Microsoft Surface sales well below shipments, says iSuppli
Microsoft's Surface RT sales weren't big, at least not initially, according to the market research firm. — Sales of Microsoft's first Surface tablet fell well short of the 1 million mark, while return rates were high, IHS iSuppli told CNET.
Context & Ripple Effects
A December report had already identified Surface’s limited distribution as a constraint on demand. IHS iSuppli’s finding that sell-through lagged shipments, alongside elevated returns, turns that channel concern into an inventory and product-market-fit problem for Surface RT.
The figures arrive just before Microsoft’s planned February 8 Surface Pro availability, making the RT launch an immediate test of whether broader retail execution and a different Surface configuration can improve buyer uptake.
First-order effects
- Microsoft and its retail partners face unsold Surface RT inventory and return-handling costs where shipments have not converted into end-customer sales.
- The report puts Surface RT’s early commercial performance under sharper scrutiny as Microsoft prepares to add Surface Pro to the lineup.
Second-order effects
- Retail partners have reason to order Surface RT more cautiously, reinforcing the distribution constraint identified in December and limiting the visibility Microsoft seeks for the device.
- Microsoft’s Surface Pro launch must compete for retailer attention against an RT model whose returns and slow sell-through can make the overall Surface range harder to merchandise.
Third-order effects
- If shipments continue to outrun sell-through, Windows tablet vendors will be pushed to treat retail distribution, returns, and demand forecasting as core parts of platform execution rather than mere launch logistics.
The trend: The Surface launch illustrates how tablet-platform ambitions depend on retail sell-through and channel discipline, not simply shipping a new Windows device.