Microsoft's Surface Tablet Reportedly Makes Weak Entry In UK

News: US-based technology company Microsoft has reportedly only shipped 2,000 units of its Surface tablets to the UK, reports The Register. The company approved nine resellers in the UK on August 15 2013 and since then three quarters of the Surface tablets that have been ordered are the RT version. It is believed that back orders of the tablet are growing and demand has not been huge, but channels across Europe are thought to have a 'slight oversupply'. Microsoft has said that it was almost out of stock of the first generation RT and Pro models ahead of the October 22 2013 launch of the next-generation device.

BMI View: The UK IT market is being squeezed by fiscal austerity measures, fragile business and consumer confidence, and a decline in desktop and notebook shipments. However, there are areas of growth that are offsetting these pressures, such as demand for tablets, investment in datacentres and uptake of cloud computing services. Taking these factors into account UK IT spending is forecast to increase 2.2% to GBP53.339bn in 2013, a turnaround from the 0.6% contraction in 2012. The IT market should see improvements as the economy moves further out of recession over the medium term and we expect total spending will reach GBP59.975bn by 2017. There is, however, downside to this outlook, with flashpoints in the eurozone, including Spanish refinancing requirements, potentially derailing the UK recovery.

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Geography: United Kingdom

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