Home Business Microsoft in Hardware – A Major, Major Mistake

Microsoft in Hardware – A Major, Major Mistake


Established in the year 1975, Microsoft has been a name which has been one of the most dominating forces in the markets of technology.

The company has been coming out with several innovations in recent times, and has been daring to go beyond their usual territory, which is the markets of software technology, where they hold a commanding position.

Microsoft has now been tapping into the hardware industry, but the results are not what they were expecting out of it.

The company’s hardware presence used to be limited to the XBOX consoles in the past, but in recent times, Microsoft has diversified into various bigger segments.

The pace of their hardware ventures accelerated when they  took over the Nokia mobile phone business.

In October of 2015, the company came out with a new line of Lumia devices as well as newer surface launches, including a surface laptop – the surface book.

However things have been going downhill for Microsoft as the company has been facing major losses. The company has been beaten down fair and square in the XBOX division, as the PS4 has managed to sell double the devices.

While the lifetime sales for the XBOX are limited at just 19 million units, the PS4 sales stand tall at over 40 million devices having been sold already.

While much was expected from the company’s hardware ventures, atleast in the Surface division, the devices have been selling good, but not just good enough.

The iPad Pro, as per the latest statistics that have been revealed, has beaten the Surface devise clean in the month of December in terms of sales volumes.

Furthermore, the ill luck that Nokia brought the company has been known for quite a while. While last year, it was brought to light that Microsoft has lost close to $8 Billion over mobile phone sales last year, and nearly 8000 employees had to be let off, the company is in even more troubled times now.

It has now been brought to light that the sales for the entire year were quite dismal and the company has sold only 50% of what they sold in 2014 in the year 2015.

It now looks like Microsoft will be scrapping the Lumia series of devices and might start working on the Surface phones more seriously as that seems to be the only way out for now.