Microsoft cuts Surface accessories production as PC sales slow: Report

SAN FRANCISCO: As global PC industry faces a heavy slump, Microsoft has reportedly cut production of peripherals for its Surface series of laptops.

Nikkei Asia reported, citing suppliers, that Microsoft will no longer 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," the report mentioned.

Microsoft did not comment on the report.

According to the 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 computer were at 38,000, down 25 per cent (on-year), in 2022.

During the 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.