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: At least it can't get banned!!!
7/28/2012 2:06:04 PM
You nailed it.
Hence the whisper campaign that MS is cannibalizing their own. Never mind that a rising tide lifts all boats.
"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
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