At a presentation in New York, new Chief Executive Officer Satya Nadella made it clear that Microsoft, which recently acquired Nokia’s handset business, is committed fully to making its own devices, despite a lack of success for its phones and tablets so far.
“We are not building hardware for hardware’s sake,” said Nadella, at the event adding, “We want to build experiences that bring together all the capabilities of our company.
The Surface Pro 3 tablet, which comes in three models starting from $799 and costing up to $1,949, features a 12-inch screen, much larger than Apple iPad’s 9.7 inches. It also comes with access to Microsoft’s Office software suite, employed in businesses around the world.
Microsoft executives made frequent comparisons with the MacBook Air at Tuesday’s launch, making it clear that Apple’s lightest laptop, which starts at $629 with a full cellular connection, was the device to beat.
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“Microsoft finally seems to understand it cannot go head to head with Apple’s iPad, and must offer a superior business device,” said Jack Gold of J Gold Associates.
Microsoft, which is recasting itself as a ‘devices and services’ company, has not made much headway on the devices side, except for its Xbox game console.
The Surface, launched in October 2012 and updated last year, has about 2 percent of the tablet market, failing to make a dent on Apple’s iPad. Microsoft has only 3 percent global share in smartphones, chiefly through Nokia.
The Surface Pro 3 runs the full Windows operating system, and Microsoft hopes it will be the device consumers and companies go to when they are replacing laptops.
Initial reaction was positive, but analysts have doubts that Microsoft can easily haul itself into a meaningful position in the hardware business.
“This is Microsoft’s best shot yet to move the needle in the right direction on market share gains,” said Daniel Ives, an analyst at FBR Capital Markets.