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  • Microsoft Estimated to Have Only Sold 1.7 Million Surface Tablets Since Launch


    Microsoft recently filed its annual Form 10-K with the Securities and Exchange Commission (SEC), revealing that the company’s Surface lineup has garnered only $853 million in revenue for the company, which is less than the recent $900 million write-down that the company took for the Surface RT. As noted by GeekWire, it’s also less than the “$898 million increase in advertising costs associated primarily with Windows 8 and Surface.” The numbers account for all Surfaces sold from the device’s original fall launch until the end of Microsoft’s fiscal year on June 30.

    Although Microsoft didn’t reveal how many Surface units it sold, it was estimated that it sold approximately 1.7 million units by the end of June, which roughly corroborates a Bloomberg report in March claiming that Microsoft had sold 1.5 million Surface devices. As pointed out by The Loop’s Jim Dalrymple, Microsoft has sold 1.7 million Surface units in 8 months, which is far from the 3 million iPads that Apple sold in 3 days last November, the 14.6 million iPads it sold last quarter and the 57 million iPads Apple sold since the Surface launched.

    Microsoft CEO Steve Ballmer even went as far as telling employees that the company had “built more devices than [Microsoft] could sell” referring to slowing Surface sales in an internal town hall meeting. Recently, Microsoft has been trying to sell more devices by aggressively marketing the Surface RT as an iPad competitor with negative ads and by reducing the price of the Surface RT by $150.

    Despite the slowing sales of the Surface tablets, Microsoft is said to be moving ahead with plans for a second-generation tablet said to be revealed in the future.

    Source: Bloomberg, GeekWire, The Loop, SEC
    This article was originally published in forum thread: Microsoft Estimated to Have Only Sold 1.7 Million Surface Tablets Since Launch started by Akshay Masand View original post
    Comments 15 Comments
    1. Carvensno's Avatar
      Carvensno -
      Sucks to be them. You cant polish a turd!! LMAO POS is a POS plain and simple!! Try again MS.
    1. holyshnikes's Avatar
      holyshnikes -
      Microsoft is starting to tank.
    1. tridley68's Avatar
      tridley68 -
      Quote Originally Posted by Carvensno View Post
      Sucks to be them. You cant polish a turd!! LMAO POS is a POS plain and simple!! Try again MS.
      Because nobody wants to buy junk except for 1.7 mill who by now have found out what a mistake it was to purchase.
    1. djarkiz's Avatar
      djarkiz -
      Quote Originally Posted by tridley68 View Post
      Because nobody wants to buy junk except for 1.7 mill who by now have found out what a mistake it was to purchase.
      Lmao
    1. fleurya's Avatar
      fleurya -
      Surface and RT really aren’t all bad, and could probably be decent devices for the right consumer. But it’s plagued by many mistakes MS has made.

      - They tried making their mobile OS and desktop OS look the same. It’s nice for consistency, but being exactly the same just confuses people. Additionally, adding a desktop-like screen that implies full Windows.

      - Because of the first point, MS and third party retailers used the similarity to push the RT’s and make claims to buyers that they were “basically the same thing” and tricked people into buying RT when they really wanted full Windows.

      - Advertising: when you have a brand new product, you need to use your ads to explain to people what it is and it’s benefits. All their ads had was people dancing around clicking on keyboards and unlocking screens with pictures.

      - A secondary issue with the dance ads is they implied the screen was included. People were probably not happy when they got to the store and found out it was a $100 add-on.

      - One of the biggest mistakes, not creating huge incentives for developers to make a lot of quality apps for RT right away. MS has the money to do this, and they should have. Maybe use some of that huge wasted ad budget?

      - Trying to be Apple and build their own hardware in the first place! It’s not their business model. Why did they even try??

      All in all, many big mistakes, and now it will take a long time for Surface/RT to be competitive with iPad/Android.
    1. peacedog's Avatar
      peacedog -
      Microsoft is just too late in the game. It is just too hard for anyone else to complete with Apple and Android in the mobile and tablet market.
    1. SuncoastDave's Avatar
      SuncoastDave -
      This is the company that brought us Plays For Sure(tm) and the marvelous Zune - being so closely in touch with the wants and needs of the consumer, how can we be surprised? Oh, and cutting your partners' throats by building the damn thing yourself - what a master stroke. And let's not forget what they were pushing with the new X box... until the gaming world rose up and gave them a mighty smiting of the beak.

      Bah. Ballmer really needs to go. Even the Servers and Tools people are going to have a hard time keeping this boat afloat.
    1. Raptor2213's Avatar
      Raptor2213 -
      Quote Originally Posted by holyshnikes View Post
      Microsoft is starting to tank.
      Starting to? They've been going downhill for over 13 years now.
    1. bigboyz's Avatar
      bigboyz -
      Bashing other companies to vault your own sales is never good. Apple doesn't do it and sells more than most. Follow the model it works. Also, you cannot revamp an entire OS and expect it to sell like hot cakes without telling users HOW to use it. Also, it is over priced. Drop it to $599 and i bet it would triple the sales. I've used both RT and PRO..they are not bad at all but I'm a Mac user as its what I prefer. In the end I feel MS just needs to work on advertising in general to get their hardware to sell. Competition is good for all.
    1. Hillefied's Avatar
      Hillefied -
      Quote Originally Posted by bigboyz View Post
      Bashing other companies to vault your own sales is never good. Apple doesn't do it and sells more than most. Follow the model it works. Also, you cannot revamp an entire OS and expect it to sell like hot cakes without telling users HOW to use it. Also, it is over priced. Drop it to $599 and i bet it would triple the sales. I've used both RT and PRO..they are not bad at all but I'm a Mac user as its what I prefer. In the end I feel MS just needs to work on advertising in general to get their hardware to sell. Competition is good for all.
      That's not entirely true about bashvertising. Nokia garnered great success with their latest Windows smartphone Lumia with an ad about how Android and iOS are always at each others throat comparing features to features when the Lumia offered all those things and a few additional features.

      However, the way the Surface ads came down on iOS was degrading and probably could have been handled differently.

      Lastly, the price points for iOS over Surface RT are steal better considering quality of UI and consumer experience.
    1. Christophxr's Avatar
      Christophxr -
      They made a good product and they stumbled around trying to explain why it's a good product—including teaching people how to use it, explaining the differences between the RT and the Pro and overall advertising, trying to pull a John McCain in '08 by bashing the competition instead of trying to make an actual case.

      If anything, they should have stuck with their strategy in that wedding commercial—bashing the war between Apple and Samsung fans itself. Apple customers are loyal—it's a waste of money trying to make them buy another product because, even if you convince them to, odds are they'll go back to their Apple devices in a month. No, Microsoft should be focusing on Android users—ESPECIALLY the users who don't have tablets or smartphones yet at all.

      They need to try to get that late-twenties to mid-thirties user—that's the market lacking in smart-devices.
    1. Hillefied's Avatar
      Hillefied -
      Quote Originally Posted by Christophxr View Post
      They made a good product and they stumbled around trying to explain why it's a good product—including teaching people how to use it, explaining the differences between the RT and the Pro and overall advertising, trying to pull a John McCain in '08 by bashing the competition instead of trying to make an actual case.

      If anything, they should have stuck with their strategy in that wedding commercial—bashing the war between Apple and Samsung fans itself. Apple customers are loyal—it's a waste of money trying to make them buy another product because, even if you convince them to, odds are they'll go back to their Apple devices in a month. No, Microsoft should be focusing on Android users—ESPECIALLY the users who don't have tablets or smartphones yet at all.

      They need to try to get that late-twenties to mid-thirties user—that's the market lacking in smart-devices.
      +1

      Excellent points
    1. REMED1AL's Avatar
      REMED1AL -
      Microsoft spent more time saying it's better than an iPad rather than promoting the product. It's not an iPad and it's not even really competition for an iPad. At this point if I can't do it on my iPhone I get a PC/MacBook out and, if the product we're better, maybe a Surface Pro.

      I might have liked it if Windows 8 didn't make me want to use it as a Frisbee rather than a PC. The menus are all over the place , hate not having a HOME button and the desktop makes the entire tiled interface feel like a lame facade.
    1. jOnGarrett's Avatar
      jOnGarrett -
      they should mention this in their next commercial.
    1. silentassassin12's Avatar
      silentassassin12 -
      Quote Originally Posted by bigboyz View Post
      Bashing other companies to vault your own sales is never good. Apple doesn't do it and sells more than most. Follow the model it works. Also, you cannot revamp an entire OS and expect it to sell like hot cakes without telling users HOW to use it. Also, it is over priced. Drop it to $599 and i bet it would triple the sales. I've used both RT and PRO..they are not bad at all but I'm a Mac user as its what I prefer. In the end I feel MS just needs to work on advertising in general to get their hardware to sell. Competition is good for all.
      do you not remember the apple vs pc commercials? Apple was clearly bashing microsoft in those ads.

      MS really screwed up with their ads though. They didnt show anything about it, they just danced. I really have no idea what their OS is like from their ads and that doesnt make me want it at all. When the iphone first came out they had those commercials with the finger showing you stuff you can do on it and i felt that was pretty effective at making it look cool.