11–18 of 18 posts
Honestly? Probably because they can't trust their hardware manufacturers on quality, they can't innovate as fast as they want to with third party manufacturers, and Steve Jobs taught them that hardware matters (more than well engineered mice).
Windows 8 is a big risk for MS - they are being sidelined by Apple and Android and running out of time. They couldn't take the risk of other companies designing and manufacturing Win8 tablets not coming up with the goods for the product design/hardware. That's not to say Nokia or Samsung etc won't be putting out an exceptional Win 8 tablet, they may well do - but then again, they may not. In terms of profit - I think…
From where? They do not have a successful media store and they are bundling Office. Aside from Windows and Office, the only things they sell at profit are from 'Server and Tools'.
Internet and Devices/entertainment have been money-sinks. The idea they will start turning Apple/Google-sized profits is wishful thinking
Windows 8 is a big risk for MS - they are being sidelined by Apple and Android and running out of time. They couldn't take the risk of other companies designing and manufacturing Win8 tablets not coming up with the goods for the product design/hardware. That's not to say Nokia or Samsung etc won't be putting out an exceptional Win 8 tablet, they may well do - but then again, they may not. In terms of profit - I think…
> In terms of profit - I think MS will price the hardware as low as they can, to fight off Apple. Their profit will come elsewhere From where? They do not have a successful media store and they are bundling Office. Aside from Windows and Office, the only things they sell at profit are from 'Server and Tools'. Internet and Devices/entertainment have been money-sinks. The idea they will start turning Apple/Google-sized…
If Microsoft was really designing their own hardware and engineering prototypes, we would've already heard about it through the rumor mills.
1. Windows Phones - while competent, and people who use them like them, never managed to make any impact in terms of marketshare or market buzz. This is because Windows Phones is just one of many OSes handset makers - Samsung, HTC etc - support. Therefore, there is not dedicated marketing to push it. Nokia, who is now exclusively on WP, did a lot of marketing but still couldn't cut through the noise. Microsoft has use use its clout to generate the necessary buzz and excitement on Windows tablets or risk a 1% market share once again. With Ballmer on stage, they are effectively signalling they are "all-in" with the plan.
2. Google has successfully kick started interest in Android through developing Google Phone as a reference design for other phones to follow. Otherwise, there will be an inevitable fragmentation of screen sizes, capabilities and price points. By setting an "aspirational" target, other manufacturers will be able to build Surface clones that customers can compare against.
3. The Surface is big on product bundling. It is no longer a pure tablet, and the magnetic snap on keyboard is not an option, but rather part of the product. This makes it easier to sell at a slightly higher price-point than an iPad.
4. The reference magnetic dock, and placement of USB points etc sets the stage for all third party manufacturer of cases, speakers, etc in such a way that kick starts the ecosystem.
5. In the worst case where OEMs abandon manufacturing Windows slates, Microsoft is able to ensure that their investment in Windows 8 isn't entirely lost. They might turn this into a long term play just as they have with XBox. Unit cost of slates are around the $250-mark at present. Microsoft could take the ball home and do it all themselves if OEM find Windows slates difficult to push into the market.
Windows 8 is a big risk for MS - they are being sidelined by Apple and Android and running out of time. They couldn't take the risk of other companies designing and manufacturing Win8 tablets not coming up with the goods for the product design/hardware. That's not to say Nokia or Samsung etc won't be putting out an exceptional Win 8 tablet, they may well do - but then again, they may not. In terms of profit - I think…
> In terms of profit - I think MS will price the hardware as low as they can, to fight off Apple. Their profit will come elsewhere From where? They do not have a successful media store and they are bundling Office. Aside from Windows and Office, the only things they sell at profit are from 'Server and Tools'. Internet and Devices/entertainment have been money-sinks. The idea they will start turning Apple/Google-sized…
Microsoft has multiple revenue streams- http://www.microsoft.com/en-us/news/press/2012/apr12/04-19fy...
They are going after tablet market share - especially for business use - with this reference design, and will try to keep the price down.