14 DAY TRIAL // Microsoft is about to lose its famous CEO Steve Ballmer, so whoever comes next will have a pretty difficult job trying to get the Redmond-based tech giant back on track.
One of the problems the upcoming CEO will have to deal with is Microsoft’s inability to stay relevant beyond the PC, an analyst explained, as the company has until now failed to make a name for itself in both the tablet and the smartphone market.
“Complacency and a lack of innovation caught up to them,” said Yun Kim, an analyst at Janney Capital Markets, according to Canadian Manufacturing. “It’s their inability to stay relevant beyond the PC.”
Microsoft has tried to expand into the tablet industry with Surface, a device promoted as the best mix between a laptop and a tablet. The Surface has always been marketed as a portable unit capable of providing on-the-go productivity, thus appealing to a wide array of buyers.
The problem was that Microsoft was late to the tablet party, so the Surface has recorded pretty low sales, despite the company’s efforts to aggressively advertise it all over the world.
Microsoft has invested a fortune into product placement in several TV series across the US, while banners and online advertisements have been released all over the web.
In the end, the Surface has caused a $900 million (€680 million) loss for Microsoft, as the company was needed to come down to a pricey write-down in order to adjust inventories due to unsold tablets.
And still, under Ballmer’s guidance, Microsoft was ready to continue investing big in the Surface project, with the second-generation unit expected to go live by the end of the year.
It remains to be seen whether the new CEO is ready to continue Microsoft’s path to devices and service or the Redmond-based giant would finally stick to what it does best.