Microsoft (MSFT) is letting its Surface take a walk on the wild side.
The world's largest software company began selling its Surface tablet through Best Buy (BBY), Staples (SPLS), and other third-party retailers on Wednesday. It wasn't planning on widening its distribution outside of its dedicated website and namesake stores until early next year.
This would seem to be a sign of success, but it isn't. In fact, one analyst followed the news by slashing his target on Surface sales for the current quarter. He went from expecting 2 million Surface tablets to be sold this holiday quarter to just 700,000 now.
Why isn't the market excited about Microsoft ramping up production to stock up new distributors? Well, it just seems desperate. It will also expose Surface. It's going to have a hard time selling when it's next to cheaper Android tablets or the app-rich iPad. And it may not be able to bounce back from that kind of failure.