Analysts have been questioning the
success of the Surface tablet computer for a while, but the buzz got louder at
the end of May when Microsoft trimmed $150 off the price of the unit. At the
end of July, a report to the Securities and Exchange
Commission showed Microsoft lost more money on the Surface than expected and apparently
took in just $853 million in revenue related to the device, nearly $50 million
less than the $900 million write-down required to accommodate the price
reduction.
Despite the bleak outlook, recent
information suggests that both Nvidia and
Qualcomm are working with Microsoft on a second-generation device. The new tablet
will allow Microsoft to offer Outlook, which was not available on the
first-generation Surface.
“It’s a killer app for Windows,” said
Jen-Hsun Huang, CEO of Nvidia, to c/net. "Now, we’re going to bring it with the
second-generation Surface. We’re working really hard on it and we hope that
it’s going to be a big success.”
Bloomberg reported that Microsoft
could be planning at least two more Windows RT devices with a smaller 7- or
8-in. screen using the Qualcomm chip and the 10-in. screen currently in
production staying with the Nvidia processor. While Microsoft isn’t commenting,
it did present a slide show in July that included updated Surface tablets and
accessories in a variety of colors. CEO Steve Ballmer reportedly told employees
that new devices are being tested.