Microsoft, it appears, has spent close on to $1 billion on this product from inception to store, well 20 stores actually if you discount mail order.
Many things have been blamed for the failure of this device that got pretty good reviews at release, those errors of judgement include waiting for two and a half years, allowing Apple to get in there and grab the market. Too expensive - the Surface, with its' cover, was $100 dearer than the cheapest full sized iPad.
Of course, if you had an iPhone, it made sense to get the iPad over the Surface because just to be able to use those apps and the iTunes full of your music. Microsoft have only just lowered the price of the Surface so it beats the iPad.
The other key pointer, suggested to be of blame for the failure of the Surface, is that it was only available over the counter from 20 stores across the US. This was the number of Microsoft branded stores where it was available from - the ONLY stores it was available from!
Despite this, good old Microsoft are not going to give in. It would seem that they plan to release a newer version of the Surface within a year.
On a slightly different note, Microsoft seem to be making inroads with their Windows phone - the ideal place for Windows 8 without the desktop feature - knocking Blackberry off the 3rd place slot.
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