Microsoft Acknowledges Partners May be Harmed by Surface Tablet
July 27, 2012 5:33 PM
comment(s) - last by
By outcompeting its partners, Microsoft is endangering them
"[O]ur Surface devices will compete with products made by our OEM partners, which may affect their commitment to our platform," writes Microsoft Corp. (
) on the fourteenth page of its
filed with the
U.S. Securities and Exchange Commission
The New York Times,
the quote represents Microsoft's most forthright comment regarding the fact that the media and public has largely perceived Microsoft's first-party Windows 8 tablet as
superior to rival designs
from OEM partners.
Microsoft CEO Steve Ballmer says that
10.6-inch Surface tablet
is merely "priming the pump" for OEM partners' Windows 8 tablets. But his filing indicates clearly that he and his company are aware that OEMs may be damaged by their inability to compete with his slick tablet offering.
There's some risk to Microsoft from this approach. Competing with a customer ruined the relationship of Samsung Electronics Comp., Ltd. (
) with Apple, Inc. (
) and likewise Google, Inc. (
) with Apple.
"Surface" may prove poison to Microsoft's own. [Image Source: Microsoft]
However, not competing is ultimately an even more risky choice. After all, it's hard to argue that Google is worst off for owning the world's most-used smartphone platform, despite the headaches that decision earned for it.
Likewise, if Surface does well it may create some
headaches regarding OEM relations
, but it would also be a boon to Microsoft's empire of holdings.
This article is over a month old, voting and posting comments is disabled
RE: They had to
7/27/2012 7:39:21 PM
That's utter crap. Google's device is lacking those features because they couldn't afford to put them in. Google don't make any money from the Nexus 7 directly, it just stops more people buying other tablets.
Microsoft is building a higher end tablet, because their OEMs refuse to do so.
Google built a cheap tablet that's not crap, because their OEMs refused to do so.
RE: They had to
7/27/2012 7:52:12 PM
Asus built it
"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay
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