Microsoft Killing Off Its Surface Business ‘Is far From the Truth’, Says Panos Panay

Microsoft not killing Surface lineup

Rumors circling around the axing of Microsoft’s Surface lineup have been denied completely by the company’s executive, noting that the tech giant is in this business for the long haul.

Lenovo COO Still Believes Microsoft Is Losing Money on Surface Devices - Company Is Not Running for the Exit Anytime Soon

Microsoft’s Vice President of Surface devices Panos Panay refuted all claims that the software giant would be heading towards the exit as far its hardware business goes.

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“It's so far from the truth. Tabloid rumor of the week.”

However, while the company continues to update and hopefully improve Surface devices, Gianfranco Lanci, Lenovo's Chief Operating Officer, believes that Microsoft is losing money in the hardware division.

“Microsoft is making a lot of money on cloud, making a lot of money on Windows and Office, but losing a lot of money on devices.”

Though Microsoft’s Surface business revenue fell 2 percent in the company’s recent quarter, it does not appear the company is going to be calling it quits as improvements in Surface devices lead to overall improvements in the industry. In short, what this means is that accessories that are compatible with this hardware such as the Surface Pen have improved considerably, as well as the Windows 10 experience.

However, when questioned upon Microsoft’s write off of $900 million of unsold Surface RT tablets, Panay said that it made the company and its employees work even hardware.

“There was no loss of confidence. There was a real belief in how we can change the world.”

This year, Microsoft introduced the Surface Laptop in May, finally transitioning to standalone premium notebooks but if the company is able to command better pricing of its products, we believe that its Surface business will be in existence for the foreseeable future.

News Source: The Register

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