Walmart Sells Out Of Their Surface RT Stock

Microsoft recently took nearly a billion dollar charge and reduced the price of the SurfaceRT to $350.  It appears the price point has helped move some units of the SurfaceRT with Walmart now out of stock of the device.  Walmart expects to have more units on hand within the week.

Directions on Microsoft analyst Michael Cherry notes:

The $900 million write-down also included parts and accessories, Cherry noted. And many forget that Apple is the master of tying up critical elements of components the company needs in order to build an adequate supply of consumer electronics.

“When Microsoft decided to step into the world of building tablets I wondered how this differed from what they already built (mice, keyboards, and Xboxes),” said Cherry. “I assumed that a lot of money went into: a) buying parts; b) buying time in a plant; and c) building sub-components such as milling the metal chassis that they were going on about so much.”

Because Microsoft was intent on keeping its Surface RT plans secret, Cherry said he assumed a lot of the company’s component/part purchasing was done at the last minute, and therefore, “had to cost a lot.” In some cases, Surface parts might have been shipped by air rather than container ship, for example, in order to meet last-minute deadlines.

“They also likely had to pay a lot to hold capacity open in case it really took off, which now, there may not be a need for,” Cherry added.

Source: Mary-Jo Foley

Image Credit: Robert McLaws, CTO of AdvancedREI

 

About the author  ⁄ Suril Amin

Suril is a scientist, journalist and obsessive Microsoft observer. He holds an advanced degree in Biotechnology with minors in Biochemistry, Microbiology, and Molecular Biology. Send him tips on twitter: http://www.twitter.com/surilamin

  • b4rtw

    No offense to this article, or Mary-Jo Foley, but if I read the words ‘assumed’ and ‘likely’ this much in an article, I start questioning the usefulness of it……

  • efjay

    All 5 of them?

    • nohone

      We hear over and over about how there are supposedly millions of Surface RTs sitting on store shelves at places like Wal-Mart with nobody wanting to buy them. But when they sell out, there were only 5 of them on the very store shelves people claimed were overflowing with stock. So which is it, there were millions, or there were 5?

      • Alex_Horse

        Do not waste your time on dicks. He is not interested in the intelligent conversation.

  • coip

    They should’ve launched at Wal-Mart and all other retailers simultaneously last year, when the device launched. Had they done that, Surface RT version 1 would’ve been sold out long ago.

  • deathdealer351

    $299 & $350 for the 64gb at launch with keyboard option for $50 they needed to loss lead to get #s but Sammy and Acer bitched. But where are they now? Enjoying android success while Ms eats it with RT.

    • Kruegerman

      Dafuq did you just post?

  • koenshaku

    Every SKU is rolled back too interesting. Well hopefully their app eco system improves on RT from this.