Microsoft Surface Sales Miss Analyst Expectations
March 15, 2013 10:46 AM
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.
“We do believe we have a moral responsibility to keep porn off the iPhone.” -- 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
3 Budget LED TVs
December 7, 2016, 5:00 AM
How is the BlackBerry DTEK50 Doing Today?
December 6, 2016, 1:00 PM
Best Secure Android Mobile Browsers:
December 5, 2016, 7:24 PM
Latest News, this is how the Moto X (2017) might look
December 3, 2016, 9:02 AM
Fake Apple Chargers Fail Safety Tests
December 2, 2016, 5:00 AM
FlowMotion veils its new smartphone stabilizer, FlowMotion One
December 1, 2016, 3:00 AM
Most Popular Articles
What Can You Do with Your New Echo Dot?
December 3, 2016, 5:00 AM
Google has developed Deep Learning Algorithm to detect Diabetic Eye Disease
December 4, 2016, 5:00 AM
Microsoft Surface – Which Surface is Right for You?
December 2, 2016, 5:00 AM
The iPlugmate is an Excellent iPhone Flash Drive at a Great Price. (Deal Expires in 3 Days)
November 23, 2016, 1:00 AM
Foscam R2 Home Security Camera System – High Quality High FHD Security Video Footage with No Monthly Fees
December 1, 2016, 2:00 AM
Latest Blog Posts
Latest Tech News
Dec 8, 2016, 5:11 AM
In The News
Dec 7, 2016, 5:00 AM
e Guide: Mobile Security for 2017
Dec 6, 2016, 5:00 AM
Apple Car is Not Dead
Dec 5, 2016, 1:00 AM
Dec 4, 2016, 5:00 AM
Dec 3, 2016, 5:00 AM
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
Nov 21, 2016, 1:00 AM
HTC Makes Big Moves in China
Nov 20, 2016, 2:00 AM
Do you know who is the number one company in the word?
Nov 19, 2016, 5:30 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information