Nov 12, 2012 02:07 PM EST
Microsoft Surface Tablet Sales are 'Modest,' Says CEO; Is Lack of Full Windows 8 Turning Off Buyers?

Have sales of Microsoft's first ever tablet, the Surface RT, been grossly exaggerated? Despite the company's tremendous $400 million advertising push, sales may have been slower than previously reported for the Surface RT tablet. Since launch, the device hasn't sold as much as the company expected, and is only performing "modestly," said Microsoft CEO Steve Ballmer in a recent interview.

Microsoft's Surface RT is also drawing some complaints and less interest than Microsoft was likely hoping for.

Ballmer did not disclose any sales figures, but the executive says he is optimistic that the launch of the higher-end Surface Pro in earl 2013 will magnify consumer demand.

Early word suggested there was high demand for the tablets. Microsoft started taking pre-orders for the Surface RT tablet in mid-October, and promptly reported a shipping delay of up to three weeks for the $499 model. The tablet went on sale on Oct. 26 to a limited sales channel: online from Microsoft, or at its 65 stores across the U.S. and Canada- 34 of which are temporary "pop-up" stores.

Some of the first customers of the Surface RT have complained that the touch cover for the tablet, sold separately for $100, is splitting where it connects to the tablet, and that the Microsoft logo on the back is starting to rub off.

Speaking with French newspaper Le Parisien recently, CEO Ballmer admitted sales of the Surface RT began "modestly," and that he expects stronger initial results for the more advanced Surface Pro tablet, running the full version of Windows 8.

Perhaps even worse news for Microsoft: a majority of U.S. adults have never heard of Windows 8, according to a recent survey released by the Associated Press. In a telephone survey of 1,200 U.S. adults, 52 percent had never heard of Windows 8. Granted, that statistic is slightly offset by the fact that the survey was conducted a mere two weeks follow the operating system's launch.

Microsoft will reportedly spend $1 billion or more to advertise its new Windows 8 OS, according to PCWorld, so, consumer awareness shouldn't remain an issue for long.

Sales for the Surface RT could also be sluggish because consumers are waiting for Surface Pro's 2013 release. The Surface RT and Surface Pro are physically similar, but the Pro actually runs Windows 8.

Aside from Microsoft acolytes who will praise the company no matter its failings, most reviews of the Surface RT seem to agree that while the design is aesthetically pleasing, and the hardware is impressive, there's a serious lack of software.

Much of this may have to do with the fact that this first surface runs Windows RT, not Windows 8, and those are two very different beasts. Windows RT is designed for a different chip, not "Intel Inside," and will not be able to run all existing Windows applications.

The company has spoken volumes on Windows 8's impeccably touch-screen friendly qualities, but users won't even be able to try these flashy features out for themselves on a Microsoft tablet for another three months. Many of the features consumers have been drooling over won't be available with the Surface RT. They will only be available on the more expensive Pro model to be released in 2013.

Windows RT is designed to run with the types of ARM-based processors used on other tablets and smartphones. Apps need to be specially written for Windows RT, which means the first Surface tablet can't completely tap into the same, vast universe of Windows developers that Microsoft commands.

"Consumers will expect something that it doesn't really deliver," Sarah Rotman Epps, an analyst with Forrester Research, said in an interview.

The Windows RT tablet represents the first major break in the company's long partnership with chip company Intel Corp. The device uses an Nvidia Corp processor that is based on designs licensed from ARM Holdings PLC.

The main software with the Surface and Window RT is called "Microsoft Office Home and Student 2013 RT Preview" that includes a version of the Word, PowerPoint, Excel and OneNote programs. The next version of the tablet, called Surface with Windows 8 Pro, will have an Intel chip and will run Windows 7 applications, just as most standard PCs.

"My view is that Windows RT is not really going to be satisfying to consumers," said Rotman Epps.

Microsoft Surface tablet features

The RT sports a 1366x768 HD screen, while the PRO has a 10.6-inch Clear type Full HD (1920 x 1080) screen with 16:9 widescreen.

That means they are among the biggest tablets in the market. If you are not satisfied with the typical 10.1-inch tablet, you can go for the Surface tablet. Along with the touch keyboards with the device, you can turn the machine to a small notebook.

The Surface tablet comes with five Touch Covers. Different from typical keyboards, the Surface keypads provide a smoother typing experience thanks to their touch-based surface.

The Surface tablets mount both front and rear cameras. The front camera, named life cam by Microsoft, makes the tablet ideal for video chatting through Skype or other services. Using the rear camera, you can capture images and video clips.

Microsoft puts forward better memory options with the Surface tablets. The device comes in 32GB, 64GB and 128GB options. The 128GB is available only with Surface Pro. Further, you can expand the memory using external memory sticks thanks to microSD card slot. That is, you can store enough data including music, software items and video in external clips.

The 3mm Touch Cover can be connected to your Surface tablet with a single magnetic click, so, now you can type text and send messages quite easily.

The Surface's tablet housing features a revolutionary kickstand. Along with fully functioning keyboard and track-pad, the integrated kickstand helps you place the gadget in both portrait or landscape modes.

According to Bloomberg, Surface will only be able to go online using a short-range Wi-Fi connection. This is a stark contrast to Apple's iPad 3, which has a 3G option, and a faster LTE connection.

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