Ten Years of Microsoft Surface – What Next?

On October 26, 2012, Microsoft announced a major shift in its policies by offering hardware to match its software product. The question now is whether the Redmond-based tech giant  would consider redesigning the experience of the Microsoft Surface devices to better suit the Windows Operating System that’s since undergone several changes. 

Being the first PC designed and distributed by Microsoft alongside its Windows 8 software suite, Apple baiters felt that there was something comparable that they could gloat about. However, a decade from then, the Surface isn’t even holding second place in the tablet market as the likes of HP, Dell and Lenovo have innovated on design and tech to stay ahead. 

In fact, so minimal has been the Surface’s contribution to the premium notebook market that most research data clubs it under the “others” category while crunching numbers. The latest report from IDC puts India’s notebook market growth at 75.5% in 2021 to 2.5 million units but has no data on how the Microsoft Surface contributed to these numbers. 

Having said so, the Microsoft Surface notebooks are premium. Make no mistake about that. The target segment of premium users cannot get their hands away from the device, which usually costs above Rs.50,000 for the entry-level Surface Go. Of course, the company is cognizant of the fact that the pandemic actually bolstered sales of Surface devices, especially in the collaborative and productivity-related segment of personal computing. 

So, what’s stopping Surface? 

It looks like a question of brand placement. While the Apple fanboys who swear by their MacBooks at work and carry their iPads around for meetings are a separate breed, in the rest of the market Microsoft hasn’t really carved its own niche, while the likes of Dell, Lenovo and HP are well-entrenched in the mass market for tablets. 

Maybe, it’s just to do with the fact that Microsoft remains software centric, unlike Apple which takes pride in showcasing its hardware. More than 80% of the Surface devices work on Windows, which leaves users just that bit of design glory to gloat about, unlike the iPad lovers who swoon each time a new series gets launched – even if there’s no substantial change. 

Who exactly buys Surface devices?

Then there is also the question of who exactly uses these tablets. MacBooks and iPads are a top favorite when it comes to content creators, professionals and students. The last of these segments has grown considerably due to discounts. Now, who is that specific target audience that Microsoft is chasing with its Surface devices? Not sure? Well, nor are we!! 

Take a look at some India sales numbers, which weren’t easy to lay our hands on. Microsoft sold 10,000 laptops in 2020, 21,000 a year later and 16,000 over the first six months of 2022. During this time, Apple sales stood at 3.3 lakhs, 6.9 lakhs and 3.35 lakhs respectively. Which means iPads captured at least 35% of the premium market that Microsoft is aiming for. 

To Compete or to collaborate? 

The challenge for Microsoft is two-fold. It cannot oust Apple from the pedestal without tinkering with both the hardware and software. And if it does so, how will its partners like Dell and Lenovo feel about getting an older Windows experience compared to a new one exclusively for Surface devices? Ask the Android smartphone makers how they feel about the Pixel handsets!

So, just like Google keeps it low-key when it comes to its Pixel range of smartphones, Microsoft too has to stay below the radar with the Surface devices. This, despite the fact that barely 10% of the potential household market has been tapped by these hardware makers.

Make no mistake, Surface has progressed

It’s not as if Microsoft has been silent all this while. They’ve introduced several upgrades over the past ten years with the Surface Pro 9 and the Surface Laptop 5 and Studio 2 Plus hitting the stands earlier this month.  The updates may be incremental in nature, but then that’s the case even with Apple and its iPads – all sound and no fury. 

On its part, Microsoft has gone to town about its new colors and integrated 5G connectivity on its new devices besides making several audio enhancements to them. Reviewers are going ga-ga about the “voice focus” feature that eliminates distracting background noises, which works well if one is traveling or at hybrid workplaces. 

Here’s what they could do

The current hybrid working model coupled with fast-paced digital transformation would definitely create a market for such niche offerings. Devices that could create, collaborate and communicate effectively from anywhere and at any time. Microsoft Surface devices are in a good space, which is reflected in their recent growth numbers. 

The company has eight devices available in India and with the expected increase in adoption of personal devices, the Surface could resurface as a preferred companion. However, the one thing that Microsoft needs to do is create a surface-only ecosystem, just as its competitors have done in the workplace scenario. 

A second step could be to rejig the form factor. The devices that Microsoft has shipped thus far don’t really lend themselves to tabletop or handheld use. The likes of Lenovo Thinkpad and the iPads easily fit the bill where one can use the device easily  while traveling, sitting at the office desk or even at a client meeting inside a restaurant. 

Therefore, the focus needs to be on the hardware. And the effort should be to create devices that aren’t premium and find use even in the lower echelons of the corporate hierarchy. Also, it needs to do more in some niche areas like HoloLens and Kinect camera tech that Microsoft already dabbles with. Find those niche users that Apple has targeted for some time now.