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 1:33:28 PM
You won't regret it! I picked a 64GB version up about a month ago; it really lets Windows 8 Pro shine. LOVE the pressure-sensitive stylus (with Autodesk Sketchbook Pro) and aside from a few applications (FileMaker Pro 12 doesn't activate the onscreen keyboard automatically in a text field for some reason), everything works well and FAST!
Really impressed with it -- I use it more than my Sammy Chronos 7 17" laptop at this point. I gotta recommend you go with the 128GB version, though. Using a 64GB SD as secondary storage kind of takes away from the experience; wish I would have waited until 128GB units were readily available.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
With Better Camera and Hardware, Galaxy S IV Looks to Put iPhone on the Ropes
March 13, 2013, 1:16 PM
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
Apple Won't Let UK Sons Unlock Their Deceased Mother's iPad
March 6, 2014, 12:44 PM
Benchmarks for NVIDIA Tegra K1 Hit the web
March 6, 2014, 8:57 AM
Microsoft's Gates, Nadella, Bates Initially Opposed Nokia Acquisition; Said Microsoft Should Stick with Software
March 5, 2014, 1:33 PM
94% of Old BlackBerry Trade-ins at T-Mobile Favor Other Brands During Special Promotion
March 5, 2014, 12:12 PM
Xbox One March Update Roll Out Begins Today
March 5, 2014, 9:36 AM
Quick Note: Roku Unveils HDMI-based Streaming Stick, Takes on Chromecast
March 5, 2014, 9:22 AM
Most Popular Articles
Mt. Gox Bitcoin CEO Can't Stifle Grin as he Bows in Apology for Bankruptcy
February 28, 2014, 5:00 PM
Facebook Kills Popular Messenger App for PCs
March 1, 2014, 4:01 PM
Report: Microsoft Considering Offering Free “Windows 8.1 with Bing”
February 28, 2014, 10:21 AM
Two More Microsoft Executives Leaving the Company
March 3, 2014, 4:38 PM
USAF Moves Forward With Long Range Bomber Program Despite Budget Crunch
March 4, 2014, 9:44 AM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information