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Microsoft Surface tablets not selling as expected

Surface tablets

The Redmond based software giant, Microsoft, had expected to grab a good slice of the growing tablet market with the release of the Microsoft Surface tablets. The company had expected to see a good number of tablets, but that has not turned out to be true. The company has been said to have sold only about 1.5 million Microsoft Surface tablets since the launch of the tablets.

And this 1.5 million tablet sale includes a little over a million Surface RT tablets and around 400, 000 Surface Pro tablets. And this info comes directly from three people who are aware of the sales records of the company but have asked not to be named. Brent Thill, an analyst at the UBS AG, had predicted that the Redmond based tech giant would be selling 2 million tablets of the Surface brand within the Dec. 2012 time frame itself. But three months after that, the company has still not sold so many. Bloomberg writes:

The poor reception for Surface, unveiled last year, adds to challenges facing Microsoft’s Windows unit, which brings in a quarter of the company’s revenue. The devices are Microsoft’s first direct attempt to grab a slice of the surging market for tablets, seeking to take on Google Inc. and Apple Inc. and prove that Windows has a place in a world of touch screens and smartphone applications. That hasn’t happened so far, said Alex Gauna, an analyst at JMP Securities LLC in San Francisco.

“It’s pretty clear that things were bad entering the year, and at least for the moment they’re getting worse,” Gauna said. “The path to a successful Surface, in the same way that they were successful with Xbox, is not very clear to me right now.”

It might not be so easy to take on Google and Apple’s success in the tablet and the smart phone world after all. Even though Android has a good market share, there is a very good chance that ecosystem may soon drop down.

Source: Bloomberg

43 Comments

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  1. The only way to really enjoy a smooth Android that just works, is to own a Nexus. All other Androids will leave you wanting and frustrated. I know this for a fact as I’ve owned about 36 different Androids, first time I tried the Galaxy Nexus I was hooked. I did make the mistake of getting an HTC One X, got rid of it because I was quickly reminded why Nexus is the cream Android system. Got a Nexus 4 & it’s just a flat working machine.

  2. Neither of those will ever help me get any work done. IF something like MacOS or Linux can step up their business capabilities, Microsoft might fade. Until then most of the world will use Microsoft for work and iOS or Android to piddle-fart around with.

  3. I have used it for a while and its fine. Android truly is crap. I have a Win 8 Desktop and definitely want to replace my laptop with a Win 8 Tablet and my Blackberry with a Win 8 phone. I also have iOS (great toys for the kids)and Android (which no one likes…) I doubt this family ever buys anything else from Android.

  4. I would like one. I am actually expecting one from work, which is held up in IT red tape, so I am not buying one and I am not yet able to get one. I hate using my Android and my kids use my iOS stuff. I really don’t see me buying anything further from Apple or Google, so I hope this works out.

  5. Well, being a follower never being first with anything comes at a price. Perhaps the thinking was that people need Windows. Turns out that actually they don’t.
    “Even though Android has a good market share, there is a very good chance that ecosystem may soon drop down”. Where did that come from – it’s not in the bloomberg article. Besides – it says “chance”. That should be “risk” coming from a droidguy, shouldn’t it?

  6. Looks like we are spiraling towards a Google and Apple future, and I am not pleased with it at all. Get your act together Microsoft

  7. Windows 8 is the worst operating system ever made. Nobody wants a stupid touch screen toy except children. Windows xp is still the hands down favorite but since our economic system is build on unrestrained growth and consumerism, with huge landfills of last weeks junk, they must keep changing and growing…not for any reason but just to keep from falling over due to their own weight. Our entire economic system is on a steady race to the landfill and we all just love the new Emperors clothes right?

    Microsoft became the only option because they furiously destroyed all competition through evil practices. When they get in trouble for being criminal, they just pay a fine so there is no incentive to make them behave because the government likes the fine money. Of course they didn’t abuse the government they abuse us, so why don’t we get the fine money? A crooked system built on greed, with companies like Microsoft enjoying the spoils of our labor. Welcome to capitalism and greed…the founding ideals of our wonderful society.

    Maybe someone should have listened to Jefferson, not Hamilton. A little late but remember the French revolution? This place is living on borrowed time.

    Windows xp did everything you ever needed. Stop changing for change sake and you will break the system down and we can do something right next time. To hell with all Corporations, as the only reason for a corporation is to avoid liability for your crimes against humanity.

    Hostess was the start…let’s take each and every one down. Oh yes, you actually like and eat twinkies? Then you are the problem.

  8. By the way, for you Microsoft employees that reading this stuff, I am not moving to the Windows 8 platform. As a decision maker for a firm of about 100 users, we will not go to the Windows 8 environment. Why? Because, you guys are a bit disconnected rom on what it takes to get work done as a knowledge worker. Yes, not everyone is as “smart” as you guys. You’ve been bamboozled by “touch” and went out and got lost in the weeds and forgot who you are and what your system does. Your system (Win7) was, and is, great for productivity. I’ll reconsider if Win8’s SP1 brings significant changes that the user can be comfortable – Tablet or not.

  9. Agree with the fact that Windows 8 is completely non-intuitive beneath its simplistic veneer. It looks like it was developed for computer novices, and yet they intend to sell the systems to more advanced and sophisticated users. There is a critical disconnect there. The omission of a clearly designed Surface apps store on the web is truly astonishing. A company that each year gives more and more indication of having lost its was and being a follower of the real tech leaders – and a poor one at that that.

  10. Who is Microsoft marketing the Surface to? Urban hipsters? The commercials are weird and just too narrow of an appeal. Go back to basics…a well-designed marketing campaign describes why I can’t live without their product and what it can do for me…NOT video of people break-dancing and jumping around with their tablets clicking/unclicking the stupid keyboards in. WHAT WERE THEY NOT THINKIN?

  11. I would rather buy 5 pieces of China made Tablets with the latest Android -Jelly Bean OS that are disposable, if something happens to the unit instead of buying this very expensive Windows RT!

  12. I agree. Windows 8 is the pursuit of silliness. I have to run a business. I don’t have time to train the rank ‘n file on a flavor-of-the-month operating system. What the hell is Microsoft doing? Why are they trying to be Apple. Apple is a huge niche, which Windows 7/8 can’t fill. BUILD A FREAKIN’ DIFFERENT OPERATING SYSTEM THAT COMPETES WITH iPad/iPhone ecosystem if you want to. Let Windows be Windows: return Windows 8 to the Windows 7 environment and simply enhance Window 7 for touch. Geez – how hard can this be to figure out? I mean, really!!!
    Microsoft: you are scary! How can you screw up such a good system as Windows 7? I’ll tell you how. By introducing Windows 8. Yikes! The Microsoft decision makers sure make big bucks for outcomes like this. Get a grip, Microsoft. WAKE UP, MICROSOFT! Turn this around quick before you lose what you have!!!

  13. If they really wanted to sell the surface pro, it would come with the high-end keyboard cover at that $899 price point. As it stands now, one could just as well buy the Lenovo Yoga touch screen laptop/tablet for nearly the same price. The surface RT, w/o the sheer number of apps to compare from Apple’s store or Google Play, could only be an after-thought at that $499 price point! Cut your loses while you still can Microsoft.

  14. They lost all real techies with the stupid glue. Fujitsu Q702, 4 screws and boom, in goes the Crucial M4 256 Gb drive. MS morons want to churn every three years and sell new. They are so lost in the reality that most face and fail to realize that we don’t tread their mill.

  15. There was a time when Mircosoft wanted to be in the browser market. What did they do? They released Windows Explorer for free to gain a foothold in the market place.
    The price of a surface tablet is way too high given the fact that you can buy something like a ‘Nexus something” for $199.00. Add to the fact that Microsoft is missing some key apps that people want to use isn’t helping either.
    The RT and the Pro should have come out at the same time with a price range of $199.00-$399.99. Redmond was late to the tablet game, late into the apps craze, and until the Nokia 810 and 920 smartphones behind in that market also.

    I would buy the Surface Pro if the price was lower!

  16. Touch screen is starting to get lame. It was amazing a long while back. The new Windows 8 blows pretty bad too.

  17. Touch screen is starting to get lame. It was amazing a long while back. The new Windows 8 blows pretty bad too. Microsoft missed the boat on this. they needed to have this come out 4 years ago.

  18. It’s a solid system. It has the potential for sales to go through the roof. However, MS needs to give buyers a big incentive, like a shockingly low price or free 3G for life or a year, or a free Windows Phone. Also, it needs many more apps.

  19. They’re seeling EXACTLY as expected, these things have terrible specs, awful OS, even worse marketing and rock-bottom confidence from the tech industry talking-heads, anyone who would expect a different outcome here is either brain-damaged or criminally negligent.

  20. Hopefully, this will only get worse for microslop, and they’ll finally stop making such crap. They REALLY need to wake up and smell the blue screen of death already.

  21. i own a surface pro tablet

    cons :
    it heats up a lot ,
    no USB charging ( tablet are supposed to be on the go device )

    pros

    i can run all my applications in tablet mode

  22. @Tom

    I love Windows 8. I love my windows 8 phone (for which I replace my android), I will be getting a convertible windows 8 laptop the next time I need a computer. I do NOT like windows RT, I already have an Ipad with an office clone app and I don’t relay like it any more because it offers less than 100% off what I need. I also have apple TV’s, a mac, Ipods, and my wife has the phone.

  23. Whoever came up with a non keyboard/mouse windows desktop should be fired at Microsoft. No business in it’s right mind would use such a thing.
    Fine for games, home pictures and the likes, but lets get a practical desktop Windows 10 soon.

  24. Why do they call their touch interface “Windows 8” if you can only have one window on the screen at a time? It should be called “Window 8” just to be less misleading.

  25. Shocker, That UI is a peace of garbage. I cant believe they let that out to the public, did they not dogfood it.

    Android rules.

  26. Using Windows 8 is like driving a car with the steering wheel on the drives side and the peddles on the passenger side. What were they thinking. I have yet to meet one person who is happy with windows 8. You cannot make a massive change like that and expect users to adapt without serious productivity problems.

  27. I love Win8 it isn’t intuitive but if you’re like me and love tech take the time to figure it out. To me it’s better than windows 7, not because something isn’t popular that means it’s no good.Most people just write it off as clunky without even really trying it.The surface tablets though are too pricey and plastic looking. The Ipad and Samsung galaxy tab are elegant by comparison.

  28. I’m with “Dude”. Win 8 is a non-starter… it feels like a toy system. Microsoft’s strength has been business — and it should remain business and productivity focused. If I were to have a tablet computer, it would be an adjunct to my main office system. Overall, the Surface/Win8 decisions appear to have been made by people with absolutely ZERO real world experience.

  29. It doesn’t take a rocket scientist to see that MS tried hard to turn a laptop into a tablet… just to turn it back into a laptop again with a kickstand and floppy keyboard. Running Windows 8 which has been universally panned by critics and users alike doesn’t help.

    Time for Ballmer to go.

  30. The main reason is the price is too high. Most people won’t pay extra 100 bucks for keyboard cover.

  31. The emperor has no clothes. Win8 is ugly, clunky, and counterintuitive. Multitasking is a chore. Considering Microsofts claim that the Surface is for productivity, a net book at one third the price running Win7 is more useful.

  32. Not selling as well as expected by Microsoft, of course since they drink their own Koolaid, but selling better than I expected, which is that sold more than a few thousands of units to hardcore MS fanboys and fangirls (if any of those actually exist).

  33. I’d like one, but they are overpriced. There are a bevvy of other Windows 8 touch devices I can buy that don’t carry the same price, but come with the same specs. I imagine the pricing was a move to not piss off their OEMs, but it will hurt them in the long run.

  34. The price is too high. If Microsoft wanted to make traction in the tablet space they should sell a low priced version to get people to “like” the Windows 8 Metro UI interface, and then slowly upsell. Right now they are trying to compete head-to-head in the well-established market space dominated by iPad and Android. I predict that eventually Surface RT Tablets will sell-out – at liquidation prices from discount outlets.

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