Surprise surprise, Microsoft to make more of its own hardware

by Alistair Lowe on 25 October 2012, 09:44

Tags: Microsoft (NASDAQ:MSFT)

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One day prior to the release of Microsoft's Windows 8 operating system and Surface RT tablet, CEO Steve Ballmer, has gone on record, confirming that Microsoft is looking to make more hardware in the future, "Is it fair to say we're going to do more hardware? Obviously we are... Where we see important opportunities to set a new standard, yeah we'll dive in."

When it was first revealed that Microsoft had plans to produce its own tablet devices, many OEMs spoke-out in concern that Microsoft would upset the PC ecosystem, with the firm reassuring that the Surface was only to set the bar and that Microsoft would withdraw from the hardware market once OEMs had caught up.

Today's comment could suggest that Microsoft simply plans to launch hardware whenever there's a major new advancement and OEMs are yet to hop on-board, however, it's going to be difficult for the software giant to not want to become a hardware giant, after investing money in research and development teams, setting up a supply chain and establishing a consumer base, producing an in-house product with greater mark-ups.

If we take a look at Apple, new standards and innovation take place each and every six months year and can be as insignificant as a faster CPU and a new dock connector; if Microsoft applies this same train-of-thought then it's here to stay in the hardware market and, whilst many OEMs are happy with the Surface acting as PR for Windows 8, tunes may change if Microsoft begins to gobble-up more market share than it's generating.

On the note of Windows 8, copies of the upgrade and OEM editions are beginning to enter stock at many stores and can be ordered online today for delivery tomorrow, though, there's a fair chance a cheaper, download-only edition will be available from Microsoft tomorrow, if previous reports are anything to go by. It would be nice to see full retail editions, however.



HEXUS Forums :: 18 Comments

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Personally I think this will be good for us as consumers, and it should focus the minds of the hardware suppliers out there already and remind them they need to be producing to quality kit if they want to compete because I suspect any kit coming from MS will be as good as it can be.
Hmm, I'm not convinced by this - like the article says there's obviously going to be a temptation for Microsoft to pull in some direct profit.

Then again I'm biased by previous bad experiences with Microsoft hardware - I had/have one of their Force Feedback joysticks (excellent device - but MS dropped support for it), and I had a keyboard/mouse combo for a while (nasty - generated RSI problems so I swapped it for a Logitech).

Really wish though that MS would do a media player - at the moment Apple seems to have that market more or less to themselves (yes I know Sony, Samsung, Cowon, Archos are in there - but you can't exactly go into Currys/Comet/PC World/Argos and expect to have a big choice of non-Apple gear).
i dont give a damn about the OEMs if im honest, i just want good quality hardware with good quality support at a reasonable price. If the OEMs cant provide it then ‘down the pan’ they go.

Personally im not convinced Microsoft are offering something that is unbeatable at the moment, im pretty sure Asus or one of the other manufacturers could produce something just as appealing, if not more appealing than the surface for around the same price.

Microsoft set the bar for them to follow and if they keep doing it then its all good as far as im concerned.
I don't see this as being vastly different to what Google does with Android. Sure, Microsoft does more of the work themselves rather than partnering with an OEM, but the idea is largely the same.
Microsoft are catching on that the only way to compete in the future is by keeping a tight grip on the hardware designs themselves so that their vision is actually created, instead of being bodged up by a cost-cutting OEM.