Microsoft Admits Risks in its Surface Tablet Strategy

July 27, 2012, By Sanjeev Ramachandran

Microsoft has always downplayed questions about the risk of its hardware partners getting angry about its Surface plans. However, the management was well aware about the risks, an official document reveals.

According to the annual report submitted to the Securities and Exchange Commission on Thursday, Microsoft admitted that it had considered such a risk. The report which runs into hundreds of pages, however, carries just a single sentence remark about the particular risk.

On page 14 of the document which is now in the public domain, the company clearly states that “our Surface devices will compete with products made by our OEM partners, which may affect their commitment to our platform.”

So far, the company never acknowledged such a risk publicly. Observers and analysts have always hinted that the OEMs were angry when the company rolled out the tablet.

It was the first time in its nearly 40-year history as a major software developer that Microsoft manufactured its own PC.

Many even alleged that Microsoft had used the designs and information shared by OEMS with the company as part of their plans for the Windows 8 hardware.

However, Microsoft circles tried to publicly explain their position to emphasis that the importance of the hardware partners would not diminishing with the rollout of the device. They have even said Surface was just a design point in the history of tablets.

However, every one knows that Surface will surely compete with all other Windows 8 tablets. Some claim Surface will get an upper hand in the competition, one due to its productive design and two, because it is from Microsoft, it will be the best tailored hardware for Windows 8.

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