Leaked Microsoft memo points to high initial return rates for Surface Book & Surface Pro 4...
Problems with the Surface Book and Surface Pro 4 may be responsible for Consumer Reports's recent decision not to recommend the Surface line as a whole, a leaked Microsoft memo suggests.

Return rates for the Surface Book hit 17 percent at launch and stayed above 10 percent for the following six months, according to the memo by Microsoft's corporate VP Panos Panay, obtained by Paul Thurott. Returns for the Pro 4 hit 16 percent at launch, but fell under 10 percent a little over a month later.
Microsoft was one of the earliest adopters of Intel's "Skylake" processors, used in the Book and Pro 4, and Thurrott said that senior Microsoft officials complained about their bugginess. Those issues reportedly led to a decision to push ARM support in Windows 10, and as well as a conversation between Microsoft CEO Satya Nadella and Lenovo, in which Nadella asked how the latter was coping with Skylake reliability problems -- only to be told there weren't any.
In truth, Microsoft's custom drivers and settings were responsible, one source told Thurrott. The latest Surface devices -- the Surface Laptop and the fifth-generation Surface Pro -- are allegedly stopgap solutions meant to improve reliability, and have supposedly delayed the release of a mobile device codenamed "Andromeda," as well as a new Surface Hub, the latter now expected in 2019.
Improvements in both older and newer devices aren't reflected in the Consumer Reports survey, Panay wrote. He also suggested that some incidents described as "failures" -- like frozen screens or unresponsive touchscreens -- were minor problems quickly fixed by owners.
Favorable reviews and customer satisfaction are essential for Microsoft if the Surface line is to compete with Apple's iPads and MacBooks. The Surface Pro is sometimes held up as one of the best alternatives to the iPad Pro, since it runs a full desktop OS -- the iPad is dependent on iOS, which is comparatively restricted. Apple is looking to improve that to a degree with this fall's iOS 11.

Return rates for the Surface Book hit 17 percent at launch and stayed above 10 percent for the following six months, according to the memo by Microsoft's corporate VP Panos Panay, obtained by Paul Thurott. Returns for the Pro 4 hit 16 percent at launch, but fell under 10 percent a little over a month later.
Microsoft was one of the earliest adopters of Intel's "Skylake" processors, used in the Book and Pro 4, and Thurrott said that senior Microsoft officials complained about their bugginess. Those issues reportedly led to a decision to push ARM support in Windows 10, and as well as a conversation between Microsoft CEO Satya Nadella and Lenovo, in which Nadella asked how the latter was coping with Skylake reliability problems -- only to be told there weren't any.
In truth, Microsoft's custom drivers and settings were responsible, one source told Thurrott. The latest Surface devices -- the Surface Laptop and the fifth-generation Surface Pro -- are allegedly stopgap solutions meant to improve reliability, and have supposedly delayed the release of a mobile device codenamed "Andromeda," as well as a new Surface Hub, the latter now expected in 2019.
Improvements in both older and newer devices aren't reflected in the Consumer Reports survey, Panay wrote. He also suggested that some incidents described as "failures" -- like frozen screens or unresponsive touchscreens -- were minor problems quickly fixed by owners.
Favorable reviews and customer satisfaction are essential for Microsoft if the Surface line is to compete with Apple's iPads and MacBooks. The Surface Pro is sometimes held up as one of the best alternatives to the iPad Pro, since it runs a full desktop OS -- the iPad is dependent on iOS, which is comparatively restricted. Apple is looking to improve that to a degree with this fall's iOS 11.

Comments
I'm not finding any links to "Andromeda" hardware from MS, so maybe this is just Thurott.
and that’s exactly one of the main problems with it.
When people can spot the problem from a mile away, that says a lot about the management at the company.
And let’s not forget the launch was plagued by software glitches.
Tech blogs like The Verge were all too happy to proclaim it a winner and kiss some MS ass.
I have to ask if that camp would ever put up with the churn of annual MacOS 'upgrades' and the associated hassles when buying new hardware and peripherals, as such may force upgrades (at expense) for other apps and limit access to legacy ones...?
I expect Apple will keep developing their OS, and ask if that may by design always limit the Mac to a niche percentage: "Macintosh would make a car that was powered by the sun, was reliable, five times as fast, twice as easy to drive – but would only run on 5 percent of the roads."
www.laughbreak.com/lists/if-microsoft-built-cars/
Undoubtedly many malware writers and "Windows Security" call centers are happy their income is maintained by preying on those happy campers failing to upgrade and update.
You speak of the expense of annual hardware churn with Macs yet ironically as a whole Macs have longer usage lives and lower overall total cost of ownership than Windows machines.
In any case, even if were not the case, keeping up to date is usually cheaper than losing money and your financial identity to fraud.
As for the if "Macintosh [sic] would make a car" analogy, it's extremely poor: Mercedes has a niche, less than 5 percent marketshare yet is vehicles are capable of going anywhere the other vehicles go.
We may yet see Apple release a car...
Still, I was always happy to get back to my Mac. Over the last few years, Apple cavalier attitude with UI gives me pause, and in someways annoys me more than Windows did, on occasion.
Given the strides MS has made with their OS, I'm somewhat saddened at their problems with the Surface(s).
Competition is good only if it's good competition. —macgui.
I like to competition and seeing Apple kept on its toes. But this does point out the fact that Apple takes hardware execution seriously. They have occasional missteps but generally make good on them. But then MS isn't really real competition for Apple as they aim for different market segments.
In the meantime, it's back to the drawing board for MS.
How little we knew back then…
The Microsoft Surface machines follow the all things to all people model. It's a tablet, it's a notebook. It runs Windows. Windows runs on a bunch of other machines made by other manufacturers, including tablets, notebooks, desktops, hybrids, and hybrids of hybrids. They all have myriad individual drivers, hardware, and specialty functions. This is how Microsoft gets to market share dominance, but it's also how they can end up with a flagship hardware device with a ten percent failure rate.
Luckily for Microsoft, they will continue to have room to stumble along through these issues, because Apple is showing no signs of changing their business model. Luckily for Apple users, Apple still appears to have no intention of trying to be all things to all people. As a result, when Microsoft stumbles, Apple isn't going to impulsively rush to market with some jury-rigged product to fill a gap in Windows world. Nor will they seek to undercut Microsoft by selling cut rate Macs or iOS devices, or make either OS available for thrived-party hardware. Apple is doing just fine being Apple, which leaves plenty of room in the market for others to pursue other approaches.
The other roads just go in circles and you end up where you started.
You don't have to get on the upgrade treadmill. In 10 years you'll still be using the same "if it ain't broke" operating system. Meanwhile, the Mac users are living in the future.
I decided I was happy with my iPad.