Microsoft Surface And Market Potential

On June 18 Microsoft (MSFT) gave a preview of their upcoming tablet called Surface. The tablet market is growing rapidly and consolidating around Apple (AAPL) and Android lead by Google (GOOG). IDC forecast 107.4 million units in 2012 (Click for graph), a one year growth rate of 54% and a five year growth of 26% through 2016.

These numbers exclude forecasts for Windows 8 or Windows RT tablets. IDC view these tablets as follows:

Our current thinking, based upon early pricing expectations for these products, is that Windows-based tablets will be largely additive to our existing media tablet market forecast. We don’t expect Windows-based tablets to necessarily take share from Apple and Android, but will grow the overall tablet market.

In our opinion for Surface to be a success it will need to take some share from the existing market.

With its 3mm detachable keypad the Surface seems to fit two markets, the tablet and laptop. Mike Angiulo – Corporate Vice President, made these comments at the presentation:

And for the millions of professional desktop users out there, people who use their PC everyday to design and to create things, this is a great choice for you. … It’s a stage for Windows. … It’s less than 2 pounds and less than 14 millimeters, it’s a full PC.

Click here to continue reading the complete article at SA…

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