Microsoft Corp. is planning to release a line of lower-cost Surface tablets as soon as the second half of 2018, seeking a hit in a market for cheaper devices that Apple dominates with the iPad, according to people familiar with the matter.
Microsoft
has tried this before. The software giant kicked off its
consumer-oriented hardware push in 2012 with the launch of the original Surface RT.
At the time, it was priced starting at $499 (roughly Rs. 33,800).
After the tablets didn't resonate with consumers and product reviewers,
Microsoft pivoted to the more-expensive Surface Pro, a line which has gained steam and likely contributed to demand for a pro-oriented iPad, which Apple launched in 2015.
The
new tablets will feature 10-inch screens - around the same size as a
standard iPad, but smaller than the 12-inch screens used on the Surface
Pro laptop line. The new Surfaces, priced about $400 (roughly Rs.
27,000), will have rounded edges like an iPad, differing from the
squared off corners of current models. They'll also include USB-C
connectivity, a first for Surface tablets, a new charging and syncing
standard being used by some of the latest smartphones.
The tablets
are expected to be about 20 percent lighter than the high-end models,
but will have around four hours fewer of battery life. The current
Surface Pro can last 13.5 hours on a single charge, according to
Microsoft. Intel Corp. will supply the main processor and graphics chips
for the devices, said the people, who asked not to be identified
because the plans aren't public.
Peter Wootton, a spokesman for Redmond, Washington-based Microsoft, declined to comment.
Microsoft
has struggled to find a high-volume hit with the Surface devices as
well as to introduce a flow of new choices to keep growth steady. In the
fiscal year that ended last June, Surface revenue declined 2 percent as
the company faced lower volume sales owing to an aging Surface Pro
line. Revenue rose 32 percent in the most recent quarter, indicating new
interest in Microsoft's hardware.
Apple sold about 44 million
iPads that generated almost $20 billion (roughly Rs. 1.35 lakh crores)
in revenue during the past four quarters. Microsoft's entire Surface
hardware business produced $4.4 billion (roughly Rs. 29,800 crores) for
the same period. According to market researcher IDC, Microsoft sold
almost 725,000 tablets in the first quarter of 2018, up 1.8 percent from
a year earlier. That compares with 9.1 million iPads sold in the same
period.
In March, Apple launched
a new iPad model for $329 (roughly Rs. 22,300) geared toward education
users. The new cheaper Surfaces could likewise appeal to students and
teachers, and to schools that buy less-expensive devices in bulk.
The
current professional-oriented Surface Pro lineup starts at $799
(roughly Rs. 54,100). Microsoft, which hasn't finalized its plans, is
expected to price the cheapest versions of the new device at about $400.
Like the Surface Pro, these models won't be bundled with the company's
keyboard cover. To go along with the lower-cost device, Microsoft is
preparing less-expensive versions of its keyboard cover, stylus and
mouse, the people said. The current keyboard cover costs an extra $160,
while the new keyboard will be priced a bit lower, they said.
The
company is planning multiple models, including versions with 64
gigabytes and 128 gigabytes of storage and models that can connect to
LTE cellular networks, according to the people. It will continue to have
the kickstand for upright typing and watching video. Like Microsoft's
other devices, it will run Windows 10 Pro.
Since 2015, Apple has
rapidly added new productivity tools to the iPads, taking on Microsoft
features like integration with digital drawing pens and using multiple
apps at the same time. The company is planning on releasing a revamped
iPad Pro this year with iPhone X features such as facial recognition, Bloomberg News reported last year.
Microsoft last released a device in the lower-cost category in 2015 with the Surface 3, which started at $499 and featured a 10.8-inch screen. The company stopped making it at the end of 2016.
The
new line will be part of a growing ecosystem of Microsoft hardware
products that, beyond the tablets, includes the Surface Laptop, Surface
Book laptop with a detachable screen, and the Surface Studio desktop
computer.
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Microsoft Said to Plan Low-Cost Surface Tablet Line to Rival Apple's iPad
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