OEMs Pain Is Microsoft’s Gain: MS Looks to Sell 25 Million Surfaces

Surface Ballmer

Sources close to Paul Thurrott have told him that Microsoft’s internal goal is to have the Surface maintain control 50% percent of all Windows tablet sales in the coming year. In fact, Microsoft already achieved this goal in Q1 2013. Even as OEMs come up with new and better products, Microsoft expects to maintain 50% market share of all Windows 8 tablets going forward!

According to Paul Thurrott, here are Microsoft’s internal goals for fiscal year 2014, starting July 1, 2013:

Surface sales. MS expects to sell 25 million Surface devices in FY2014.

Enterprise tablets. Microsoft expects to become the number one enterprise tablets provider in FY 2014.

Retail tablet sales. Microsoft expects to become the number two provider of tablets at retail in FY 2014.

Education. Microsoft plans to at least bid for every available education tablet opportunity in FY 2014.

Distribution. Microsoft expects Surface to become the top tablet choice of its distribution partners, which will drive Surface sales through resellers.

Microsoft is expected to expand the Surface family line, and this summer an 8 inch device will be unveiled at the BUILD conference.  Marketing will also ramp up significantly, the internal Surface Team’s budgets is reportedly $4.4 billion.

The markets the Surface in will also be expanded to include Columbia, Poland, Turkey, Saudi Arabia, United Arab Emirates, South Africa, India, and Malaysia. This gives the Surface near worldwide coverage, the only area notably lacking is South America.

The OEMs are of course still floundering, only now getting to the point where they should have been 1 year ago.  I expect to see an increasingly bolder Microsoft in the hardware arena.