microsoft’s chief financial officer Amy Hood said during the investor call: “We know we must do better. We are confident we are moving in the right direction”.
“This journey will take time,” she said.
The news comes just days after Microsoft slashed the price for its tablet in the UK by 30 per cent. Gaming website Eurogamer reported that the 32GB Surface will drop from £400 to £279, while the 64GB edition will be sold at £359. Microsoft also announced Surface price cuts in the North American territories.
It’s hoped that the recent price drop will encourage Surface sales, which have been lacklustre to say the least. CVG reports that Microsoft produced around 4 million Surface tablets at launch, but have only managed to sell about a quarter of tem.