In the research note, Detwiler Fenton state, "Lack of distribution is killing the product. Mixed reviews and a [$499] starting price tag certainly don't help, but lack of retail exposure at Best Buy and others is severely depressing sales."
Microsoft has just 31 stores in the US, as well as 34 kiosks that it has set up just for the holiday season. It is not selling Surface, touted as the iPad killer, through other retail stores.
Recently, Microsoft CEO Steve Ballmer told a French news site that Surface sales were off to a modest start. Reviewers have also not been kind to the device, with one calling it 'a mess'. The company has not yet revealed the sales data for the company, though it has reported the sales of the recently-unveiled Windows 8 operating system time and again.
Microsoft has said it will launch the new version of Surface, named Surface Pro, in January 2013 at $899.
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