Windows Surface – Early score.

 

 

 

 

 

  • Windows 8 and the Surface RT have been out for a few weeks now and the early indications are that lift-off has been pretty sluggish.
  • The reviews have been moderately positive with the real negatives not being the way in which touch and keyboard / mouse have been put together, but in the functionality limitations of Windows RT itself.
  • I think that this is encouraging as it bodes well for touch based ultrabooks on Windows 8 in terms of user acceptance of hybrid devices.
  • Price, in these difficult times, is a big issue but this is more easily overcome than if the consumers thought that the hybrid user experience was rubbish.
  • The normally effervescent Steve Ballmer is on the road promoting the Windows Surface Pro (Windows 8 on Intel) and even he had to admit that the Surface RT was off to a modest start.
  • When translated into reality, this basically means that sales have been pretty poor.
  • Furthermore, a recent poll by Tech Report also found that 61% of respondents thought that Windows RT would be marginalised with only 13% thinking that it would become the dominant form of Windows.
  • This again supports the notion that the problems with Windows on ARM (Windows RT) are the limitations in terms of functionality.
  • The obvious roadmap for Windows RT is to become indistinguishable from Windows 8 but this is going to take a while.
  • When this is truly the case, then Windows on ARM can really flourish as it is then that the power and cost advantages can be exploited without consumers having to make a functionality trade off.
  • Until then I suspect it will remain something of a science project.
  • Hence, the real appeal of the Surface device is unlikely to be known before the Surface Pro ships.
  • With the Surface Pro, price is going to be critical because if it is super expensive, many users may find themselves better off with a hybrid ultrabook from one of the PC makers.
  • This is due to ship early in 2013 with many people expecting the launch in January.
  • Boringly, the jury is still out.

 

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.