In the fall, the new China Electronics Wholesale Tablet PC from Microsoft Surface, unveiled earlier this week , will be marketed to compete against each other the Apple iPad dominates the market. Analysts said that this is a risky strategy, but necessary.
The price of the device which includes Cool Gadgets keyboard over a touch screen should be comparable to similar products, Microsoft said, without giving further details. Two wholesale models are offered: one with the same dimensions of the iPad to compete with Apple's tablet and the other a little thicker to compete with the lightest laptops.
"The market generally believes that the bet is risky and that to attack Apple, which has almost 50% market share of China Electronics Wholesale digital tablets, is something that in itself is inevitable for Microsoft," said Professor Vincent Sabourin Management from the University of Quebec at Montreal in an interview with Economy Class to First Channel.
Last year, Apple sold 40.5 million iPad worldwide, representing 62% China Electronics Wholesale market share, according to IHS iSuppli. This new product is changing the business model of Microsoft which was mainly based on editing software for systems marketed by other companies. By becoming a manufacturer of tablet PCs, Microsoft is competing with some of its partners, including Samsung, which produces the Galaxy Cool Gadgets.
"It's more of a defensive strategy to continue to sell Cool Gadgets software. " - Vincent Sabourin, a professor at UQAM
The analyst Rob Enderle of Enderle Group in discourse reveals Microsoft will no longer depend on its partners to develop its China Electronics Wholesale products. He adds that it is time for the computer giant to show he has learned from its failures, including that of the Zune MP3 player, which would compete with Apple's iPod. "With the right resources, it might work this time," suggests Mr. Enderle.
The action Microsoft has risen by almost 3% on the NASDAQ at $ 30.70 Tuesday.
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