“They (PC makers) might bristle but ultimately they will have to work with Microsoft,” he said.
It is inevitable that Microsoft will upset hardware partners such as Samsung and Hewlett-Packard Co with its well-guarded move, said Olson, but that would likely not cause a long-term rift. Google, which recently bought hardware maker Motorola, is also readying its own tablet, a source familiar with the company’s plans said. Based on our discussions with developers, we find the lack of enthusiasm concerning,” Misek said.Īnalysts expect the slimmer Windows 8 tablet to struggle to compete with the iPad, which offers more than 225,000 apps, and to a lesser extent with Google Inc’s Android-based tablets, such as Samsung Galaxy Tab. “The most important factor in the success of a tablet is its ecosystem. The Surface tablets - announced at a much-hyped event in Los Angeles on Monday - will come in two versions, one running Windows RT, based on the same ARM Holdings chip designs that power most tablets, and a higher-performance version running the full Windows 8 Pro operating system that is designed to compete with lightweight laptops. Microsoft will need to significantly undercut the iPad to be competitive,” Jefferies analyst Peter Misek said. The shares of the world’s largest software company jumped almost 3 percent as Wall Street and investors welcomed Microsoft’s move.Īnalysts praised the snappy hardware and revolutionary keyboards but questioned the lack of enthusiasm among developers for creating applications that run on the new Windows 8 operating system and the absence of hard details on pricing and availability. “They are saying ‘Here’s what we really want the hardware to look like to make it successful.’ It’s basically an experiment to see if they can push the ecosystem.” “Microsoft is building options,” said Parakh. With Apple setting the pace with its slick devices, it was more risky for Microsoft to leave hardware development purely to the laggard computer makers, said Sid Parakh, an analyst at fund firm McAdams Wright Ragen. “It’s their model to show what can be achieved and lead the way and let the others ultimately participate,” said Josh Olson, technology analyst for Edward Jones. The company’s unprecedented move into PC design was a slap for traditional PC makers - which have fallen behind Apple in creating attractive machines that blend smoothly with software - but may primarily be a wake-up call for its partners rather than a long-term attempt to compete.
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