Microsoft: 'No Plan B' as Surface struggles against iPad
If Microsoft's Surface tablets fail to take off, the company does not have a backup plan so much as a plan to keep tweaking its approach until Surface succeeds, according to the company's chief financial officer.
Speaking at the Goldman Sachs Technology and Internet Conference on Wednesday, Microsoft CFO Peter Klein dismissed the notion that the company should be working on a "Plan B" for the mobile sector.
"It's less 'Plan B' than how you execute on the current plan," Klein said, according to Reuters. "We aim to evolve this generation of Windows to make sure we have the right set of experiences at the right price points for all customers."
Despite considerable effort and marketing dollars, Microsoft's Surface tablets have debuted to tepid overall reviews and disappointing sales. Fewer than 900,000 Surface tablets were sold in the fourth quarter, according to figures from Gartner. The iPad, the tablet market leader Microsoft hopes to supplant, sold 23 million units last quarter.
The iPad is available in more outlets than the Surface, since Microsoft initially restricted sales to its own retail stores and online. Microsoft has since moved to get its productivity-oriented tablet into more outlets, though it is uncertain what impact that increased visibility will have on sales. Klein said getting Surface and other Windows 8 devices to sell more briskly was a "nuanced" matter.
"It's probably more nuanced than just you lower or raise prices," he said. "it's less a Plan B and more, how do you tweak your plan, how do you bring these things to market to make sure you have the right offerings at the right price points."
The Surface tablets ? which came in a Surface Pro model that runs the full Windows 8 and a Surface RT model that runs Windows RT ? represent a considerable departure from Microsoft's usual mode of operating. In the past, the Redmond software giant has been content to let others manufacture computers to run its Windows software. The advent of the "Post PC Era," though, has seen most of those traditional manufacturers faltering, while consumers increasingly opt for Apple's iPad and, to a lesser extent, other mobile devices.
Microsoft's answer to this trend was to retool its Windows operating system in order to be more touchscreen-friendly, but also to enter the computing hardware market itself, unveiling the Surface tablets without giving prior warning to any of its manufacturing partners. Some of those partners expressed at their software partner's move onto their turf; several of them have since announced small excursions of their own, testing the waters with Chrome OS, Google's fledgling rival to Windows.
Klein's comments on the future of Surface and any potential alternatives for Microsoft are in keeping with past behavior and recent indications for the company.
The original Xbox failed to approach the monumental sales of its main competitor, Sony's PlayStation 2, and the Xbox division lost Microsoft billions over the years. Still, the company stuck with the platform and is now arguably the best positioned among the major console makers to lead the way in connected living room entertainment.
The Surface project may follow along the same lines. In August of last year, two months before the first Surface tablet even launched, job listings appeared showing that Microsoft was looking to bring on talent for the next generation of Surface devices. Klein in his interview was not forthcoming with what Microsoft may have waiting in the wings, though, declining to say whether Microsoft will prove rumors true and release a smaller Surface tablet to take on Apple's iPad mini, Google's Nexus 7, and other devices in the rapidly crowding mid-range tablet segment.
Microsoft and its partners, Klein said, are "well set-up to deliver the most versatile experiences across form factors."
Speaking at the Goldman Sachs Technology and Internet Conference on Wednesday, Microsoft CFO Peter Klein dismissed the notion that the company should be working on a "Plan B" for the mobile sector.
"It's less 'Plan B' than how you execute on the current plan," Klein said, according to Reuters. "We aim to evolve this generation of Windows to make sure we have the right set of experiences at the right price points for all customers."
Despite considerable effort and marketing dollars, Microsoft's Surface tablets have debuted to tepid overall reviews and disappointing sales. Fewer than 900,000 Surface tablets were sold in the fourth quarter, according to figures from Gartner. The iPad, the tablet market leader Microsoft hopes to supplant, sold 23 million units last quarter.
The iPad is available in more outlets than the Surface, since Microsoft initially restricted sales to its own retail stores and online. Microsoft has since moved to get its productivity-oriented tablet into more outlets, though it is uncertain what impact that increased visibility will have on sales. Klein said getting Surface and other Windows 8 devices to sell more briskly was a "nuanced" matter.
"It's probably more nuanced than just you lower or raise prices," he said. "it's less a Plan B and more, how do you tweak your plan, how do you bring these things to market to make sure you have the right offerings at the right price points."
The Surface tablets ? which came in a Surface Pro model that runs the full Windows 8 and a Surface RT model that runs Windows RT ? represent a considerable departure from Microsoft's usual mode of operating. In the past, the Redmond software giant has been content to let others manufacture computers to run its Windows software. The advent of the "Post PC Era," though, has seen most of those traditional manufacturers faltering, while consumers increasingly opt for Apple's iPad and, to a lesser extent, other mobile devices.
Microsoft's answer to this trend was to retool its Windows operating system in order to be more touchscreen-friendly, but also to enter the computing hardware market itself, unveiling the Surface tablets without giving prior warning to any of its manufacturing partners. Some of those partners expressed at their software partner's move onto their turf; several of them have since announced small excursions of their own, testing the waters with Chrome OS, Google's fledgling rival to Windows.
Klein's comments on the future of Surface and any potential alternatives for Microsoft are in keeping with past behavior and recent indications for the company.
The original Xbox failed to approach the monumental sales of its main competitor, Sony's PlayStation 2, and the Xbox division lost Microsoft billions over the years. Still, the company stuck with the platform and is now arguably the best positioned among the major console makers to lead the way in connected living room entertainment.
The Surface project may follow along the same lines. In August of last year, two months before the first Surface tablet even launched, job listings appeared showing that Microsoft was looking to bring on talent for the next generation of Surface devices. Klein in his interview was not forthcoming with what Microsoft may have waiting in the wings, though, declining to say whether Microsoft will prove rumors true and release a smaller Surface tablet to take on Apple's iPad mini, Google's Nexus 7, and other devices in the rapidly crowding mid-range tablet segment.
Microsoft and its partners, Klein said, are "well set-up to deliver the most versatile experiences across form factors."
Comments
Oops!
Quote:
Originally Posted by christopher126
Yep, I haven't seen any 20 year olds dancing around "clicking" the kickstand and different colored keyboards!
Oops!
why use a speedboat when we can use an aircraft carrier----
Quote:
Originally Posted by christopher126
Yep, I haven't seen any 20 year olds dancing around "clicking" the kickstand and different colored keyboards!
Oops!
That's because they don't want to get laughed at for having a Surface laplet.
Microsoft screwed up, plain and simple and that's going to probably mess up Microsoft forever. Microsoft should focus more on creating apps for Apple OS X and iOS devices and less time trying to compete with them.
There is no excuse, except for twisted managerial practices, for MS to be behind in this tech field.
Scrw them!
Dear Microsoft,
Now do you see why you shouldn't have dumped the Courier tablet project ?
Sigh.
Eventually, MS is going to have to sh*tcan Windows and build a totally new OS from scratch. If you had $2 billion to design a new OS, the last thing you would do is design it like Windows. Ugh!.
Hey Microsoft, maybe if showed off the features of the Surface instead of focusing on the keyboard clicking with the Fauxblet, it may have had "smoother" sales.
Quote:
Originally Posted by drblank
That's because they don't want to get laughed at for having a Surface laplet.
Microsoft screwed up, plain and simple and that's going to probably mess up Microsoft forever. Microsoft should focus more on creating apps for Apple OS X and iOS devices and less time trying to compete with them.
Agreed.
Quote:
Originally Posted by maccherry
Kick Steve Ballmer sorry a** out of MS and hire some new jack because that old fart is behind the freaking times.
There is no excuse, except for twisted managerial practices, for MS to be behind in this tech field.
Scrw them!
If it is a failure, (which it looks like) I don't think Ballmer will survive. Too much stumblin, fumblin, bumblin!
Quote:
Originally Posted by SolipsismX
Plan B would have been a great idea. They could have aborted the Surface before it had time to grow.
I see what you did there.
Actually, wouldn't they need a "Plan C?" Because "Plan A" was to laugh at the iPhone when it was announced and ignore the market's direction toward mobile devices...the Surface IS Plan B.
"Plan C" should be to fire Ballmer, rewrite Windows from the ground up and develop iOS/Android apps for MS Office.
Why should they. All they have to do is make this one obsolete and release a newer one. They did it with Vista and all 9 versions of it. Pathetic!
Plan B: keep Windows and Metro separate as they should always have been; let Surface BE a great tablet, not a pretty mess of compromises. Microsoft has some innovative (at the least, great to look at) software ideas here. Set them free! Get rid of Ballmer and his Windows-everywhere blinders.
I really can't believe it hasn't happened already.
Just wait until Microsoft gets to Plan 'World War Z'.
As much as I totally agree with the thinking they need to re-think and re-write Windows and stop trying to make every version backwards compatible - the reality is that their profit center comes from this backwards compatibility with legacy enterprise solutions. And they can't get everyone to change because the entire model for enterprise is built around screwing everyone - and there are a LOT of people baked into the system.
All those stake holders make it very, very, difficult to change. If MS had the balls, they'd force the issue, accept pissing off a lot of customers and pissing away a lot of money short-term so they can work towards a future that doesn't revolve around software designed for the '90's. I won't hold my breath because I don't think they have the balls.