“…One of the bright spots in Microsoft’s (MSFT) quarterly report last week was that Surface sales more than doubled sequentially. The software giant rang up $893 million in sales of its Windows-fueled tablet during the holiday quarter, [up from $400M in Q3.]

However, the more that one thinks about it, the worse that Microsoft’s $893 million in Surface sales becomes.


How many Surfaces did Microsoft actually sell during the quarter? Well, the Surface 2 starts at $449, but the Surface Pro 2 can set buyers back as much as $1,799. …the the cheapest Surface Pro 2 — the one running Windows 8.1 Pro instead of the scaled-down Windows RT operating system — starts at $899. So when Microsoft says $893 million in tablet sales it likely translates into a little more than a million devices.

Apple on the other hand sold more than 26 million tablets [$11.5 billion worth] during the [September] quarter. If we look at the unit levels sequentially, Microsoft’s sales grew by less than a million sequentially while Apple sold nearly 12 million more iPads than it did during the prior three months.”

Note: This is not meant as particularly pro-Apple, and Android sales figures are also impressive and are in essence blocking Microsoft’s entry into a lower-priced tier (which is likely why MSFT didn’t even try to enter it?). Exact sales figures  and revenues for Android tablet vendors are much harder to come by/break out however, so this comparison of Surface and iPads shall suffice.

The point being: Remember that the Surface was supposed to be the rationale for Windows 8’s formerly-known-as-Metro touch-centric interface, as well as MSFT’s entire “Devices and Services” strategy. From the formerly massively dominant PC OS vendor, such miniscule share for the Surface line is nothing short of embarrassing.

Let’s just say for argument’s sake that Android tablets sold the exact same number as iPads (it’s likely more in the direction of 60 / 40), so the total being 2 x 26M = 52M. 1M or so Surface tablets sold would be about 2% share!

Again, this is what Ballmer et al. essentially bet the farm on in terms of trying to regain some relevance in tablets and Mobile. Except that a 10.6″, 2 pound device (the Pro) qualifies as neither, as I predicted repeatedly since long ago (6/2012).

Will MSFT’s next CEO simply put an end to this entire embarrassment and kill the Surface line, in order to concentrate on all enterprise/cloud services, all the time?