Microsoft Surface Sales Miss Analyst Expectations
March 15, 2013 10:46 AM
comment(s) - last by
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.
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 $999 for 128GB).
Currently, the Windows Store has a little over 47,000 apps. Apple's App Store has over 300,000 apps for the iPad. In the quarter ended December 2012, Apple sold 22.9 million iPads and it accounted for 51 percent of the tablet market.
are expected to give the iPad a run for its money this year.
According to IDC, iPad shipments are expected to make up 46 percent of the tablet market for 2013, down from that 51 percent in 2012. Android-powered tablets are expected to increase their market share to 49 percent in 2013, up from 42 percent in 2012
Back in December,
Boston-based brokerage firm Detwiler Fenton said that
Surface's main problem was distribution
Customers could only buy the Surface with Windows RT tablet at Microsoft Stores, and the issue with that is there's only 31 of them, with another 34 smaller Microsoft kiosks around the U.S.
The lack of exposure at places like Best Buy and Staples was hurting the tablet after its Oct. 26 release.
This was resolved later in December, when Microsoft started
allowing third-party retailers
to sell the Surface -- near the end of that quarter.
This article is over a month old, voting and posting comments is disabled
RE: But seriously...
3/15/2013 11:22:00 AM
There have been cheap tablets for a long time now, and I don't mean cheap just in price, that's certainly one of them. And yet other tablets still continued to sell well so it's not just about price.
RE: But seriously...
3/19/2013 2:14:18 PM
400000 Surface Pro in 1 month since in on market, not bad for a 999$ tablet actually!
Of course cheap sells. There are many more McDonald's dollar value burgers sold in the world than expensive 5 services meals at a 200$ restaurant.
Where are the Acer/Asus/Samsung tablet sales numbers? We should combine all Clovertrail/corei3/cCorei5 with Windows 8 pro sales. Game is still Young, i know many more people without a tablet than people with a tablet.
Where are the android full numbers? not just 42% market share crap.
Written from my surface pro attached to my Bluetooth 5500MX revolution combo and LG 27'' screen. Used as a full office computer.
"Folks that want porn can buy an Android phone." -- Steve Jobs
IDC: Android Army of Tablets to Surge Past Apple's iPad This Year
March 13, 2013, 9:00 AM
Microsoft Allows Third-Party Retailers to Sell Surface with Windows RT
December 12, 2012, 12:44 PM
Microsoft Surface RT Sales Hurt by Lack of Distribution
December 8, 2012, 9:53 AM
Microsoft Surface Pro Coming in January; Priced at $899 for 64GB, $999 for 128GB
November 29, 2012, 1:53 PM
Samsung Reveals Metal Unibody Galaxy A5, A3 Smartphones
October 31, 2014, 9:27 AM
Amazon Exec on Fire Phone: “We didn’t get the price right”
October 31, 2014, 8:22 AM
Moto 360 to go "Champagne Gold" for $299, According to Amazon Listing
October 30, 2014, 3:24 PM
Call-capable Samsung Gear S Smartwatch Launches Nov 7 in U.S.
October 30, 2014, 12:45 PM
Lenovo Completes $2.91B Acquisition of Motorola
October 30, 2014, 11:57 AM
Samsung Electronics Q3 Profit Falls by 60%, Mobile Division Sees 74% Profit Decline
October 30, 2014, 10:10 AM
Most Popular Articles
1 Million Credit Card Activated on Apple Pay Within 72 Hours, Walmart CEO Hopes Visa "Suffers"
October 28, 2014, 8:17 AM
Amid Theater Boycott Netflix Defiantly Plans New Movies, Plus 3 TV Shows for 2015
October 24, 2014, 7:30 PM
CVS, Rite Aid Kill Unofficial Apple Pay Support, Burn Google Wallet Users in the Process
October 25, 2014, 5:26 PM
Microsoft's Figures Show Desktop Users Flocking to Windows 10 Preview
October 27, 2014, 11:04 AM
Fitbit's $249 Surge Fitness Watch Packs 7-Day Battery Life, Two Other Models Also Air
October 27, 2014, 4:20 PM
Latest Blog Posts
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information