Will Microsoft Corporation (MSFT)’s New Surface Help in Competing with Apple Inc. (AAPL)


Microsoft Corporation (NASDAQ:MSFT) is going to launch new models of its Surface tablet. It might release a smaller version of  the Surface or may be a surface RT without an Intel Corporation (NASDAQ:INTC) chipset. As CNBC‘s Jon Fortt states, the launch comes at a time when the entire tablet market is slowing down and there is a lot of speculation on the enhancements that we are going to see. Critics and experts feel that this is not the correct time to launch a new tablet. This might probably be correct seeing the trend in tablet sales over the past few weeks.

Microsoft Corporation (NASDAQ:MSFT)

However, Fortt views that the tablets and PCs blending with each other and a better and Microsoft has a strategy of device and services offered together. The problem that Microsoft Corporation (NASDAQ:MSFT) faces now is whether they go with a low priced model or a model that offers a huge range of different services. This becomes a big challenge for Microsoft’s CEO Satya Nadella and it would be his decision on the strategy Microsoft Corporation (NASDAQ:MSFT) would choose.

“It comes at a time when the tablet market overall has been slowing down. Some critics have said this is the wrong time for Microsoft to be launching products into the tablet market. I personally think that that’s the wrong way to look at this. The tablet market and the PC market are increasingly blending together. Microsoft has this device and services strategy. They have to push forward,” Fortt said.

Watch the full video:

Microsoft Corporation (NASDAQ:MSFT) has to focus on the services they integrate with the hardware if they want to prove the critics wrong. They need to focus on the basic stuff that above all, the integration of services with an apt hardware is going to sell in the market. Moreover, with the new tablets Microsoft will be able to capture some market share, maybe even from one of its largest competitors in the industry, which is Apple Inc. (NASDAQ:AAPL).

In addition, Cory Johnson of Bloomberg said:

“Surface has not made any notable impact on the market. However the reason to push the Surface is because Microsoft believes that with the cloud market going up, the computing has moved from PCs to tablets and hence it wants to go ahead with the newer versions of Surface.”

The full video is available below:

However Nadella is driving the launch of something that was not his product initially and this tablet of Microsoft Corporation (NASDAQ:MSFT) would have to really surprise people to attract the loyal customer base of Apple Inc. (NASDAQ:AAPL)’s iPad. Apple Inc. (NASDAQ:AAPL) is said to be “Toyota of the Computing world” as it takes pride in being loyal to its customers and this is where Microsoft can learn.

Well the launch has not created much impact on Microsoft Corporation (NASDAQ:MSFT)’s stock so far and we would need to wait until to see what impact it creates after the launch.