Editor in Chief
Here's a rumor we hope turns out to be utterly false. Supposedly, Microsoft is considering canceling the Surface product line. According to insider intel from Microsoft's supply line, the reason they are considering this move is because sales of the Surface Pro 3 have not met executive expectations. Supposedly, the Surface Pro 3 hasn't even cracked 1 million units sold yet, and may not.
In fact, Microsoft supposedly took at least $1.7 Billion in losses from the first two generation Surface products, and because of these mounting losses, Microsoft is likely to terminate the product line. It's worth noting that these rumors come from DigiTimes. They are typically one of the best sources of intel from the Asian supply line; however, their accuracy rate on intel is "spotty" at best, so take this with a grain of salt.
Here's a quote from the DigiTimes article,
Lacking a sufficient number of distribution partners, plus high prices, the first- and second-generation Surface tablets are estimated to have created losses of about US$1.7 billion, the sources noted.
Seeing large-size smartphones impacting tablet demand, the sources are concerned about upcoming demand for the Surface Pro 3.
With the factors above, the sources believe sales of the Surface Pro 3 are unlikely to surpass one million units, adding that Microsoft is also not very aggressive about development of a next-generation Surface and is likely to terminate the product line.