Article Stating Weak Microsoft Surface Sales......What Do You Think?

[Surface5280]

Here is the link below:

J.P. Morgan analyst cites weak Microsoft Surface sales in cutting earnings estimates

 

[bosamar]

I don't trust their research. I wanna know where Microsoft stands a year from now, once they've had a full year of exposure.

 

[Arctherus]

For a device that has a completely brand new OS and hardware, and has sub par exposure for the only 2 months that its been available, being sold at only 2 major retail stores and 13+ Microsoft stores and online, I think sales went as expected if not better.

 

[guitar1969]

Unfortunately a year from now for any device is unheard of with the way technology is moving forward. Surface needs to make their mark, now , before summer.

 

[gpstrucker]

Frankly, I would not be surprised if sales are weak as they aren't selling them in the retail stores where a huge percentage of the population shops. Put them in Walmarts across the country and sales will go up.

Let's face it, a lot more people shop at Wally World than Best Buy.

 

[J515OP]

Unfortunately a year from now for any device is unheard of with the way technology is moving forward. Surface needs to make their mark, now , before summer.

I don't think he meant give it a year to build and see how MS is doing at that time but meant that it is to early to tell how well (or poorly) things are going for MS and the Surface at this time. We won't really know how it went until we can look back over a year and see how things went.

Frankly, I would not be surprised if sales are weak as they aren't selling them in the retail stores where a huge percentage of the population shops. Put them in Walmarts across the country and sales will go up.

Let's face it, a lot more people shop at Wally World than Best Buy.

Weak sale are relative. If you are comparing to Apple products, sure they are weak. But considering all the factors you just took into account then the sales might not be "weak" given the limited distribution and projected targets based on that.

 

[Grape Jelly]

I am not surprised. My own experience is something of a testament to what is happening. I found out about the Surface almost by accident months before it came out. I was very motivated to buy one early until the reviews came out. The reviews were mixed with some saying it was the best device ever invented and others saying it was complete junk. That led me to doubt until I went into a store and used the Surface.

I have friends with similar experience. When you have a first generation product and mixed reviews, people are going to stay away or at best show reluctance. But using it is quite convincing. I have been letting people use mine to show them how good the Surface is and how wrong the bad reviews are.

Apple has a lot of power and influence behind them on top of a good product. I am not saying they are paying for bad Surface reviews. But when people are bought into a product, they tend to stick with it.

I would not expect Microsoft to unseat Apple in the first 3 months. It has taken Android and Samsung awhile to beat the iPhone. Microsoft has been out of the game for years. It will take Microsoft some time to get back in. I just hope they have the confidence to stick with it.

 

[taubs]

i think they need a price cut to 499 with a cover without office. then sell the office suite afterwords or it can be downloaded when you buy reg version. the whole problem is the politics of microsofts partners getting angry if they price the surface cheap.

 

[Codevine]

I know that Microsoft is advertising the Surface a lot in the USA (especially product placement like in Elemental). Here in Germany I haven't seen a single advertisement, also the only way to buy one is through the official store (I would have loved to try one out in a at a local retailer). The standard payment procedure also requires a credit card, which isn't quite that popular here - so yeah, I'd say at least in Germany the sales probably are really weak. And it probably looks the same in other european countries.

 

[MarcelP]

Microsoft made two mistakes 1) Limited amount of stores to buy at the beginning of product cycle 2)the pricing was a huge turnoff for people .

I remember when the first Ipad came out and sales were quite tepid... and now look at the juggernaut. I think as more quality apps come out for the system, over time Surface rt sales should be good....and where the surface rt lacks, Surface pro will pick up the pace (hopefully

 

[gpstrucker]

Weak sale are relative. If you are comparing to Apple products, sure they are weak. But considering all the factors you just took into account then the sales might not be "weak" given the limited distribution and projected targets based on that.

"Relative sales" are irrelevant and don't support profits or the growth of a product line. It's the bottom line that counts. If MS wants to sell the Surface they need to get it out there where people can get their hands on it and try it out. I would never have bought one if I couldn't have first checked it out hands-on. Considering the price points, I doubt that most of the potential customer base would be willing to buy one without first checking it out.

The Surface could easily compete with the iPad if it is marketed correctly. The problem I am seeing at the moment is that Apple is kicking Microsoft's arse when it comes to marketing their product. People aren't very likely to buy a new tablet based solely on a tv or internet ad, they are going to be convinced by actually holding it in their hands and seeing WHY it is a better purchase.

 

[J515OP]

Microsoft may have very modest goals and they may not want to add to the bottom line directly through Surface sales as much as make a statement. This would be similar to Google and Amazon who have ulterior motives for selling their devices (to get people into their ecosystem). While MS is in transition and may end up becoming more like Apple eventually, they are not Apple and do not rely primarily on hardware sales (which then also feed the Apple ecosystem).

MS doesn't need to directly compete with iPads or Apple but what they do need to do is make sure Windows (their bread and butter) doesn't become irrelevant in a post PC world running on mobile devices. If they can establish Windows as a player in both PC and mobile worlds then they are going to continue to be a dominating OS force. So I think it is relative to their over all goals. If they made 400,000 units and sold 400,000 units in two months then the sales are strong. Maybe they will eventually expand beyond their current constraints but this was not a mistake.

MS took a specific business approach and their choice was not to mass market the Surface devices. There are a variety of reasons that could have led them to this decision but just because they didn't put it on every retail shelf in America or around the world doesn't mean they are failing. Perhaps they could have sold more and will sell more if they do that but there is also nothing wrong with limiting their sales either. Assuming that the end game is to sell as many Surfaces as quickly as possible is a mistake many people are making in comparing MS and the Surface to other tablet retailers. For that matter Google wasn't the first to ship Android tablets and still has limitations on where you can buy its nexus devices.

JP