Another Sign Microsoft Surface Is Struggling

The Surface was supposed to be Microsoft's real answer to the iPad — a Windows-based tablet that would satisfy both casual users and digital workers. Now it looks like it's appealing to neither.

UBS analyst Brent Thill estimates Microsoft has sold only 1 million Surface RT tablets, reported by Business Insider. He had previously estimated 2 million. To put those figures in perspective, Apple is estimated to sell in the neighborhood of 20 million iPads for the same period.

This is far from the first sign that the Surface isn't doing very well. A month ago, brokerage firm Detwiler Fenton said Microsoft wouldn't even break a million units, estimating sales for the quarter at 600,000 units maximum. However, that was before Microsoft expanded retail distribution of the Surface early, which likely led to better numbers.

In addition, last week Samsung said it was pulling back plans to release its own tablet based on Windows RT — the same operating system running on the Surface — citing customer ignorance about the pared-down version of Windows made to run on ARM-based devices. Cost was also a factor.

"We didn't necessarily attain the price point that we hoped to attain," Samsung senior vice president Mike Abary told CNET.

Looking at web usage, a study conducted by Chikita Insights just before the holidays found the Microsoft Surface accounted for just 0.22 ad impressions for every 100 impressions from an iPad. Finally, Microsoft CEO Steve Ballmer said in an interview last November that sales were "modest" (although Microsoft later said Ballmer was talking about supply and distribution of the Surface, not sales).

If the Surface RT is doing poorly, Microsoft's hopes in the tablet space could be resurrected by the Surface Pro, a slightly larger version of the device that runs Windows 8 Pro. Microsoft has previously said the Pro version would launch three months after the Surface RT, or about the end of January.

Why do you think the Surface is struggling, and do you think the Surface Pro will turn things around? Let us know in the comments.

Photo courtesy of Microsoft

BONUS: Microsoft Surface Review

1. Microsoft Surface Powered Up

   This is the Surface tablet with Touch Cover in place.

   

2. Microsoft Surface Box Top

   Microsoft's boxing is as clean and well-designed as anything from Apple.

   

3. Microsoft Surface Box Bottom

   Details about Surface can be found on the back. Notice that our unit is the 64 GB model.

   

4. Microsoft Surface Box What's Inside

   This is all there is inside the Surface box: A Tablet and AC power adapter.

   

5. Microsoft Surface Instructions

   Underneath the Surface is this tiny instruction booklet.

   

6. Microsoft Surface Kickstand and Keyboard

   It has just enough instruction to get you started.

   

7. Microsoft Surface Instruction Detail

   A closer look at the instruction booklet.

   

8. Microsoft Surface Fresh Out of the Box

   Removing the Surface for the first time.

   

9. 

10. Surface Back with Kick Stand Open

    The metal kick stand flips open with a flick of the finger.

    

11. Surface's USB Port, Micro HDMI Jack, and Speaker

    This USB 2.0 slot works with most of your Windows peripherals. Here, I stuck in a Bluetooth connector for my Microsoft Arc Mouse.

    

12. Surface Magentic Power Port and Micro SD Slot

    The magnetic power jack is convenient, but the magnetic plug doesn't always click in that smoothly. Also, is this really the best spot for a micro-SD slot?

    

13. Surface Touch Cover Channel and Connectors

    This tablet is built with a keyboard in mind. Both the Touch Cover and Touch Keyboard snap into this channel with a resounding "click!"

    

14. Surface's Back Camera

    Front and back cameras shoot 720P video and just above 1 MP stills.

    

15. 

16. Surface Speaker, Audio Jack and Volume Rocker

    The volume rocker has an interesting trick: Press up or down volume twice and the volume will zoom all the way up or down on its own.

    

17. Microsoft Surface Touch Cover in Box

    We got the $699 64 GB Surface and Touch Cover bundle. This is what the Touch Cover looks like in the box.

    

18. Microsoft Surface Touch Cover

    The Touch Cover, which is the same width as the Surface tablet, easily accommodates my two largish hands.

    

19. Microsoft Surface Tablet

    This is the welcome screen. A swipe up or tap on the space bar brings up the log-in. Just like traditional Windows, Windows RT supports multiple user profiles.

    

20. 

21. Customizing Windows RT

    You can alter Windows RT just as much as you can Windows 8 and its predecessor, Windows 7.

    

22. Fresh Paint App on Windows RT

    While I had some trouble finding a decent drawing app in the Windows app store, Fresh Paint is a powerful, virtual media app.

    

23. Fresh Paint Art

    Yes, you can draw on this tablet with your finger, but it did not work particularly well with a stylus.

    

24. Gameplay on Windows RT

    This racing game's start screen was far more impressive than the actual game.

    

25. Internet Explorer 10 Frequently Visited Pages

    IE 10 in Windows RT is, like IE in Windows 8, a full-scale, touch-friendly redesign.

    

26. Kindle App in Windows RT

    Amazon has built a native app for Windows RT. Of course, if you build an app for Windows 8, it should work for everything from Windows Phone to Windows 8 to Windows RT.

    

27. 

28. Microsoft Surface Windows RT Start Screen

    Windows RT Start Screen looks and works exactly like Windows 8

    

29. Share Under People in Windows RT

    If you want to share in Windows RT, you have to dig under People to find Twitter and Facebook.

    

30. Printing from Windows RT

    I love how easy it is to connect to a Homegroup printer and print right from within Windows RT.

    

31. 

32. Windows RT App Search

    Search is ubiquitous and contextual.

    

33. Windows RT Contextual Settings

    So are settings.

    

34. Windows RT File Folders in Windows Design

    RT has a file system that's quite easy to navigate.

    

35. Windows RT File Search

    Searchable across files is easy, too.

    

36. Windows RT File System

    Underneath RT is a very familiar Windows Desktop and Explorer like file manager.

    

37. Windows RT Internet Explorer 10 Browser Window Control

    A swipe down at the top of the screen reveals all your open browser windows (in thumbnail form).

    

38. Windows RT Mail Control

    A swipe up from the bottom opens a contextual control bar, in this case for email.

    

39. Windows RT Photos

    You have your photos on the device and those you're sharing with the Skydrive cloud,

    

40. Windows RT Task Manager

    The Task Manager is simplified, but still there in Windows RT (so is the Registry).

    

41. Zooming Out on Windows RT Start Screen

    Got too many tiles? Pinch and Zoom to get 30,000 ft view.