4th UPDATE: Microsoft Announces Surface Family of Tablets
June 18 2012 - 10:44PM
Dow Jones News
Microsoft Corp. (MSFT) unveiled on Monday a family of tablets
that run the upcoming version of its Windows operating system, a
move that comes as the software company races to catch up with
Apple Inc. (AAPL) and Google Inc. (GOOG) in mobile computing.
At an event in Los Angeles, Microsoft Chief Executive Steve
Ballmer introduced the company's Surface family of tablets. The
devices, which feature magnesium bodies and built-in stands, run
versions of Microsoft's Windows 8 operating system.
Mr. Ballmer said the Redmond, Wash., company recognized the
importance of integrating software and hardware, a strategy that is
the hallmark of rival Apple.
"With Windows 8, we didn't want to leave any seam uncovered,"
Mr. Ballmer said. "We wanted to give Windows 8 its own hardware
companion.
"The surface is a PC. And the Surface is a tablet. The Surface
is something new." Mr. Ballmer later said.
The Surface family comes with a magnetically attachable cover
that has a built-in accelerometer. The inside of the cover is a
full keyboard that recognizes the device when it is attached. The
Surface's stand, called the Kickstand, snaps into place with an
audible click. It has connection for charging and linking the
tablet to peripherals and it will come with a Netflix (NFLX)
application.
The Surface "works great for entertainment," said Steven
Sinofsky, head of Microsoft's Windows division.
Microsoft has built a software business with $70 billion in
annual revenue and left the computer hardware to allies such as
Hewlett-Packard Co. (HPQ), Dell Inc. (DELL) and others. Now
Microsoft will be going after tablet customers too.
A Dell spokesman said the company "remains a committed partner
of Microsoft" and is continuing to develop a "full slate" of
Windows 8 products.
H-P declined to comment.
"Don't focus too much on Microsoft competing with other PC
vendors," said retail analyst Ross Rubin of NPD Group in a Tweet.
"They all have the same main competitor in Apple."
The Surface is a compact 9.3 millimeters thin and weighs 1.5
pounds, very similar to Apple's iPad at 9.4 millimeters and 1.44
pounds for the model with WiFi. Besides the kickstand and
detachable keyboard cover, the cover also has a trackpad.
Apple didn't immediately respond for comment on the Microsoft
device.
Microsoft said the Surface would be priced comparably to other
tablet computers and available simultaneously with release of
Windows 8. It will appear first in the Microsoft Store online and
through company retail locations.
Gartner analyst Carolina Milanesi said Surface will go on sale
to capture the maximum benefit of the holiday gift season. Doing a
prominent press event so far in advance is aimed at rallying
applications developers behind the new platform.
"They now have a six month window to get developers they have on
the PC side to join them on Windows 8 and this tablet," she
said.
The Surface and other tablet versions of Windows will run on
low-power chips designed by ARM Holdings PLC (ARMH). Windows 8 Pro
versions of the Surface are aimed at enterprise computing customers
and will run on chips made by Intel Corp. (INTC).
Microsoft made the announcement at the center of the music, film
and television world, which Microsoft has already embraced to
deliver content to its popular Xbox 360 game console. The Microsoft
tablet will run the tablet version of Windows 8, called Windows RT.
Windows 8 is the next edition of the company's flagship
computer-operating system, which will for the first time run on
both desktop computers and tablet devices.
Windows 8 is Microsoft's best hope for competing with devices
running Google's (GOOG) Android operating system and with Apple's
iPad and iPhone products. Microsoft has almost no presence in the
tablet market, which is expected to double in size, with sales of
118.9 million units this year, according to research firm Gartner
Inc. Apple's iPad is expected to account for a little less than
two-thirds of those sales and Android machines for nearly a
third.
Microsoft has spent the past two years developing Windows 8. The
company is putting the finishing touches on the software before
shipping it to manufacturers, which will load it on devices slated
to hit stores in October or November, in time for the holiday-sales
season.
Many companies have tried to compete with Apple's iPad with
tablets based on the Google Android operating system, but few
products have sold well. In smartphones, Android phones
collectively have a majority of the market, but Apple's iPhone
remains a dominant hit.
Microsoft has long manufactured keyboards, mice and other
accessories, but hasn't always succeeded with consumer devices.
Xbox has become the best selling gaming station, but its Zune music
player, designed to compete with Apple's iPod, never caught on with
music buffs. Its KIN mobile phone died a quick death shortly after
it appeared in 2010. Handset maker Nokia Corp. (NOK) is now is
leading phone partner.
Write to Steven D. Jones at steve-d.jones@dowjones.com and
Andrew Morse at andrew.morse@dowjones.com
-Ian Sherr contributed to this story.
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