Microsoft Surface Sales Miss Analyst Expectations
March 15, 2013 10:46 AM
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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.
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.
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RE: Metro has failed on all fronts.
3/18/2013 2:35:55 AM
I have been running Windows 8 on two different computers since launch.
Sorry, it sucks, it really does. We have 11 computers running in the office and put Windows 8 on two of them to try it out and get to know it.
It simply is not an improvement over Windows 7. In fact, those 2 computers spend all their time in "desktop" mode and it is just annoying when anything draws Metro back in.
Using applications pinned to the taskbar, we avoid Metro whenever possible.
About 2 weeks ago we wiped 1 of the 2 Windows 8 machines and put Windows 7 back on it, it just pissed everyone off too much.
The biggest issue? Windows 8 brings nothing to the table. It doesn't solve any problems, it doesn't help get work done faster. It is completely pointless on a desktop, we have yet to find a single reason to upgrade any desktop computer from Windows 7 to Windows 8.
RE: Metro has failed on all fronts.
3/18/2013 10:10:40 AM
Yes, using metro apps suck, I don't recommend using them unless you have a tablet. I spend all of my time in the desktop too unless I need to launch something or do a search then I use the new UI screen, it's a much improved start menu.
As far as not bringing anything else to the table well...I guess nothing critical, but Windows 8 offers improvements in many areas. The new Windows Explorer alone is something I wouldn't want to give up, along with a better and more complete task manager, not to forget the better performance in general over Windows 7. Also for power users everything is quicker to get to (less clicks away).
That said I wouldn't suggest paying full price for Windows 8 if you already have 7. It was worth the $40 upgrade price I payed though and when getting a new computer there is no reason to shy away from Windows 8 like there was with Windows Vista.
"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher
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