Digitimes: Microsoft Reduced The Orders For Surface RT By Half

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So far we have heard some positive news about Microsoft Surface sales. But now Digitimes reports that the upstream supply chain of Microsoft’s Surface RT has recently seen the tablet’s orders reduced by half.

Microsoft originally expected to ship four million Surface RT devices by the end of 2012, but has recently reduced the orders by half to only two million units.

Not just Microsoft, Windows RT tablets from other OEMs such as Asustek Computer, Samsung Electronics and Dell are also facing weak consumer demand. Digitimes also speculates that Microsoft may bring Intel based Surface Pro tablet earlier than expected due to weak Surface RT demand.

The sources also pointed out that Surface RT is also unlikely to achieve great performance in the upcoming quarter which may force Microsoft to bring out its Intel-based Surface Pro tablet earlier in December.

The sources also noted that Microsoft may consider reducing its Surface Pro price to attract more consumers; however, such a decision may put the already awkward relationship between the software giant and notebook vendors in an even worse situation.

Source: Digitimes



About Author

Pradeep, a Computer Science & Engineering graduate.

  • blackhawk556

    DAMN THAT SUCKS. They should release the pro sooner plus reduce it’s price. Why over price it?

  • http://www.facebook.com/chrgeorgeson Chris Georgeson

    Wouldn’t be surprised.
    It’s MS own damn fault. They over priced the damn thing, didn’t release the Pro version, and expect people to line up in droves to buy the damn thing? I want one and all but RT has no benefits right now. Where are the killer apps for it…. they don’t exist.
    I’m not saying this to be an ass I’m saying it because it’s the truth.
    They made a premium product and priced it the same price as an iPad and there isn’t a compelling enough reason to buy it.
    They can’t afford to screw up the Pro version’s launch…

    • Gladiatorza

      Office is a compelling enough reason, that is its killer app.

      • jack

        Office is useless unless you are in corporate world where RT is not graded for…

        • GG002

          So there are no academic people out there… You’re so full of horsecrap.

    • Bugbog

      If it is worthwhile, you pay the price. Not paying the price because it’s not as “popular” as another is rather silly.

    • garak0410

      I am enjoying my Surface but I have to agree…where is the killer, must have app?

  • Truthhz

    I find this hard to believe. MS could easily sell 4 million if it put Surface in every retailer like Best Buy, Target, Amazon, Walmart etc., and also expanding beyond 8 countries.

    • JohnCz

      I agree, at least in scope, there is no way they could ever reach 4 million in their existing 50+ store network. But I understand why Microsoft didn’t do this, so not to scare their hardware partners. I still think they would get better exposure if they could sell Surface at Barnes and Noble stores or at least showcase a demo unit at each store so folks no where to go to touch & feel it.

      • Truthhz

        I thought the same thing, until I realized that practically NONE of the Windows 8 and RT tablets appeared at launch! Asus Vivo and Surface were the only tablets I saw at launch. OEMs can’t do anything right. MS should just flood the market with Surface and Surface Pro.

    • Bugbog

      They could also [easily] seek/find exclusive partnerships on other continents in order to sell them properly. (I know in the UK Phone4U were quite interested. Not to mention may high-end department stores where they could arrange pop-up stalls).

      Seems like more Digitimes FUD to me!

      • J A

        This is obviously a distribution problem as opposed to a demand problem. Production and availability are other problem areas since they could not fulfill the demand at launch either. They better be prepared for business demand for Surface Pro.

    • http://twitter.com/Kopacha Guilty Spark

      Yep, i was thinking the same thing. Here Surface will be available around 10 of December, and it won’t be even through “official” channels, not to mention that will be overpriced, and without the keyboard. Vivo Tab RT is available in some small quantities, here and there – but it’s also sparce. Iconia Tab W700 was announced yesterday (minus the dock, keyboard, case).. and Aspire S7 today, waaay overpriced but that’s about it. As we know Samsung stalled their shipments for god know what reasons, and here it will start selling ATIV Pcs/RT and ATIV S, by middle of december. Nothing so far on a local ground from Lenovo either. So i think it’s not the problem with the demand – even though most of the devices are pricey, there is a certain level of demand. However – almost no availability neither from MS, or OEMs. So i think most of them should blame themselves and their marketing.

  • http://www.facebook.com/grant.hildyard Grant Hildyard

    Not surprising any of it. No one is stocking them and I want a hands on feel before buying anything. A month after launch aussies biggest it retailer still has only one tablet, Asus Vivo RT and its priced above rec retail @ $899 US last I looked. I cant find stock of anything else. So if they are not there to buy of course they aren’t going to sell. So its either an Asus Transformer Book or a Surface Pro, both which I cant get. Sad thing is I know many more people in my situation.

    • http://twitter.com/donaldvc donaldvc

      Judging from the number of new Surface units on eBay at prices significantly under retail, this could well be true. Unscientific, I know, but perhaps sufficiently indicative.

      • jimski27

        That’s odd, because the Surface comes with a 30 day money back guarantee, and it hasn’t been out 30 days. Guess more than one person tried to make a video driving over their Surface, or using it as a skateboard.

      • biobots

        donaldvc, you are posting bullshit. ebay completed listings show most sales where at or above retail. And those that were low had sellers with very low ratings or low number of ratings as seller. In otherwords, the ebay price is higher than retail ….

  • http://www.facebook.com/alaskanjacksons Ann Joel Jackson

    Reports I’ve read initially estimated the 2 million number, then the fools rushed in after it was released for sale and quoted an increase to 4-5 million. My guess is that the pro version was always slated for a December release?
    I would bet they wanted an earlier date for the pro but you can’t rush this product to market? In any case I love the 2 surface tablets we own and will likely add at least one pro-version when released. Quality build, work as advertised and the integration with skydrive/xbox/excel/word is great.

  • biobots

    does not make sense.
    Microsoft told staff that they would have to wait until late Dec to receive the “gifted” Surface they are promised.
    Why would MSFT do that (staff of course a bit pissed they have to wait) if supply was not an issue.
    I believe Digitimes is simply making some press, it is easy these days, post any nonsense and get quoted to death in the massive echoes of the net.

  • Bugbog

    Although I didn’t seek any other device, other than the Surface, I’m not getting the impression that other RT devices are readily available. How can there be great sales (other than the Surface) if you can’t find them?

  • http://twitter.com/nizzon Johan Nilsson

    Well… “Release the Kraken” (Surface Pro) dammit!
    And also… almost no new hardware is to be found in any stores. I was at Media Markt yesterday and the only Win8 tablet they have are the Asus Vivo RT and a Samsung tab, not sure if it was an older model, it didnt feel very premium anyway.
    I guess they awant to try and sell old crap for xmas, what a mistake, people will go for Ipads if thats the strategy.

    Get the darn hardware to the stores!

  • Ocelotty1

    I’m really scared that the Surface Pro will be too underpowered. I dream of a Gaming Tablet (real, not that Apple/ Android rubbish) Let’s hope Razer’s Project Fiona gets Green-lit & released within the year. :)

  • WillNeverbe Scroogled

    Maybe this reduction is for rev 1 of the Surface. Maybe rev 2 will be out sooner than expected and hopefully: faster, cheaper, and x86 compatible. If this is not what is actually happening, then maybe MS should consider this.

    • Bugbog

      There may already be a rev 2 out. My first Surface had a 10-digit Serial number. The second one had two extra digits!

  • http://www.facebook.com/people/Gavin-Tom/100001144097567 Gavin Tom

    hmm how reliable of a source is digitimes and if not where did they get that information? Just curious.

    • Joe_HTH

      Not reliable at all.

  • Adrian

    They need to drop the price of the surface and drop the price of the license fee for RT to $5 or free

  • http://www.facebook.com/marsupy Paul Renda

    I’m waiting for the Pro version. Already have the money sitting in the bank.. :-)

  • http://www.facebook.com/people/Jan-Mortensen/100002436337397 Jan Mortensen

    A month has passed and here in Denmark you can find a handfull of laptop models with Win8. For Win8 tablets you have to import from abroad.

  • Vitor Canova

    I think many people are waiting for the Surface Pro. Actually I really don’t know if I buy a Surface RT or wait Pro. The problem is that I live in Brazil and will be in NYC by the Christmas. I’ll be absurdly happy if Microsoft decide launch Pro before end of year. But this will not gonna happen.

  • Ocelotty1

    55
    DAYS
    5
    HOURS
    18
    MINUTES
    25
    SECONDS until the Pro is released. :)

  • http://www.facebook.com/hildmann Ludwig Hildmann

    I haven’t seen an winrt tablets at all here in munich…I mean I haven’t actively looked but every time I was in an electronics store I kept an eye open but nothing…

  • duk3togo

    I know they are trying to keep their OEM partners happy but sell the surface with more established retailers. It would open the door to future tablets sales or maybe the Pro is going to the other retailers. Either way if my wife, whom is die harder Apple fangirl and she loved over the iPad, then they got a hit in their hands. Wake up MS!!

  • The__Truth__Hurts

    I would already have a Surface RT IF 1) They had a $600 Surface RT 64GB (w/o cover) and 2) Outlook and/or Office 365 support.

    Surface RT had those two options? I would already have one. And I know several people around who would have one as well.

    But the question is: How much of this stuff is just the media trying to bash/destroy Windows…. or anything non-Apple….?

  • http://twitter.com/counterblow the person

    Digitimes has a 40% Tracour rating and is a major FUD house. They never name sources and regularly post smear articles like this.

  • http://twitter.com/HIGHDEFJUNKIES HighDefJunkies

    First off they should’ve made the Surface $100 cheaper. Second, get into retail stores. Third market the features. If they did this they would be flying off the shelves because people who own one love it. As I do.

    Oh! And why in the hell didn’t they launch the Surface RT and Pro together! It makes too much sense not too. I mean what in the hell are they waiting 90 days to release the Pro? Missing the Holiday season is just so f’ing stupid.

    • Schooner1984

      One of many reasons is: Impatient people bought the Surface RT, will keep it/sell it on eBay and then buy a Surface Pro. If launched together, the Pro (which I am waiting for) would cannibalize RT sales.

      • http://twitter.com/HIGHDEFJUNKIES HighDefJunkies

        I don’t think so because people like me don’t need a full OS. RT does everything I need and does it very well. It’s one of the best products I’ve ever owned. I love it, but worried MS is going to botch it. They have a wonderful product that needs to be seen and touch in more stores.

  • w1ngnut

    MS is repeating their errors over and over, it’s insane!! 1. the surface is expensive! 2. the cover is ridiculously expensive, 3. you just can order it online. 4. In canada it’s more expensive lol.

    Insane!

    • Schooner1984

      1, 2, 4 – check. 3 – it is at MS stores, which have paltry market penetration, but IS available.

  • http://twitter.com/laserfloyd Lewis McCrary

    Should have been priced lower to begin with. $400 and I might have jumped on it. $300 and I’d have one in front of me right now. It will have to be dropped if they are serious about getting into hardware. Gives me hope that Pro will be priced lower as well. I never understood that initial high price AND limiting it to MS stores/online only. Pressure from OEMs?

  • skruis

    This is great news…for me. It means I’ll get my Surface Pro sooner and for cheaper! Yay for disappointing Surface RT sales! Yay for crappy OEM’s who helped bomb the Windows 8 launch! Yay for every iPud loving dolt buying the latest and greatest POS so Surface sales look weaker! Yay for forcing Microsoft into a position where it HAS to build it’s own hardware in order to survive!

  • Cormang

    Not from a credible source. I doubt this information.

    • Ocelotty1

      The source is MSFT’s statement that the PRO would be released 90 days after the RT.

  • http://twitter.com/outlaw_d Big D

    WINDOWS 8 AND SURFACE HAVE BEEN OUT O N E MONTH! Damn, give it some time people!!

    • Schooner1984

      There is very little time to make traction. Kin, HP/WebOS Tablet, TV shows/movies with small audiences – all get cancelled within weeks, not months. MS botched yet another launch by overpricing this consumer product and limiting its availability. I hope for the sake of Windows Phone MS uses its deep pockets and stays with it. I expect a v2 Surface RT is less than a year, and it better be impressive, otherwise I fear no more Surface, or Windows Phone.

      • biobots

        schooner that is crap. Xbox took a long time, many of Microsoft’s software products built up over time.
        The Kin died before launch, it had nothing to do with “traction” and everything to do with a double kill shot. 1 crappy product 2 V last minute pulled out of the deal to give it a super cheap plan. which was why it was made.
        HP webOS, was killed due to a dumb ass CEO not the product. It may have been doomed either way, but the quick death was due to a stupid bunch of yes men.

        • Schooner1984

          Reason for lack of an audience is irrelevant. If Surface does not sell, v2.0 may never see the light of day. MS needs to flex its Enterprise muscle and gain some US Government contracts. The DoD has already excluded WP from its next phone, and more agencies are trading BB for iPhone. Maybe the Surface Phone is the Enterprise phone. I hope for great numbers, because I want to see WP9+.

  • Schooner1984

    I checked out a Surface RT at a local MS kiosk last week. Very cool CONSUMER first product. Too much money though. Drop the price by $150 now, and include a keyboard (We all know a price drop is coming after the Holidays/at the Surface Pro launch). Even then that will not get any iFans to buy one, but should get some of the casual tablet users (read as those who would buy an Android/Kindle) to consider it. I am waiting for the Surface Pro, unless at Surface RT drops to $199, then I will continue to “suffer” with my four year old HP Tablet PC.

  • mmsbludhound

    The main problem with Microsoft products as of late is availability. If the Surface is half as easy to find as the Xbox 360, it may stand a chance. Same goes for tablets/hybrids from other OEMs. It’s a month since W8 launched and less than half of all showcased tablets/hybrids are out on the market. Even the Lumia 920 suffers from the lack of availability too.