Microsoft made news (not the good kind) for a $900m write-down on its’ Surface RT tablet - which is different from Surface Pro which is different from a Windows 8 laptop because it doesn’t run all the Windows apps, just some of them, which…you get the picture. A lot of confusion, not just here but in consumers’ minds too…which may have led to the lackluster sales, a build-up of inventory and the $900m write down denouement – last week.
And then it slashed prices on the tablet. And also released ads attacking the iPad (above).
J P Gownder, a VP and Principal Analyst at Forrester, writing on this topic, concludes that
The bottom line is that “protecting” Windows RT by keeping Office off of Apple’s iPad and Android tablets isn’t working. It’s instead creating risk for Office as users find other ways of getting things done. If 10% of the 140 million iPad owners bought Office for $99.99, Microsoft would earn $1.4 billion in topline revenue – or $500 million more than the Windows RT write-down last quarter.
Microsoft – are you going to bite the bullet and go after that revenue? Or are you going to dig in and open a new front in the Tablet wars?