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When 200-400 Million in revenue is't worth it


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Microsoft reported the *new* Surface Pro 3, released June 2014, out sold the *year old+* Surface 2, released October 2013, three to one in the last Quarter. Estimates put total surface sales for the quarter at 1 million units so that's 750K SP3 and 250K Surface 2.

If we kill the Surface 2 that will mean more Surface Pro 3 sales right? Not likely, as stupid as people are about products, they are not that stupid.

Using similar estimating techniques we assume the average sales price for the three units listing at 449 32gb/549 64gb/679 LTE less discounts to be $400 yielding quarterly revenue of 100 million dollars and annual revenue of $400 million. Too much you might say... OK cut that estimate in half to $200 million.

Arguably Tablet sales have reached a *plateau*... what does that mean... sales numbers are not increasing or possibly decreasing? Or just NOT Growing as fast as before. NOTE Gartner reported the tablet market sold roughly 200 million units in 2013, 250 million units in 2014 and is expected to sell 320 million units in 2015.

Oh dear; what if the tablet market only sells 250 million units in 2015, I fear the Earth may explode and the world will cease as we know it.

Hmm, Interesting dynamic. Id recon a lot of businesses would love to sell a couple hundred million dollars worth of product. Even other Tablet makers would love that number even though it's a mere fraction of the total market. What an abysmal failure.

On the news of Surface 2 terminating production I think I just heard 15 new Android tablets launch hoping to fill the void and grab a piece of that revenue. :)

Android thanks you, and thanks for playing, better luck next time... Losers!
Agreed, Microsoft has left the tablet market. What they created, in the ARM devices, met my needs. Screen size and product size of RT and S2 met my needs. Now they've decided it doesn't meet theirs? Microsoft, it will be hard to trust you in the future.

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