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Surface RT sales picking up following discount

Surface RT sales picking up following discount

Sales of Microsoft's Surface RT tablets are reportedly picking up following the company's decision to discount the hardware by almost a third.

Indications are good that Microsoft may have found the sweet spot for Surface RT pricing, with sales of its Windows RT-based tablet increasing dramatically following a $150 price cut in the US.

Microsoft's first-party stab at the tablet market, Surface RT has had something of a rough time. Even ignoring initial teething problems - software bugs, quality control issues and a rather thorny lawsuit regarding the amount of usable storage - the tablet hasn't exactly been an unalloyed success, with the company writing down $900 million in unsold inventory and failing to even cover the cost of advertising with the units it has sold.

These figures, however, do not include the impact of the company's recent dramatic price cut that saw the cost of a Surface RT slashed by $150 in the US followed by £120 in the UK - both representing nearly a third of the original retail price. While still priced towards the top end of the market when the Touch Cover or Type Cover accessories are include - the cheapest of which adds a minimum of £100 to the purchase price - Microsoft clearly hoped to increase interest in the tablets.

It's a plan that appears to have worked. according to pro-Surface site Windows RT Source, the price reduction in the tablet - which has dropped the entry price in the US to $349 excluding Touch Cover - has seen sales increase dramatically. While the site only contacted 20 stores within the US, and none were able to provide actual sales figures - something Microsoft, too, is refusing to share - all those surveyed claimed that sales have dramatically increased since the price reduction. 'It's been night and day,' the site quotes one store as claiming.

For Microsoft, it's good news: Windows RT lacks compatibility with legacy applications, and the tablet market lives or dies by the quality of its software ecosystem. With sales flagging, there's little incentive for developers to produce Windows RT applications when they could be targeting much bigger markets with Android or iOS apps - but if the tablets are now selling, devs will be taking a closer interest in the platform.

The boost in interest comes as chip partner Nvidia - which has taken a considerable financial hit from consumer disinterest in Surface RT tablets - confirms it is working on the Surface RT 2, which will be powered by the company's Tegra 4 'Wayne' processor. The company has yet to provide a release date, however.

While this is all very encouraging for Microsoft's tablet push - which, it must be remembered, is far from its comfort zone and taking on a market with a near-embedded duopoly in Google and Apple - not all is well with Windows RT: Asus has become the latest company to abandon the platform following a significant loss on its own-brand VivoTab RT product line.

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Corky42 12th August 2013, 11:36 Quote
Did Windows RT Source expect Microsoft store employees to not say that they have seen a dramatic increase in sales since the price drop?
It sound like the same BS that Microsoft always says, Windows 8 out selling Windows 7, Surface out of stock due to high sales, Vista out selling XP.
Gareth Halfacree 12th August 2013, 11:59 Quote
Quote:
Originally Posted by Corky42
Did Windows RT Source expect Microsoft store employees to not say that they have seen a dramatic increase in sales since the price drop?
I've worked retail for minimum wage; if somebody rang me up and asked a question, I'd tell the truth. I didn't get paid enough to lie on behalf of my company. Perhaps I would, had I been paid more or had an Apple Store-esque indoctrination^Wtraining programme.
Snips 12th August 2013, 12:15 Quote
As documented on my own post recently, I was going to pick one up from my nearest Wal-Mart in Orlando. They had shipments everyday and sold out everyday. OK, that's just one Wal-Mart out of I don't know how many but it appears to be backing up claims in this article of them actually shifting units.

I also thought one of the conditions for getting apps on the Marketplace, the app had to work on both RT and full fat Win8.

I've seen a big increase in apps on the Marketplace for RT/Win8 and WP8 recently, suggesting the platform is gaining momentum regardless of how some like Corky42 refuse to allow it to.
rollo 12th August 2013, 12:25 Quote
Wether or not sales are picking up in the USA is not really the same as the wider market. Sales in the USA of both Surface products are ment to have been decent from day 1.

Till Microsoft gives Sales figures for its Surface Devices which will never happen btw we can only guess at the amount that has sold. Easy way to tell if sales have increased is if you see a outside of USA / Canada launch for the Surface RT 2 in November ish.

If it does not launch at all this year Microsoft have given up on the Surface line of products. If its strictly USA / Canada launch we have the Zune player all over again and the product will be left to rot.

Corky guessed close to 0 Snips guessed alot higher. Me id say sales have picked up due to price cuts but maybe not as much as some people would like to think. If it was selling 2 it might be selling 4 now which is a 100% increase but its still not a large increase.

Remember people if it was selling 1 and now it sells 4 thats some crazy % increase as i said without official sales figures we are just guess work are us.
Snips 12th August 2013, 13:00 Quote
I wasn't guessing anything, this Wal-Mart had 20 being delivered and selling out daily. I actually witnessed 3 people waiting for the shelves to be stocked to get their order from the previous day.
Corky42 12th August 2013, 13:07 Quote
I'm not saying it hasn't sold any, im saying Microsoft has history of lying about sales numbers and artificially inflating how well products have been received.

EDIT: Just because Walmart sells out doesn't negate the $900 million write-down on unsold Surface RT inventory, if anything it just shows they could well have been cautious about investing too much in the device.
Snips 12th August 2013, 14:54 Quote
History of Lying? Really?

As I've said earlier, this was one store, I asked the staff, saw the people waiting for the device to hit the shelf. The FACTS are, they were delivered 20 a day and cleared them out every day and had people on a waiting list.

So Corky42, why do you not want this device to succeed?
rollo 12th August 2013, 15:01 Quote
If they were selling out of 20 every day would Wall Mart been the big store they are not simply order in 100 at a time.

The cost of getting 20 delivered each and every day to a store like Wall Mart is going to add up to more than they are surely making selling the product. Would be the only thing id question of that snips. Unless like all super / hyper markets they are hoping to make cash on what you buy in store and not the actual product sold.

If they really are getting 20 delivered a day they are stupid end of.
Snips 12th August 2013, 15:26 Quote
All I know is they went straight out on the shelf everyday. They were not a "Wal-Mart special's" stacked up to the ceiling like other tablets on offer.

I asked the guy looking after electrical if they had one, he said no but they would be in again in the morning. I asked him how often that happens and his reply was to say it's happened every day since the price drop. I asked how many come in and his reply was that they send in 20 each time. He then asked if I wanted to be put on the list so I had one waiting when I came back.

I left it a few days and was in again on another beer run and went over to see what was happening and they had just arrived and were being put on the shelves. Three people were waiting to take one who were on the list and had been called to say when they would be ready to collect. There may have been more but I don't know.

Let's not forget rollo, they get deliveries everyday for everything else in the store so it's not as stupid as it sounds.
Nexxo 12th August 2013, 15:57 Quote
Absolutely. With the massive lorries delivering stuff to big stores every day anyway, logistically it costs nothing to add 20 small boxes to the load.
Corky42 12th August 2013, 16:03 Quote
Quote:
Originally Posted by Snips
History of Lying? Really?

As I've said earlier, this was one store, I asked the staff, saw the people waiting for the device to hit the shelf. The FACTS are, they were delivered 20 a day and cleared them out every day and had people on a waiting list.

So Corky42, why do you not want this device to succeed?

Yes a history of lying, try doing some research.
Windows Vista Debuts with Strong Global Sales
Quote:
more than doubling the initial pace of sales for its predecessor, Windows XP.
Or how about more recently when they claimed 8 is out selling 7
http://www.pcpro.co.uk/news/378391/microsoft-windows-8-outselling-windows-7
Quote:
Microsoft says it has sold 40 million Windows 8 licences in the month since the launch, claiming it was setting a faster pace than Windows 7 three years ago.
Or how about reports of the Surface Pro being sold out when it was released ?
Microsoft Surface Pro sell-out flap: Is the tablet really that popular?
Quote:
Chris Cook of the small consumer electronics blog Product Reviews put it most succinctly: "While Microsoft would have you believe that they are working on the lack of supply problems, we’re more inclined to say that this was all part of their plan," Cook wrote.

I'm not sure why you think i don't "want this device to succeed" i am merely pointing out that Microsoft have a history of making exaggerated claims about there products and sales figures. I'm not saying the price reduction hasn't helped to increase sales, but claims of it being sold out should be seen as nothing more than a marketing ploy, designed to make the product seem more desirable.
Xir 12th August 2013, 16:10 Quote
Marketing experts staggered, price has an influence on sales!!!
Nexxo 12th August 2013, 16:11 Quote
And gosh, no other company does that, no? :p

I get your point, but there is a difference between saying that Microsoft is lying and arguing that it may be economical or selective with the truth.
Corky42 12th August 2013, 16:34 Quote
OK point taken, but luckily im not on TV so i doubt im going to be sued for a defamatory statement but for correctness i will rephrase what i said. Microsoft are economical or selective with the truth. :D

EDIT: allegedly
[ZiiP] NaloaC 12th August 2013, 16:49 Quote
If only the Pro was a little bit more reasonable price-wise... €1,200 to get the 128GB Pro with the Touch Type cover....
Snips 12th August 2013, 20:48 Quote
Quote:
Originally Posted by Corky42
OK point taken, but luckily im not on TV so i doubt im going to be sued for a defamatory statement but for correctness i will rephrase what i said. Microsoft are economical or selective with the truth. :D

EDIT: allegedly

Microsoft is a publicly listed company that requires all facts to be audited as "allegedly lying" statements could have an effect on share prices. I think you will find the numbers stack up whether you like them or not.

I witnessed them first hand being sold out on a number of occasions, are you calling me a liar now?
Nexxo 12th August 2013, 21:23 Quote
I'm sure he is not. Microsoft does have a way of being circumspect with the figures and that understandably breeds suspicion. There's a lesson for them there: be open and honest. If the figures are bad, be humble but prepared to learn. If the figures are good, be proud but modest. Embody the qualities a customer wants to see in you.
Corky42 13th August 2013, 00:12 Quote
Quote:
Originally Posted by Snips
Microsoft is a publicly listed company that requires all facts to be audited as "allegedly lying" statements could have an effect on share prices. I think you will find the numbers stack up whether you like them or not.

I witnessed them first hand being sold out on a number of occasions, are you calling me a liar now?

No im not, although you do seem more than a little confrontational.

Either way just because you know of one store being low on stock, and that this says more about the stores stock policy than any reflection on how well the Surface RT is selling in every other store around the world.

You do seem to be ignoring the fact that this news article is about a pro-Surface site Windows RT Source, saying...
Quote:
Originally Posted by winrtsource.com
Upon questioning numerous Microsoft Store employees across the West Coast, Windows RT Source asked two questions: 1) “Do you have Surface RTs in stock”, and 2) “Have you seen a dramatic increase in sales since the price drop?”

None of the store employees could answer more specific questions about sales number (no surprise there) so we’ll have to do with more non-specific answers.

Of the 20 stores we called, 100% answered in the affirmative to both questions.

You also seem to be confusing the facts that come from auditing with the psychology used in marketing, as Microsoft's own 10-K filing shows that it was taking a $900 million write-down on unsold Surface RT inventory
rollo 13th August 2013, 03:06 Quote
That $900 mil write down still baffles me 1.8mil surface rt overstock is just pure crazy numbers. I dou't even apple had that many orginal iPads or iPhones made for there release .

Its more than those figures in reality as well as I've used retail price for the price.

More like 2.5 - 3 mil unsold depending on orginal cost.
fluxtatic 13th August 2013, 09:35 Quote
Quote:
Originally Posted by rollo
If they were selling out of 20 every day would Wall Mart been the big store they are not simply order in 100 at a time.

The cost of getting 20 delivered each and every day to a store like Wall Mart is going to add up to more than they are surely making selling the product. Would be the only thing id question of that snips. Unless like all super / hyper markets they are hoping to make cash on what you buy in store and not the actual product sold.

If they really are getting 20 delivered a day they are stupid end of.

WalMart damn near invented JIT inventory management - I'm guessing they have a bit better handle on it than you.

(Mind, I'm not defending WalMart - they're one of the worst things to have happened to the US economy, squeezing pay down to the bare minimum and playing hardball with suppliers 'til they're almost out of business [Rubbermaid]).
Snips 13th August 2013, 09:47 Quote
Quote:
Originally Posted by Corky42
Quote:
Originally Posted by Snips
Microsoft is a publicly listed company that requires all facts to be audited as "allegedly lying" statements could have an effect on share prices. I think you will find the numbers stack up whether you like them or not.

I witnessed them first hand being sold out on a number of occasions, are you calling me a liar now?

No im not, although you do seem more than a little confrontational.

Either way just because you know of one store being low on stock, and that this says more about the stores stock policy than any reflection on how well the Surface RT is selling in every other store around the world.

You do seem to be ignoring the fact that this news article is about a pro-Surface site Windows RT Source, saying...
Quote:
Originally Posted by winrtsource.com
Upon questioning numerous Microsoft Store employees across the West Coast, Windows RT Source asked two questions: 1) “Do you have Surface RTs in stock”, and 2) “Have you seen a dramatic increase in sales since the price drop?”

None of the store employees could answer more specific questions about sales number (no surprise there) so we’ll have to do with more non-specific answers.

Of the 20 stores we called, 100% answered in the affirmative to both questions.

You also seem to be confusing the facts that come from auditing with the psychology used in marketing, as Microsoft's own 10-K filing shows that it was taking a $900 million write-down on unsold Surface RT inventory

So what's your point then? What are you arguing? That Wal-Mart arguably one of the biggest retailers in the world doesn't know what it is doing?

I think it is you that is confusing your anti-Microsoft bias with every press release from Microsoft as a sinister conspiracy that must be unmasked at all costs ;)

The facts are simple, Microsoft lowered the price of their product and they've started to sell out in places. However, a definite uptrend in sales has occurred since the discount. I've witnessed that fact first hand.

Anything else?
Corky42 13th August 2013, 10:07 Quote
Quote:
Originally Posted by Snips
So what's your point then? What are you arguing? That Wal-Mart arguably one of the biggest retailers in the world doesn't know what it is doing?

I think it is you that is confusing your anti-Microsoft bias with every press release from Microsoft as a sinister conspiracy that must be unmasked at all costs ;)

The facts are simple, Microsoft lowered the price of their product and they've started to sell out in places. However, a definite uptrend in sales has occurred since the discount. I've witnessed that fact first hand.

Anything else?

I'm not the one arguing, you are. Even when faced with facts you attempt accuse people of "anti-Microsoft bias". Just because you happen to witness a retailer who is known for problems with getting stock onto the shelves, and a pro Surface RT site reports that Microsoft stores say there has been a increase in sales since the price cut.

Instead you prefer to accuse people of "not want this device to succeed", and claiming people are calling you a liar, or how they are anti-Microsoft and are seeing sinister conspiracy's. If you bothered to learn a little about Microsoft's history you would see they are not the paragon of all that is good as you like to make out.
Snips 13th August 2013, 10:34 Quote
remind me again about the facts you think I've missed about this topic?

I know Microsoft's history just fine thank you and it's not the harbinger of death either as you like to make out.
Corky42 13th August 2013, 11:11 Quote
Quote:
Originally Posted by Snips
remind me again about the facts you think I've missed about this topic?

The information has already been provided if you CBA to read things and instead insist on making wild accusations at other forum users that's up to you, but don't expect to be taken seriously.
:(
Nexxo 13th August 2013, 14:27 Quote
Guys, chill.

Basically we have anecdotal reports from 20 stores and a personal observation that a 30% price drop has increased sales of the Surface RT considerably. Seems plausible. Plenty of people have commented on forums that they liked it, but that it was overpriced.

I gather that Microsoft's write-down is taking into account the profit loss incurred by the price drop (or simply, units unsold at that point in time). That has nothing to do with any change in sales figures since the price drop and since the write-down was made. In short, the latter has no relationship to the former. Both can be true at the same time.
Snips 13th August 2013, 15:44 Quote
Exactly Nexxo, it also has nothing to do with cries of conspiracy completely unrelated to this topic either. However, somehow I'm wrong and Microsoft are evil!!!!!!!

Oh and I want to be taken seriously please, regardless of whether I present related facts to this topic or not ;)
Corky42 13th August 2013, 18:19 Quote
Quote:
Originally Posted by Snips
Exactly Nexxo, it also has nothing to do with cries of conspiracy completely unrelated to this topic either. However, somehow I'm wrong and Microsoft are evil!!!!!!!

Oh and I want to be taken seriously please, regardless of whether I present related facts to this topic or not ;)

Then why did you start to throw accusations around such as the following...
Quote:
Originally Posted by Snips
I think it is you that is confusing your anti-Microsoft bias with every press release from Microsoft as a sinister conspiracy that must be unmasked at all costs ;)
It is you who claim others are wrong, even when they provide you with facts.

At no point have i said you are wrong, at no point have a claimed you are lying, at no point have i said Microsoft are evil, instead of discussing the subject using facts you prefer to throw accusations around at anyone who happens to disagree with you.

If you want to be taken seriously maybe you should stop behaving like a prepubescent teen spuriously accusing other people, actually try presenting some facts. Instead of trying to proclaim your own personal experience of a local Walmart store accounts as a fact.

EDIT: Microsoft Sued for Lying About Surface RT Sales

Here are a few excerpts from the lawsuit papers submitted to the United States District Court for the District of Massachusetts:

“Defendants issued materially false and misleading statements regarding the Company’s financial performance and its tablet computer, the Surface RT. Specifically, defendants misrepresented and failed to make public the following adverse facts:

(i) that the Company’s Surface RT product was experiencing poor customer demand and lackluster sales;

(ii) that the Company’s Surface RT inventory experienced a material decline in value during the quarter ended March 31, 2013;

(iii) that the Company’s financial statements for the quarter ended March 31, 2013 were materially false and misleading and violated Generally Accepted Accounting Principles and Microsoft’s publicly disclosed policy of accounting for inventories;

(iv) that the Company’s Form 10-Q for its third quarter of 2013 failed to disclose then presently known trends, events or uncertainties associated with the Surface RT product that were reasonably likely to have a material effect on Microsoft’s future operating results;

(v) that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s Surface RT product during the Class Period.”
steveo_mcg 13th August 2013, 18:32 Quote
Seriously corky stick him on your ignore list and feel your blood pressure drop to normal levels...
Nexxo 13th August 2013, 18:43 Quote
You know, I'm almost certain that I asked people to calm down. Where was it... Oh, yeah, here:
Quote:
Originally Posted by Nexxo
Guys, chill.

Now the lawsuit is an allegation, not proof. It won't be (legally) proven until the court upholds the complaint. Although to be fair, the complainants possibly should act less butt-hurt and accept that investing in the stock market comes with a certain level of risk --and that since their purchase in April 2013 Microsoft's stock has gone up (from about 29 to 32.34) --that is including the 11% drop caused by the write-down of the Surface RT. Basically they are complaining that over 4 months they made 11% less profit than they could have. :|
Snips 14th August 2013, 16:05 Quote
Exactly Nexxo, and I would also add that it is another unrelated link to this topic.
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