Microsoft Sells Cheaper Surface -- WSJ
July 10 2018 - 3:02AM
Dow Jones News
By Jay Greene
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 10, 2018).
Microsoft Corp. is cutting prices on its Surface devices,
introducing a $399 tablet to compete with Apple Inc.'s
least-expensive iPads.
The new 10-inch Surface Go, which ships Aug. 2 in the U.S. and
two dozen other markets, is the least costly among the five Surface
devices that Microsoft makes. The Surface Go is aimed at the same
potential buyers as Apple's 9.7-inch iPad, which starts at
$329.
Microsoft's Surface devices have been showcases -- computers
made with premium materials that have sleek designs intended to
highlight the capabilities of the Windows operating system and
spark creativity among its hardware partners. Only a few of those
partners, like Asustek Computer Inc., offer designs similar to what
Microsoft is introducing.
The Surface portfolio has produced uneven results for Microsoft,
though in the past few quarters the devices have sold well. In the
three months ended March 31, Surface generated $1.09 billion in
sales, up 32% from a year earlier.
Tablet shipments world-wide fell 11.7% in the first quarter from
a year earlier, according to International Data Corp., a
market-research firm. One bright spot was shipments of tablets with
detachable keyboards, such as the Surface, which grew 2.9%.
Surface Go devices purchased in stores will run Windows 10 in "S
mode," a variant of the operating system that the company
introduced last year.
Windows S only permits users to run apps obtained through
Microsoft's online Windows Store. The idea is to make the devices
more secure by limiting applications to those Microsoft has
verified. But some popular apps, like Google's Chrome browser,
aren't available.
Microsoft will let customers switch, at no cost, to the regular
version of Windows 10.
The company is also offering a Surface Go that runs Windows 10
Pro, a version of the operating system that business customers use
for its management features, for $449. Customers can pay more to
bump up storage and memory on both versions. And Microsoft will
sell two versions of a cover that includes a keyboard for an
additional $99 to $129.
Write to Jay Greene at Jay.Greene@wsj.com
(END) Dow Jones Newswires
July 10, 2018 02:47 ET (06:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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