Ballmer Admits Surface Mistake at Town Hall Event

According to sources within Microsoft, the company's top executives are not happy with sales of devices running the firm's Windows 8 operating system. Recently, chief executive officer Steve Ballmer was very blunt in discussing problems affecting the Surface tablet computer.

Two technology blogs -- The Verge and Neowin -- say they've learned from sources who attended a recent internal town hall event that Microsoft's top brass is very upset with sales of Windows 8-based devices.

"We built a few more devices than we could sell," Ballmer reportedly said in reference to the Surface RT tablet computer. Microsoft has nowcut the price of that device by $150 to just $349. (Source: theverge.com)

Mobile Market Weakness a Growing Concern

Microsoft's recent quarterly report revealed the firm had lost a whopping $900 million on the Surface RT. The news resulted in a sudden and sharp decline in the value of Microsoft's shares.

Ballmer was also clearly concerned about sales of Windows Phone devices. Despite steady growth, the Windows Phone platform continues to account for just a tiny share of the growing mobile market.

Windows Phone recently passed BlackBerry to take third place in what is -- for all intents and purposes -- a two-man race. Together, Android- and iOS-based devices account for an astounding 92 per cent of all smartphone sales. (Source: pcworld.com)

New Hardware, Best Buy Stores a Source of Hope

Nevertheless, Ballmer remains hopeful for the future. Those attending the internal town hall event were told by their CEO that he expects the Surface to bounce back with the inclusion of a new Qualcomm Snapdragon 800 processor.

It's expected the change will not only improve the Surface's speed for browsing the web and playing games, but will also help extend the device's battery life.

Ballmer also sees hope in Microsoft's expansion into the brick-and-mortar retail space. The firm is getting ready to open mini-outlets in about 600 Best Buy stores across Canada and the United States. (Source: theverge.com)