Microsoft recently took $900 Mn write down hit during Q4 for Surface Tablet inventory adjustment. It indicated that Microsoft may take a pause and going to rethink twice on Surface Tablet offering and GTM before making fresh attempt.
On a contrary Microsoft came out strongly during US Back-to-School advertisement blitz targeting Apple iPad user. Microsoft is offer $200 discount coupon for iPad 2, 3, 4 trade in which customer can redeem against Microsoft product. Surface Tablet run on lighter Window 8 operating system and supporting Internet Explorer and Office suit. The price tag offered is $349 is nothing to attract customer looking for basic solution based Tablet.
When it comes to Surface Tablet adoption, I feel that Microsoft struggle is going to increase as Apple iOS and Google Android mobile OS based Tablets are also supported with more than 200k application which add value. In my point of view, Microsoft should create developer ecosystem around connected device and offer differentiated application, services and product. In today’s world devices are commodities, the value comes from VAS service which enable device more productive and effective for any Tablet Customer.
