Microsoft has reported the results of its most recent financial quarter, and tablet fans should take notice that the company had to take a charge of nearly a billion dollars to write off Surface RT units that it isn’t going to be able to sell.
Not all of these are going to end up in landfills. Microsoft is offering them to teachers and schools at $200, which is almost certainly below the cost of production.
In addition, the Surface RT is now available to consumers for $350, what must be close to Microsoft’s own cost.
A Bad Quarter
The $900 million charge was just part of a generally bad quarter for the Redmond giant. While they made a profit of $4.97 billion, this was at 59 cents a share, while analysts and investors had been expecting 75 cents a share. Microsoft’s share price dropped 10% in the wake of this announcment.