A UBS analyst cuts his fourth-quarter Surface sales estimate in half, saying the product faced tough competition from the iPad and a lack of general availability.
Microsoft Surface tablet may not have sounded much holiday cheer in the last quarter, at least according to one analyst.
Microsoft sold just 1 million tablets RT surface in the fourth quarter, projects UBS analyst Brent Thill, against a previous forecast of $ 2 million. In a note today, investors, analysts cited two reasons for his austere projection in one sentence:
“Surface RT is a consumer device with [the fourth quarter] sales suffering the iPad difficult to compare and narrow distribution.”
Early last month, IHS iSuppli analyst Rhoda Alexander told CNET that he expected sales area of 1.3 million for the quarter, adding that “I would be surprised to see it well above that.”
Last July, CEO Steve Ballmer said Microsoft’s goal was to sell a few million tablets surface next year. However, the company has been silent about recent sales of the surface, which debuted in late October.
Thill has higher expectations of the tablet surface Microsoft Pro, which is scheduled for release later this month.
Unlike its counterpart RT, Surface Pro is a complete Windows 8 tablet capable of running all desktop applications and provide more power and features.
Call Pro Surface “most promising” Thill sees it as an alternative to the iPad among business users. For Microsoft’s fiscal year 2013, which ended June, the analyst estimated sales area of 2.5 million units. For fiscal year 2014, which is looking at sales of up to 8 million.
Microsoft rejected the request for comment on CNET forecasts Thill. The company will release its earnings report for the fourth quarter on January 24.