Windows RT – The last shoe

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The last shoe has dropped on Windows RT. Only Microsoft is left.

  • Samsung, Lenovo, Asustek, Acer and now finally Dell have all discontinued their Windows RT devices.
  • As of today the Dell XPS10 is no longer listed on its website and the company carefully steers visitors towards the Latitude 10 which runs full Windows 8 and Intel.
  • A fan will say that it has been withdrawn ahead of Dell’s event in New York next week but I am almost certain that a Windows RT product will not be launched to replace the XPS10.
  • The writing is on the wall. Windows RT is a total failure, is costing fortune even by Microsoft’s standards and should be stopped now.
  • The sales of Windows RT have been almost non existent and it is clear that the consumer has no interest in the platform.
  • This is because it is neither fish nor fowl. It is an expensive, heavy tablet that lacks the apps of the other platforms and the locked desktop means that it cannot function as a laptop.
  • Only full Windows 8 has the potential to be the dream hybrid product.
  • The problems with Windows RT are fourfold:
    • It looks like Windows 8 but the user can’t install anything on the desktop creating confusion and mistrust.
    • Many of the classic applications expected on a tablet are missing.
    • The devices are underpowered creating a poor user experience.
    • The devices are too expensive compared to the iPad and other tablets even after the recent round of reductions.
  • For these reasons users have shunned Windows RT and I cannot see any future for the platform.
  • Microsoft would be best served by focusing its energies and cash pile on getting full Windows 8 to run on ARM.
  • Then users can choose a Windows 8 device that they know will have full functionality.
  • The choice should be made on the basis of price, performance and battery life alone.
  • If this can be achieved (I am not optimistic) then ARM has a chance to grab some share in the PC market.
  • If things stay the way they are (and I can see no change before mid-2014) then ARM has no chance and estimates need to be cut.
  • The recent update to Surface RT does nothing to solve these problems and Microsoft looks to be throwing good money after bad.

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.

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