Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Latest Tablet Shipment Report Shows Microsoft Corporation (MSFT) Needs Help

Page 1 of 2

The research firm Canalys released a report this week on fourth-quarter 2012 tablet shipments, and so far things don’t look too good for Microsoft Corporation (NASDAQ:MSFT)‘s Surface tablet. It’s the company’s first step into the tablet world, and Microsoft is learning that selling devices isn’t as easy as having the latest product on the market.

Tablets gaining ground, mostly
The Canalys report says that worldwide shipment of PCs (including tablets) increased 12% year over year, with a total of 134 million units shipped in Q4 2012. Out of that number about one-third were tablets, which saw a year-over-year increase in shipments by 75%.

This should be good news for all tablet makers, but Microsoft Corporation (NASDAQ:MSFT) shouldn’t be too excited. As you can see from the graph below, the company is trailing significantly behind Apple Inc. (NASDAQ:AAPL) iPads and Google Inc (NASDAQ:GOOG)‘s Android tablets.

Source: Canalys.

The fourth quarter of 2012 was the first time Apple didn’t scoop up more than 50% of tablet shipments, but the company still leads the pack nonetheless. Estimates for actual sales of Surface tablets are expected to be around 700,000. For comparison’s sake, Apple sold a record 22.9 million iPads in its most recent quarter. But low shipments and sales aren’t the only problem for Microsoft Corporation (NASDAQ:MSFT). The company also had a “very high” return rate on Surface tablets, according to an analyst at IHS Inc. (NYSE:IHS) iSuppli. But it’s important to remember that new product launches aren’t going to enjoy the same numbers as established products like the iPad do, and even, Inc. (NASDAQ:AMZN)‘s Kindle Fire had reports of high return rates after its initial launched.

Source: Microsoft. Surface Pro shown.

One contributing factor to low Surface sales was the fact that Microsoft Corporation (NASDAQ:MSFT) chose to initially launch the tablets in its retail stores. With about 50 stores currently open, the company doesn’t have many touchpoints with consumers. With the launch of the new Surface Pro set for this Saturday, Microsoft and its investors hope the new version of the tablet will bring higher sales numbers. The Pro offers a full version of Windows 8, which will run PC programs like Photoshop and Microsoft Office, comes with up to 128 GB of storage, and has sharper screen. The Surface Pro can be had for $899, but as fellow Fool Evan Niu points out, storage space on the new Pro may be much less than Microsoft Corporation (NASDAQ:MSFT) is advertising.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!