Microsoft Surface Pro 3 is the ultimate tablet product from Microsoft. What the market response will be?

imageWith the jury still out (as one can judge from the value of Microsoft shares – on the right) it remains to be seen whether Microsoft will be able to crack the high-end tablet market with this product.

The Microsoft product site is entitled New Surface Pro 3 Tablet – The Tablet That Can Replace Your Laptop clearly indicating the main positioning of this 3d generation product. See also the press release for additional details, as well as the remarks by Satya Nadella, Chief Executive Officer, and Panos Panay, Corporate Vice President, Microsoft Surface, at the press event held in New York City, May 20, 2014. The brief summary video of the event is below, while a full on-demand Webcast is here. There are also several “first impression” type media feedbacks given after the brief video report.

Microsoft’s Surface Pro 3 event in under six minutes [The Verge YouTube channel, May 20, 2014]

“You’ve been told to buy a laptop, but you know you need a laptop.” Though freshly-minted Microsoft CEO Satya Nadella gave the opening remarks, today’s Surface event was all about Surface creator Panos Panay — dropping tablets, playing with scales, pushing hinges, and giving more than a few shout-outs to Wall Street Journal editor (and former Verge editor) Joanna Stern. Here’s everything you need to know from the event in under five minutes.

Microsoft Introduces a Larger-Screen Surface Tablet [By SHIRA OVIDE in The Wall Street Journal , May 20, 2014]

First Look: Microsoft Surface Pro 3
[WSJDigitalNetwork YouTube channel, May 20, 2014]

Microsoft tries again to combine the laptop and tablet. WSJ Personal Tech Columnist Joanna Stern has the first look. Photo/Video: Drew Evans for The Wall Street Journal

Microsoft Corp. MSFT -0.18% introduced a larger-screen version of one of its Surface tablet computers, offering a lighter and thinner device that the company cast as a potential successor for laptop PCs.

The software company introduced the new device, called the Surface Pro 3, at an eventTuesday in New York. The device, like prior Pro models in the Surface line, is powered byIntel Corp. INTC 0.00% computer chips. Microsoft said the new version’s display measures 12 inches diagonally, compared with the 10.6-inch screens of existing Surface devices.

Microsoft said the Surface Pro 3 will start at $799 without a keyboard. A keyboard that doubles as a device cover will cost $129.99. The top end of the product line, with the most powerful Intel chip, lists for $1,949 without a keyboard.

At the event Tuesday, Microsoft officials repeatedly compared the Surface Pro 3 with laptop personal computers like AppleInc.‘s MacBook Air, rather than discuss competitors in the tablet market, where Microsoft remains a bit player. The MacBook Air costs $899 and up.

Microsoft’s positioning underscores its troubles in becoming a major competitor in tablets, where price tags of less than $200 have become commonplace for consumer-oriented models. The company’s share of the market was less than 4% last year, according to research firm IDC.

Microsoft Chief Executive Satya Nadella and other officials stressed what they said were limits of existing tablet computers for activities like writing documents or other work that isn’t Web surfing or reading digital books. They also stressed drawing and note-taking with an upgraded digital-pen accessory that comes with the Surface Pro 3.

“This is the tablet that can replace your laptop,” Panos Panay, a Microsoft executive working on Surface devices, said about the Surface Pro 3.

Microsoft said it would start taking orders Wednesday for the new device.

Steven Sinofsky, a former Microsoft executive who helped spearhead development of the Surface, said Tuesday the Surface Pro 3 “realizes the ‘no compromises’ vision of Surface.”

Dating back to the early 2000s, Microsoft officials have used the expression “no compromises” to describe their vision of a device that combines the best features of tablets and laptops.

Microsoft also has been developing for months a tablet similar to Apple’s 7.9-inch iPad Mini, and some media reports had indicated that device would be announced Tuesday. Smaller tablets accounted for more than half of all tablets sold last year.

In an interview Tuesday, Mr. Panay said Microsoft is “looking at an array of devices. It comes down to what customers need right now.”

He also addressed a different type of Windows software used on more iPad-like tablets, including one model of Surface devices. That operating software, Windows RT, isn’t compatible with many older PC applications or software. Windows RT “is a critical element as well,” Mr. Panay said. “It’s still pumping.”

Some analysts said Tuesday Microsoft was sensible for targeting businesses and workers, rather than consumer applications, with the Surface Pro.

“This is a smart move by Microsoft,” said Patrick Moorhead, president of research firm Moor Insights & Strategy. “Surface Pro 3 is more of a laptop replacement than a device that replaces your seven-to-eight-inch tablet.”

As Microsoft touts the abilities of Surface to replace laptops, it has the potential to anger companies like Dell Inc. that also make tablets and laptops powered by the Windows operating system. At the event, however, Mr. Nadella said Microsoft isn’t trying to compete with its computer-hardware partners.

Some Microsoft investors don’t want Microsoft to make its own computing devices at all. The company incurs a loss on each Surface it sells, and the company’s critics say Microsoft hasn’t made a compelling case for expanding its hardware ambitions.

Microsoft officials, including Mr. Nadella on Tuesday, say homegrown devices like the Surface are the best showcase for Microsoft software like Office, Skype and digital file-storage service OneDrive.

“We are not building hardware for hardware’s sake,” Mr. Nadella said during a brief appearance at the Surface event. “We want to build experiences that bring together all the capabilities of our company.”

Daniel Ives, a Microsoft analyst with FBR Capital Markets, said Surface Pro 3 “appears to be an impressive” device, but he said persuading consumers to buy the Surface “remains a Kilimanjaro-like challenge given intense competition.”

—Joanna Stern contributed to this article.

The most popular “Surface Pro 3” YouTube videos 19 hours after the launch:

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Surface Pro 3—The Tablet that Can Replace Your Laptop by surface 19 hours ago  440,030 views
Witness the next evolution of productivity. Introducing the Surface Pro 3, the tablet that can replace your laptop.
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Surface Pro 3 hands on at Surface NYC event 
by Windows Phone Central  16 hours ago   26,585 views
We go hands on with the Surface Pro 3 from the Surface NYC event. More details: …
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TLDR: My Surface Pro 3 Thoughts  by LockerGnome’s Geek Lifestyles 11 hours ago 3,005 views
Become a patron for bonuses ASAP: http://ChrisPirillo.com/ Patron video bonus today: …
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Microsoft Unveils 12-inch Surface Pro 3 Tablet – IGN News  by IGN  16 hours ago  19,373 views
Microsoft has just unveiled its latest Windows-powered tablet: the Surface Pro 3.
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CNET Update – Surface Pro 3 aims to replace laptops — and paper  by CNET   15 hours ago   8,526 views
With an improved kickstand, keyboard, and stylus pen, Microsoft says the new Surface solves the productivity problem of tablets.
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Microsoft Surface Pro 3 Hands On | Mashable
by Mashable   16 hours ago     9,936 views
Microsoft’s third-generation Surface Pro 3 aims to be “the tablet that can replace your laptop.” Here’s Mashable’s Pete Pachal and …
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This is the Surface Pro 3 (hands-on)
by The Verge    18 hours ago    48,815 views
Dan Seifert takes a hands-on look at Microsoft’s 12-inch Surface Pro 3, the “tablet that can replace the laptop.”
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Surface Pro 3 Hands-on    by Booredatwork.com
15 hours ago      5,288 views
Surface Pro 3 Pre-order link: http://bit.ly/1m07g9M Loot Crate:http://www.lootcrate.com/booredatwork 10% Code “booredatwork” …
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Hands-on with the Microsoft Surface Pro 3
by CNET   14 hours ago     16,412 views
The Surface Pro 3 is a new high-performance Windows 8.1 tablet designed to get rid of the “conflict” between owning a tablet and …
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Hands-on with Surface Pro 3    by expertzone
19 hours ago   19,040 views
Ben “The PC Guy” Rudolph goes hands-on with the all-new Surface Pro 3. Faster, thinner, lighter, and with a larger screen, this is …
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Surface Pro 3 Launch Reactions & Impressions
by lachlanlikesathing   8 hours ago    864 views
My thoughts on the Surface Pro 3 launch announcement! Surface Pro 2 long term review: http://youtu.be/hlsiNom5a3o Thanks …
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Surface Pro 3 — Finally a Tablet that can replace your Laptop?!?  by SourceFed   13 hours ago   61,977 views
The SurfacePro3 was announced today — larger, lighter, and able to stream 4k! Are all the bells and whistles in the SurfacePro3 …
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Surface Pro 3 Hands On    by Geek.com
16 hours ago     2,523 views
Microsoft has a made a splash today with an all new Surface Pro, which is a 12-inch device that manages to be thinner, lighter, …
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Microsoft Surface Pro 3 Hands-On   by laptopmag
13 hours ago    2,519 views
We go hands-on with Microsoft’s latest hybrid tablet and give you an overview of the design, specs, and price. For more coverage …
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Microsoft reveals thinner, faster Surface Pro 3 tablet
by CNET   17 hours ago   13,905 views
Microsoft’s Panos Panay shows off the company’s latest tablet at a press event in New York City. The new 12-inch tablet weighs …
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Surface Pro 3 Unboxing , Hands On , and First Impression Review  by Sean Ong   6 hours ago  326 views      In this video I do my very first product unboxing as I show off the shiny new Surface Pro 3! I give my first impressions of the device …

About Nacsa Sándor

Lazure Kft. • infokommunikációs felhő szakértés • high-tech marketing • elérhetőség: snacsa@live.com Okleveles villamos és automatizálási mérnök (1971) Munkahelyek: Microsoft, EMC, Compaq és Digital veterán. Korábban magyar cégek (GDS Szoftver, Computrend, SzáMOK, OLAJTERV). Jelenleg Lazure Kft. Amire szakmailag büszke vagyok (időrendben visszafelé): – Microsoft .NET 1.0 … .NET 3.5 és Visual Studio Team System bevezetések Magyarországon (2000 — 2008) – Digital Alpha technológia vezető adatközponti és vállalati szerver platformmá tétele (másokkal együttes csapat tagjaként) Magyarországon (1993 — 1998) – Koncepcionális modellezés (ma használatos elnevezéssel: domain-driven design) az objektum-orientált programozással kombinált módon (1985 — 1993) – Poszt-graduális képzés a miniszámítógépes szoftverfejlesztés, konkurrens (párhuzamos) programozás és más témákban (1973 — 1984) Az utóbbi időben általam művelt területek: ld. lazure2.wordpress.com (Experiencing the Cloud) – Predictive strategies based on the cyclical nature of the ICT development (also based on my previous findings during the period of 1978 — 1990) – User Experience Design for the Cloud – Marketing Communications based on the Cloud
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