Microsoft has never really tried to enter the hardware business in the computer industry, believing that selling operating systems and other software solutions a much more profitable business. But now, with the Surface Tablet, Microsoft is getting into the hardware-side of things, something that’s frowned upon by numerous hardware partners. Microsoft’s desktop and mobile operating systems already represent a huge chunk of cost for making a device and the software giant is now trying to compete directly with manufacturers.
Acer is probably the angriest of them all. Stan Shih, the founder of Acer made claim that the Surface Tablet will have little effects on current tablet industry and it will be nothing more than a tool to boost the adoption of Windows 8.
He further explained that Redmond is in no position to compete with iPad and Android due to high manufacturing cost of the Surface Tablet. The tablet is rumored to carry a hefty retail price more in line with high-end tablets and ultrabooks, possible around $700 price point.