Microsoft Surface sold fewer than 1 million units in Q4 2012

Rick

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It appears sales of Microsoft's Surface RT tablet may have only performed half as well as analysts expected during Q4 2012. Industry researcher Brent Thill of UBS said that Microsoft only sold about one million units -- that's one million short of the firm's earlier forecast. Another analyst is estimating sales even below one million, but Microsoft has yet to weigh in with its own official sales numbers.

One million is a big number and certainly a success by most standards. However, to add a little perspective, one million units is about five percent of Apple's iPad sales during the same period.

By Microsoft CEO Steve Ballmer's own admission, initial Surface sales were "modest". Thill summed up reasons for Surface's lackluster sales succinctly, "Surface RT is a consumer device with sales suffering from the difficult iPad compare and narrow distribution." However, the analyst expects better numbers from the more expensive Surface Pro, a non-RT Windows 8 tablet which hopes to find a home somewhere between tablets and ultrabooks.

Surface's tepid debut was largely attributed to its limited distribution channels -- Microsoft stores -- and not necessarily lack of customer interest. In fact, Microsoft seemed to frequently sell out of Surface tablets, a fact which certainly didn't help sales figures. Microsoft's narrow distribution channel though, was likely fueled by the software maker's second issue with Surface: limited production capacity arising from partner limitations and Redmond's exacting specifications.

Despite modest sales, Microsoft purportedly still found itself needing to halve production merely a month after launch. This was probably the first tell-tale sign that Surface sales would be about half of industry expectations. At the time, IHS iSuppli speculated Microsoft may sell 1.3 million units during Q4 -- maybe. It appears IHS' then-conservative figures may have still overshot Surface's success.

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Should have just gone with the Surface Pro and be done with it. At least they would have had a puncher's chance at making a dent on the iPads. I can't believe they moved a million of those things.
 
My jaw just dropped when I read that they did not have enough distribution channels. Microsoft is clueless with its target audience. The reason the surface doesn't sell is because its freaking expensive. With the cost of the surface I could buy something more mature like an iPad or android tablet.

Like tom said the surface pro sounds more feasible, but if I would consider buying this surface pro I would much rather buy a laptop.

Microsoft has to be the dumbest company out there.
 
Look at it from a semi-informed consumer point of view... Just another tablet in an already crowded tablet market. Sure, the packaging is slick, with the flipstand and click on keyboard, but... Very limited launch library of apps, and if you are already an iPhone or Android phone user, you can have some crossover and familiarity with apps. It was behind the 8-ball to begin with, uphill climb all the way. Looks like they lost a few Sherpas along the way up.
 
Microsoft wants to jump into the tablet market and gain public interest in their tablet, they releases a table more expensive than their well developed competitor.... Smart?
 
It's not that expensive for what it is. It's $630 for a Surface with the nice keyboard and if you want a iPad with 32GB it's $600 as well. The Surface has less available space but does have a card reader. Either way... when you're spending over $500 on a tablet, you want the right one, and you want to buy it once and use it for a long time.

They should have done a lot more to market it as a productivity tablet. They show little flashes of Excel and word and powerpoint at the very end of their commercials. Those things should be front and center. Show the screen close up doing email, excel, reports, etc, then zoom out as the cute saleswoman snaps off the keyboard and collapses the kickstand before getting on the plane. Or do that with a kid on a college campus before class... who knows, but skip the dancing. People aren't going to buy it to slide tiles around.

They should have sold them sparingly at normal retailers. Let Best Buy have a couple, so they put one on display and get the free advertising when people compare tablets.
 
They should have done a lot more to market it as a productivity tablet. They show little flashes of Excel and word and powerpoint at the very end of their commercials. Those things should be front and center. Show the screen close up doing email, excel, reports, etc, then zoom out as the cute saleswoman snaps off the keyboard and collapses the kickstand before getting on the plane. Or do that with a kid on a college campus before class... who knows, but skip the dancing. People aren't going to buy it to slide tiles around.

They should have sold them sparingly at normal retailers. Let Best Buy have a couple, so they put one on display and get the free advertising when people compare tablets.

Nailed it. Ballmer inherited his old boss's obsession with imitating Apple. Problem is, Apple is successful because it has the press, Hollywood and zombie followers on its side - the fact that its products are simple to use and (to some people) attractive is secondary. Microsoft made its fortune by catering to the mass market and being ubiquitous. Setting up "Microsoft stores" and trying to generate hipster loyalty is stupid beyond belief. All they've managed to do is alienate their most loyal customers. If they'd had any brains they'd have made Metro/RT a mini-OS that booted up <I>before</I> Windows 8 even loaded. If you needed more than simple apps on a pure touch UI you could go to the desktop, and of course have the option to boot <b>directly</b> to the desktop on boot-up. Why is Ballmer the only one who can't see the simple logic here?
 
People would be willing to hop on over to a new market platform if they could play all their cheap games like Angry Birds and Temple Run. Since the marketplace is empty, there's nothing to jump on over to.
 
Microsofts' biggest mistake was releasing Windows 8 for desktops. Windows 8 on the desktop has gotten so much bad press and feedback, rightly so, that people are probably afraid that the pitiful Windows 8 desktop experience will translate over into a pitiful tablet experience.

Life isn't always about what it is, but what is perceived or believed.

Microsoft, you should have NEVER released Windows 8 for desktops. There was simply no reason. They should have released Windows 8 on their tablets only, called it something else to cut down on consumer confusion, and released a modified version of Windows 8 for desktop at a later time. This could have worked. I guess they just couldn't be bothered with tailoring different versions of their OS to different niches of people. Oh well, you live and learn, right?

I guess Microsoft wasn't around when Coca-Cola thought it would be a good idea to come up with a brand-new taste for the most popular drink around(at the time) and then market is as the same product. How stupid can one company be? It amazes me how Microsoft has made it this far when I contemplate the fiasco that is Windows 8. Unbelievable.
 
As an IT professional who has been relying on Windows Desktop for 15 years I got just one thing to say to Microsoft about Windows 8 - take that in your pipe and smoke it!

With the main OS provider running amok the entire industry is in for a long suffering.
 
If I do recall correctly, at one point you could only purchase a Surface RT through MS stores or online. That was a stupid move to begin with. In Australia there is so much advertising for Surface, but up until recently you could only purchase it online.

It was kind of funny, people would talk about the Surface but then wonder "where are they", "no shop sells them".
 
A lot has to be do with the new OS, and ofcourse Price tag. This baby is expensive, and I mean like jokingly expensive. For a tablet? I don't think so. There is a lot of uncertainty about windows 8, especially changing the layout. I mean even with Apple selling, there OS market percentage is nowhere near windows, and yet windows decided to change it. People like what they like and windows is more popular, liked, and used. That being said this baby needs to be cheaper...way cheaper. Don't pack that baby with so much power if it's going to be that expensive, just make sure its fast on what it's running and affordable. Apple products are expensive, be the affordable option and you will sell reguardless.
 
If I do recall correctly, at one point you could only purchase a Surface RT through MS stores or online. That was a stupid move to begin with. In Australia there is so much advertising for Surface, but up until recently you could only purchase it online.

It was kind of funny, people would talk about the Surface but then wonder "where are they", "no shop sells them".

Yeah, they arrived very late and no no fanfare. The tablets are just stuck with the rest of the other lame tablets. Nothing to make them stand out, at all.
 
Remove the start menu, add squares and no one will buy it. That is the problem.
 
"People this", "people that" -I see many professional analysts around, as usual. Not that the real professional analysts can be more valid, but anyway.

I still don't see why me or possibly others should bound their lives with one ton of devices, like PC, Laptop, Smartphone and Tablet... Obviously, there are too many options. Chose 1 or maximum 2 and discard the leftovers. What would you, now, in 2013? I'll try first... PC & Smartphone. If I was a student or needed something more specific for my job, Laptop and Smarthphone. So... I still fail to see why I need this tablet thing. None I know in my family/friends/co-workers and even known or unknown people around where I move, have ever even talked about a tablet. On the other hand, about smartphones, many.

Well, you might know better, but tablet is a luxury item that not many will keep following like it's the next best thing after sliced bread.

And as you said, MS came with an expensive device that was the main reason Windows changed its focus from PC to Tablet. In short, they've broken my UI. Bastards :p
 
"People this", "people that" -I see many professional analysts around, as usual. Not that the real professional analysts can be more valid, but anyway.

I still don't see why me or possibly others should bound their lives with one ton of devices, like PC, Laptop, Smartphone and Tablet... Obviously, there are too many options. Chose 1 or maximum 2 and discard the leftovers. What would you, now, in 2013? I'll try first... PC & Smartphone. If I was a student or needed something more specific for my job, Laptop and Smarthphone. So... I still fail to see why I need this tablet thing. None I know in my family/friends/co-workers and even known or unknown people around where I move, have ever even talked about a tablet. On the other hand, about smartphones, many.

Well, you might know better, but tablet is a luxury item that not many will keep following like it's the next best thing after sliced bread.

And as you said, MS came with an expensive device that was the main reason Windows changed its focus from PC to Tablet. In short, they've broken my UI. Bastards :p

I can agree with your post, I personally have never owned a tablet, I still cant get over the expensive "toy" mind-set of these rather restrictive gadgets (Apple/Android). I currently have an MSI U270 netbook that I would like to upgrade, I am looking at the Surface Pro and or Transformer Book though. Simply because I get the best of both worlds (so to speak), I see my usual desktop for home use and the tablet or convertible, for business as usual.

I honestly love Ubuntu's phone, that can enable full desktop experience. See if I could get a Lumia the same size as the Galaxy Note, that once docked could enable full Windows 8, I probably wouldn't reach for my laptop as often and wouldn't even think about a tablet. Obviously Win 8 isn't for everyone, I cant stand it on a desktop (4 monitors with 8 doesn't feel right), but with my laptop its great. Only took 15mins to suss 8 out.
 
Too expensive, compared to other tablets. Lack of apps is killing all the Windows stuff right now, they got in the game late and are now paying the price(well expecting customers too).
 
[FONT=Arial]It seems Microsoft made some major errors:[/FONT]
[FONT=Arial]Windows 8 was built around the consumer tablet market – Upsetting their core market.[/FONT]
[FONT=Arial]They attempted to become an Apple clone with Surface RT/App Store, etc. – Not their core market.[/FONT]
[FONT=Arial]They don’t lead, only follow.[/FONT]
 
It is doing just as good as Kin.

Show people dancing and a little girl drawing pictures that drain the ink out of the printer.
 
When consumers hear the word tablet they instantly think of Apple iPad.

Microsoft not caring about their own products at the recent CES and not providing any help to their partners is not a good sign.
 
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