When Microsoft out of the blue announced on Monday it was entering the tablet race with its own Surface-branded product, many industry watchers and, more importantly, Microsoft's hardware partners were taken aback and left scratching their head.
Just what the hell Redmond thinks it's doing, many OEMs now wonder. Aggressive pricing (think $199 or below) is seen as key to Surface's chance of success and OEMs can't exactly compete with Microsoft on level ground because their already thin margins are stretched even thinner as they pay license fees to Microsoft to use Windows on tablets.
But Microsoft may not be in it for the money or hardware sales, warns Acer founder Stan Shih who has commented that the Surface is just a ploy to drum up excitement and drive Windows 8 adoption...