Microsoft's Mission To Reignite the PC Sector

Sales of personal computers have been declining for so long — 14 consecutive quarters — that it's hard remember a time when PCs ruled the tech world. Now Nick Wingfield writes in the NY Times that Microsoft is leading the way on a mission to re-ignite the PC market by taking the once-unthinkable step of competing with its hardware partners. This week, Microsoft dived even further into the business with a laptop device, the Surface Book. The stated reason that Microsoft got into the PC hardware business three years ago, with the original Surface, was not to put PC companies out of business — but to better illustrate the capabilities of its software, providing devices that would inspire PC makers to be more innovative.

One of the most remarkable things about Microsoft's growing presence in the hardware business is that it has not led to open revolt among its partners. Initially, many of them were not happy about Microsoft's moves, complaining in private. "It's positioned as a laptop, very squarely against the MacBook Pro as an example. But that could also be extended to a Dell XPS 13, or an HP x360," says Patrick Moorhead. One reason there hasn't been more pushback from OEMs is that Microsoft's Surface business is still relatively small. Another is that the money Microsoft has poured into marketing Surface has raised the broader profile of Windows PCs. While Microsoft obviously risks alienating its partners, it's doing so with a much bigger fight in mind. "Right now Microsoft really believes that it has to have a combined hardware, software, and services play to go up against the likes of Apple," says Moorhead. "That's why it's doing this. That's why it's taking such an aggressive stance now, moving to laptops."

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