) may win consumer support by selling its first tablet, Surface,
less than $200
. However, a move like this could have severe consequences for
other players in the computer and tablet industry. According to
, notebook brand vendors, "will be out of the game unless Microsoft
only sells the Surface in the US."
DigiTimes said that most vendors are currently building Windows
8 and Intel-based (NASDAQ:
) tablet PCs that will retail for more than $699 in the United
"The sources pointed out that Microsoft is fully aware that its
actions have greatly offended its notebook clients, and therefore
is trying to achieve success and acquire at least 30 [percent]
share in the tablet PC market," DigiTimes wrote. "A price of US$199
is expected to allow the company to achieve its needed goal."
At that rate, Microsoft would easily sell more than the
few million units
it publicly predicted it would sell in the coming year.
), the current leader in tablet manufacturing, is expected to sell
more than 30 million iPads
in 2012 alone. However, if Surface takes 30 percent of the market,
iPad sales could be greatly reduced in 2013.
While this is good news for Microsoft, DigiTimes' sources
speculate that if the Windows maker sells Surface at a low price
point, Dell (NASDAQ:
) and other manufacturers may halt the development of other Windows
In the beginning, this could prove to be a significant challenge
for Microsoft, which has relied on its PC partners for many years.
Long-term, however, it could drastically change the way the company
does business as it evolves into a full-fledged hardware
This may also present a new sales opportunity for Google
), which has been
to sell its Chromebook line of laptop computers. If Microsoft makes
it less desirable for PC manufacturers to develop Windows-based
devices, Hewlett-Packard (NYSE:
) and other vendors are more likely to consider Chrome OS as an
(c) 2012 Benzinga.com. Benzinga does not provide investment advice.
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