Tweet
Microsoft Tablet Under ‘Modest’ Cloud in Early US Sales
© AFP/ Joe Klamar
04:17 27/11/2012
November 26 (By Sasha Horne for RIA Novosti) It’s early days and evidence is scarce. But the initial buzz around Surface – Microsoft’s answer to Apple’s iPad – is not the stuff tech legends are made of.
“Surface is a mess,” David Morgenstern, technology writer for respected online trade magazine ZDnet.com, told RIA Novosti in an email.
“For all the years that Microsoft has had to manage this transition, the Surface machines and OS don't have all the little bits and pieces nailed down and polished. It's all very first generation.”
“Black Friday,” the day after the US Thanksgiving holiday marking the start of the Christmas shopping season and often serves as a sales bonanza for the hottest new IT devices, has now come and gone. But so far the Surface appears to be sticking to store shelves, industry experts say.
Microsoft is not yet divulging sales data for its new product and analysts caution that it is still too early to say whether the software giant’s big foray into touch-screen hardware is on the ropes.
But anecdotal information suggests that while consumers have shown some interest in the Surface, that “interest was not necessarily leading to sales,” Trip Chowdhry, analyst with Global Equities Research, said Monday in a widely-reported note for investors.
Chowdhry’s comments came after Microsoft CEO Steve Ballmer told a French newspaper last week that Surface sales were off to a “modest start,” a choice of words followed quickly by a two-percent drop in Microsoft shares – and a swift damage control scramble by the company’s public relations teams.
One bit of anecdotal evidence widely reported by US tech blogs was a report from researchers with the investment firm Piper Jaffray who monitored foot traffic – literally the numbers of people entering and exiting – at one Microsoft retail store in the sprawling Mall of America in the US state of Minnesota.
According to that report, there was 47 percent less customer traffic at the Microsoft store than at the Apple outlet situated directly across the hall.oft store (all but 2 purchases were Xbox games) compared with 17.2 items at the Apple store," Piper Jaffray analyst Gene Munster wrote in an investor note. "Also notable, was that there were no Microsoft Surfaces sold during those two hours."
Reviews of the Surface have been mixed so far. While critics praise the look and the design, they were less than thrilled about the software, functionality, and the retail price starting at $500.
Another gripe is the Window’s app store that has only a fraction of the applications of rival Apple. Notably missing are applications for popular social networks Facebook and Twitter.
But the Redmond, Washington-based Microsoft is heavily invested in the Surface’s success and launched an aggressive marketing campaign that reportedly cost more than $1 billion to generate positive, youthful mojo and prepare the ground for early sales.
“Unfortunately for Redmond, you can't gin up enthusiasm or people who want to wait in line to buy your product,” Morgenstern said, comparing the devotion of Apple fans willing to wait in lines for hours to be among the first to purchase one of its new products.
And while Microsoft has resorted to pop-up stores, billboards, and splashy TV ads with big name American celebrities including actress Jessica Alba and singer Gwen Stefani, apparently even some of the firm’s hired big guns still prefer Apple products.
For instance, media mogul Oprah Winfrey’s endorsement of the Surface raised eyebrows when she tweeted her love for Microsoft’s new tablet … from her iPad.
Still, tech experts point out that it has not yet been even one month since the Surface hit stores and say it’s too early to discern the fate Microsoft’s latest creation.
“Microsoft still has a huge market share advantage in desktops and laptops: more than 93 percent. Yes, it's made mistakes in mobile computing and tablets. And perhaps again with its latest Windows release. But Microsoft isn't going anywhere and its problems may turn around,” said Morgenstern in a blog post
© AFP/ Joe Klamar
04:17 27/11/2012
November 26 (By Sasha Horne for RIA Novosti) It’s early days and evidence is scarce. But the initial buzz around Surface – Microsoft’s answer to Apple’s iPad – is not the stuff tech legends are made of.
“Surface is a mess,” David Morgenstern, technology writer for respected online trade magazine ZDnet.com, told RIA Novosti in an email.
“For all the years that Microsoft has had to manage this transition, the Surface machines and OS don't have all the little bits and pieces nailed down and polished. It's all very first generation.”
“Black Friday,” the day after the US Thanksgiving holiday marking the start of the Christmas shopping season and often serves as a sales bonanza for the hottest new IT devices, has now come and gone. But so far the Surface appears to be sticking to store shelves, industry experts say.
Microsoft is not yet divulging sales data for its new product and analysts caution that it is still too early to say whether the software giant’s big foray into touch-screen hardware is on the ropes.
But anecdotal information suggests that while consumers have shown some interest in the Surface, that “interest was not necessarily leading to sales,” Trip Chowdhry, analyst with Global Equities Research, said Monday in a widely-reported note for investors.
Chowdhry’s comments came after Microsoft CEO Steve Ballmer told a French newspaper last week that Surface sales were off to a “modest start,” a choice of words followed quickly by a two-percent drop in Microsoft shares – and a swift damage control scramble by the company’s public relations teams.
One bit of anecdotal evidence widely reported by US tech blogs was a report from researchers with the investment firm Piper Jaffray who monitored foot traffic – literally the numbers of people entering and exiting – at one Microsoft retail store in the sprawling Mall of America in the US state of Minnesota.
According to that report, there was 47 percent less customer traffic at the Microsoft store than at the Apple outlet situated directly across the hall.oft store (all but 2 purchases were Xbox games) compared with 17.2 items at the Apple store," Piper Jaffray analyst Gene Munster wrote in an investor note. "Also notable, was that there were no Microsoft Surfaces sold during those two hours."
Reviews of the Surface have been mixed so far. While critics praise the look and the design, they were less than thrilled about the software, functionality, and the retail price starting at $500.
Another gripe is the Window’s app store that has only a fraction of the applications of rival Apple. Notably missing are applications for popular social networks Facebook and Twitter.
But the Redmond, Washington-based Microsoft is heavily invested in the Surface’s success and launched an aggressive marketing campaign that reportedly cost more than $1 billion to generate positive, youthful mojo and prepare the ground for early sales.
“Unfortunately for Redmond, you can't gin up enthusiasm or people who want to wait in line to buy your product,” Morgenstern said, comparing the devotion of Apple fans willing to wait in lines for hours to be among the first to purchase one of its new products.
And while Microsoft has resorted to pop-up stores, billboards, and splashy TV ads with big name American celebrities including actress Jessica Alba and singer Gwen Stefani, apparently even some of the firm’s hired big guns still prefer Apple products.
For instance, media mogul Oprah Winfrey’s endorsement of the Surface raised eyebrows when she tweeted her love for Microsoft’s new tablet … from her iPad.
Still, tech experts point out that it has not yet been even one month since the Surface hit stores and say it’s too early to discern the fate Microsoft’s latest creation.
“Microsoft still has a huge market share advantage in desktops and laptops: more than 93 percent. Yes, it's made mistakes in mobile computing and tablets. And perhaps again with its latest Windows release. But Microsoft isn't going anywhere and its problems may turn around,” said Morgenstern in a blog post
