Bloomberg News

Microsoft Surface Estimate Cut in Half to 1 Million Units at UBS

January 14, 2013

Microsoft Corp. (MSFT:US)’s fiscal second- quarter earnings will be less than previously expected due to weak demand for personal-computers and the company’s new tablet, Surface, according to Brent Thill, an analyst at UBS AG.

Thill cut his estimate for Surface sales in half, to 1 million units for the period, which ended in December, citing “gloomy sentiment” after the holiday shopping season, he wrote in a research report today. He cut his earnings per share projection for the quarter by 8 cents to 76 cents.

Microsoft initially limited sales of the device to its own roughly 60 retail outlets and Surface also failed to draw many customers away from Apple Inc.’s iPad and rival devices with Google Inc.’s Android software. A new business-focused version of Microsoft’s tablet, Surface Pro, is expected to go on sale this month and may fare better against the iPad, Thill said.

“Surface Pro is the more promising” model, he wrote in the report.

To contact the reporter on this story: Dina Bass in Seattle at dbass2@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


Later, Baby
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • MSFT
    (Microsoft Corp)
    • $40.01 USD
    • -0.39
    • -0.97%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus