Microsoft Surface Sales Totaled Just $853 Million for Fiscal Year 2013
July 31, 2013 1:05 PM
comment(s) - last by
This is the total from both tablet launches until June 30
Microsoft has been pretty stingy about revealing sales numbers for its Surface RT and Surface Pro tablets, but the Windows maker finally threw a number out there -- just one.
From the launch of the Surface RT tablet (October 26, 2012) and the launch of the Surface Pro tablet (February 9, 2013) until the end of the company's fiscal year on June 30, Microsoft said Surface tablet sales came out to a total of $853 million USD.
Microsoft failed to mention which portion of those sales were Surface RT sales and which were Surface Pros.
In an 8-month period, Microsoft sold 1.7 million Surface tablets -- which doesn't look too good sitting next to Apple's numbers. Last November, Apple sold 3 million iPads in just three days around the holiday shopping period.
In addition, Apple sold 14.6 million iPads in the last quarter alone, and a total of 57 million iPads since the launch of the Surface RT in October.
Earlier this month, Microsoft took
a $900 million charge on the Surface
due to the flop in sales. Microsoft also
dropped the price of the Surface RT
by $150 USD.
Last month, Microsoft was basically giving Surface RTs away. It announced that it was
giving away 10,000 Surface RT tablets
to teachers at the International Society for Technology in Education (ISTE). The idea was to spread RT adoption in schools by supplying teachers with the devices and even training them how to use it.
Days later, Microsoft introduced the "Microsoft Surface for education limited time offer," which will give discounted
to schools and colleges interested in adopting the tablets.
The offer, which will reportedly run until August 31, 2013, will
sell Surface RTs
(without keyboards) to schools for only $199. If the schools want a touch keyboard with their Surface RT, the total price is $249. With a type keyboard, the cost is $289.
For the fiscal year ended June 30, analysts had hoped for earnings of around 75 cents per share ($6.33 billion USD) on revenue of $20.73 billion USD (not including the Surface write-down). Instead they got earnings of around 66 cents per share ($5.56 billion USD) once the Surface write-down was removed.
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RE: Is this really any surprise?
7/31/2013 8:36:43 PM
The Surface Pro is a brilliant device - for some people (the weight and battery life make it unsuitable for some uses, though it's not as heavy as I was expecting and while it's probably better than a laptop as a desktop replacement, it's worse for actually working in your lap) - but I don't think it's expensive at all. A tablet is an ancillary device that can't replace your laptop or desktop, but can merely complement it (and something like the new Nexus 7 is great at this). The Surface Pro can act as a tablet where needed for most, as well as being an incredibly portable desktop machine. Most laptops are used as consumption devices (which the Surface Pro replaces) or portable workstations (which the Surface Pro replaces), though those who truly work on the go (eg: people like product reviewers) will not find the Surface even close to as good as their laptop.
Considering that the price of an ultrabook (which I could use as a portable desktop) is the same or more than the price of the Surface Pro, plus I get superior build quality, a more portable form factor AND an incredibly fast and easy to use tablet (not to mention a drawing tablet that costs $1000 by itself)...well, I bought it because I consider it an absolute bargain.
You compare it to the iPad, but there is no comparison, the Surface Pro has superior usability (not hard, iOS is pretty shitty on a tablet) as a tablet and is also a PC.
I completely agree on the RT, it should have been $399 with the touch cover (which is actually amazing, certainly much better than my initial impressions suggested). It also should have had the latest Qualcomm SoC instead of the dated, inadequate and not particularly power effecient Tegra 3. Instead it was underpowered and overpriced. Ironically that's something MS die-hards have accused Apple PCs of for years.
RE: Is this really any surprise?
7/31/2013 10:18:02 PM
You're dead on. I bought the Surface Pro for the same reason. For what I require of a portable laptop it's everything I need. It's also nice when I'm sitting it an airport and want to use it as a tablet. I spend a lot of time in data centers a 10" device that gets good battery life (5 hours is plenty for my usage patterns) is awesome. It replaced my iPad and it replaced me having to carry around an HP Elitebook 8540w. That thing weighed 10 lbs. I had an Ultrabook for a bit but it wasn't any better than the Surface at being a laptop and certainly couldn't be a tablet. Now I leave the 8540w docked running VMs (32GB of memory on a laptop is nice) and connect to it over VPN when I need to use it remotely. And since it's running Windows 8 I have all that power with the benefits of the touch screen interface. Pretty awesome.
So my tablet can run putty, Java for things like EMC storage management and ASDM, Wireshark, hook to a serial interface, run 3Par storage manager, connect to any of my client's VPNs and the list goes on and on. So $1000? An absolute deal if you ask me.
It's not for everyone. If you can accomplish everything on an iPad then your usage patterns clearly don't match mine. But for the people the Surface Pro was designed for there isn't a device that even comes close at this point.
Surface RT... meh, I never had any interest in that. Basically an iPad with Office but less random apps. So a wash, at best.
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