Satya Nadella has not been listening to all the people who have helpfully explained that Microsoft needs to abandon the hardware business.
Microsoft will exit the Surface business by 2019. Two grounds: Satya Nadella is a software guy, he’s a shadow person. He previously tolerated[ Microsoft’s] mobile phone business to decline. Secondly, the Surface’s performance is choppy, it has had good one-fourths and bad quarters but overall it is not making money. It doesn’t make sense for them to be in this business. And when the capital expenditure challenge that Satya Nadella is taking Microsoft down becomes discernible to Wall street … he will have a lot of cost cutting to do, and Surface will be the first target.
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