Microsoft's decision to do its own hardware with the Surface tablet is not working out, according to a story at Taiwanese site DigiTimes.
It cut its order of Surface tablets for the year to two million units, down from four million, according to supply chain sources speaking with DigiTimes.
Says DigiTimes, "sources from the upstream supply chain believe [Windows 8] may not perform as well as expected in the market."
Other PC companies like Asus, Samsung, and Dell are seeing weak demand for Windows 8 tablets, says DigiTimes.
Yesterday, Asus CFO David Chang confirmed this, saying, "Demand for Windows 8 is not that good right now."
Windows 8 was a radical overhaul of the world's most popular computing software. It added touch elements to the screen, and emulated the design style of the not-so-popular Window Phone. Critics say there's a steep learning curve with Windows 8.
The new look of Windows was meant to compete with rise of tablet computing. Apple's iPad, Amazon's Kindle Fire, and Android tablets all offer good-enough computing experiences for most people. This holiday season, when given a choice between a new PC and a tablet, a lot of people are expected to choose a tablet.
The Surface, and the Windows redesign, is not getting enough people to stick with Windows.
DigiTimes supply chain sources say Microsoft is considering a price cut to spur demand. If Microsoft does that, it will only increase its tension with PC makers. Companies like Acer are not happy Microsoft decided to do its own computer. And if Microsoft cuts the price so low that they can't compete they'll be even angrier.
The good news for Microsoft is that even if they are mad, there's not a lot they can do. There is no other desktop operating system choice right now.
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