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Analyst claims Microsoft could end tablet and laptop line

The Surface is Microsoft’s flagship line of Windows devices, with the Surface Pro, Surface Book and Surface Laptop offering a premium PC experience.

However, one analyst has made the prediction that the end is coming soon for the Surface.

Steve Brazier believes that when 2019 comes along, Microsoft will decide to scrap the Surface product line.

Mr Brazier, the chief executive of analyst firm Canalys, made the prediction at the recent Canalys Channels Forum in Venice.

He said that Microsoft CEO Satya Nadella would scrap the product line as he’s a “software guy, a cloud guy”, according to The Register.

Brazier, to back up the statement, also pointed towards the demise of the Windows smartphone line.

He said: “The Surface performance is choppy; there are good quarters and bad quarters, overall they are not making money.

“It doesn’t make sense for them to be in this business.

“When the capital expenditure challenge that Satya Nadella has taken Microsoft down becomes visible to Wall Street, everyone will ask him ‘Why have you gone to a low margin business?'”

Mr Brazier claimed Microsoft will have cost-cutting to do and “Surface will be the first target”.

A bigwig from Windows laptop maker Lenovo also backed up Mr Brazier’s claims – and said the end for the Surface could be even sooner than 2019.

Gianfranco Lanci is the corporate president and chief operating officer at Lenovo.

Speaking at the Canalys forum about Mr Brazier’s prediction the Surface would be scrapped in 2019, he said: “It might be earlier.

“Microsoft is making a lot of money on cloud, making a lot of money on Windows and Office, but losing a lot of money on devices.

“And frankly speaking, it is difficult to see why they should keep losing money.

“For them it is a very difficult exercise to run hardware products business, they need to be careful about every single detail as the margin on this is so thin.”

Express.co.uk has contacted Microsoft about Mr Brazier’s and Mr Lanci’s predictions that the Surface could be scrapped soon.

Speaking to The Register, a spokesperson had said: “Surface continues to drive category growth and redefine the way people create, learn and work.

“You’ll see us continue to innovate and create devices that offer users new and impactful experiences.”

The Surface first launched back in 2012, and in Microsoft’s last reported fiscal quarter Surface revenue was down two per cent.

This was a 26 per cent drop on the year-on-year figures.

In December last year Microsoft claimed its best sales to consumers ever for the Surface, according to Techradar.

In a blog post at the end of last year Brian Hall, CVP Microsoft Devices Marketing, said: “Our trade-in programme for MacBooks was our best ever, and the combination of excitement for the innovation of Surface coupled with the disappointment of the new MacBook Pro – especially among professionals – is leading more and more people to make the switch to Surface.”

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