Analyst: Microsoft Surface Demand Is Disappointing

ZDNet, Craig Berger, an analyst over at FBR Capital Markets in a note said that the disappointing sales have “underwhelmed expectations”. This is the reason why the Redmond giant has been so modest about giving away sales numbers. Technology enthusiasts know that Microsoft is rarely quite when it comes to sales figures. Microsoft obviously had planned to shift between 3 to 5 million Surface tablets in first quarter. But seeing the slow sales, the company reportedly halved its order at Foxconn, as it prepares for the Pro version of Surface set to hit the market in January 2013. One of the bigger reasons cited for low sales by analysts is the somewhat high price of the device. The $599 for the tablet definitely puts it more expensive than the starting tag of an Apple iPad. The situation becomes even more lopsided when you bring in the sub $200 tablet devices. Add to this one nifty little nugget of information that Microsoft is making more on the sale of a Surface tablet than a little company called Apple makes it on the sale of an iPad. The easiest solution for this little sales problem is a price drop – the need for one is urgent. Another factor that plays its part is the somewhat negative publicity Windows 8 is getting for its radical new user interface. There was a time when the Start Menu was a new thing, just like the Start Screen is now, but this isn’t stopping usability experts from calling out Windows 8 as confusing and disappointing. This is a transition period for Microsoft, but the company most definitely has its work cut out.]]>

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