Microsoft share price: Company to abandon Windows RT?

on Nov 27, 2013
Updated: Oct 21, 2019
Listen, Wednesday, November 27: Comments by a senior Microsoft (NYSE:MSFT) executive suggest the company may be set to abandon Windows RT, the operating system designed to run on ARM-based processors. Speaking at a UBS seminar last week Julie Larson-Green, executive vice president of Devices and Studios at Microsoft, said that the company currently has three operating systems -Windows Phone OS, the Windows RT and full-blown Windows – but added that “we’re not going to have three”.

In today’s Nasdaq trading Microsoft shares were up 0.54 percent at $37.55 as of 14:30 UTC.
**“Neither fish nor fowl”**
Microsoft designed Windows RT to run on ARM architecture, which is widely used in tablets and smartphones as it allows for cheaper, less power-hungry processors than those based on Intel’s x86 architecture. Larson Green said that the aim of the Windows RT was “our first go at creating that more closed, turnkey experience [that Apple has on the iPad], where it doesn’t have all the flexibility of Windows, but it has the power of Office and then all the new style applications.”

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However, the platform has been unsuccessful, with only Microsoft and Nokia making devices that run on the system. Windows RT was used in Microsoft’s Surface RT tablet, the less-powerful, ARM-based model in the company’s own tablet line. The higher-end version, Surface Pro runs on a full Windows 8 and is powered by Intel chip.

The Surface RT, however, has proven unpopular amongst consumers, generating disappointing sales. At the end of the June quarter Microsoft had to write down $900 million on unsold Surface RT tablets. Abandoned by both customers and Microsoft’s OEMs (original equipment manufacturers), Windows RT seems the most likely candidate for a shutdown.

The Guardian quoted Richard Windsor, who runs the Radio Free Mobile consultancy, as observing: “I have long suspected which is that Windows RT will be killed off sooner rather than later.”
Windsor went on to say that while Microsoft “has not explicitly said that RT will be terminated”, that particular system “is an orphan child that sits between Windows 8 and Windows Phone and is neither fish nor fowl.”

“I am confident that RT will be quietly put to sleep during 2014,” Windsor added.
**As of 14:50 UTC buy Microsoft shares at $37.67**
**As of 14:50 UTC sell Microsoft shares at $37.66**
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