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Analysts are now lowering their future sales forecasts

As iOS and Android-powered tablets continue to be trailblazers in the market, Microsoft's Surface is having a hard time finding its place -- and it shows in analyst expectations.

Bloomberg source anonymously revealed that Microsoft has sold 1.5 million Surface tablets to date. More specifically, the company has sold a little over a million Surface with Windows RT tablets (features the Windows RT version of Windows 8 specifically for ARM processors) and about 400,000 Surface with Windows Pro tablets (features the full version of Windows 8 and an Intel Core i5 processor). 

These numbers are not exactly what analysts expected this late in the game. Brent Thill, an analyst at UBS AG, had previously predicted that Microsoft would sell 2 million Surface RT tablets in just the December quarter.

Now, analysts are lowering Surface shipment estimates for the current quarter and beyond. Brendan Barnicle, an analyst at Pacific Crest Securities, lowered his Surface sales projections from 1.4 million to 600,000 for the current quarter.

Barnicle also reduced his Surface sales estimate from 7 million to 5 million for fiscal 2014. Rick Sherlund, an analyst at Nomura Holdings Inc., decreased his estimate for the PCs and Windows-based tablet market from a growth of 5 percent to a decline of 1 percent.

Why is the Surface such a flop so far? Reports cite consumer unfamiliarity with the Windows 8 OS, Surface's fail at successfully packaging the power of a PC combined with the ease-of-use of a tablet, and fewer apps as some reasons. A high price point would be a fair reason as well (the Surface RT is $499 for 32GB and $599 for 64GB while the Surface Pro is $899 for 64GB and $999 for 128GB).

Currently, the Windows Store has a little over 47,000 apps. Apple's App Store has over 300,000 apps for the iPad. In the quarter ended December 2012, Apple sold 22.9 million iPads and it accounted for 51 percent of the tablet market.

However, Android tablets are expected to give the iPad a run for its money this year. According to IDC, iPad shipments are expected to make up 46 percent of the tablet market for 2013, down from that 51 percent in 2012. Android-powered tablets are expected to increase their market share to 49 percent in 2013, up from 42 percent in 2012.

Back in December, Boston-based brokerage firm Detwiler Fenton said that Surface's main problem was distribution. Customers could only buy the Surface with Windows RT tablet at Microsoft Stores, and the issue with that is there's only 31 of them, with another 34 smaller Microsoft kiosks around the U.S. The lack of exposure at places like Best Buy and Staples was hurting the tablet after its Oct. 26 release.

This was resolved later in December, when Microsoft started allowing third-party retailers to sell the Surface -- near the end of that quarter.

Source: Bloomberg

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By Motoman on 3/15/2013 10:51:54 AM , Rating: -1
)Microsoft Surface Sales Miss Analyst Expectations

Hey, any idiot can post articles with simple grammar errors. Imma just stick extraneous punctuation in my title!

...referring to the parend that's inexplicably stuck to the front end of the article title. Maybe it will get edited out later...but really, to click "Publish" with an error like that?

RE: One-upsmanship
By Motoman on 3/15/13, Rating: -1
RE: One-upsmanship
By ClownPuncher on 3/15/2013 11:53:27 AM , Rating: 2
You're kind of an abrasive twat.

RE: One-upsmanship
By Motoman on 3/15/2013 12:28:28 PM , Rating: 2
...says the guy who recently posted:

F%ck you. I thought you died yesterday, Chavez.

...only without the "%" instead of a "u."

Kettle to pot...kettle to pot...thou art black...over.

RE: One-upsmanship
By ClownPuncher on 3/15/2013 12:37:11 PM , Rating: 2
Does that change anything? I'm also an abrasive twat, but that doesn't mean you aren't.

RE: One-upsmanship
By Spuke on 3/15/2013 1:21:52 PM , Rating: 2
..says the guy who recently posted: quote: F%ck you. I thought you died yesterday, Chavez.

RE: One-upsmanship
By MadMan007 on 3/15/2013 11:20:11 AM , Rating: 2


Any idiot can write posts on the internet too.

RE: One-upsmanship
By Motoman on 3/15/2013 11:31:44 AM , Rating: 2
Firstly, I'm not being paid to do it.

Secondly, it's clear from the usage of "imma" that I'm simply using a made-up word from the popular lexicon.

Thirdly, "parend" is the common term used as a singular form of "parentheses," especially with regards to computer programming syntax. I can still remember my professors writing code on the board and saying out loud "open parend" and "close parend" as they went along...

RE: One-upsmanship
By inighthawki on 3/15/2013 3:52:25 PM , Rating: 2
I can't say I've ever seen anyone use "parend" before. I'm fairly convinced you made that one up, because I work with very skilled programmers every day and not one has ever referred to parentheses in that way.

Trying to use the word "Imma" as shorthand also isn't helping your case.

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer

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