Microsoft Surface 2.0: Another Lost Cause?

Microsoft Surface 2.o: At this point, it is not much of a secret that the first generation Microsoft Corporation (NASDAQ:MSFT) Surface series of devices was a flop. Does this mean the company is going to give up and abort the tablet market forever? Of course not.

Microsoft Corporation (NASDAQ:MSFT)

Instead, the Microsoft Surface 2 series of tablets are coming soon. While the company is hoping for the best, consumers are wondering if these devices are going to be much better than the first series.

Since announcing the details of the Surface 2 series at an event in New York on September 23, consumers and investors alike have been discussing what this means to the company’s future.

Digitimes Research recently dug into the finer details of the announcement, including a closer look at the pricing structure and what it means to Microsoft.

Jim Hsiao of Digitimes discussed the major sticking points with the new devices, saying “ASPs for Windows on Intel (WoI) tablets have already reached below US$300. The Surface 2 series’ US$449 and above price point is rather unfriendly to consumers. The release of Surface 2 also creates differentiation issues with upcoming Lumia tablets.”

Both points are worth considering. Obviously, Microsoft must make sure its Surface 2 series is priced to sell. If the cost is too high it is going to be hard for these devices to steal back share from market leaders, such as the iPad.

Another issue mentioned in the report is the lack of differentiation when compared to other tablets, especially the Lumia devices.

Will the Surface 2 series have enough unique features to allow it to stand out in a growing market?

Initially, Microsoft was hoping the use of its Office software would be enough to “help create an distinct advantage for the Windows platform in the mobile market.” Unfortunately, things have not worked out this way.

Many people feel that Microsoft is making a big error by developing its tablet OS based on its PC OS. This may not be the only concern, but it is one that many are worried about, especially now that the company has announced its Surface 2 series to the public.

At this point, there is no way of knowing for sure what will happen with the Microsoft Surface 2 series of tablets. That being said, reports like this one from Digitimes Research shed some light on the troubles the company may face.

Do you think these hedge fund managers are concerned with Microsoft’s performance in the tablet space? William Duhamel, James Litinsky, Jeffrey Ubben, Kelly Cardwell, and Sandy Nairn. Check back here for more updates on the Microsoft Surface 2.0.

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Disclosure: none

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