Why Microsoft Had to Launch Surface

Former Microsoft (NASDAQ: MSFT  ) exec Craig Mundie, who now serves as special advisor to Steve Ballmer, recently explained why the company needed to launch Surface. It was taking some blame for low-quality devices made by hardware partners that weren't willing to invest in quality due to their already low margins.

In the video below, Fool.com's Alison Southwick and contributor Evan Niu discuss how the growing threat of Apple (NASDAQ: AAPL  ) made Microsoft think that the Surface was worth risking its partnerships.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.


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  • Report this Comment On March 08, 2013, at 12:05 AM, applefan1 wrote:

    I think it's a bad idea for Microsoft to go into the hardware market because all they are going to do is put out yet another product that competes with their own OEM vendors. After seeing the sales numbers, it appears as though they are making the product more for their own Microsoft employees to use instead of them using iPads, which is what a lot of their employees were using before Ballmer it the screws to prevent that. If they sell enough to recoup their R&D and marketing expenses, that's what is appears that they are doing. MS making hardware might increase their gross revenues, but at the expense of eroding their profit margin and negatively affecting their own OEM vendors, which just creates animosity, which I don't think Ballmer cares much about. If these things help Ballmer reach his financial goals, if they don't then they might have to halt production, just like they did with the Zune.

  • Report this Comment On March 08, 2013, at 12:11 AM, rcmpvern wrote:

    I think there's a very good chance Windows 8 runs well on Surface.

    I don't want it on a PC or notebook.

    I am actually shopping for an XP machine right now.

  • Report this Comment On March 08, 2013, at 8:13 AM, Secs27 wrote:

    We recently upgraded our computers to Lenovo Ideacentre and dell one 27 touch screens. The combination of touch, keyboard and mouse brings computing into the future. Win 8 is very fast, fluid and powerful. It offers a wealth if info right at te start scree. It boots in 9 seconds and is rock steady reliable. We also bought the Surface Pro. It is a beautiful design and built like the proverbial bank vault. It is amazingly fast and powerful and works flawlessly. It is powerful to replace my laptop but smooth enough to lay on the couch with and surf and watch a movie. I used to have to travel with an iPad and a laptop, now I can just take the Surface Pro. The more I use it, the more it amazes me. A truly magnificent product worth every penny. It is so good, I have a hard time putting it down.

  • Report this Comment On March 08, 2013, at 8:28 AM, Stocktonator wrote:

    I've now had a Surface Pro for two days. My kid can now have my iPad, which is just a toy compared to a tablet running Windows 8. I think Microsoft is onto something. I looks at my iPad 2 now and cringe! I refuse to type another email on that thing now that my Surface has an excellent keyboard and full Outlook.

  • Report this Comment On March 08, 2013, at 10:14 AM, jeffreber44 wrote:

    I am waiting for Nokia to launch its tablet. I have a Nokia Lumia and love its style & design. They make quality products that are innovative. So I will be sticking to the Nokia product line from now on. With Nokia and the win 8, this platform is a winner.

  • Report this Comment On March 08, 2013, at 10:21 AM, Mega wrote:

    The had to launch Surface because they weren't losing enough money on Bing.

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