Microsoft Surface 2 & Surface 2 Pro both sold out in Pre-Release. There will be a small amount of Surface 2 available until they are re-stocked in Mid December due to the Pre-Release Sell Out. Surface 1 & Surface Pro are being reduced as the old units are cleared out for the new units. It is normal with all manufactures of PC's to reduce prices of older models when newer machines are being reduced.
Surface 2 had tremendous demand selling like hotcakes.
"TheStreet's Brittany Umar and Stephanie Link, co-manager of the Action Alerts PLUS portfolio, highlight what to expect.
Link reiterated that Microsoft is looking to shift away from its dependency on PCs and to focus on newer, high-growth markets, such as cloud and mobile.
Because of this, the company's Surface 2 tablet results will be crucial, Link said. She added that the company recently wrote off $900 million worth of old tablet inventory, a sign that sales of the previous model didn't fare too well.
And while expectations are low, they may not be low enough. She suggested that perhaps the guidance would have to be cut one more time.
The transition into mobile, cloud and other business segments will be hard, especially since a new CEO has not been named.
Link said that perhaps the new CEO will set the bar very low, making it easier for the company to hit its goals and metrics. But a new CEO is unlikely to be named until 2014.
She cautioned investors not to rush into the stock, since it doesn't appear to have much upside near term."