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Tuesday, 19 June 2012

Microsoft kept Surface hidden from its PC manufacturing partners: Reuters

It turns out that Microsoft kept the Surface so close to its chest that it did not share any details with its PC OEM partners till as late as last Friday, barely three days before the global announcement. Reuters reports that most senior executives at OEMs received calls from Windows chief Steven Sinofsky to appraise them about the product, giving them bare minimum details. Apparently most of them came to know about it by following media reports emanating from the press event, which in itself was shrouded in secrecy. Journalists attending the event were told about the exact location hours before the event was scheduled to start.
The way Microsoft handled the Surface launch was a departure from its usual business of operation, considering it is heavily dependent on its OEM partners to manufacture and sell PCs running Windows. These OEMs pay a license fee to Microsoft for every unit sold. The Surface is the first Windows machine Microsoft is planning to sell on its own.
The Reuters report indicates a lot of distrust among OEMs after the Surface launch. However, we won’t read too much into it as both Microsoft and its OEM partners need each other to succeed. It is unlikely that Microsoft would compete with its partners that are responsible for making Windows the largest PC platform in the world. Instead, the Surface is likely to be the hero device for Windows 8 launch, post which other OEMs will dominate the space. In its press release, Microsoft said that the Surface will be launched in the US and will be available from Microsoft Stores, which are only 25 in number.

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