Hardware Market: Is Microsoft Here to Stay?
On June 18 Microsoft unveiled its objective to produce a new tablet, called Surface. According to company’s chief executive Steven A. Ballmer Surface is expected to enter into competition with Apple’s iPad. It boasts the same weight and size of the iPad. The tablet is an important strategic step by Microsoft: it will make hardware producers roll out new Windows 8-powered devices; apart from far-reaching intentions, Microsoft wanted to boost their own hardware production, infusing with innovative software solutions.
Surface demonstrates Microsoft’s departure from traditional ways of doing business. Third parties like Dell and Hewlett-Packard had been doing that for Microsoft for years now, but their success has been modest. Now, Windows 8-running hardware development will be led by the original creator of the OS.
Some people say, however, releasing Surface tablet is not more than just a marketing trick by Microsoft. Acer’s founder Stan Shih predicts that Microsoft will retire from hardware market as soon as Surface gains its share. The top executive said the goal is only to encourage producers to roll out Windows 8 devices. Microsoft earns more with licensing software; the company is much likely to get back to its niche and produce no more tablets. One of Microsoft’s most loyal all-time partners Dell has already appraised the strategy and announced that it will roll out Windows 8-powered devices.
Many people say this ‘lead-by-example’ behavior is very much similar to Google’s marketing of Nexus phone and tablet. By releasing Surface, Microsoft also gets into competition with Android and Apple mobile devices.