Microsoft takes a $900M hit on Surface RT tablets no one wanted

July 18, 2013
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Ahead of the bad news, Microsoft recently announced a $150 price drop on the Surface RT to $349 which may not still be enough to clear out the inventory.  

On the other hand, an IHS teardown of the Surface RT product last November said the bill of manufacturing and cost to build Surface RT with keyboard cover (not included in the new $349 price) was estimated at $284 and has probably come down since then. So perhaps even steeper discounts are in the offing.

The big issue with Windows RT is apps. While it does include Microsoft Office software, the ARM-based tablet doesn't run older Windows software so the library of available apps is considerably less than what Android and iPad offers.

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