Friday, 13 December 2013

Surface Pro Woes

The highly anticipated launch of the Microsoft Surface Pro tablet went over well. How well? So well that inventory levels appear to be minimal just two days later. Shoppers flocked to Microsoft’s website at the stroke of midnight, February 9 to place orders but encountered frustration. 128GB units ($999) ended up selling out, leaving 64GB units at $899 as the available option. Other shoppers chose to visit Staples or Best Buy, only to find only a couple units on hand – which, of course, went quickly.  Speculation is that total inventory levels were lower than anticipated. Could it be an effort to portray it as more popular? Was there supply chain issues? Or was that Microsoft’s intention? Who knows.

As we discussed in January, the Surface Pro is a Microsoft PC in a tablet’s body. Windows 8, Intel chip mean it performs like a computer. A touch screen mean it functions like a tablet. We will soon see what the market has to say about the latest Microsoft product and whether the PC performance in a tablet product will succeed. Keep in mind that Microsoft has had their share of successful product launches which are followed by less than average sales. But with the popularity of tablets perhaps long-term Surface Pro demand will live up to that experienced on launch day .

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