Lately, there have been a lot of buzz about Microsoft planning to shut the Surface lineup by 2019. The buzz naturally created a lot of confusion. However, at this point, it is essential to note that this rumor was purely speculation-led, and that it had no claims to have any insider information whatsoever. The rumor was seemingly aiming in the dark. Also Read - Xbox Series X restock in India possible by early August, no news on Series SAlso Read - Xbox Game Pass: List of games coming to consoles in July, big games releasing next month
According to The Register, CEO of Canalys market research said that Microsoft would exit the Surface product line because the company is a software guy, a cloud guy”. He also pointed to the demise of the smartphone line as corroborating evidence. The Surface performance is choppy, he said. There are good quarters and bad quarters, overall they are not making money. It doesn t make sense for them to be in this business. When the capital expenditure challenge that Satya Nadella has taken Microsoft down becomes visible to Wall Street, everyone will ask him Why have you gone to a low margin business? [Microsoft will have a lot of cost-cutting to do, he claimed, and] Surface will be the first target. Also Read - Top 5 Minecraft Mobile seeds to build a world and where to find them
But here what is important to know, that this is pure opinion, and not a fact. Also quoted by The Register is a statement by Lenovo corporate president Gianfranco Lanci saying, Microsoft is making a lot of money on cloud, making a lot of money on Windows and Office, but losing a lot of money on devices, he said. And frankly speaking, it is difficult to see why they should keep losing money. For them it is a very difficult exercise to run hardware products business, they need to be careful about every single detail as the margin on this is so thin.
Again, an opinion!
Though we re talking about Microsoft and anything could really happen, however at this point the reports that claim the end of the Surface line, can be safely categorized as speculations. Until there s some official announcement or at least an insider information, we need not worry about the future of Surface. ALSO READ: Windows 10 Mobile isn t the focus anymore: Joe Belfiore