Microsoft to cut production of peripherals for Surface laptops

Technology major Microsoft has cut production of peripherals for its Surface laptops in the wake poor demand for its devices, Nikkei Asia reported.
Microsoft StoreMicrosoft will not make standalone keyboards under the Surface brand.

Microsoft’s Surface series has Surface Go, Surface Pro and Surface Book as key brands. It also includes desktop and notebook computers, as well as wireless devices such as headphones.

The decision to reduce production of some peripherals suggests that even the tech giant is moving to consolidate its development resources amid the wider industry downturn.

Microsoft’s global shipments of detachable tablets and notebooks fell last year by 13.3 percent and 5.7 percent — 4.7 million and 1.7 million units – respectively, according to the IDC.

The shipments for desktop computer were at 38,000, down 25 percent (on-year), in 2022.

The global PC shipments declined by a record 30 percent to 56.9 million units in Q1 2023.

Microsoft said its devices revenue decreased 30 percent in January-March 2023. Microsoft’s revenue in Personal Computing business fell 9 percent to $13.3 billion during January-March 2023.

Microsoft during the analysts’ call after posting quarterly results said that in its consumer business PC demand was a bit better than expected, particularly in the commercial segment, which benefited Windows OEM and Surface even as channel inventory levels remain elevated, which negatively impacted results.