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New Microsoft Surface Tablets: 'I Don't See Much Incentive for People to Buy These Devices'

September 23, 2013 - News

Microsoft Corp. has just released the Surface 2 and Surface Pro 2, and at least one analyst isn't too keen on the tablets.

After all, the only new features are upgraded hardware in the form of better chips and cameras, and a somewhat lower price, said Jack E. Gold, founder and principal analyst of J. Gold Associates.

"I don’t see much incentive for people to buy these devices," Gold said in a client memo.

Sure, the Surface devices come cheaper than an iPad, but Gold isn't convinced that's enough reason for people to buy. On top of that, Microsoft has not made the Windows-based Surface tablets price competitive with all of the Android rivals coming out soon, and with the same chips, Gold noted.

"It doesn’t look like Microsoft has done much that is overcome the negative perceptions," Gold said. "It seems like Microsoft is just maintaining the traditional PC mantra – keep upgrading the chip and hardware a little bit every year at a slightly lower price. I think they needed to do something that was innovative beyond the first gen, and I don’t see that in these devices. I think they’ll continue to sell a few, but I don’t think this will dramatically alter their sales trajectory."

Microsoft unveiled the Surface and Surface Pro 2 and their associated accessories on Monday in almost two dozen countries. The tablets will be available in the United States on Oct. 22. Microsoft said changes include longer battery life and dual angles on the Kickstand, which props up the tablet.  

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