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Could and should there be a Microsoft-branded Windows 8 tablet?

By | June 8, 2011, 6:40am PDT

Could there be a Microsoft-branded Windows 8 tablet coming to market next year? Sure. But should there be? I’d argue no.

Digitimes is citing chip-supplier sources claiming that Microsoft is contemplating whether to launch its own Microsoft-branded tablet. (And, unsurprisingly, Microsoft is declining to comment.)

I am wondering whether the Microsoft tablet in question might simply be a chassis, similar to what Microsoft did when it developed Windows Phone. Or perhaps a reference design — something it could show its OEMs to give them ideas as to what’s possible and marketable.

If it’s something more, and Microsoft were to bring to market a “Microsoft tablet,” I’d think the company would be taking a big risk, as far as alienating its OEM partners is concerned. Right now, a number of first-, second- and third-tier OEMs are delivering new Windows 7 tablets to market. Microsoft gets a nice cut (rumored to be something under $50 per copy) on these tablets, as OEMs must pay the company to license every copy of Windows 7 preloaded on these devices. And Microsoft is no doubt counting on partners to continue to do the same with Windows 8.

(By the way — Microsoft is still allowing OEMs to license Windows Embedded Compact and preload that operating system on slates and tablets, as well. After I wrote a post last week about Microsoft downplaying the Windows Embedded operating system as a choice for slates and tablets, I received word back from a Microsoft spokesperson who told me “Microsoft continues to provide OEMs with a variety of Windows platform options, including Windows Embedded Compact 7″ for slates and tablets. So far, we have yet to see any OEMs bring a Windows Embedded Compact 7 slate to market, but Microsoft only released that OS to manufacturing in March 2011.)

Back to Windows 8 tablets. Let’s talk about the Kin — the Microsoft phone that Microsoft officials insisted, to the bitter end, that wasn’t a Microsoft phone. After the Kin debacle, Microsoft officials (hopefully) know that just because Microsoft can cut out OEMs and bring its own device to market doesn’t insure its success.

Yes, the Xbox is a contrary example. But the gaming console market is not a place where OEM ecosystems come into play. In the PC/tablet space, it seems companies have two choices: Go the Apple route and go it on your own as the sole supplier, or go the OEM route and offer customers different products, with different designs and price points. Google is pursuing a hybrid OEM/build your own model with the Nexus phones. But with Chromebooks, it’s counting on OEMs and isn’t trying to sell a Google-branded and manufactured device.

Some may argue that the dearth of true iPad competitors from any Windows OEMs is proof that Microsoft needs to take matters into its own hands and bring a better WinPad to market. I, myself, am willing to wait and see if a more tablet-friendly operating system, as Windows 8 seems to be from early previews, will be what pushes Windows OEMs to build the tablet that I really want. And I’m really interested in seeing what Nokia does (I’m betting there’s a Nokia Win 8 tablet in the wings, for sure.)

What’s your take? Should Microsoft bring its own Win8Pad to market in 2012?

Update: A couple of readers have wondered whether any kind of Microsoft-branded Windows 8 tablet might simply be a give-away for attendees of the upcoming Build conference in September…. It wouldn’t be unprecedented. Remember, Microsoft gave paying attendees a Windows 7 touch-screen laptop at the Professional Developers Conference to encourage them to build touch applications.

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Topics

Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Could and should there be a Microsoft-branded Windows 8 tablet?
homeioy89-24353649207314981462912785253739 10th Nov
svgrql,good post!
Only if they can do it better
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Contributr
Better
Mary Jo Foley 8th Jun
Yes... and if they think they can make more money selling their own than they get from all the OEMs combined who make Win PCs now happy MJ
@Mary Jo Foley

I think what really hurt MS was the DOJ ruling that they couldn't offer differing Windows license costs to OEM's that provided input on its development. MS producing one or two devices as proof-of-concept would hopefully prod the OEM's in the right direction, as Google do with their Nexus handsets.
out that the real money is in $1500 laptops and not $15 OEM licenses.
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That's where the money is
HollywoodDog 8th Jun
@Mary Jo Foley ... but to develop great hardware you have to have the ability and a great deal of passion for it. That's not in Microsoft's DNA. They are committed to selling OEM licenses.

On October 11 2006, Ballmer said: "the value of Zune, if we?re successful, is all in the software. It?s in community [the ability to share music and pictures with other Zune users]. I want to squirt you a picture of my kids. You want to squirt me back a video of your vacation. That?s a software experience. The truth is, though, if it makes money, it will be built into the gross margin on the hardware."

Leaving aside the refreshing notion of Ballmer squirting you with pictures, he believes the "value" of products is "all" in the software, but the 'gross margin' comes form the hardware.

I happen to think that's bollocks. The value is in the final product, of which the software is an integrated and inseparable feature.

Kind of like your car. The 'value' might be in the motor, as it's what powers your journey. But you can't make money licensing motors.

The idea that you can is a flawed and incomplete one. You make money on the product as a whole, and products are products, not just the part of products you feel able to produce.
@fr_gough

As MS are currently structured that wouldn't work - the lead time to start producing in the numbers required, i.e. the same as Dell, HP and Acer combined, would give the OEM's time to push alternatives. E.g. you could imagine HP would use webOS and their presence in the data centre to push a Chromebook-style model to their customers.

If MS were to put a more definite split between their corporate and consumer operations, extending as far as producing different OS's, rather than different versions of the same OS, then it could work though.
@Mary Jo Foley I think it's an experiment with a new business model. Microsoft's OS business model does not look sustainable in the long rum - with HP, Google...everybody getting into the game. With alienating OEMs, I dont think that's an issue. All OEMs want money..that's what they care about. They jumped into android...they might jump into HP. Right now MS is too strong to care about OEM alienation. I think it's a good time to prepare for the possible transition of business model.
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@Mary Jo Foley "Right now MS is too strong to care about OEM alienation"

Some day many years from now Microsoft won't be strong, and people will say "my goodness, it happened so suddenly."
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@Mary Jo Foley

And the money is in the OS, as billions in revenue kind of prove that.

And before you use Apple as an example, What's Dell, HP, Acers revenues?

Guess the money's not in the hardware?
@Mary Jo Foley ... Apple is doing another clearly-major OS upgrade priced at $29.99. Snow Leopard was priced at $29.

With the App Store for OSX, Apple can distribute major upgrades quickly at near-zero-friction. They're nimble and efficient.

Microsoft seems to wading in vaporware, speculation, a restive precambrian installed base, and the odd big-ass table.
@Mary Jo Foley

that's the wrong way to look at it. They don't have to KILL OEMs or even make more money to justify making it. There are other benefits to doing their own tablet.

1) They could create the "premium" tablet OEMs can't make to challenge the ipad.

2) They could set the agenda in terms of hardware/software integration, lead OEMs by example of how to make hardware that is smart about how to interact with windows (instead of OEMs figuring how to copy apple hardware but with windows on it). It would also force teams in MSFT about coming up with unique software/hardware scenarios which OEMS would then benefit from. Apple does this. MS simply makes a clean slate and let OEMS "innovate" which they often don't because they can't mess with the software.

3) they could generate a lot of positive buzz and excitement around a branded tablet in a similar way that the 360 makes today when new models are released. They could control the conversation and story about why Win8 is THE tablet OS to have instead of letting apple do the talk and some taiwan OEM try to shoehorn apple's ideas in windows speak.

Everything off course depends on them standing behind the device with all the energy, and then some, that they had with the 360. Can they do it? sure. But I think Ballmer needs to go first before it happens.
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@Mary Jo Foley
is coming from you. wink

Wow, you're a scared, jealous person, aren't you?

Oh well. happy
  • Flagged
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The money was in the OS
HollywoodDog 8th Jun
@Mary Jo Foley ... back when computers were science projects, and we used to troop down to Hard Drives Northwest and pick up parts to assemble and install Windows on.

How many computer products fit that description today? Oh, there are the gamers who build high end systems with CRT's and liquid cooling and what not, but they are the exception.

Most people now buy products from laptops to smartphones to tablets, and use the OS that comes with them.

Suddenly the hardware matters. The overall product experience out of the box matters.

Microsoft still has its big-corporation installed base. But for how long? Soon they won't have any competitive advantage. Unless they start actually innovating again like in the 80's and 90's.
@Will Pharaoh
He does sound worried, usually does.
I really enjoyed the article.
Online Diploma
Associate Degree Programs
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MS should
FADS_z 8th Jun
@incendy
MS's 1st generation product is always crappy (zune, xbox, kin), but MS is quite adaptive. I don't think OEM did good job in innovation. Last year I said in zdnet that they should give up all 15" pc, and they just starting to do it. Best-Buy, Staple, Office-Deport are still full of those big, heavy junks. They jumped into andriod pad or webOS or wharever, they cann't blame MS create its own brand.
@incendy
Better and set the expectation.
The followup question would be; Should they do it for the long term?

If I use Android as an example (Honeycomb); I looked at the current Android tablets. Settled on Motorola, Acer, ASUS. I test drove each, looked at the customer reviews, quality and bang for the buck. I now own the ASUS Transformer 32gb.

Having an MS tablet for Win8 would set my expectations on what I am looking for from the OEMs. I would make my decision accordingly.

So yes; MS making a branded tablet would be a win-win.
For the OEM business and the consumer.

grin
@incendy It's possible... The interesting part is HP, Samsung, and many of the other players are stepping up and taking the tablet option as the first opportunity to sell a complete ecosystem. Obviously Apple's money making ability is leading to many others to jump into the market.

Personally I think Microsoft should just leverage their new relationship with Nokia to make some really outstanding hardware.
I'd prefer to have a microsoft own tablet than from other OEM so we can be sure what Microsoft expect Windows 8 tablet experience should be. Microsoft should partner with Nokia making the tablet/slate.
@jamal_indo
Maybe...... Then again, over the last couple of years I have become disappointed with Nokia engineering....
They seem to be stuck in a rut.... sad
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One size doesn't always fit
scH4MMER 10th Jun
Right now Microsoft is trying to impose the hardware standards that support its software, with WP7. This won't fly for long, unfortunately. Instead, Microsoft needs to continue focusing on software that adapts to the unique requirements of individual hardware... maybe even start a "Customized Experiences" division that hardware companies can contract to for native customizations to the OS, using modular design to avoid a maintenance nightmare. The future is not Apple hardware, it's going to be diverse. Microsoft should therefore not try to fight Apple's short-term success, but work on being in-position when diversity wins-out... otherwise Android will be the next Apple. Enjoy Xbox's success, don't try to repeat it where it won't fit.
There was a slide during the Computex W8 presentation that mentioned all hardware partners (including socket producers) which Nokia was listed on. Elop also heavily implied that they were producing a tablet so I think it's quite clear Nokia will design and possibly release a W8 tablet. I'd expect this to be Microsoft's "Official" tablet more than any other simply due to Microsoft and Nokia pairing up so closely with WP7.
No. Unlikely to build their own.
MSFT is still too dependent of its OEM network. If they were to build their own, they would likely not be able to offer any price advantage without hurting the OEMs. Therefore, why bother building a device?

The best compromise for MSFT right now is to take the Windows Phone approach and set strict chassis guidelines to steer the hardware direction.

In the sort term, this is most likely what will happen.
@TheCyberKnight

not really. you assume (incorrectly) that they would be out to out-price OEMs. They could design a premium tablet to compete in the upper end with the ipad. Something which OEMs don't even bother trying for they lack the financial muscle and name an official MSFT tablet would have.
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Competing with your customers
Economister 8th Jun
Not a good idea
@Economister
Not competing I would say, but more in line with design guidelines and partner with the OEM to build that tablet (example: HTC and the Nexus One...)
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MSFT Is A Political Creature...
mohara000039 8th Jun
The Redmond Crew should definitely not build their own tablet in order to stay in the good graces of the multitude of OEM's.

This is Business 101 (as the author alludes to); never burn bridges. And torching the bridge that conjoins MSFT and hardware vendors at the hip would be a nightmare when it came time for MSFT to lean on them... who's to say Chrome OS isn't tempting the OEM's?

MSFT has spent decades building relationships with hundreds of vendors - getting greedy for what will amount to a small slice of their balance sheet would come back to haunt them.
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@mohara000039

in the OEMs' ability to make something that will sell. WP7 seems to be in a similar situation. The obvious question however is why MS branded smart phones and tablets would do any better. On top of that, MS runs the GRAVE risk of pi$$$$$ing off all the OEMs. Who knows, maybe that is part of Ballmer's plan to become more like Apple, but MS is NOT Apple.
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@Economister

But I have to think that they would like to dictate the "chassis design" idea so that users will have the same experience no matter who builds it.

Right now, MS is forced to rely on OEM's and there so busy trying to fight each other, they start to put out cheap HW just to make a sale.

Having MS give them a base they must adhere to makes sense, since it's MS's brand that ultimately suffers if the OEMs get it wrong.
From an OEM perspective it might not be the smartest thing to do, but from a customer's perspective I believe they certainly should.

If I'm reading all the rumors right, MSFT is aiming at 4 fold strategy bringing a consistant User Experience (and software) to Desktop, Mobile, TV (xbox) and Handheld (tablets).

With Apple clinging to their T-Ford mentality and bringing nothing new to the table this year, and Android still being to diverse and incompatible, they might have a serious shot at taking back the house.

But this will only succeed if they can differentiate their tablets from others. A Windows phone is primarily a WindowsPhone and the brand (HTC or Nokia) is second to that.

If they want to succeed at this, they definately should market a W8 tablet just as they did with WP7.
@jbokkers

With Apple clinging to their T-Ford mentality and bringing nothing new to the table this year, and Android still being to diverse and incompatible, they might have a serious shot at taking back the house.

So you don?t like the model Apple is using, quite successfully I might add, and think that the Microsoft name is enough to carry a device? It is not working out so well in the mobile phone arena, with the need to sell phones at $0.01. That tells me there is really no demand for a Windows phone. Yet there is tail a lot of demand for the iPhone, go figure the Microsoft name is actually seen as a negative in some areas.

A Windows phone is primarily a WindowsPhone and the brand (HTC or Nokia) is second to that.
And we all know how well that is working out for them, right?
@Rick_K

No, Apple's doing great, they are obviously the leader in the market atm. With the 'T-Ford' analogy I just meant, they offer limited functionality which is perfect for some/most and at a great price.

So totally no flame intended, it's just not my cup of tea.

Regardless of the late re-entry into the market, WP7 definately has put Microsoft on the map again in mobile landscape.

If they want windows tablets to succeed, the cross form factor strategy is their best hope at convincing consumers.
@Rick_K
The concern with the Apple model; it is hardware driven and controlled - it does not use an OEM model. This is Grapefruits and Bricks.
Rigid control, single source vs Flexible "Open" source hardware.

You can't compare the two.
I careless, in fact many won't care. iPad is what people want not a failed product
@shellcodes_coder
Wrong room, fanboi..
If you don't care about Windows 8 tablet then why you post here?
@shellcodes_coder

You obviously care enough to take the time to read the article, scroll to the bottom and waste your time posting... People like the iPad, not because it's from Apple, but because it works... You cannot say its a failed product when its not even launched yet; you dont even know what the full OS looks like, who are you to pre-judge?

Many business's MAY care since MOST of their infustructure is MS based, and many customers MAY care since its something that is familiar, a PC OS on a tablet...
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Yes, MS Should
creugea 8th Jun
I believe MS should leverage there partnership with Nokia, and have them design a slim iPad like tablet with a dock conector. That way you can use it as a regular tablet, then when your ready to do some serious work you dock it to a large external monitor, keyboard and mouse and it flips to regular windows 8 with all it glory. Also, they should at least be thinking of using a quad core ARM chip in it. Say perhaps, Nvidia's Kal-El? MS needs to pull a google and push the limits and force other manufactures to one up MS on there design. I think it could be a very good thing.
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it runs Linux or Android, not windoze.
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What nonsense
rbethell 8th Jun
@Linux Geek End users don't care about operating systems, and to the extent they do, its only the "will my application X work on it?"

OS geekery is for those of us who are geeks. Ordinary users just don't care, and ironically, its iOS that's demonstrated that.
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I know....
Economister 8th Jun
@rbethell

"Linux Geek" is a troll, but I found this particular post funny. Think about it - MS making/branding HW and selling it with Linux or Android. It is so absurd as to actually be funny.
@Linux Geek

because Android tablets are doing SO well these days...
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@Linux Geek wink
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Message has been deleted.
SonofaSailor Updated - 11th Jun
@SonofaSailor

How do you know?

Oh that's right. You don't.

idiot...
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I hate complexity and wasting time. Lets not talking about should or shouldnot. There is no "could" the first place.

There isn't possibility that msft will make a tablet. that's it. Anything beyond that is wasting time.
@jk_10
Who said specifically "they" make?
Have HTC or Nokia make it according to MS specs.
This will drive the Win8 Tablet design.
Win Win
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I'd definitely consider buying one...
empirestatebuddy 8th Jun
I'd definitely consider buying a Microsoft-branded slate... so long as I liked the look of it.

What I'd really like is a touchscreen netbook/laptop with Windows 8. That way, I could do "real work" if I needed to... but could also use the screen as a tablet to surf the web, etc.
@empirestatebuddy
You?d buy a Microsoft branded turd, let?s face it diehard windows fanboys would buy anything with the Microsoft name. It would not even be required for it to function, just have the Microsoft name.
@Rick_K
Like it or not, you buy any Apple branded device or at least crave for one if you don't have $ with you at that time to shell out, you apple fanboi.
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How about this...
statuskwo5 Updated - 8th Jun
@Rick_K "Youd buy a Apple branded turd, lets face it diehard mac fanboys would buy anything with the Apple name. It would not even be required for it to function, just have the Apple name. "

I know it sounds ridiculous but that's how you look when you post this. After all, empirestatebuddy is allowed to buy a Windows tablet if he chooses to.
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RE: Could and should there be a Microsoft-branded Windows 8 tablet?
homeioy89-24353649207314981462912785253739 10th Nov
svgrql,good post!

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