Microsoft’s new tablet ‘no threat to the iPad’

Microsoft’s new tablet computers are no threat to Apple’s iPad, given the lack of enthusiasm among developers to create applications that run on the new Windows operating system, analysts said.

Microsoft has introduced its Surface line of tablets, taking on Apple as well as its own hardware partners including Samsung and Hewlett-Packard.

Chief executive Steve Ballmer was on hand to announce the tablet, calling it part of a “whole new family of devices” the company is developing.

“Though pricing details are unclear… Microsoft will need to significantly undercut the iPad to be competitive,” said Jefferies analyst Peter Misek.

The Surface tablet will come in two versions, one running Windows RT, based on the same chip designs that power most tablets, and a higher-performance version running Windows 8 Pro. Microsoft promised that the Surface’s price tag will be similar to the iPad.

“The most important factor in the success of a tablet is its ecosystem. Based on our discussions with developers, we find the lack of enthusiasm concerning,” Mr Misek said.

He expects Windows 8 tablets to struggle to compete with the iPad, which offers over 225,000 apps, and with Google’s Android-based tablets, such as the Samsung Galaxy Tab.

Microsoft’s lighter, thinner version of the Surface tablet would compete directly with the iPad, while the second, heavier tablet, aimed at the new generation of lightweight laptops, would compete with larger PC makers.

But selling two versions of the tablet in the same retail channels will confuse consumers, said analysts.

“Choice is a key tenet of Windows, but too much choice is overwhelming for consumers,” Forrester Research said. “Apple gets this, and limits iPad options to connectivity, storage, and black or white.”

However, a keyboard that doubles up as the tablet cover and aggressive pricing could help Microsoft gain market share, some analysts said.

“The keyboard, a simple accessory, is what makes the device most compelling, as it preserves traditional interface that we believe many users appreciate (and will demand) with the subtlety of a cover, something most users will want anyway,” said Citi analyst Walter Pritchard.

Steven Sinofsky, president of Microsoft’s Windows division, called the device a “tablet that’s a great PC — a PC that’s a great tablet”.

A version running on the upcoming Windows 8 Pro operating system will cost as much as an Ultrabook, the company said.

Microsoft’s decision to make its own tablet is a departure from the software maker’s strategy. With PCs, Microsoft was content to leave the design and marketing of the hardware to other companies. The hands-on approach indicates that Microsoft either lacks confidence in the ability of its PC partners to design alternatives to the iPad or it believes it needs more control to ensure Windows plays a major role in the mobile computing market.

However, the company’s tablet plans risk alienating some of its longtime partners in the PC industry.

The computer is expected to go sale in the autumn.