Microsoft has lost billions trying to become a hardware maker in vain, mice and keyboards aside (those are not needed for non-desktop machines, so these too may pass). Notable failures include Xbox, which is reportedly still operating at a massive loss, not to mention phones and media players. Hardware is a big loss leader for the company [1, 2, 3], unless the online business outpaces it in terms of losses.
KIN had many flaws, but those didn't get so much coverage because hardly anyone had such a device. Despite denials, Surface seems to have serious hardware issues, not just Windows issues. May we see class action lawsuits at some stage? Hardware problems often lead to that.
Microsoft's booster Gavin Clarke does some PR for Microsoft's last attempt to seem legitimate as a player in hardware. He cites this vague nonsense from Ballmer.
Sales of Microsoft’s Windows RT-based Surface tablet are off to a “modest” start according to chief executive Steve Ballmer.