Slow start for Surface has Microsoft cautiously prepping smaller next-gen models - report

Posted:
in iPad edited January 2014
Microsoft is said to be planning to introduce its second generation of Surface tablets with smaller displays this June, but the company is reportedly taking a "cautious" approach after the initial models got off to a lukewarm start.

Sources in Microsoft's upstream supply chain indicated to hit-or-miss industry publication DigiTimes that new Surface-branded devices are expected to be announced at the company's Build Developers Conference, scheduled for June 26 through 28. If true, the new hardware would be unveiled about a year after the first Surface units were announced, though the actual hardware didn't go on sale until late 2012.

surfacing


Suppliers for the second-generation models are said to include manufacturer Pegatron, chassis maker Ju Teng, displays from Samsung and LG, and processors from Intel and Nvidia.

As the market trends toward smaller tablets, Microsoft is expected to only introduce new Surface models with screen sizes between 7 and 9 inches, the report claims. The first generation of Surface hardware featured 10.6-inch displays.

Thursday's report reiterated claims that Microsoft only achieved sales of 1.5 million total Surface units to date, with a million of those being ARM-based Surface RT devices, and the remaining 500,000 being Intel-based Surface Pro units. Those numbers were said to be about half the sales of 3 million to 4 million that Microsoft had anticipated.

Because of those apparently disappointing sales, Microsoft is reportedly taking a "cautious attitude" in hyping its second generation of Surface units.

Microsoft officials already tipped last month during their company's quarterly earnings call that they are working on "a new suite of small touch devices powered by Windows." The hardware will have "competitive price points," Microsoft Chief Financial Officer Peter Klein told investors and analysts.
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Comments

  • Reply 1 of 58
    philboogiephilboogie Posts: 7,675member
    But it'll probably run the same OS, so this won't work either. Ya know, I remember Bill Gates having this vision of having Windows Everywhere, which seemed like a good idea. But as long as they keep on putting Windows on every device and not tailoring it for its intended purpose, they'll miss and create another failed product. As long as they don't change that mindset, I don't see any good hardware coming from Microsoft. Ever.
  • Reply 2 of 58
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by PhilBoogie View Post



    But it'll probably run the same OS, so this won't work either. Ya know, I remember Bill Gates having this vision of having Windows Everywhere, which seemed like a good idea. But as long as they keep on putting Windows on every device and not tailoring it for its intended purpose, they'll miss and create another failed product. As long as they don't change that mindset, I don't see any good hardware coming from Microsoft. Ever.


     


    Do you consider the Xbox a failed product?

  • Reply 3 of 58
    lkrupplkrupp Posts: 10,557member

    Quote:

    Originally Posted by igriv View Post


     


    Do you consider the Xbox a failed product?



     


    "I don't see any good hardware coming from Microsoft. Ever." does not equal "failed product." The Xbox is crappy hardware but is popular. Windows is a crappy operating system but runs on 90%+ of the world's crappy PC hardware. There is no connection between the quality of a product and its success or failure in the marketplace. It's why Hyundai, Kia, and Samsung exist.

  • Reply 4 of 58
    solipsismxsolipsismx Posts: 19,566member
    I honestly don't think those numbers are that bad. Let's remember that MS is selling against the iPad and with prices that are in the MBA range for the Intel-based model. Now consider that MS isn't just getting a Windows license but is the HW vendor I think this is a much better take than I originally expected they would get. Excluding the iPad, what other tablet priced as high sells more than 1.5 million units? I don't think there are any.
  • Reply 5 of 58
    MacProMacPro Posts: 19,728member
    lkrupp wrote: »
    "<span style="background-color:rgb(241,241,241);color:rgb(24,24,24);font-family:arial, helvetica, sans-serif;line-height:18px;">I don't see any good hardware coming from Microsoft. Ever." does not equal "failed product." The Xbox is crappy hardware but is popular. Windows is a crappy operating system but runs on 90%+ of the world's crappy PC hardware. There is no connection </span>
    <span style="line-height:18px;">between the quality of a product and its success or failure in the marketplace. It's why Hyundai, Kia, and Samsung exist.</span>

    Don't forget VHS :D
  • Reply 6 of 58
    MacProMacPro Posts: 19,728member
    solipsismx wrote: »
    I honestly don't think those numbers are that bad. Let's remember that MS is selling against the iPad and with prices that are in the MBA range for the Intel-based model. Now consider that MS isn't just getting a Windows license but is the HW vendor I think this is a much better take than I originally expected they would get. Excluding the iPad, what other tablet priced as high sells more than 1.5 million units? I don't think there are any.

    I have a feeling in ten years time the whole Microsoft story will be a fascinating chapter in history.
  • Reply 7 of 58
    tallest skiltallest skil Posts: 43,388member


    Originally Posted by digitalclips View Post

    I have a feeling in ten years time the whole Microsoft story will be a fascinating chapter in history.


     


    "How I learned to stop worrying and completely destroy the most important communication tool in human history for two decades with my monopolistic, proprietary crap."

  • Reply 8 of 58
    solipsismxsolipsismx Posts: 19,566member
    I have a feeling in ten years time the whole Microsoft story will be a fascinating chapter in history.

    I have a feeling MS will still be a huge company in 20 years in much the same way as IBM. Not commanding mindshare but still highly important and profitable in the enterprise. Want to make a bet on if MS will exist in one score from today? We can each put 1 share of AAPL in to an account. :D
  • Reply 9 of 58
    MacProMacPro Posts: 19,728member
    "How I learned to stop worrying and completely destroy the most important communication tool in human history for two decades with my monopolistic, proprietary crap."

    ROFL ...

    You forget the personal biography released as a follow up ... , "How I ripped off others' technology, retired early and cleared my conscience with self aggrandizing philanthropy using my ill gotten gains"
  • Reply 10 of 58
    MacProMacPro Posts: 19,728member
    solipsismx wrote: »
    I have a feeling MS will still be a huge company in 20 years in much the same way as IBM. Not commanding mindshare but still highly important and profitable in the enterprise. Want to make a bet on if MS will exist in one score from today? We can each put 1 share of AAPL in to an account. :D

    1$, I'm simply not a gambler ;)

    My bet is based on arrogance not letting them do an IBM. I see more of a Kodak mindset at the helm. IBM was always more than a PC maker, they had a long history. The brush with Gates and the PC was only a part of their history. MS, not so much. Windows, Office (both Jobs' concepts with help from Xerox) and Xbox. Oh, I forgot Bloat, virus proliferation and malware ... ;)
  • Reply 11 of 58
    zozmanzozman Posts: 393member

    Quote:

    Originally Posted by lkrupp View Post


     


    "I don't see any good hardware coming from Microsoft. Ever." does not equal "failed product." The Xbox is crappy hardware but is popular. Windows is a crappy operating system but runs on 90%+ of the world's crappy PC hardware. There is no connection between the quality of a product and its success or failure in the marketplace. It's why Hyundai, Kia, and Samsung exist.



     


    That's crazy talk...anyways, on a different note & not a grand & unfounded statement, At work they got a surface RT for testing, they had the crazy idea that senators would like them, they quickly found out that they are useless, so now i have a surface RT at my desk, just for surfing the net during the day :p 

  • Reply 12 of 58
    umrk_labumrk_lab Posts: 550member


    I look forward to see Steve Ballmer explaining this new, modest and cautious approach ...

  • Reply 13 of 58

    Quote:

    Originally Posted by SolipsismX View Post



    I honestly don't think those numbers are that bad. Let's remember that MS is selling against the iPad and with prices that are in the MBA range for the Intel-based model. Now consider that MS isn't just getting a Windows license but is the HW vendor I think this is a much better take than I originally expected they would get. Excluding the iPad, what other tablet priced as high sells more than 1.5 million units? I don't think there are any.


    Article indicates only 500,000 units of the 1.5 million were Surface Pro, the other million were ARM-based Surface RT.


     


    I wonder if they will produce both Surface Pro and Surface RT in the smaller size(s)? How small is too small when you're trying to run "real" Windows apps on the legacy(?) desktop?

  • Reply 14 of 58
    tallest skiltallest skil Posts: 43,388member


    Originally Posted by digitalclips View Post

    You forget the personal biography released as a follow up ... , "How I ripped off others' technology, retired early and cleared my conscience with self aggrandizing philanthropy using my ill gotten gains"


     


    You know, once I was even told, "It's okay, even if he stole the money from Apple. Steve Jobs would never have given all that back to the poor like Gates is."

  • Reply 15 of 58
    lkrupp wrote: »
    "<span style="background-color:rgb(241,241,241);color:rgb(24,24,24);font-family:arial, helvetica, sans-serif;line-height:18px;">I don't see any good hardware coming from Microsoft. Ever." does not equal "failed product." The Xbox is crappy hardware but is popular. Windows is a crappy operating system but runs on 90%+ of the world's crappy PC hardware. There is no connection </span>
    <span style="line-height:18px;">between the quality of a product and its success or failure in the marketplace. It's why Hyundai, Kia, and Samsung exist.</span>

    I agree with 95% of all you said. Exept for Hyundai. The car quality are actually at or above previous market leaders like Honda and Toyota. Samsung and Microsoft well you got those right they only pump cheap and mediocre products.
  • Reply 16 of 58
    solipsismxsolipsismx Posts: 19,566member
    1$, I'm simply not a gambler ;)

    My bet is based on arrogance not letting them do an IBM. I see more of a Kodak mindset at the helm. IBM was always more than a PC maker, they had a long history. The brush with Gates and the PC was only a part of their history. MS, not so much. Windows, Office (both Jobs' concepts with help from Xerox) and Xbox. Oh, I forgot Bloat, virus proliferation and malware ... ;)

    $1? But what is that in 20 years? It's still $1 in an inflated market. But 2 shares of AAPL in today would likely be a great vacation or new car for the winner. Besides, losing $400 to you doesn't seem like a bad way to spend $400.

    Article indicates only 500,000 units of the 1.5 million were Surface Pro, the other million were ARM-based Surface RT.

    I wonder if they will produce both Surface Pro and Surface RT in the smaller size(s)? How small is too small when you're trying to run "real" Windows apps on the legacy(?) desktop?

    It never occurred to me that a Surface [mini] wouldn't use anything other than ARM thus making it Windows RT. Based on the Surface Pro numbers and the power requirements I would bet against Intel chips being used unless they go with Atom, which I think would be a huge mistake.
  • Reply 17 of 58
    MacProMacPro Posts: 19,728member
    solipsismx wrote: »
    $1? But what is that in 20 years? It's still $1 in an inflated market. But 2 shares of AAPL in today would likely be a great vacation or new car for the winner. Besides, losing $400 to you doesn't seem like a bad way to spend $400.

    That's a nice positive though, two shares of AAPL would buy a car in 10 years ... :) Here's hoping ...
  • Reply 18 of 58
    christopher126christopher126 Posts: 4,366member

    Quote:

    Originally Posted by Omar Morales View Post





    I agree with 95% of all you said. Exept for Hyundai. The car quality are actually at or above previous market leaders like Honda and Toyota. Samsung and Microsoft well you got those right they only pump cheap and mediocre products.


    I remember when the Korean cars first came to the US. They were junk. If you wanted to make an emergency stop, you just turned on the AC.


     


    But you are correct their cars are a lot better quality now.

  • Reply 19 of 58
    suddenly newtonsuddenly newton Posts: 13,819member
    igriv wrote: »
    Do you consider the Xbox a failed product?

    Do you count each red ring of death as a failure?
  • Reply 20 of 58
    suddenly newtonsuddenly newton Posts: 13,819member
    umrk_lab wrote: »
    I look forward to see Steve Ballmer explaining this new, modest and cautious approach ...

    Ballmer: "We dressed up your PC in post-PC hardware! What more do you people want?"

    Buying public: "iPad."
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