Microsoft Surface RT: First impressions

We finally go hands-on with the Surface RT. Here's our first impressions. Design and build Latest news and slideshows on Apple The first thing that strikes you about the Surface is its build quality. In short, it's excellent and really feels like a premium product from the moment you pick it up. Microsoft has made a lot of fuss about the stand in particular, but it's the overall design of the Surface RT that impressed us most. The edges angle outwards from the back and the matte finish leaves a very positive first impression. The overall look and feel of the Surface RT is unique, too. In a world where many tablets look similar, the Surface's design is quite distinctive and can't really be mistaken for any other products on the market.. . . . . . . . . . The kickstand built into the back allows the Surface RT to stand up on a desk or table, though we weren't able to test how well it works on your lap. The stand definitely feels very well constructed and durable, though Microsoft claiming it sounds like the door of a "luxury car" when closed is a little far fetched. The stand is easy enough to kick out thanks to an indented slot on the left side that allows space for your fingertip. However, we wish the same slot was built into the right side, too. Accessories Microsoft had both keyboard accessories on show with the Surface RT, the $139.99 'Touch Cover' and the $149.99 'Type Cover'. The 3mm thin Touch Cover received the most attention and worked relatively well in our brief hands-on time. However, it will certainly have a steep learning curve for those used to regular keyboards and you'll no doubt make plenty of typing mistakes with initial use. For people concerned about steep learning curves, the Type Cover is undoubtedly going to be the better option. At 5.5mm, it's thicker than the Touch Cover but still impressively thin. We found that the keys themselves aren't too cramped and the travel feels natural and provides good tactility. We did notice the keyboard itself flexed slightly, especially when typing letters in the middle of the keyboard (like Y, G and B), but this wasn't a huge issue overall. We liked the felt backing of the Type Cover, too, which felt good to hold when the keyboard was closed onto the Surface RT.. . . . . . . . . . Microsoft has made plenty of noise about the strong magnets holding the Type and Touch Covers to the Surface. Like we've seen in some promotional videos of the device, including the company's new commercial, the reassuring click when you connect the Surface RT with the Type or Touch Cover is a nice touch. And yes, the magnets are strong enough to dangle the Surface on the hinge if you so desire, though the Microsoft employee demonstrating the device still felt the need to hold his hand below the tablet in case of an accident.

Surface Pro again out of stock; Microsoft underestimated demand, argues analyst

Less than a week after Microsoft began taking reservation orders for its 128GB Surface Pro tablet, the company on Thursday again slapped a sold-out sign on its website. Yesterday afternoon, Microsoft's online store displayed "Out of stock" and refused to accept orders for that configuration. The message remained in place Friday. The new shortage makes Microsoft's blog post of Feb. 15 seem prescient. Then, as the company announced it would start taking orders for the 128GB Surface Pro, it warned customers that, "Once inventory is depleted, the system will show as 'out of stock' until new inventory is available to ship." That's exactly what it did. The Surface Pro has had an up-down-up-down history, brief as it's been. Microsoft started selling the 128GB Surface Pro on Feb. 9 for $999, but within hours supplies dried up. Customers were furious, frustrated at coming up empty in their searches for the tablet, and took it out on Microsoft in scathing comments on the company's own blog and others.. . . . . . . . . . A week ago, Microsoft reopened online ordering, telling customers that their tablet would ship on or before March 1. Rather than simply extend that shipping date into the future as supplied dwindled -- a practice most other vendors, including Apple, take when orders exceed demand -- Microsoft shut down orders completely. The $899 64GB Surface Pro, which has been derided by some for having only about 30GB of storage space for customer content and apps, has remained available throughout the sell-outs of its sibling. The on-again, off-again 128GB Surface Pro availability shows that Microsoft seriously underestimated demand for the tablet-becomes-an-ultrabook, said Ezra Gottheil, an analyst with Technology Business Research. "It's beginning to look like this isn't a problem with building up enough inventory for the launch, but that Microsoft underestimated demand," said Gottheil, countering those who two weeks ago accused Microsoft of a marketing gimmick by purposefully holding back the tablet. Instead, Gottheil traced the supply snafu to Microsoft's change in Surface strategy last year. "Surface was first to be an inspiration to the OEMs, a marketing device to increase awareness of Windows 8, a challenge to the OEMs to come up with better designs," said Gottheil, echoing pundits' takes of mid-2012 when Microsoft surprised the technology industry with tablets of its own design that it would sell itself.. . . . . . . . . . Analyst credits Surface sell-out to Microsoft swinging conservative Best Buy does what Microsoft won't: Takes Surface tablets in trade Deja vu all over again: Microsoft warns of Surface 2 sell-out Microsoft steers same strategic course in Surface do-over

Surface channel distribution tempo shows Microsoft lacks Plan B after sales debacle

Microsoft's slow expansion of commercial sales of its struggling Surface line is proof that the company had no backup plan after completely misreading the market, an analyst said today. "This goes back to their gross miscalculation," said Patrick Moorhead of Moor Insights & Strategy. "This goes back to their belief that customers want what they think they delivered. They thought they would sell a ton of Surface RTs in the holiday season [of 2012] and that Surface Pro would just fly off the shelves." And when that didn't happen, Microsoft was at a loss. "They didn't have a Plan B," Moorhead said. Moorhead was referring to the deliberate pace Microsoft has taken in getting Surface into the hands of corporate customers. Last week the Redmond, Wash. company announced it would start selling Surface in Canada and 16 countries in Europe through a two-tier scheme, where a limited number of distributors will sell to selected resellers. Those resellers, in turn, were authorized to sell Surface to commercial accounts, such as businesses, government agencies and schools. That move was a follow-up to one in the U.S.. . . . . . . . . . . . last month, when several partners were given the go-ahead to sell Surface devices. But in an Aug. 15 blog announcing the expansion into Europe and Canada, Cyril Belikoff, the company's marketing director for Surface, used the words "thoughtful" and "measured" to describe the distribution tempo. "Our plan has been to expand commercial distribution for Surface in a thoughtful way," said Belikoff (emphasis added). "This measured approach helps us to quickly gather feedback and improve while we grow our geographical reach in the business channel." Words like "thoughtful" and "measured" don't impart any sense of urgency, which seems odd, well, on the surface, since Microsoft's tablets are, by all accounts, barely breathing. According to estimates by researcher IDC, Microsoft shipped just 300,000 Surface RT and Surface Pro tablets in the second quarter, which ended June 30. In the same period, Apple shipped 14.6 million iPads, while Android tablet makers shipped 28.2 million devices. Windows' portion of the second quarter's tablet market was 4.5% -- up from the previous quarter's 3.7% -- but most of those were devices from Microsoft's OEM partners. Microsoft's Surface accounted for just 15% of all Windows-powered tablets, or only 0.7% of the total of all tablets. In other words, for every 1,000 tablets of all kinds shipped last quarter, 7 were Surface devices. Moorhead traced Microsoft's lack of urgency to its inability to quickly shift strategy. "'Measured' and 'thoughtful' are code for 'limited distribution.' It's not smart to blast it out to everyone in every channel, especially when 80% of the business is going through the resellers and distributors they announced," said Moorhead. "If Microsoft had sold Surface as it expected, we would be saying, 'This is just more volume.'" But Microsoft did not sell Surface RT and Surface Pro in anything like the volumes it had anticipated.. . . . . . . . . . Analyst credits Surface sell-out to Microsoft swinging conservative Best Buy does what Microsoft won't: Takes Surface tablets in trade Deja vu all over again: Microsoft warns of Surface 2 sell-out Microsoft steers same strategic course in Surface do-over Dumping a Surface? eBay averages double the return of a buyback vendor Microsoft's Surface to be under revenue microscope

Microsoft expands buyback deal to goose sales of Surface, Windows phones

Microsoft has expanded a buyback program intended to boost sales of Windows smartphones and tablets, and will pay up to $350 for a wide variety of rival hardware powered by Apple's iOS and Google's Android. Stephen Baker, an analyst at the NPD Group who specializes in retail, applauded the deal. "This is clearly a marketing ploy, [but] they usually prove to be good programs for getting people into stores," said Baker. The new program followed an earlier, more limited buyback deal that dealt only in Apple iPads. Customers can trade in a used iPad for a minimum of $200, with the funds placed on a gift card good for purchases at Microsoft's own retail stores. Microsoft's expanded buyback accepts numerous rival devices, including smartphones and tablets running Android made by the likes of Samsung, Lenovo and others; Apple iPhones and iPads; and even BlackBerry smartphones. Customers receive quotes online from Clover Wireless -- one of the many "re-commerce" companies bidding for used hardware that they then refurbish and resell, mainly in developing markets outside the U.S. -- and then ship their hardware along with proof of purchase of a Windows phone or tablet. Assuming everything's approved, Clover returns a prepaid Visa card loaded with the payment amount. The caveat: Customers must first buy a Windows smartphone or tablet. "The Microsoft device must have been purchased within thirty days of the date you ship your old device," the program's FAQ states. The new purchase does not have to be a Surface RT or Surface RT tablet, but can be a third-party Windows-based phone from Nokia, HTC, Huawei and Samsung; or a tablet made by Acer, Asus, Dell, Lenovo, Microsoft, Samsung, Sony and Toshiba. Clover Wireless' quotes for used hardware were in line with those generated by other cash-back rivals. Clover quoted $75 for a used 16GB iPhone 4 running on Verizon's network, while Gazelle and NextWorth -- two popular buyback vendors -- offered $75 and $65 for the same device on Thursday. Some critics panned the expanded program -- and earlier, the original -- saying that Microsoft was essentially paying for new customers, or trying to. "Of course they are," retorted Baker. "That's the whole point of marketing and advertising. Whether it's rebates or buybacks or lower prices or advertising, companies pay for new customers. That's how things work." Nor are Microsoft's buyback programs a mark of desperation, an easy-to-conclude analysis because the Redmond, Wash. company has struggled to sell its Surface tablets since their introduction last October. "Anyone who says that knows nothing about consumer marketing, knows nothing about how to drive traffic into stores," said Baker, rejecting the desperation thesis. "These are smart moves, not stupid moves. If you're not doing something to drive traffic, that's a stupid move. Buyback and trade-in programs are generally effective, Baker added, as long as the retailer doesn't use the tactic too often. "People are not always thinking of these opportunities, but they lose their effectiveness if you go to that well too often," said Baker. While Microsoft's iPad buyback deal has an expiration date of Oct. 27, the expanded program run in conjunction with Clover Wireless has no apparent end date. Microsoft's website contains more information about the buyback program and links to start the quote process. Microsoft broadened its rival hardware buyback program and will accept trades of Android and iOS smartphones and tablets when customers buy a Windows phone or tablet. (Image: Microsoft.)

Samsung squeezes out Apple for J.D. Power tablet satisfaction honors

J.D. Power and Associates yesterday gave its top ranking in tablet satisfaction to Samsung, the first time since it debuted the award that Apple did not take the prize. Basing its rankings on surveys of more than 3,300 U.S. tablet owners, J.D. Power awarded Samsung a score of 835 out of a possible 1,000, edging Apple -- which garnered a score of 833 -- by just two points. Amazon followed in third place with a score of 826. "Those scores show Samsung and Apple at parity, but we have to give our award to the one with the highest [score]," said Kirk Parsons, senior director of telecommunications services at J.D. Power, in an interview Friday. J.D. Power's award to Samsung has come under fire from some quarters, largely because on a scorecard that showed the ratings firm's "Power Circles," Apple accumulated 22 filed circles out of the possible 25, compared to Samsung's 19. But the Power Circles have no direct relation to the final scores, Parsons explained. In this case, the difference between Samsung and Apple in the Cost category -- where the former not surprisingly beat the latter -- was great enough to outweigh Apple's advantages in the four other categories, which included Performance, Ease of Use, Physical Design and Tablet Features. Bottom line: Competition has caught up to Apple and its iPad. "When the iPad appeared, Apple clearly had the marketplace with a very superior product," said Parsons. "But there are brands that are catching up on design and features, and are competing on the value relationship and what people are paying for a tablet." For example, Samsung's 8-in. Galaxy Tab 3 lists for $299, $30 less than the original iPad Mini did when J.D. Power conducted its surveys; the Korean company's 10-in. Galaxy Tab 3 runs $399, $100 less than Apple's full-sized 9.7-in. iPad. J.D. Power's rankings have been important bragging rights for Apple, which has cited the awards in the past. During a July conference call with Wall Street analysts and reporters, chief financial officer Peter Oppenheimer referenced Apple's nine-consecutive wins in the smartphone category and the two-straight victories in tablets. "Customers continue to love their iPads," said Oppenheimer then, before mentioning the two J.D. Power awards Apple won in 2013 as proof. Apple has repeatedly said it is less interested in acquiring market than it is in success on other fronts. "We are winning with our products in all the ways that are most important to us, in customer satisfaction, in product usage and in customer loyalty," CEO Tim Cook said Monday during the firm's third-quarter earnings call with investment analysts (emphasis added). J.D. Power's surveys, which were conducted between March and August of this year, did not, of course, query consumer satisfaction of the new iPad Air, which went on sale only today. Reviews of the iPad Air have been very upbeat, with most applauding the tablet's thinner, lighter form factor. "Competition is catching up to Apple," Parsons repeated today, "but with the Air, that could change." J.D. Power's chart has made some question its conclusion that Samsung deserves the award for tablet satisfaction. (Image: J.D. Power and Associates.)

AT&T won't match T-Mobile's free data on iPad Air

IDG News Service - AT&T won't be matching T-Mobile's offer of free wireless data for the iPad Air when the device debuts at the company's stores across the U.S. next month.    Apple's iPad Air AT&T, the country's second-largest cellular carrier, said it will offer a $100 discount to customers who sign a two-year contract for tablet data service. For customers who don't want to sign a contract, AT&T will offer recently announced plans costing between $5 for 250MB of data for one day and $50 for 5GB for one month. Those customers won't get the $100 discount. Subscribers will also be able to add the iPad Air to an existing data plan for an additional $10 per month. On Wednesday, T-Mobile said it will give tablet owners 200MB of data per month for no cost. Once that's used up, customers will have the option of paying $5 for 500MB of data for one day or $10 for 1GB of data for a week. T-Mobile, which is the fourth-largest of the country's four major carriers, is aggressively courting customers with cheaper pricing plans. It recently said customers heading overseas would get unlimited 2G data at no additional cost. A spokesman for AT&T declined to comment on T-Mobile's announcement. Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service.