Lack of innovation is another big problem for PC makers.
- The Surface pro 3 and now the Surface 3 show that Microsoft is the only PC maker capable of any innovation.
- Microsoft has launched a little brother to the Surface Pro 3 which differs from its big brother in three ways.
- First. It has a smaller screen at 10 inches rather than the Pro at 12.
- Second. It uses an Intel Atom x7 processor rather than the more powerful i3, i5 or i7 that are in the Pro.
- Third. It is much cheaper starting at $499 going up to $599 for the 128GB, 4GB RAM version.
- The device runs the same version of Windows as its big brother and consequently it is capable of operating as a full laptop, tablet or desktop PC depending on what accessories are used with it.
- The device also includes a 1 year subscription of Office 365 Personal (usual price $69.99) which I suspect is yet another way of drawing users into the Microsoft Ecosystem.
- The device promises 80% of the performance of the i3 version of the Pro 3 but at a significantly lower price.
- By bringing this form factor meaningfully down in price, Microsoft will have removed one of the main barriers to entry but two others remain.
- First is Microsoft’s apparent inability to market this product as a totally different way of using portable computing.
- Instead it is sticking rigidly in its rut of trying to entice users by marketing the device as a laptop.
- In my opinion using the Surface 3 and Pro 3 as laptops provides the worst user experience and makes nothing of the incredible innovation that has been done to cram so much power in such a small space.
- These devices are portable desktops where the user can use device with a Bluetooth keyboard and mouse with the comfort and ergonomics of a desktop despite being out of the office.
- It is this that makes the laptop form factor obsolete as using the device in other ways makes the user both more productive, more comfortable and healthier.
- Unfortunately, a revolution in the user experience requires heavy investment as I think that Microsoft has invested around $100m in developing this product category.
- Second. The PC makers have long ago been commoditised and have been forced to stop any meaningful product development as their wafer thin margins simply cannot support it.
- Consequently they are all now dependent on the ODMs for product innovation none of whom are very good at it or seem to care that much.
- This is why, I suspect that the electronics stores are full of ugly and clunky devices that are nothing more than laptops with detachable screens.
- This is likely to be a significant hindrance to a laptop replacement cycle that has the potential to return the PC market to growth, albeit for a short period.
- If users can be educated as to why the Surface use case is compelling rather than being sold yet another take on a laptop, then there is hope.
- Until then, I suspect the PC market will lumber from one quarter to another, squandering the single biggest catalyst that could drive the shares of both Intel and Microsoft.
