Satya Nadella has not been listening to all the people who have helpfully explained that Microsoft needs to abandon the hardware business.

Microsoft will exit the Surface business by 2019. Two reasons: Satya Nadella is a software guy, he’s a cloud guy. He already allowed [Microsoft’s] mobile phone business to decline. Secondly, the Surface’s performance is choppy, it has had good quarters and bad quarters but overall it is not making money. It doesn’t make sense for them to be in this business. And when the capital expenditure challenge that Satya Nadella is taking Microsoft down becomes visible to Wall Street… he will have a lot of cost cutting to do, and Surface will be the first target.

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