Microsoft Decides To Cut Production Of Surface Accessories: Report

In the wake of a decline in the PC industry, Microsoft is scaling back production of peripherals for its flagship Surface computers.

As per IDC, Microsoft's global shipments of detachable tablets fell last year by 13.3 per cent.

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In the wake of a decline in the PC industry, Microsoft is scaling back production of peripherals for its flagship Surface computers, the media has reported.  According to a report by Nikkei Asia, which cited four suppliers, as part of the production cut, the tech giant will no longer make standalone keyboards under the Surface brand.

Microsoft's Surface series includes 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," the Nikkei Asia report noted.

The company has not commented on the report.

According to the market intelligence firm IDC, Microsoft's global shipments of detachable tablets and notebooks fell last year by 13.3 per cent and 5.7 per cent -- 4.7 million and 1.7 million units - respectively. The shipments for desktop computers were at 38,000, down 25 per cent (on-year), in 2022.

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

The global PC shipments declined by a record 30 per cent (year-over-year), totalling 56.9 million units in Q1 2023.

Microsoft's Surface series was first introduced in 2012 and is known mainly for its tablets -- the Surface Go, Surface Pro and Surface Book -- which can be turned into notebooks using detachable keyboards. It also includes desktop and notebook computers, as well as wireless devices such as headphones.