J.P. Morgan analyst cites weak Microsoft Surface sales in cutting earnings estimates
posted by Alan F. / Jan 04, 2013, 9:56 AM
Overall, the analyst now sees Microsoft reporting $21 billion in revenue and earnings of just 68 cents a share for the December quarter. His previous estimate called for Microsoft to gross $21.4 billion in the three month period, and produce earnings of 72 cents per share. His fiscal year forecast for 2013 now calls for revenue of $77.8 billion and earnings of $2.62 a share. His original forecast was for revenue of $78.5 billion and earnings of $2.72 a share.
For fiscal year 2014, DiFucci now sees Microsoft bringing in $82.9 billion in revenue with profits of $2.91 a share. That compares with his original call for $83 billion in gross with a bottom line figure of $3.02 a share for that year.
Posts: 259; Member since: May 27, 2011
They left out the high price in factors limiting the appeal of the surface.
posted on Jan 04, 2013, 10:06 AM 2
Posts: 616; Member since: Apr 20, 2010
I love Windows Phone and RT, but this doesn't really surprise me. Most of the Android tablets aren't selling so hot either.
posted on Jan 04, 2013, 10:41 AM 1
Posts: 2236; Member since: Feb 14, 2011
I would beg to differ. Sales of Android tablets jumped 177 percent this year from last year on Black Friday according to the NPD. They also expect the iPad to lose a quarter of it's market share by 2017 to Android. In Q3, Samsung sold 5 million tablets which is pretty good compared to Apple's 14 million.
posted on Jan 04, 2013, 11:08 AM 7
I think that Microsoft Surface Pro will sell better because it's support for all the Windows 7 certified apps!Anyways I adore Microsoft Surface,it's one of the most beautiful tablets for me and Windows 8 is just gorgeous.
posted on Jan 04, 2013, 10:56 AM 4
The Surface Pro won't sell well and here's the reason why. The majority of people wanting to buy a tablet don't really want to do heavy computing. Sure, there will be business folks who will really benefit from how small it is and the fact that it is an actual computer. But the buying power is with the general public and if they wanted an actual computer, they'd buy a desktop or laptop. They think tablets are for casual browsing, games, and entertainment. And working in electronic retail, you get a lot of people that will flatly say, "I don't need that much" or "that's too complicated for me." That's why Apple has done so well. That's why Android has done so well.
posted on Jan 04, 2013, 4:37 PM 4
Posts: 650; Member since: Nov 20, 2011
yea price, the specs can be tweaked a bit as far as screen resolution & battery, and lack of availability in retail stores has had an impact as well. no point in all of those dollars spent on commercials when it's rare to find. but i think the successor to the Surface will be an actual upgrade if it comes around. "Surface II" and i even think Nokia's Windows 8 tablet will do better upon release.
posted on Jan 04, 2013, 10:58 AM 1
Posts: 601; Member since: Nov 20, 2012
Microsoft is gonna need to step its game up. The reason I don't buy this is because its too expensive and there way cheaper but better substitutes such as nexus 7 or 10 out there right now. Mircosoft does the same mistakes ever time when they release a new product i think. For example: first gen tablet (remember actual tablet computers?), window vista,etc they all lack future proof, software, hardware,etc yet the price tag is so high
posted on Jan 04, 2013, 12:33 PM 4
Posts: 3614; Member since: Jan 19, 2011
I think most of us, even those of us that call ourselves MS supporters, called this because of the price. But let us keep perspective: It will not be a flop, and it was the first volley fired in this new company vision. How they respond to these sales and what they do to improve this product and their offerings will be more importnt.
posted on Jan 04, 2013, 1:42 PM 0
Posts: 154; Member since: Nov 22, 2012
i like the idea of having "live tiles" that give u 4-5 different things all on one screen, however i think the way microsoft has presented it makes it look really bland and dated looking....to me its just not a very attractive looking display to see a bunch of rectangular looking boxes on the screen....
posted on Jan 04, 2013, 3:18 PM 1
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