According to Digitimes, sales for the product have been weak and Microsoft is disappointed with its performance. That’s according to unnamed sources from the supply chain.
Microsoft has also failed to set up an adequate distribution chain and at the same time high prices for the products have put many people off.
Digitimes estimates that Microsoft has lost around $1.7 billion on the first two generations of its tablet.
Microsoft has another problem too. Competitors have introduced smartphones with large screens and that has affected peoples’ buying choices.
Microsoft hasn’t had much luck with hardware, with one notable exception.
That’s the Microsoft mouse.