Tag: Surface Pro

Microsoft may dump Surface tabs

Microsoft Surface ProA report suggested that Microsoft may decide to give up the ghost on its Surface Pro 3 tablet.

According to Digitimes, sales for the product have been weak and Microsoft is disappointed with its performance.  That’s according to unnamed sources from the supply chain.

Microsoft has also failed to set up an adequate distribution chain and at the same time high prices for the products have put many people off.

Digitimes estimates that Microsoft has lost around $1.7 billion on the first two generations of its tablet.

Microsoft has another problem too. Competitors have introduced smartphones with large screens and that has affected peoples’ buying choices.

Microsoft hasn’t had much luck with hardware, with one notable exception.

That’s the Microsoft mouse.

MS Surface gets new lease of life

surface-rtMicrosoft’s Surface tablets are refusing to die thanks to a bit of help from another bloated and overvalued mess – the public sector. Phoenix Software reports that it has seen a 40 percent surge in demand for Surface tablets from schools, colleges and the rest of the public sector. We assume asylums are somewhere rank high on the list as well.

The surge came about after Microsoft unleashed Surface tablets on the channel two weeks ago. Phoenix actually had to increase its public sector team by 30 percent to cope with increased demand and it even adopted the Surface itself, through its BYOD policy.

The Surface Pro is fully compatible with Windows-centric networks used in most public sector institutions, and since it ships with Microsoft Office, multiuser support and a physical keyboard, it has an edge over Android tablets and iPads in such an environment. The Surface RT also has a few things going for it, as it replicates the IT suite environment used in many schools, although it lacks compatibility with legacy x86 applications.

It’s good news for Microsoft, which sort of makes us wonder why it didn’t go after known Windows addicts like the public sector in the first place? It seems someone at Microsoft truly thought those colourful TV ads would make civilians buy Surface tablets over the iPad. Could it have been someone who’s about to step down perhaps?

Microsoft bleeding millions on Surface tablets

surface-rtMicrosoft’s hardware curse is still alive and kicking. A couple of weeks ago Microsoft announced a $900 million charge for heaps of unsold Surface RT tablets and last week CEO Steve Ballmer admitted that Redmond got carried away and built too many Surface RTs, just in case there was anyone in the industry who didn’t know it was a massive flop already.

In its latest annual regulatory filing, Microsoft revealed that its combined revenue for both the Surface RT and Surface Pro was $853 million. The RT was introduced last October, while the Pro came along in February. Microsoft’s fiscal year ended June 30. The IDC puts the combined shipments of all Windows RT tablets, including the Surface, at just 200,000 in the first quarter of the year.

In other words, the write down was bigger than the actual revenue.

As if that wasn’t enough, Microsoft also reported a 10 percent increase in marketing expenses. Much of that cash went towards Surface advertising campaigns, which were apparently as effective as the French armed forces in 1940. Adding other expenses such as R&D and distribution into the mix only makes the situation worse.

Microsoft clearly doesn’t need more bad Windows RT news, especially not today, but Asus Chairman Jonney Shih obviously didn’t get the memo. He told AllThingsD that his company would not launch a new Windows RT tablet, which was to be expected as he already moaned about the platform earlier this year.

“The result is not very promising,” he said.

He added that people still use a lot of legacy Windows applications and that Asus will focus on Intel-based products as well.

Unfortunately for Microsoft, Shih is not the only industry leader who thinks Windows RT is dead in the water.

iPad market share at an all-time low

cheap-tabletsApple’s share of the tablet market appears to be at an all-time low, thanks to strong competition from cheap and cheerful Android tablets.

Despite the slump, Apple still remains the biggest player in the tablet market, but it is no longer the only outfit in town.

According to Trend Force, iPad sales dipped from 17 million to 14.6 million units last quarter. It ended the quarter with a 35.5 percent market share. Samsung ranked second with 8.8 million units and a 21.4 percent share. This is rather surprising, since Samsung’s tablets tend to be overpriced and overhyped.

Asus wound up in a distant third spot, with shipments of 1.6 million and a 3.9 percent market share. Acer wasn’t far behind, with 1.5 million units and a 3.6 percent share. Amazon ranked fifth with 1.1 million units and a 2.7 percent share.

Microsoft and Google in next, at 0.9 million and 0.7 million respectively and the figures are surprising to say the least. Google’s Nexus 7 was supposed to be a cheap, high volume device, but it seems it was outpaced even by Microsoft’s Surface tablets.

It should be noted that Apple is gearing up to introduce the fifth generation iPad and the second generation iPad mini. It current line-up is rather dated and the new iPads could turn things around. Google introduced the new Nexus 7 last week and it is getting some very positive reviews as we speak.

However, we believe the most interesting number in the report has nothing to do with Apple, Samsung or Google. Makers of white-box tablets sipped 9.7 million units last quarter, for a combined market share of 23.5% percent. In other words for every Surface RT or Nexus 7 tablet sold last quarter, nameless Chinese manufacturers sold ten of their equally nameless tablets.

Microsoft channels Surface to businesses

surface-rtIn what can only be described as a last ditch effort to keep Surface tablets from flopping, Microsoft has launched a new channel programme in the United States. The programme should push sales of Surface tablets to businesses and other organisations. 

For the time being, the programme is limited to the US, but it will expand over the next few months. Under the programme, Microsoft’s channel partners stateside will offer the Surface RT to schools and universities at steep discounts, reports PC World. Private sector companies and government agencies are being pursued as well.

The partners will also be able to offer technical support, on-site assistance, data protection, recycling and asset tagging. Independent software vendors are also being encouraged to develop apps for Windows RT and Windows 8. The latter just crossed the 100,000 app milestone, but on the whole the choice of RT and Win 8 apps remains rather limited when compared to competing platforms. The software part of the programme is called AppsForSurface and developers who sign up will receive Surface devices and funding.

Ingram Micro, Synnex and Tech Data, CDW, CompuCom, En Pointe, Softchoice and Zones are already on board, while Citrix, Airstrip and Houghton Mifflin Harcourt have signed up for the software part of the programme.

However, although businesses don’t tend to shy away from Microsoft, they aren’t exactly lining up for Redmond’s tablets. Demand remains soft and enterprise adoption is anything but spectacular. Windows tablets have one thing going for them, IT departments seem to like them a bit more than Android gear when it comes to BYOD. But many love Apple even more.

Microsoft readies a Surface re-run

Microsoft SurfaceWhile Microsoft’s Surface tablets proved completely underwhelming, a report suggests that the company might have another bash at the platform.

According to Taiwanese wire Digitimes, the company is expected to announce next generation Surface machines at the end of June.

The company only managed to shift 1.5 million tablets of the first generation Surface – way beyond what it expected to achieve.   But the pricing was all wrong and the competition in this field is now very intense.

The wire claims that the second generation Surface will largely retain the same suppliers as Surface Mark I – including microprocessors from Intel and Nvidia, screens from Samsung and LG and touch panels from TPK.

The report also said that displays for Surface Mark II will be smaller – supposedly because there’s more demand for these type of devices, although it’s entirely possible that Microsoft wants to bring down the bill of materials (BOM) costs. It will certainly have to do something spectacular to make Surface tablets fly – particularly on retail costs.

Microsoft starts selling Surface tablets in bulk

surface-rtMicrosoft’s Surface tablets are off to a rather unimpressive start, but Redmond now believes that it can woo more business users by selling its gear in bulk. The new service allows business users to place volume orders for Surface tablets, reports ZDNet. We are, however, not convinced it will help Microsoft’s cause.

The Surface Commercial Order service is only available to authorized partners and volume licensees, which means smaller outfits can’t take advantage of it. The real question is whether anyone will take up Microsoft’s offer. Microsoft is still not saying much, but it seems the bulk rollout will be very limited indeed.

Surface sales are another thing Microsoft is willing to talk about. Analysts reckon that it manage to shift upwards of one million Surface RT tablets, along with 400,000 units of the pricier Surface Pro. The figures are unimpressive to say the least.

Microsoft still believes that Surface tablets, and especially the x86 based Pro version with Windows 8, are the right choice for businesses. The decision to make it a bit easier for partners and volume licensees to order heaps of Surfaces seems like a logical move in that direction, but Microsoft might have missed the boat already.

Apple’s iPad still reigns supreme in the business space, and it is being challenged by Android tablets, not Microsoft gear. BYOD is another worrying trend that should be taken into account. Few people will buy Surface RT tablets for personal use and even fewer will go for the chunky and expensive Pro version. They will try to use their iPads and Android slates at work and most companies will be happy to let them do so.

Surface tablet sales fall short, resemble Zune

surface-rtOh dear. It looks like the sceptics were right, Microsoft’s Surface tablets are lemons. Bloomberg is reporting that Microsoft has sold about 400,000 Surface Pro tablets since their debut last month. In addition, it only managed to sell a little over a million Surface RT tablets.

Microsoft reportedly ordered three million Surface RT tablets last year, but sales never picked up and Redmond was forced to scale back the order. 

The lacklustre figures come as no surprise. Earlier this year it emerged that the RT faced high return rates and very low sell-through, with shipments totalling just 900,000 units in the first quarter of sales. The Surface Pro did not fare any better. It got relatively negative reviews and since it is quite a bit pricier than the RT, consumers don’t seem keen to make the leap of faith.

JMP Securities analyst Alex Gauna told Bloomberg that Microsoft has failed to prove that Windows has a place in a new world dominated by touchscreens.

“It’s pretty clear that things were bad entering the year, and at least for the moment they’re getting worse,” he said. “The path to a successful Surface, in the same way that they were successful with Xbox, is not very clear to me right now.”

Apple still commands a 50+ share of the tablet market, although it is projected to slip under 50 percent later this year. Analysts put Apple’s iPad shipments in Q4 at 22.9 million units, which dwarfs every single competitor. However, Apple is losing share to Android, not Windows.

IDC reckons that the share of Windows RT tablets will stay below 3 percent through 2017, while Windows 8 could end up on 7.4 percent of tablets, in 2017 of course. In other words, Windows tablets are going nowhere, fast.

Europe to binge on cheap tablets

nexus7The tablet boom is still going strong and according to Forrester Research, plenty of growth is expected over the next few years. Tablet ownership in Europe is expected to quadruple by 2017.

At the moment, an estimated 14 percent of European online consumers own a tablet, and the number should hit 55 percent by 2017. But who stands to gain from the boom?

Surface Pro showered with negative reviews

 

surface-pro

Microsoft’s tablet push seems to have hit yet another snag. The first reviews of Redmond’s new Surface Pro tablet are in and they are not good at all.

Envisioned as business friendly tablet with unparalleled legacy compatibility, the Surface Pro was supposed to challenge the iPad and high-end Android tablets by wooing traditionally conservative corporate customers to embrace a tried and tested platform, more or less.

At least that was the idea and on paper everything seemed right. The Surface Pro is powered by a proper x86 chip and it runs Windows 8, ensuring compatibility with legacy applications. It also has a full HD screen, physical keyboard and a pretty high price tag, which should be justified by its unique feature set. However, reviewers gave the Pro no quarter.

The Verge reckons it is still a better choice than the Surface RT, which really isn’t saying much since the RT doesn’t appear to be a good choice at all. However, consumers can get a decked out hybrid for about the same money, which led The Verge to put forth a simple question: who is it for? Oddly enough, the Apple loving New York Times was a bit more lenient, concluding that the Surface Pro could be the right machine for a lot of people.

“It strikes a spot on the size/weight/speed/software spectrum that no machine has ever struck. You can use this thing on a restaurant table without looking obnoxious (much),” wrote NYT’s David Pogue.

AllThingsD was not impressed, concluding that the Pro is too power hungry and too difficult to use in your lap. “It’s something of a tweener — a compromised tablet and a compromised laptop.”

Engadget’s Tim Stevens tried to be a bit more positive, but it soon ran out of kind things to say. “When trying to be productive, we wished we had a proper laptop and, when relaxing on the couch, we wished we had a more finger-friendly desktop interface,” he wrote.

Business Insider was blunt as usual, saying the Pro is just like the RT version, only heavier, thicker, more expensive and with half the battery life. “It looks like a tablet, but you can snap on an optional (but essential) keyboard cover that turns the Surface Pro into a pseudo-laptop. So why would anyone buy that?”

So what exactly was the Surface Pro’s undoing? Quite a few of things apparently, but most of them are not restricted to the Surface Pro – they apply to all upcoming Windows 8 tablets. On the hardware side all appears well, but vendors have to use power hungry x86 chips in all Windows 8 tablets, rather than frugal ARM SoCs employed by Apple and the Android alliance. The OS itself is bloated, hence a lot of speedy solid state storage is required to come up with a feasible Windows 8 tablet. Android and iOS are a lot leaner. Less efficiency also translates into limited battery life and bigger batteries, increasing production costs and bulk. Modern Android tablets and the iPad mini measure just seven to eight millimeters at the waistline and no Windows 8 tablet can come close to that yet.

Still, legacy app compatibility and unbeatable productivity features could easily outweigh the drawbacks? Well they could, in 2009. Countless developers have spent long hours working on productivity apps for iOS and Android over the past three years, so Redmond’s productivity edge has been blunted. BYOD is another trend that is forcing companies to rethink their approach and embrace cross-platform software solutions.

As far as legacy apps go, Windows 8 tablets seem like the obvious choice, but there are a few caveats. Windows 8 still lacks native, touch friendly apps. Most legacy apps can’t handle touchscreens very well, which means the traditional keyboard and touchpad combo is a must. With that in mind, there is no good reason for those in need of legacy support to get a tablet, as an Ultrabook or hybrid will do just fine.

Windows 8 tablets were cleverly marketed as a natural extension of ultraportable notebook lineups, so many vendors were (and still are) a lot more interested in Windows 8 tablets rather than Windows RT gear. Between Surface RT’s slow sales and the unflattering Surface Pro reviews, Redmond’s tablet strategy seems to be imploding faster than a North Korean uranium warhead.

 

 

Surface RT faces high return rates, low sell-through

surface-rtMicrosoft’s Surface RT tablet rollout came and went without much fanfare. Although Redmond’s first crack at the tablet market received relatively positive reviews, consumers seem unfazed and many of them are choosing to trade in their new tablets.

IHS iSuppli estimates that channel shipments totaled about 1.25 million units, but far fewer have been sold. In fact, as little as 680,000 to 750,000 units appear to have actually been sold.