Microsoft Corporation (MSFT): ‘Modest’ Surface Orders

Microsoft Corporation (NASDAQ:MSFT) has moved itself into the tablet space in the last couple weeks with the launch of the Surface tablet, to compete with Nexus by Google Inc (NASDAQ:GOOG), the iPad by Apple Inc (NASDAQ:AAPL) and the Kindle Fire by Amazon.com Inc (NASDAQ:AMZN) – not to mention the partnerships Microsoft has with companies like Samsung, LG, Lenovo, Acer and others who make tablets that run the new Windows 8 operating system.

Microsoft Corporation (MSFT) Giving Apple Inc. (AAPL) a Run for its ‘Patent Money’

But while companies like tablet market leader Apple, Microsoft (MSFT) seems to be perfectly happy with its “modest” production numbers. While Microsoft won’t mention their sales numbers publicly – those may be spared until the quarterly earnings report – one report tried to make an educated guess as to how many Surface sales would be considered “modest” – especially when CEO Steve Ballmer says the reception to the new tablet has been “fantastic.”

By looking into some clues from other sources, a Web site report is making the educated guess that Microsoft Corporation (NASDAQ:MSFT) had ordered about 2 million Surface tablets. This information come from the CEO of Pegatron, who said his company was producing about 8 million tablets this quarter, with “the bulk” of them being iPads and Surface tablets. Based on the estimate that Apple (AAPL) will sell 5 million iPads this quarter and the estimate is that Microsoft Corporation (MSFT) will produce 2 million Surfaces.

But comparing that to Apple Inc (AAPL) is a bit misleading. The very first point is by operating system. The Surface is one of several devices in the market that run on the Windows 8 OS, while Apple is the only company that produces tablets than run its own iOS. So does “modest” mean the 2 million Surfaces will be sold, or is there a different number? With the market of tablets out there and the number of competitor companies, do you think 2 million is a modest number of Surfaces? Is it a good number to be worth investing in? How would you see the number if you were in the shoes of billionaire fund manager Seth Klarman of Baupost Group?

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!