Earlier this week, Microsoft revealed Surface to the world. Immediately, the Internet began dissecting the information that Microsoft had provided and quickly compared it with Apple’s iPad. Whatever conclusions were drawn remain largely irrelevant, however, because they were made without a couple of key pieces of information.
The most glaring omissions from Surface’s reveal were pricing and release details. Apple usually provides these details at the product launch events, and crucially, the latest iPads have released soon after their announcements, when consumers’ hype is at its peak.
If Surface releases sooner rather than later, Microsoft stands a better chance of taking the momentum in the tablets market away from Apple, or at least diverting some of the attention. If Microsoft does not release Surface until late this year or even next year (an age in technological terms), then Apple has more time to respond and come up with a decisive counter-punch aimed squarely at upsetting Surface. Conversely, if Microsoft releases Surface earlier than anticipated in order to outsmart Apple, they may run the risk of a rushed, half-hearted ad campaign and may even have to compromise on features and pricing. The strategic timing of Surface’s launch has probably been planned and discussed for months at the upper levels of Microsoft, so this should not be an issue. Nevertheless, it’s easy to envision the suits at Apple and Microsoft trying to figure out their competitor’s next move and salivate at the prospect of making the winning play.
Clearly both companies will be continuously looking for new ways to innovate and gain the upper hand, but Apple has the most recent experience in the tablet market and will be confident that its brand is strong enough, and its following loyal enough, to maintain its dominant market position.
Microsoft’s two versions of Surface are aiming at two separate consumer groups. The Surface RT, which will launch at roughly the same time as Windows 8 (later this year), should be marketed as a (likely) cheaper version of the iPad 2/3 (with added USB socket!); thus, Microsoft will aim to capture a share of the tablet market with its new device. When the Surface Pro is released approximately thre months after the RT version, it’ll contain an Intel i5 chip that should pack a reasonable punch. For example, in the UK I’d have to pay around £400 for a new laptop with an i5 chip from the current generation. Here Microsoft is aiming at laptop users; which is further evident with Surface’s “type pad” covers, which seem an integral part of its appeal. The laptop market is obviously much more competitive than the tablet market, but if Microsoft is able to convince people that the Surface Pro has the technical grunt to match a mid-range laptop, another huge revenue stream opens up to them.
There is a huge ‘if’ here, however. Surface looks good, has decent technical specs, but what if the price isn’t right? How much will consumers be willing to pay to try out Microsoft’s risky venture into tablets? Microsoft’s failure to reveal its pricing strategy means that any comparisons or silly notions of “iPad killing” are practically redundant. That doesn’t mean it’s not fun to speculate on how things will pan out. It just means that it’s too early to deem Surface an outright failure or success, which fanboys on both sides have already declared.
In the end, it comes to down to where you, the consumer, are willing to put your money. Would you consider paying more for a Surface Pro than a laptop with similar specs because of its reduced weight and increased awesomeness? Do you consider yourself to be loyal to other tablet brands? What does Microsoft have to do to persuade you to choose its new product over Apple’s trusted ones?
The tablet market would benefit if Surface succeeded, and it is for this reason that I am nervous about Surface. If it does not do well, then we will continue to see the near-monopoly situation we have endured since the market has come of age. A duopoly would still be far from ideal, but would undoubtedly produce a better deal for the consumer thanks to more intense competition.
How much do you think Surface will retail for? Is its destiny already decided, regardless of its price?
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