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Intel Corporation Message Board

  • wallisweaver wallisweaver Mar 15, 2013 1:49 AM Flag

    Microsoft Surface Pro sales hit 400K in a hurry

    Microsoft has sold 400,000 Surface Pros since launch, according to a Bloomberg report.

    That's not a bad start for a very pricey tablet -- starting at $899 -- considering that the Windows 8-based Pro launched only about a month ago.

    "That's a respectable number and it leads me to believe that Surface Pro will end up outselling Surface RT," Bob O'Donnell, an analyst at IDC, said in a phone interview.

    O'Donnell is referring to the RT version of Surface, which is less expensive, starting at $499, but it is not compatible with older Windows software.

    "It's something that we've predicated all along because of the compatibility that Surface Pro offers," he said.

    From Brooke Crothers

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    • Wallis,

      Don't you think that number is alot better than Kindle's Fire sales?
      So Microsoft could be experiencing alot more interest in its Surface Pro when the price alont with volume is taken into consideration against the Kindle's price and volume.
      We may be even beating Kindle's Fire in volume alone.
      So even as Kindle is selling its tablets at below cost, they still are struggling, yet their stock price suggests that they may be having huge success.
      I think time will settle these confusing issues.
      The key for Microsofts success obviously is the versatility of the Surface Pro using Intel chips over the not Intel ones.
      The market need not look at tablet sales in general but the iPad sales only when it comes to non Intel based tablets.
      And before anyone cites the success of Galaxy tablets, I would question why Samsung has decided to start offerring at least one tablet with Windows 8 OS using and Atom chip.
      In other words, even with their tablet offerring, Samsung in some cases is choosing Intel's Atom over its own chips. That's telling alot about where this story could be headed in the near future.

      Sentiment: Strong Buy

    • So, how much does Intel make off of that? Gross $100/unit, so all of $40 million, about 0.1% of revenues for a month's work? Could be a per cent or two of total revenues annualized. Not too shabby.

    • From the Cheat Sheet:

      The chip analyst JoAnne Feeney at Longbow Research reported that her conversations with vendors of components for personal computers imply to her that the second half is shaping up worse than expected, and might cause problems for PC-related names like Intel, Advanced Micro Devices, Nvidia, and Intersil Corporation (NASDAQ:ISIL). Feeney maintains Neutrals on all four names, commenting that “contacts now see desktop units down 5 to 10 percent for the year vs. our forecast for INTC DT segment to be down 4 percent year-over-year in 2013. Look for a slow Haswell ramp as last year’s inventory build, following a surprisingly weak second half, leads the industry to stick with the safer Ivy Bridge platform (socket compatible with Sandy Bridge, unlike Haswell) and for Haswell to make up less than 50 percent of desktop CPU shipments even in the fourth quarter.”

      • 3 Replies to aye_corumba
      • I'm going to miss the desktop era. Sort of reminds me of steam locomotives, etc. I think this "analysis" reflects a delayed replacement cycle.

      • This rear view analysis is waste of time and stupid at best. Who doesn't know that desktop days are numbered. Honestly, how many desktops are you buying these days. Laptops are powerful and can carry the same tasks as a desktop machine plus provides mobility. So the transition is obvious.
        The analysis should be more like how many people have shelved notebook buying plans and switched to mobile phones (which I think is 0%) or switched to tablet devices like ipads etc., ipads/android tablets is where Intel has been bleeding until end of last year losing 90+ business to ARM. But Intel has woke up to this call, the future will be bright for Intel in this space as well as they will be bring same power and performance to even mobile phones.

        This game is not new to Intel. They were challenged like during notebook transition also. Google around for companies Transmeta etc., Where are they now?

        ARM will have the same future? The answer depends...I will leave it at that argument will take a couple of pages...

      • That makes sense and is not a surprise to me. Not only is socket 1155 compatible with Sandy Bridge but is is also compatible with Ivy Bridge 22nm. The Haswell socket 1150 supports the Haswell on chip VTR and will likely have most value when coupled with an OS that can take advantage of its power conservation features. Those are not exactly "desktop CPU" features. Power conservation will be an issue for laptop sysems.

        Socket 1155 motherboards are not only "safe" but they are very cheap since there are many suppliers.

        A neutral rating and a target price that yields a 5% dividend is pretty safe. That is how she selected the $18 target. $18 = 5%. If Intel declared a dividend incease when they declare next week, she will raise her target.

    • +The sales numbers have spoken. It looks like Microsoft has a veritable hit on their hands. With the intro of Haswell, some of the criticism around this PC will get addressed. Also, this leads the way for core series chips to be put to use in tablets which is probably a win for core series sales volumes. If I was Qualcomm or NVidia, I would be very scared about competition for tablet chips in this form which neither has a chance of competing with at least on the performance front.

      Windows 8 it seems is set to take off as a touch OS albeit a little slowly contrary to earlier reports.

      • 3 Replies to khitchdee
      • Khitchdee, great post. Glad you admit that Microsoft hit a homerun with Surface Pro.

      • khitchdee•Mar 15, 2013 2:13 AMFlag

        +The sales numbers have spoken. It looks like Microsoft has a veritable hit on their hands. With the intro of Haswell, some of the criticism around this PC will get addressed. Also, this leads the way for core series chips to be put to use in tablets which is probably a win for core series sales volumes. If I was Qualcomm or NVidia, I would be very scared about competition for tablet chips in this form which neither has a chance of competing with at least on the performance front.

        Windows 8 it seems is set to take off as a touch OS albeit a little slowly contrary to earlier reports.

        ______________
        Great post and very accurate, KHITCHDEE.

      • Haswell improves the Surface Pro by a wide margin. A Core tablet that runs full W8, will probably support multi-boot with Android and other OSs, and have the power of an Ultrabook is very compelling. It won't be cheapest tablet around but it will be the tablet power users will buy.

 
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