[Rumor] Microsoft Cuts Target Orders for Surface RT Tablets in Half to 2 Million

[dgstorm]

Although it's too early to call it a failure, a new rumor from DigiTimes suggests that Microsoft's Surface RT tablet isn't doing as well as the folks at Redmond were hoping. Originally, MS had a target of selling 4 Million units by the end of 2012. Supposedly, according to sources from Microsoft's supply chain, they have recently cut this target in half to just 2 Million. Here's a quote with a few more details,

Microsoft originally expected to ship four million Surface RT devices by the end of 2012, but has recently reduced the orders by half to only two million units.

Although Asustek Computer, Samsung Electronics and Dell have all launched Windows RT-based tablets, consumer demand for those devices is also weak.

The sources also pointed out that Surface RT is also unlikely to achieve great performance in the upcoming quarter which may force Microsoft to bring out its Intel-based Surface Pro tablet earlier in December.

Here in the forums, we are huge fans of the Surface RT tablet. Certainly it has a few quirks, but overall it is a solid device that really does a great job of bridging the gap between the PC world and the tablet world. We can't disagree that a more competitive price might improve its sell-through numbers. Of course, the Holidays are still bearing down on us, so you never know how well it might do before the year is out, and for now this is only a rumor. We will keep you guys informed as things progress.

Source: DigiTimes

 

[fosking]

which may force Microsoft to bring out its Intel-based Surface Pro tablet earlier in December.

It would be nice but Microsoft are still saying today "early 2013".

 

[J515OP]

This could be for a whole variety of reasons. Certainly the lack of retail availability must be a huge factor. It doesn't seem that the pop-up stores have popped-up in very many places, there are very few actual MS stores and most people aren't use to going to microsoft.com to buy hardware. On top of that Ballmer stated that they were conservative with the availability of the hardware supply to begin with. So the Surface has been available for just over a month, has been in short supply and not widely spread out for retail.

4 million in two months with a relatively high price and limited availability seems like it was always a very lofty target. For a little prospective the Nexus 7 priced at $200-$250 sold ~500k units in its first couple of months (June/July) and just recently hit the 1 million per month mark with the total for 2012 expected to be about 3 million (in 6 months). Given this perspective even 2 million in two months should be considered a resounding success particularly when you factor in all the sales not happening in anticipation of the Surface Pro availability.

The only way we will really know if the Surface devices are successful is to see their market share at the end of the year. Calling it now is like calling a baseball game after the first two innings.

 

[R0bR]

I've been to the Microsoft store in Toronto several times since it opened a couple of weeks ago and it's not only busy but all I see are Surface tablets going out the door. I was there for 30 mins while my wife was picking up an HTC 8X and at least 10 Surface tablets were sold. They seem to be doing well here.

 

[J515OP]

I've been to the Microsoft store in Toronto several times since it opened a couple of weeks ago and it's not only busy but all I see are Surface tablets going out the door. I was there for 30 mins while my wife was picking up an HTC 8X and at least 10 Surface tablets were sold. They seem to be doing well here.

The problem is there are very few MS stores where they can be sold in high volumes like that It would be different if they were able to just get them in Best Buy for example.

 

[Hans]

The problem is there are very few MS stores where they can be sold in high volumes like that It would be different if they were able to just get them in Best Buy for example.

Not to mention what those of us overseas have to go through to get our hands on a Surface. I could only get one through our office in Hong Kong, since I didn't want to get it from the US in case I ever need service.

 

[Afy]

Digitimes as a source of information is inherretly unreliable.


MS's strategy is to set the bar and let the vendors due the learge sales.
Look at it in this perpective will a Google phone sell more than say Samsung? Unlikely.. but it set the standards for Android.

Simillarly M S wants to set the standard for performance, durability and design. I think they are doing well... Lets see what the furture brings. The quarterly earnings are not far away