Analyst Estimates Microsoft Only Sold 1 Million Surfaces Last Quarter

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Posted January 14, 2013 at 11:01pm by Shalom Levytam

UBS analyst Brent Thill has released a report estimating that Microsoft only sold 1 million Surface tablets last quarter.

Cutting FQ2 by $1.1B/$0.08 to $21.3B/$0.76 (Street $21.7B/$0.76) on lower Windows division revs to $5.9B (from $6.7B) on CQ4 PC sales -6.4% per IDC and our revised Surface RT sales e.stimate of 1M units (prior 2M). PCs also hit MBD transactional revs cutting MBD to $5.6B from $5.9B. With PC weakness likely to linger we cut FQ3 to $21.0B/$0.76 from $21.5B/$0.78 (Street $20.9B/$0.78). FY13 est’s cut to $79.6B/$2.80 (revs +8.0%, margins 36.6%) from $80.8B/$2.90.

In comparison, Apple is estimated to have sold over 20 million iPads. Despite the slow sales Thill is cautiously optimistic about the product noting that Microsoft only sold the device at its stores and that the company's use of Intel chips is good for corporations.

[via BusinessInsider]

Analyst Estimates Microsoft Only Sold 1 Million Surfaces Last Quarter

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James - January 15, 2013 at 6:10pm

When the better version of the surface comes out they should do better. The one that actually runs full programs and has usb 3.0

Noman - January 15, 2013 at 5:51pm

Microsoft Office is an excellent product. Sometimes overly complicated, but excellent nonetheless. EVERYTHING ELSE Microsoft since DOS has been a big fail. Microsoft should stick with Office and abandon everything else. Leave OSs to the big boys.

Noman - January 15, 2013 at 1:49am

Horrible decision to launch the Surface with Windows 8, possibly the worst OS that Microsoft has ever produced.

odedoo1 - January 15, 2013 at 3:24am

I don't know, I got Windows 8 installed on my iPad and I believe that for a touch screen it's a perfect OS; in fact, I can't wait for Microsoft to release a non-RT full version Windows 8 Surface. I'll surely get one; the thing is it's a full PC, not just a play tablet like my LTE 64GB iPad 3. Also, just today Apple admitted that coming out with the iPhone 5 was a mistake, and they said it after Apple stocks dropped again for another 20 percent.

Nick - January 15, 2013 at 1:34am

It seems pretty stupid that they aren't selling it at the major retailers as well, they're missing out in a lot of the market.

NoGoodNick - January 15, 2013 at 1:24am

MS is busy announcing how many copies of Windows 8 they've sold, despite the fact PC sales dropped 20% when they were wrapped in Windows 8. I don't mind seeing a new alternative OS, but Windows is coming to the party too late with too little, and Windows 8 can't figure out whether it's for tablets or desktops.

Bacha - January 14, 2013 at 11:48pm

out of this 1 million, half was distributed to free to Microsoft employees and business partners... infact Microsoft phone and Microsoft Surface are very common only in Microsoft employee as they get it for free else they will not spend a penny on these products from Microsoft.

Nitro Junkie - January 15, 2013 at 7:40am

And the other 500,000 were returned!! Haa Haa. Just like HPs "highly successful" tablet. Microsoft will be selling them for half price in 4-6 months. Then they'll start working on a new OS just like they did after the Vista debacle.

Chris - January 14, 2013 at 11:17pm

If I were to buy a tablet I would definitely consider the Surface, it looks to be an alternative to a PC unlike the iPad which still resembles a large iPod touch rather than being an alternative to an iMac. There's no faulting sales figures though and Apple are obviously good at marketing or something...