7 Major Missteps For Microsoft's Surface

The Inventory Overestimate

Microsoft dropped a bombshell last month when it announced it had taken a $900 million charge in its fiscal fourth quarter over "inventory adjustments" related to Surface RT. Despite price cuts to the device, Microsoft was left holding too many unsold Surface tablets. Later, Microsoft CEO Steve Ballmer (pictured) reportedly confessed in a company meeting that the software giant overestimated demand for Surface and built more devices than it could sell. The $900 million charge led to more problems for Microsoft, as a New York law firm filed a class-action suit against the company claiming Microsoft executives misled shareholders about the sales of Surface RT tablet, which the firm called an "unmitigated disaster" in the complaint.


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