Speculation continues about what the success or failure the Microsoft (NASDAQ: MSFT) Surface tablet will be. One of the observations about the machine is that Microsoft kept its development secret from all of the large PC companies which use Windows as the operating system for their products. Since none has a successful tablet of its own, the Surface may be viewed as something which undercuts their prospects.
The other two sources of speculation is what the Surface cost to build and what Microsoft will charge consumers for the tablet. In the past, companies like Amazon (NASDAQ: AMZN) have sold their tablets and e-readers at a loss to drive market share and sales of e-books. Microsoft does not have a warehouse of content on which it can make a profit the way Amazon does. But, it has a keen interest in robbing market share from Apple (NASDAQ: AAPL)
Douglas A. McIntyre