Microsoft Drastically Cuts Surface Orders: Report

Facing slower than anticipated sales of its new Surface tablet, Microsoft is reportedly slashing orders from its Asian manufacturers of the device.

According to a new report, the cutbacks are drastic, with orders being reduced from four million units to just two million units.

Microsoft says the report isn't true and that it's pleased with Surface sales thus far.

The same report indicates that disappointing sales of Microsoft's current version of the Surface -- which is equipped with an ARM-based processor supporting a slimmed-down version of Windows 8 called Windows RT -- have prompted the move. (Source: digitimes.com)

Surface Price Cut Coming Soon?

Some observers are suggesting that Microsoft could also lower the price of the Windows RT-based Surface tablets prior to the release of the newer Surface Pro.

With its Intel Core i5 processor, 64GB of storage capacity, and full-blown version of Windows 8, the newer design reportedly costs $899 and up.

In fact, some say the disappointing Surface sales could even prompt Microsoft to advance its Surface Pro ship date from early 2013 to December 2012. This would give Microsoft a second shot at the lucrative holiday shopping period.

Microsoft has steadfastly kept quiet about Surface sales figures, other than to restate some previous remarks.

"While we have nothing new to share regarding supply or sales at this time, this report is inconsistent with comments Steve Ballmer made several weeks ago regarding Microsoft ramping up supply and distribution for Surface with Windows RT," a Microsoft representative said.

"As Steve mentioned, the reception to Surface has been 'fantastic,' which is why he also stated that 'soon, it will be available in more countries and in more stores.'" (Source: pcmag.com)

Surface Pro No Solution: Critics

Nevertheless, critics aren't convinced that simply advancing the release date of the newer, relatively pricey Surface Pro will help Microsoft deal with what some observers maintain is a dire situation.

"Microsoft needs to be doing everything they can to project an image of success for Surface and Windows 8," noted industry analyst, Patrick Moorhead.

"The $899 starting price for Surface Pro will significantly limit penetration." (Source: pcmag.com)