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Despite disappointing early results for its homegrown tablet, Microsoft is pressing ahead with its Surface hardware strategy, preparing a next-generation Surface with incremental improvements, CEO Steve Ballmer assured employees this week.

Microsoft CEO Steve Ballmer at an earlier employee meeting. (Microsoft photo)

That’s according to The Verge and Neowin, which have inside details from an internal town hall meeting at Microsoft this week led by Ballmer and Kevin Turner, the company’s chief operating officer.  Ballmer told employees that the reaction to the new Surface has been positive inside the company, Neowin reports.

This might seem obvious to the outside world, but Ballmer also acknowledged during the meeting that the company’s sales of Windows PCs, tablets and phones aren’t living up to its own expectations, according to the reports.

“We’re not selling as many Windows devices as we want to,” he said, according to The Verge. Ballmer also acknowledged that the company made “a few more” Surface RT units that it could sell — requiring the company to cut the price and take a $900 million charge against its quarterly earnings last week.

Among other topics, Ballmer also talked about the need to land an official Instagram app for Windows Phone, according to the reports.

More: The Verge and Neowin.


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