Microsoft Tablet is in Trouble

[Daniel Payne]

Yesterday the stock price of Microsoft dropped 11%, attributed by a report on CNN.com that the Surface RT tablet inventory had to be written down some $900 million.

Is anyone surprised that Microsoft has missed this fast-paced market by:

1. Entering several years too late after the iPad?
2. Not being different enough from the iPad and Android-power devices?
3. Coming in at a price point that was too high?
4. Not offering a better user experience?
5. Not offering enough apps?

Just having one of these mistakes is enough to derail your sales plan, but having all five is certain defeat.

On the positive side the Surface RT device does have some attractive features:

• ARM-powered
• Keyboard for typists like me
• USB port for easy sharing
• New, lower price of $350.00

I foresee that Android and iPad will continue to dominate the tablet market for the next 2 years and that by 2015 Microsoft will be forced to exit the tablet market.

 

[Daniel Nenni]

This chart says it all. Technology monopolies will no longer be tolerated:

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[Daniel Payne]

That's a vivid chart with a dramatic "hockey-stick" growth for iOS and Android unit sales.

Microsoft had it's hey day with Windows, however the marketing tide is changing quickly.

 

[Daniel Nenni]

The new HP devices have ARM based SoCs as well. I really do not see Intel or Microsoft making money in mobile anytime soon. Too little too late a whole new world.

 

[Daniel Payne]

How can HP hope to compete against the likes of Samsung and Google/ASUS in the tablet market, what will make them different and attractive?

I see Google selling a 7" tablet for $199, and HP selling their 7" tablet for $139 after discounting, so is lower price supposed to make HP stand out in this crowded Android-powered 7" market?

View attachment 8015