Microsoft Surface RT Sales Hurt by Lack of Distribution
December 8, 2012 9:53 AM
comment(s) - last by
Right now, customers can only buy the Surface RT tablet at Microsoft Stores
Microsoft's Surface tablet
have been a mixed bag lately, but
All Things D
is pretty clear about its position: the demand and sales just aren't there.
All Things D
recently spoke with Boston-based brokerage firm Detwiler Fenton about Microsoft's Surface RT tablet. The verdict? Microsoft better get its tablet out in other stores or it's going to sink.
"Lack of distribution is killing the product," said Detwiler Fenton. "Mixed reviews and a [$499] starting price tag certainly don't help, but lack of retail exposure at Best Buy and others is severely depressing sales."
Right now, customers can only buy the Surface RT tablet at Microsoft Stores. The problem with this is that there's only 31 of them, with another 34 smaller Microsoft kiosks around the U.S.
Due to this lack of presence in major retailers, Detwiler Fenton estimates that Microsoft will only sell 500,000 to 600,000 Surface RTs in the December quarter. This is a strong hit to previous estimates of 1 million to 2 million.
Recently, a pair of reports from both
The Seattle Times
showed differing views on how
Windows 8-based touchscreen tablets
, convertibles and laptops are faring.
spoke with IDC and IHS iSuppli analysts, who said retailers were having trouble keeping them on shelves due to high demand. However,
The Seattle Times
begged to differ, echoing Detwiler Fenton's concerns: there just aren't very many Windows 8 tablets out yet, and those that are are impossible to find. However, other Windows 8 tablets are sold in major retailers like Best Buy; not just Microsoft Stores.
Microsoft's Surface Pro is expected to be released in January, which will feature the Windows 8 Pro operating system instead of Windows RT for ARM-based tablets.
All Things D
This article is over a month old, voting and posting comments is disabled
RE: sigh, brokers and analysts
12/9/2012 5:36:11 AM
Another thing to note is that Google's "closed garden" isn't the most popular because of its developer ecosystem or user experience, it is because it is cheap for many people.
iOS mobile traffic, app usage, and developer revenue dwarfs that of Android despite there being many more Android devices out there. It is partly because Android runs on everything from dumbphones through featurephones through smartphones, and it is counted on all of them. iOS only runs on smartphones that are used online and run apps. Another reason is that iOS is simply more profitable for developers, there is less piracy (a benefit of the walled-garden), lower cost of support, and has more paying customers (again partly because iOS is all high end devices).
Microsoft mimicking Apple's approach in iOS makes sense for their mobile devices; it makes them accountable to give customers a good experience and it protects developer profits. Microsoft has actually been doing this sort of thing
than Apple with the XBox game consoles, only difference being that Apple's mobile model gives a larger cut to developers than what is generally done on consoles.
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
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