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Analyst: Microsoft Surface sold only 1 million units last quarter

Posted: , by Alan F.

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Analyst: Microsoft Surface sold only 1 million units last quarter
UBS analyst Brent Thill believes that the Microsoft Surface powered by Windows RT had two problems keeping sales down in the December quarter. One was competition from the Apple iPad and the other was limited distribution of the tablet. As a result, Thill has cut his estimates on fourth quarter sales of the tablet to 1 million units from his previous call for 2 million tablets that were sold. The new forecast fits in with the 1.3 million in Microsoft Surface RT sales expected by Rhoda Alexander of IHS iSuppli, to be reported by the Redmond based manufacturer for the December quarter.

UBS says only 1 million Microsoft Surface RT tablets were sold in Q4 2012

UBS says only 1 million Microsoft Surface RT tablets were sold in Q4 2012

Thill looks like a raging bull on the Microsoft Surface RT compared to analysts for investment house Detwiler Fenton. Calling Microsoft's strategy as being in "disarray" Detwiler Fenton dropped its Q4 forecast of Microsoft Surface RT sales from 1 to 2 million to just 500,000 to 600,000 units. To put these estimates in perspective, a median figure from Wall Street and independent analysts call for Apple to report the sale of 24 million Apple iPads in the same three month period ending last December.

Thill is much more excited about the prospects for the Microsoft Surface Pro model, expected to be released later this month. Powered by Windows 8 and using an Intel processor, this model is much more similar to a regular PC than the Microsoft Surface RT. The latter is more like a regular Android tablet and Apple iPad in capabilities, and uses ARM supported processors. The Surface Pro runs desktop applications and has more power, and since it is more comparable to a desktop PC, Thill sees the more expensive model as an alternative to the Apple iPad for enterprise users. After all, business workers are used to how Windows works on their desktop computer in the workplace. For Microsoft's fiscal year 2013, which ends in June, the UBS analyst expects that 2.5 million Microsoft Surface Tablets will have been sold, increasing to 8 million for fiscal year 2014.

source: CNET

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posted on 14 Jan 2013, 12:18 10

1. Ninetysix (Posts: 2671; Member since: 08 Oct 2012)

This is to be expected. They released a tablet in the same price point as the iPad which already had a very very huge lead in the market place.

posted on 14 Jan 2013, 12:24 4

2. MeoCao (unregistered)

Surface is for those who value "click" sound of the kickstand above all else, so 1M is very impressive. :)

posted on 14 Jan 2013, 13:00 4

7. OHaZZaR (Posts: 131; Member since: 19 Aug 2011)

Couldn't agree more! I think it's hilarious that Microsoft used that as a selling point and while I see what they're trying to point out, they should've improved a bit on other fronts, because this isn't a time for prototypes, this is a world of products priced very competitively and offer so much more like the nexus 10 and, dare I say it, iPad. The iPad with the screen and apps, and the nexus with screen, apps and everything else. If the surface had the apps then it'd be on par with the iPad since the interface is nice, but the screen really top tier.

posted on 14 Jan 2013, 13:00 2

8. OHaZZaR (Posts: 131; Member since: 19 Aug 2011)

And tegra 3 is so 2012 xD Just kidding, tegra 3 is still plenty powerful for most users.

posted on 14 Jan 2013, 15:47

12. the_best (Posts: 139; Member since: 14 Oct 2012)

is it just me or am i missing something?
isnt the surface a windows comeputer, and pretty much every program known to man runs on it?
but hey, who cares about that when their appstore is empty..

posted on 14 Jan 2013, 17:20 3

16. joseph98 (Posts: 167; Member since: 03 Feb 2012)

Windows RT is completely different from windows 8, windows 7 or any other windows and no you can't run windows legacy program in windows RT and it's completly different but uses the same UI as windows 8 but you can't for example install a program that work in windows 7 in windows RT. Hope I explained it well.

posted on 15 Jan 2013, 05:22

30. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)

You are wrong!

posted on 14 Jan 2013, 13:18 1

10. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)

IMO, the biggest mistake MS made with the Surface is they thought their brand identity would sustain a price point in the same league as the iPad. With 1m sales, that clearly isn't the circumstance.

Time for MS to up the value proposition.

posted on 14 Jan 2013, 12:37

3. _Bone_ (Posts: 2155; Member since: 29 Oct 2012)

That's because the tablet audience is more mature IMO, and having found out that it's not a full Windows 8 tab/top, the price point, screen resolution and OS wasn't so attractive after all. With the Ipads actually being well priced for their package, the Nexus 10 & co won't sell big either, it'll take a price/performance champion such as the Nexus 7 to have a breakthrough in the 10" segment.

posted on 14 Jan 2013, 12:39 3

4. TheLibertine (Posts: 484; Member since: 15 Jan 2012)

*Waiting for Microsoft fanboys with popcorn*

posted on 14 Jan 2013, 13:42 2

11. jroc74 (Posts: 6019; Member since: 30 Dec 2010)

lol.....yea....they are getting more vocal lately. Guess thats a good thing. Means ppl are using MS mobile products.

I think MS's biggest hurdle will be getting ppl to forget their past mobile products. I like what I see from Surface. I would get that or an Android tablet over an iPad.

posted on 14 Jan 2013, 12:46 1

5. Joshing4fun (Posts: 1237; Member since: 13 Aug 2010)

Should have made it $349 with the keyboard cover. I would have bought one then.

posted on 14 Jan 2013, 12:48

6. bucky (Posts: 3133; Member since: 30 Sep 2009)

This is a brand new product. They need to attract users, not scare them off to try it. It's still a really nice tablet though. But just for a comparison, my cousin just bought the Lenovo tablet with a second gen i7 and ssd in it for $700

posted on 14 Jan 2013, 13:16

9. darac (Posts: 2156; Member since: 17 Oct 2011)

Who cares?
Like they are no dozens of other W8 RT/W8 tablet and tablet hybrids out there already!

posted on 14 Jan 2013, 16:08 1

13. AfterShock (Posts: 3698; Member since: 02 Nov 2012)

I see no proof they actually sold that many.

posted on 14 Jan 2013, 16:35 1

14. Pdubb (Posts: 248; Member since: 08 Aug 2011)

I think that MS has done this correctly. Everyone is forgetting that they said they only wanted to sell a few million. They are on track and now they have started the buzz for W8/RT and the OEMs have to build from here. There is awareness as well as criticism that each should be able to capitalize off and MS will still have their Windows 8 sales without(WITHOUT) the risk of making a device. It becomes a win/win for them.

posted on 14 Jan 2013, 17:32 1

17. NexusKoolaid (Posts: 493; Member since: 24 Oct 2011)

On track now? Put down the glass of Ballmer-aid and try a a quick Google search for "demand for windows RT" or "demand for windows 8". Paints more of a mixed, somewhat less rosy picture.

posted on 14 Jan 2013, 16:46 1

15. rusticguy (Posts: 2828; Member since: 11 Aug 2012)

It indeed was a moderate failure :)

posted on 14 Jan 2013, 18:05

18. timtimity (Posts: 196; Member since: 13 Aug 2012)

It just shows how huge this market has become when the word "only" is used before "one million" when talking about sales.

posted on 14 Jan 2013, 18:09

19. cdgoin (Posts: 570; Member since: 28 Jul 2010)

The real problem was the one the Dell Venue Pro had.. no where to buy it.. so you coudnt put your hands on it to compare to other products.

How long after all the big sales pitches did they FINALLY start selling at Staples and Best Buy..? Before then you had to have a MS Store or buy it sight unseen from MS via the web.

They should have had a big launch WITH Best Buy and I think sales would have been a lot better.

You would think they would know better.. guess launching hardware is a little harder than software. They should have talked to the boys at the XBox division to see how it is done.

posted on 14 Jan 2013, 18:14 2

20. ogy_dogy (Posts: 453; Member since: 29 Jun 2012)

I gotta ask, how many ipad mk1 did apple sell the first quarter it released it? When you put in to consideration that this is a brand new product i think 1mil is a respectable number. Give them time, with the s pro msoft has the potential to rule the tablet space...

posted on 14 Jan 2013, 21:50

26. Lboogey6 (Posts: 281; Member since: 31 Jan 2012)

its not a great comparison only because the ipad was alone that was the biggest thing when you come in and your one of the first and have brand loyalty cool but when its pretty much saturated you have to be clever.

posted on 14 Jan 2013, 18:23

21. papss (unregistered)

To me it was a receipt for low sales.. First it was only online at their website and then at staples and best buy but by that point it had already missed its chance the get great sales numbers. The price too was about 100.00 more than it should have cost. I'm more excited for the surface pro... Its my next big purchase.

posted on 14 Jan 2013, 19:05

22. MC1123 (Posts: 1256; Member since: 12 Nov 2012)

its just that all windows 8 tablets and RTs are overprice!! for a 32GB model but you can only use 10GB of it?! its ridiculous! and so is the windows 6 tablet...

i saw that acer iconia w510 a cheap device since its only $499 for 32GB but would prefer the 64GB with $599 but in my place this tablet for 32GB is price almost 40000 php! just like the surface RT which is price 37000 for 32GB! ridiculous pricing!

posted on 14 Jan 2013, 19:12

23. 7thspaceman (Posts: 1583; Member since: 14 Feb 2011)

Windows fans want a full Windows 8 "Surface" Tablet computer. The Microsoft "Surface RT" did not fit the bill for what they wanted. The Microsoft surface Pro has already be checked out by the verge and others and they say it will deliver a good Windows 8 Pro experience people are looking for. the Problem it will have is that it costs a lot of money to buy Microsoft should Sell it with it's best touch cover keyboard for no more than 900 $
or it may not sell very well although it lives up to the Hype of being a very good Windows 8
Tablet computer. there are other very good i5 and i7 windows 8 tablet computer that will give the Microsoft surface Pro a run for the money. for instance the Lenovo helix for instance is a windows 8 tablet that can be had with a core i7 intel CPU plus 8 gigs of ram
it can doo every thing you want a PC to do

posted on 14 Jan 2013, 19:39

24. papss (unregistered)

The problem with that is that its a Lenovo and not m$.. They are not even close in feel and used material. Go touch and use a mac book pro and tell me quality isnt worth something.. We arent talking software..Beside the point though.. I get what you are saying

posted on 14 Jan 2013, 21:10

25. darkkjedii (Posts: 24906; Member since: 05 Feb 2011)

The iPad rules the tablet space. There r tablets that rival it, but due to brand loyalty, and notoriety it really has no actual peers

posted on 15 Jan 2013, 01:20

29. rusticguy (Posts: 2828; Member since: 11 Aug 2012)

And yet market share falls?

posted on 14 Jan 2013, 21:51

27. Lboogey6 (Posts: 281; Member since: 31 Jan 2012)

its not a great comparison only because the ipad was alone that was the biggest thing when you come in and your one of the first and have brand loyalty cool but when its pretty much saturated you have to be clever. they put a high price point to show that they are just as high quality and people did back off because it didn't run the same programs as the computer version. well for the most part its the same with apple not all mac products run across the board.

posted on 14 Jan 2013, 22:15 1

28. T00muchF00D (Posts: 98; Member since: 27 Nov 2011)

went to buy one this morning. they are amazing! great ecosystem, fits in well with my Lumia, and Xbox.

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