Pacific Crest Securities analyst Brendan Barnicle on Sunday raised his estimates for Microsoft because of in-line sales for the Surface. Barnicle surveyed retailers in the U.S., Canada and Germany, about 75% of whom say Windows 8 is meeting expectations, while 25% said the computers are selling faster than expected.
"In our third round of retail checks, Windows 8 and Surface continue to meet expectations, with Surface actually slowing from prior weeks," Barnicle wrote in a research note.
Cowen & Co. analysts Robert Stone and James Medvedeff said in a research note the new Windows 8 Surface tablet will likely "exploit new price/feature niches" and likely gain market share.
Only 21% of the 1,225 U.S. PC and Mac owning consumers were however planning to buy an new Windows 8 laptop, desktop or ultrabook computer in the next 18 months. They also found only 10% of consumers said Windows 8 is "not as cool as a Mac", likely equating to the 10% who actually own Apple computers, while 58% of current PC owners saying they did not want to adjust to the new interface.
Windows 8 does not appear to be spurring an upgrade cycle," the analysts said, noting that this would equate to a "gradual" Windows 8 adoption, and that "upgrades won’t likely reverse recent PC unit declines.”
It is however likely that consumers will respond better once prices on hybrid computers dropped and when more penetration occurs in the marketplace.