Can Surface Pro 2 And Mini Windows Blue 8.1 Tablets Really Save Microsoft?

Now that we know Microsoft's initial tablet push wasn't enough to tackle Apple and Android, eyes and minds are turning to the Surface Pro 2, Windows Blue 8.1 and mini tablets to see if they can chart a breakthrough.

Microsoft has confirmed that Windows Blue 8.1 will be released in time for the holidays this year, and by optimizing the OS for 7- to 9-inch tablets, it has essentially confirmed we'll not only see a Surface Pro 2, but also a Surface Mini. The question is: Will they be enough, alongside other mini tablets from Microsoft partners, to make Windows 8 a legitimate tablet contender?

According to many analysts, the key will be form factor (and Microsoft seems ready to embrace 7- and 8-inch tablets) and price. The Surface RT runs $500 while the Pro model starts at $900. The Surface Pro 2, RT 2 or Mini (or whatever Microsoft calls the new slates) need to be cheaper than that.

"I do expect others [Microsoft, OEMs] to follow with 7in devices, as this is the only way we see RT playing a role in the market," said Carolina Milanesi, an analyst for Gartner, to PC Pro. "But only as long as the price is competitive with Android 7in devices, which means $199."

We talked about this possibility as well. Put on the right form factor with the right price, Windows / Surface RT can do some damage, especially considering it comes packing Microsoft Office built-in.

Another analyst thinks Microsoft needs to try selling the Surface Pro 2 and Surface Mini devices at cost, simply to start getting the hardware into customer hands.

"Microsoft has to make a decision as to whether it can start selling the hardware at cost to build traction for Windows on tablets — it's hugely important," said Geoff Blaber, director of devices and software platforms at the firm CSS Insight.

"When you are competing against very capable and heavily subsidised devices from Amazon, Barnes & Noble and Google, those companies are using other core business models to reduce the price on the hardware," he added. "Microsoft's in a big transition — it has the assets from other businesses, such as Bing, to justify extensive subsidization of the devices, but it's still heavily reliant on the license revenue."

Blaber went even further than others, saying Microsoft could even launch 7-inch tablets running the full Pro version of Windows 8. We're not sure exactly what the market would be for a full-featured Windows 8 Pro on a mini-sized Surface, but with people performing more and more activities on their tablets, it would definitely be an interesting proposition.

Still, the primary reason Surface Minis need to hit the door is to offer Windows 8 on the cheap, and getting small tablets to run Windows 8 Pro might drive up costs a little too much at this point.

"There's no reason Microsoft can't release a 7in running Windows 8, although the main reason to launch a smaller device is to get costs down because the screen is a big part of cost," Blaber said. "What we're seeing from Intel, particularly in the second half of the year with the next Atom chips is that we're going to see much more competitive chips compared to ARM that will enable smaller form factors and that's significant."

Microsoft is expected to reveal more information on a Surface Pro 2 and other Surface slates at its June Build developer conference, but expect to hear more about Windows Blue 8.1 in the next couple of weeks.

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