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Tuesday, June 19, 2012

Microsoft's Surface tablet promising, but questions remain

Microsoft Corp's new Surface tablets look promising, but many questions need to be answered before it can rival Apple Inc's iPad, analysts said the day after the company made its first foray into the computer hardware business.

The shares of the world's largest software company jumped 3.7 per cent as Wall Street and investors welcomed Microsoft's move. But analysts had questions about the lack of enthusiasm among developers in creating applications that run on the new Windows 8 operating system and the absence of hard details on pricing and availability.

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

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.

"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," Misek said.

Misek expects Windows 8 tablets to struggle to compete with the iPad, which offers over 225,000 apps, and to a lesser extent with Google Inc's Android-based tablets, such as the Galaxy Tab. 


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