Report: Microsoft wants to sell 25m Surface tablets in 2014 fiscal year

Microsoft entered the PC hardware market for the first time in late October with the launch of the Surface RT tablet, followed by the Surface Pro in February. While Microsoft has yet to release any official shipments or sales numbers for its Surface products, IDC claims that in the first quarter of 2013, the company shipped 900,000 of its tablets.

Even against the backdrop of these modest initial sales, a report claims that Microsoft has some highly ambitious Surface sales goals for its upcoming 2014 fiscal year, which begins on July 1st, 2013. Paul Thurrott writes on WinSuperSite that, according to an unnamed source that he claims "has proven reliable in recent weeks", Microsoft wants to sell a whopping 25 million Surface tablets during its next fiscal year.

The same article claims Microsoft is aiming to be the number one provider of tablets for the enterprise market in its next fiscal year, along with the number two seller of tablets to retail stores in the same time period. Microsoft will also reportedly seize any opportunity to try to get Surface products used in the educational market.

Microsoft also plans to amp up its marketing efforts for the Surface, according to the article, and will sell the tablets in more countries in the next year, including India. It claims Microsoft's internal budget for the Surface is a massive $4.4 billion.

If this source turns out to be correct in terms of Microsoft's own internal sales goals for the Surface, it would be a huge turnaround for the tablet family of products. One thing that might help is a cheaper and smaller version, and the company is rumored to be developing an eight inch Surface model that could be revealed in June.

Source: WinSupersite

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48 Comments

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how many percentage of the market is microsoft commanding again. to say microsoft is just a blip on the radar of market share, even that, is a gross understatement. oh i forgot to mention what the fanboys whined, and quote, "it's not about market share". lmfao.

I think its highly unlikely MS will sell anywhere near that if previous sales are anything to go on they wont reach that number until about 2037, not 2014.

The saying goes-"People in H-LL Want Ice Water"- too. However, unless MS markets the Surface RT to competes and lowers the price (with touchpad) to $299 it will NEVER happen.

I read that as 25mm thought that was a weird direction to go in. Then read it as 25m, thought that's a giant ass screen. Then realized it's million.

FloatingFatMan said,
I'd gladly buy one or two, just as soon as they drop the price to £199.

If you buy two at that price I'll buy 4

An interesting goal. Are there enough consumers who can afford to buy such an expensive secondary computer? It hardly qualifies as one's primary one, unless one's computer expectations and wants are minimal.

Cyborg_X said,
Shrink the Pro a bit while adding battery life and its more likely
This is what I'm waiting for and then I'll buy one.

I see no reason why they (or a third party) could not release a "hybrid" type of hard keyboard platform that the Surface magnetic claps click into so that you have that complete laptop form factor if you wanted (with extra battery and maybe storage) while offering their current keyboards as options when you don't need that much hardware.

I think this is a realistic number in time with smaller and cheaper devices, at least in time. By next year, it's kind of hard to see and it does seem like Microsoft would be crowding out other OEMs with this many devices.

If they come out with a cheaper 8" Surface, release in far more countries, release 8.1, integrate Haswell, boost the apps in the app store via seed money to developers, etc. then there is no reason that they could not sell this many.

Brony said,
It is only a rumor and specifically, a pretty silly one.

Microsoft is nearly a 300 billion dollar company with the ability to do this.. not sure why its silly.

calimike said,
Impossible, nobody buy expense tablets like surface. They're prefer cheaper tablet like android.

except that Windows 8/RT are getting cheaper, but won't feel as cheap as android tablets.

with sub $300 windows 8 8inches tablets that will be coming this year, you would have to be crazy to buy inferior android based products.

I was an Android tablet fan, I really was. I configured mine with custom launchers such as Nova, nice icons, great widgets, etc. Then I got the Surface RT at work and wow, it just makes my Android tablet seem so awkward and clumsy. I still struggle with missing functions and options like GPS, making calls via GrooveIP, etc but the seamlessness of RT, the great mouse support (Android has it but its a bit clunky), HomeGroup, full USB support, printers, highly functional RDP, etc just makes it my goto device.

Things its missing:
1) GPS, 2) Good camera, 3) Good VPN support, 4) Better accessories like USB power cables for battery and car chargers, 5) Open up the desktop to side loading.

Microsoft could sell 25 million surfaces, if the iPad and all the android tablets magically disappeared from the market. Its nice to dream sometimes! Its possible to sell 25million surfaces, but its highly unlikely. Microsoft just needs the amount of developers and apps Android and iOS has!

It is possible, if they open the damn thing up to the rest of the world. Samsung and Apple don't limit where there products are sold, that's why globally that's what people know.

Lone Wanderer Chicken said,
Microsoft could sell 25 million surfaces, if the iPad and all the android tablets magically disappeared from the market. Its nice to dream sometimes! Its possible to sell 25million surfaces, but its highly unlikely. Microsoft just needs the amount of developers and apps Android and iOS has!

most people don't care about apps (I mean store apps).

I use my surface RT as a computer replacement. All I need is there:
IE with flash support
office
printer support
USB flash drive and memory card support

good luck to do all that with an iPad or an android tablet.

surface and windows rt/8 tablets might really become successful when people understand they are "post tablet era" devices : devices that can replace both PCs and legacy tablets like the iPad.

I have no doubt that in 18months, sales of windows tablets will be much higher than sales of ipads.

and by then, the quality and quantity of 3rd party apps will be much improved, if that's something that matter to some people. For now, thanks to flash player support, the web versions of most media services already work perfectly well on windows 8/rt, eliminating the need of apps.

I agree. Another thing that people don't seem to understand is the R&D billions that MS has sunk into cloud solutions such as Azure. You can already run a full Windows Server 2012 and there is word that workstation OS's like W8 is on the way. Couple that with technologies like RemoteApp, which would allow you to run any x86 Windows app remotely from your RT device, strait from an tile on your Start Menu, MS as positioned themselves for the next 10 years of computing.

Lone Wanderer Chicken said,
Microsoft could sell 25 million surfaces, if the iPad and all the android tablets magically disappeared from the market. Its nice to dream sometimes! Its possible to sell 25million surfaces, but its highly unlikely. Microsoft just needs the amount of developers and apps Android and iOS has!

1 million in first quarter = 4 million a year annualized. Double the sales in the holiday quarter, and that gets you to 5 million.

Surface RT is still not available worldwide, and Surface Pro is just starting to make its way to Europe. Sell both tablets in every market where Microsoft has a local sales office, and that's 10 million. (Worldwide sales for tablets are usually 3x US sales. However, Surface already has limited worldwide distribution, especially Surface RT. So I multiply only by 2.)

Add the upcoming 8-inch Surface. Assume it'll sell about equal numbers to the RT and the Pro. Which makes it about 2 million of annual sales.

So they're already at 12 million, and that's with a primarily retail sales strategy. Not much effort to sell into enterprise yet.

To get to 24 million, they'd have to achieve a doubling on top of that. Bid every educational tablet contract. Bid every point-of-sale contract. Bid every airline looking for an in-flight-entertainment device. Bid every kiosk application -- app store count doesn't matter when you're only running one custom app!

And, of course, bid every corporation looking to equip its sales staff with tablets. To succeed here, Microsoft would probably have to answer Jen-Hsun Huang's prayers, and release Outlook RT. Those people live in Outlook.

It'd be difficult to get to 24 million -- but not out of reach.

Melfster said,
I am wondering if managment at Microsoft are living in reality.

I wonder if you live in reality? Seriously.. How many people swear the sky is falling, Microsoft is dying and the end is near day after day here while Microsoft's stock is at all time highs, they have multiple divisions doing billions in revenue and the product everyone loves to hate is apparently selling well and doing well that it's at the same pace as the much beloved windows 7.

And people like you will still ignore all of this and alter reality for yourself.

I don't get it.

spudtrooper said,

I wonder if you live in reality? Seriously.. How many people swear the sky is falling, Microsoft is dying and the end is near day after day here while Microsoft's stock is at all time highs, they have multiple divisions doing billions in revenue and the product everyone loves to hate is apparently selling well and doing well that it's at the same pace as the much beloved windows 7.

And people like you will still ignore all of this and alter reality for yourself.

I don't get it.

The reality is, Microsoft will always sell no matter how s h I t t y a product may be. Using Windows sales is a bad example, since they have the industry by the balls. They are a monopoly in this market and will always sell. This does not make their product superior, it just means someone bought a new computer who had no choice.

JHBrown said,
The reality is, Microsoft will always sell no matter how s h I t t y a product may be. Using Windows sales is a bad example, since they have the industry by the balls. They are a monopoly in this market and will always sell. This does not make their product superior, it just means someone bought a new computer who had no choice.

The problem with this statement is that you're just wrong. There are plenty of choices out there. Android, Apple, Chrome, iOS..

JHBrown said,
The reality is, Microsoft will always sell no matter how s h I t t y a product may be. Using Windows sales is a bad example, since they have the industry by the balls. They are a monopoly in this market and will always sell. This does not make their product superior, it just means someone bought a new computer who had no choice.

Choice? You mean Microsoft forced me to buy my Surface?

Dot Matrix said,

Choice? You mean Microsoft forced me to buy my Surface?

If you re-read my comment you will see I was specifically responding to his reply about Windows 8. SMH!

JHBrown said,
If you re-read my comment you will see I was specifically responding to his reply about Windows 8. SMH!

It's still baseless. You can buy computers with Ubunto, Chrome and no OS and to be honest, windows 8 is far from s h I t t y as you so proclaim

spudtrooper said,

The problem with this statement is that you're just wrong. There are plenty of choices out there. Android, Apple, Chrome, iOS..

Not when it comes to an Operating System that is supported by just about every software and hardware company. You are the one who mentioned Windows 7 and how 8 was on pace. I was strictly replying to that one comment. That's not choice my friend.

spudtrooper said,

It's still baseless. You can buy computers with Ubunto, Chrome and no OS and to be honest, windows 8 is far from s h I t t y as you so proclaim

Do you actually believe your own comment? Lets just be honest here. Microsoft has done a nice job over decades getting a strangle hold on the market with Windows. Remember I'm strictly speaking choice here. If a consumer wants the best support in hardware and software, there is no other choice besides Windows. So that goes back to my original statement. Microsoft can release any kind of garbage they want because they have worked hard at positioning themselves as the dominant leader in the household and business market.

JHBrown said,
Microsoft can release any kind of garbage they want because they have worked hard at positioning themselves as the dominant leader in the household and business market.

So can Apple and Google. Your point? Why must they be chastised for what they release? It's YOUR CHOICE if you buy it or not. If you're happy with what you have, then use it.

JHBrown said,
Do you actually believe your own comment? Lets just be honest here. Microsoft has done a nice job over decades getting a strangle hold on the market with Windows. Remember I'm strictly speaking choice here. If a consumer wants the best support in hardware and software, there is no other choice besides Windows. So that goes back to my original statement. Microsoft can release any kind of garbage they want because they have worked hard at positioning themselves as the dominant leader in the household and business market.

I'm amazed you believe anything you're saying.

The definition of "reality" is key. There is the "MS world" and the "rest of the world." They have been diverging more and more as the Windows-8 family of OSs, and Office 2013 have been released. Maybe "play" vs "productivity?"

you could have my money if you polished and enhanced the metro apps by like 500%

but as long as they are inferior to even mediocre ipad apps i simply wont buy it

I used to think this, but then I bought a surface and fell in love because it just works.

HomeGroup
Office
Printers
USB Devices
MicroSD slot
HDMI out

I could go on and on.. Apps are there and growing and they are seeing improvements. I love Plex on WindowsRT/8 more than plex on any other OS. There are lots of great games already and Windows Blue apparently will address some of the augmented reality apps much better so I have no complaints.

in the end, I use the browser more than I thought I would and it works much better than I expected.

thanks for your answer

do you know answers for the following questions?

can you tell how limited the office experience on the RT version is?
and can you play all common video formats? divx, xvid, with subtitles, etc. ?
could I launch google mail in the browser and attach files to mails? does RT fully browse my files like on my desktop?
can I generate pdf files with office RT?

While I disagree with spud that Surface (RT) just works, and/or always works well, the answer to most of your questions is positive:

1) Not very. The RT Office is excellent.
2) No. There are other players you can get that will, if you're using a Pro you can run anything, it's a full PC.
3) Not sure, I don't use gmail but yes you can browser you files like the desktop, using the desktop. You also have Skydrive.
4) I don't know.

My problem with Surface RT is the poor core apps and performance still isn't what I would like, consistently.

Surface RT is much more than an iPad, but I'm not sure it can replace the iPad, if that makes sense. I don't feel RT is actually aimed at the market that loves iPads.

typu said,
thanks for your answer

do you know answers for the following questions?

can you tell how limited the office experience on the RT version is?
and can you play all common video formats? divx, xvid, with subtitles, etc. ?
could I launch google mail in the browser and attach files to mails? does RT fully browse my files like on my desktop?
can I generate pdf files with office RT?

typu said,
thanks for your answer

do you know answers for the following questions?

can you tell how limited the office experience on the RT version is?
and can you play all common video formats? divx, xvid, with subtitles, etc. ?
could I launch google mail in the browser and attach files to mails? does RT fully browse my files like on my desktop?
can I generate pdf files with office RT?

I can answer all of your questions.

1. Office RT is almost identical to Office 2013.

2. Not all format, but most. Try multimedia8 app for windows RT, which is a fantastic power user media player and is free. Also, VLC metro app is coming, so this should solve the codec problem

3. Yes, all metro apps and broswer has full access to the file system. Unlike the iPad, you can browse your entire hard drive and attach anything.

4. Yes Office RT can generate PDF files and even edit PDF files in word!

Nazmus Shakib Khandaker said,

I can answer all of your questions.

1. Office RT is almost identical to Office 2013.

2. Not all format, but most. Try multimedia8 app for windows RT, which is a fantastic power user media player and is free. Also, VLC metro app is coming, so this should solve the codec problem

3. Yes, all metro apps and broswer has full access to the file system. Unlike the iPad, you can browse your entire hard drive and attach anything.

4. Yes Office RT can generate PDF files and even edit PDF files in word!

Thanks all for answering

Would love to try such a device for a week.