Wednesday, June 20, 2012

Microsoft's new tablet: Surface

Microsoft announced its new tablet computer on Monday, June 18th 2012. Tablet will be available in two different versions, basic and pro with one running an ARM processor and the other running an intel based processor.

I think it is safe to say that the purpose of this product is to offer competition to Apple's IPad or in general enter the fast growing tablet market. One of the things I studied in my Marketing class during my MBA was that, while good Marketing is important to launch a new product and help its adaption, but for long term success of a product, it should also be backed by a good product.

You can see the spec differences between iPad and Microsoft surface here. In this post, I'll just discuss the possibility of success of this product. But let me first share a small story.

In "The Art of Strategy", one of the authors Barry Nalebuff, describes a story from one of his Cambridge University's May Balls that he attended. There was a casino in the ball and each participant was given £20 worth of chips. The participant with most chips by the end of the night will be given tickets to the next year's ball. Barry led the ball with £700 and the next closest person had £300. The game was roulette. The lady running second bet all her money on a multiple of three. The chance of winning is 12/37 as the wheel is numbered from 0 to 36. If she wins, she'll triples her money to £900. Barry should have simply copied her bet and placed £300 on the same number. If she wins, then Barry also wins and will be ahead of her by £400. If she loses, Barry still wins by £400. Already knowing her bet, all Barry has to do is copy her bet. Barry does otherwise, she hits her number and wins the tickets to next years ball.


Although the situation that Microsoft faces here is different including the fact that Microsoft is the new entrant and no leader but one thing Microsoft could have done here was to copy Apple's marketing strategy. I think it miserably failed. The product they announced using Apple's marketing strategy of secrecy will not be available until October. What's the point of secret event again? We don't know what the price will be (I am talking about a number). Resolution is not even the same as the existing iPad, forget about the next year's version. Something we cannot blame Microsoft, albeit important is the number of apps and a developer's network like Apple. Combine all these things and I think, Microsoft Surface at best will provide reasonable alternative to competing Android tablets and at worst can face the same fate as Zune (although there will be fewer chances of that).