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Surface Line Abandoned by Microsoft?

Nobody is holding a gun to their head stopping them from building a better device.
Yes, but all of them were dead bodies few years ago not knowing what to do next. Microsoft has shown them that it's possible to make decent devices using Windows.
 
Actually, hybrid devices like the SP3 have enjoyed one of the higher year-over-year sales increases of all PC categories (along with high-end ultrabooks and, of course, the MacBook Air). The value of the Surface line to Microsoft, I think, is in three primary areas:

1. Maintaining pressure on their OEMs to keep producing compelling devices.
2. Demonstrating what the Windows platform is capable of independent of OEMs.
3. Positioning Microsoft as a relevant player in mobile devices (same reason why they won't abandon Windows Phone).

I see too much value there for Microsoft to abandon the Surface line.
Exactly! I could not say it better!
 
There has been a long history of Microsoft's major shareholders pushing to have Microsoft focus predominantly on the enterprise marketplace and dump all hardware endeavours. It is not surprising to hear these type of rumours surface (no pun intended) again. Have you listened to the newest CEO, Nadella speak lately. He was not at the helm when the Surface was created. His background is with the Cloud and Enterprise group. Anything is possible.

Have you heard him speak recently? At Adobe MAX he was 100% pushing Surface Pro 3, all he did was talk about how that hardware with Windows, 365 and Creative Cloud is the best thing since sliced bread.
 
Nobody is holding a gun to their head stopping them from building a better device.

Sure, but then again, nobody's holding a gun to their heads forcing them to innovate and produce high-quality products, and to take risks. And let's not forget that no matter what, as Apple has shown, the software maker producing hardware will inevitably be able to produce a more tightly-integrated device. Windows PCs have long suffered from the disadvantages of ubiquity--there are so very many hardware components to support that nothing is ever truly optimized.

I have a feeling that we'll see very tight integration between Windows 10 and the next Surface (or even the SP3) that will be possibly only because Microsoft hardware engineers will be working intimately with Microsoft software engineers. And since Apple is such a dominant force doing exactly that, nobody will be able to complain about alleged antitrust violations (which is likely a huge factor in Apple's ascension, BTU that's a different topic entirely).

Now, I'm not saying that Windows OEM's won't respond (Lenovo, Dell, and Asus are doing some good stuff), but Microsoft can't depend on them. They have to take charge of their own future--the stakes are simply too high.
 
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I have a feeling that we'll see very tight integration between Windows 10 and the next Surface (or even the SP3) that will be possibly only because Microsoft hardware engineers will be working intimately with Microsoft software engineers. And since Apple is such a dominant force doing exactly that, nobody will be able to complain about alleged antitrust violations (which is likely a huge factor in Apple's ascension, BTU that's a different topic entirely).

Now, I'm not saying that Windows OEM's won't respond (Lenovo, Dell, and Asus are doing some good stuff), but Microsoft can't depend on them. They have to take charge of their own future--the stakes are simply too high.
I wish that were true but I don't believe it. :)
 
Have you heard him speak recently? At Adobe MAX he was 100% pushing Surface Pro 3, all he did was talk about how that hardware with Windows, 365 and Creative Cloud is the best thing since sliced bread.

What's he supposed to say when his company just launched a new product that "we are going to discontinue it so don't buy it."

Here's one analyst's take:

CEO Satya Nadella makes it clear that he sees a "software-powered world," a "mobile and cloud-first world," and that doesn't sound like a world where Microsoft makes a gaming system - or one where it makes a lot of hardware at all. This isn't a surprise coming from Nadella, the former head of Microsoft's successful enterprise and cloud services division."

At the Surface release event he had this to say:

So that’s what leads us to today’s discussion. The question that needs to be asked and answered is: Why hardware? We clearly are not interested in building refrigerators or toasters. We are not building hardware for hardware’s sake. We want to build experiences that bring together all the capabilities of our company from our cloud infrastructure to our application services to our hardware capabilities to build these mobile-first productivity experiences. That’s the mission. We’re building new strength and capability around that alchemy of being able to bring hardware and software together. And the Nokia close really gives us that extra strength to be able to do that.
We’re not interested in competing with our OEMs when it comes to hardware. In fact, our goal is to create new categories and spark new demand for our entire ecosystem. That’s what inspires us and motivates us with what we’re doing in our devices and hardware.

He sees the Surface as something he is stuck with for the short term until OEMs see the value in a windows based tablet and start making more of them. It is likely, given his disposition, that if the Surface is to survive, it will be spun off to another company. He clearly sees Microsoft as a software company.
 
What's he supposed to say when his company just launched a new product that "we are going to discontinue it so don't buy it."

Here's one analyst's take:

CEO Satya Nadella makes it clear that he sees a "software-powered world," a "mobile and cloud-first world," and that doesn't sound like a world where Microsoft makes a gaming system - or one where it makes a lot of hardware at all. This isn't a surprise coming from Nadella, the former head of Microsoft's successful enterprise and cloud services division."

At the Surface release event he had this to say:

So that’s what leads us to today’s discussion. The question that needs to be asked and answered is: Why hardware? We clearly are not interested in building refrigerators or toasters. We are not building hardware for hardware’s sake. We want to build experiences that bring together all the capabilities of our company from our cloud infrastructure to our application services to our hardware capabilities to build these mobile-first productivity experiences. That’s the mission. We’re building new strength and capability around that alchemy of being able to bring hardware and software together. And the Nokia close really gives us that extra strength to be able to do that.
We’re not interested in competing with our OEMs when it comes to hardware. In fact, our goal is to create new categories and spark new demand for our entire ecosystem. That’s what inspires us and motivates us with what we’re doing in our devices and hardware.

He sees the Surface as something he is stuck with for the short term until OEMs see the value in a windows based tablet and start making more of them. It is likely, given his disposition, that if the Surface is to survive, it will be spun off to another company.
But what's an analyst going to say... anything to get clicks and readers... he has no more compunction to be honest or truthful than the sleaziest used car salesman.
 
Here's where I disagree: this notion of "creat(ing) new categories and spark(ing) new demand for our entire ecosystem" isn't something with a short half-life. It's something that will continue for so long as Microsoft continues to innovate their ecosystem--which, if they're going to survive, will be forever.

I think of Surface as a sort of skunk works. It'll never be Microsoft's primary business or maybe even never contribute significantly to the bottom line, but that's not the point.

We can debate this forever, of course, but that's the way I see it.
 
It is any wonder this comes up right before Apple launches its latest iPad. I think not.

You are just speculating here. It could be sheer coincidence and anyways, Panos' talk at the launch of the SP3 also referred to this. Nothing new and it is indeed a warranted comment and a viable proposition.
 
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