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9/21/2013
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Microsoft Surface Tablets: Big Bet, Small Changes

Microsoft will debut its newest Surface tablets Monday, counting on incremental changes to win over skeptical buyers. Has Microsoft done enough?

As for the Surface 2, Microsoft's next Windows RT tablet should gain new accessories and a two-position kickstand, just like the Surface Pro 2's. If rumors are accurate, the Surface 2 will use Nvidia's Tegra 4 ARM processor and a 1080p screen, both of which are solid upgrades over the current model's relatively antiquated components. Windows RT 8.1, meanwhile, will add not only a number of UI enhancements but also support for Microsoft Outlook.

The uncertainty doesn't necessarily mean Microsoft's new tablets will struggle like its current ones. After all, critics moaned for weeks that iOS 7 and the iPhone 5S weren't innovative enough -- and now that the products are actually available, most of this criticism has been replaced by lavish praise.

Analysts aren't sold, though. In a phone interview, Forrester analyst David Johnson said "using Haswell chips in the Surface Pro is a good idea," but countered that the firm's surveys indicate interest in Windows tablets has declined over the last year.

Johnson said he cannot see the Surface Pro 2 as a primary device unless it's attached to a monitor and a bigger keyboard, and that the Windows tablets have not diminished the iPads's profile. A recent Gartner study similarly concluded that Windows tablets will not displace iPads in the workplace, and that enterprise workers would continue to use iPads even if corporate-owned Windows tablets were deployed.

Microsoft's new devices will face the same branding and pricing challenges as the earlier ones, said Gartner analyst Carolina Milanesi in an email. She doesn't see the Surface tablets as an obvious success.

Speaking of price, Microsoft is reportedly not going to make the new devices more affordable. The original Surface RT and Surface Pro will remain on the market at their current prices--$349 and $799, respectively, ZDNet recently reported via an unnamed source. The Surface 2 and Surface Pro 2 will debut at base costs of $499 and $899; keyboards will still be sold separately and the 512 GB Surface Pro 2 will be a wallet-busting $1,699, according to that report.

The rumored prices aren't encouraging, but Microsoft could always surprise people when the devices are finally revealed.

Will Microsoft finally score a hit in the consumer tablet market, and can it chase iPads out of its enterprise home turf? Reactions will begin flooding out Monday morning.

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Michael Endler
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Michael Endler,
User Rank: Author
9/23/2013 | 10:14:59 PM
re: Microsoft Surface Tablets: Big Bet, Small Changes
It did. This article ran over the weekend, before the announcement, and was still based on leaks and rumors.

But yep, the Surface 2 will be $449. Is it the right price? I wouldn't have priced it that high, bu the new Surface 2 is a lot better than the old Surface RT, and some accessories like the "blade" keyboard that mixes music are interesting. Plus, with 200 GB of SkyDrive and some Skype perks thrown in, the $449 goes a little farther than it seems. Then again, the keyboards will still be sold separately, and with three of them now in the line-up, I think at least the Touch Cover 2 should be free, or at least discounted if bought at the same time as the tablet. You're up to around $600 with the base Surface 2 and the cheapest keyboard-- which is not too coincidentally the same price as an iPad with a nice third party keyboard. A lot of people might decide Microsoft is making the same Windows RT pitch it made last year: the iOS ecosystem and interface vs. mobile access to MS Office, tablet multi-tasking, etc.
melgross
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melgross,
User Rank: Ninja
9/23/2013 | 7:29:42 PM
re: Microsoft Surface Tablets: Big Bet, Small Changes
It's interesting that people can talk about Apple having a price premium when the price was considered to be stunningly low when they first came out.

Of course, those cheaper tablets are literally cheaper. You get what you pay for. But the Pro, while not worth it as far as I'm concerned, costs more because using an i5 costs a lot more than an ARM SoC. Plus, you need cooling, and a much bigger battery. All of which adds to the price, as well as the 2 pound weight, which makes it the heaviest 10" tablet around.
melgross
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melgross,
User Rank: Ninja
9/23/2013 | 7:25:36 PM
re: Microsoft Surface Tablets: Big Bet, Small Changes
I thought that the screen from the presentation showed the Surface 2 to be based at $449.
dbtinc
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dbtinc,
User Rank: Apprentice
9/23/2013 | 1:10:47 PM
re: Microsoft Surface Tablets: Big Bet, Small Changes
Act III Scene III, enter stage left fat lady ...
AlfieJr
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AlfieJr,
User Rank: Apprentice
9/22/2013 | 2:07:35 AM
re: Microsoft Surface Tablets: Big Bet, Small Changes
there might be an niche enterprise market for the Surface Pro with these necessary fixes, we'll see.

but the RT 2 is DOA. no one wants it. no one even cares. it's 4 years too late.

the big news on Monday will be about iPhone smash hit sales. MS will have a hard time even getting noticed in this news cycle. great timing, SB, you marketing genius.

as to tablets, the hype buildup for the next gen iPads no doubt coming in October will also start Monday. will it have Touch ID or not? (of course the high end model will). no one is going to even take a (second) look at the RT while waiting for that.
AsokAsus
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AsokAsus,
User Rank: Apprentice
9/21/2013 | 10:38:15 PM
re: Microsoft Surface Tablets: Big Bet, Small Changes
So Microsoft is obviously gonna quadruple down on stupid.
NPCO
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NPCO,
User Rank: Apprentice
9/21/2013 | 5:05:51 PM
re: Microsoft Surface Tablets: Big Bet, Small Changes
The Surface (Pro at least) is a fine product, and the addition of a Haswell processor, and it's improved battery life, will only make it better. The biggest failure has simply been the price - of both the tablet itself and it's accessories.

A $900 for a tablet with 23 gigs of available user storage is INSANE.
An $800 premium for ~$400 (max retail) worth of additional storage is INSANE.
A $120 price tag on a $16 to manufacturer, cheap, plastic keyboard is INSANE.

I would have bought a Surface Pro in a second if the price was reasonable, and I'd love to buy a Pro 2, again, if the price is reasonable. But I won't pay the price premium Apple's products command, and I sure as hell won't pay an *even greater* price premium for a Microsoft product. I'm not a Microsoft hater at all, closer to the opposite, but I refuse to pay near abusive prices for any product, from any manufacturer.
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