At this year’s annual Snapdragon Summit, I had the opportunity to sit down and talk with Microsoft Surface CVP Brett Ostrum about all things Surface and Windows. One question I was eager to ask was about MacBook Neo, and whether or not Microsoft was interested in competing in that space.
“Let me start this way: we have never shipped a gaming PC,” Ostrum opened with. “The reason we’ve never shipped a gaming PC is because OEMs do just fine in that space. They’ve done fine; they meet the customer needs; there’s not a benefit for Surface to go into that space … We knew Neo was coming long before it showed up. And so part of the question is, does Surface need to play a role relative to Neo? It wasn’t a surprise. We chose to let the OEMs play in that space to deliver lower-priced devices.“
His response confirms that Microsoft doesn’t think it’s necessary to use Surface to compete with MacBook Neo, because Windows OEMs have already stepped up to deliver truly good alternatives. The Dell XPS 13 and ASUS ZenBook 14 are two prime examples of Windows PCs that cost the same as a MacBook Neo, while beating it in a number of key ways.
With that said, Microsoft is aware that customers are wondering why Surface isn’t competing in this space. Ostrum tells me, “I’ve heard the feedback from press, I’ve heard the feedback from retailers, I’ve heard the feedback from partners to say Surface should be here. We will take that into consideration; we will certainly consider some options. But I would start with the gaming point. We do not have to play in every field.“
That sounds like the door is open for the company to revisit this segment in the future, but for now it’s clear that Microsoft isn’t interested in building a low-cost Surface PC to compete head-to-head with MacBook Neo. Right now, Surface is more interested in competing at the very high end with devices like the Surface Laptop Ultra, which I tried earlier this year.
In fact, I’ve heard from sources that Microsoft now identifies its lineup of Surface PCs as three distinct categories of premium: Entry Premium, Premium, and Ultra Premium. Entry Premium are the most affordable Surface PCs, all of which start at above $1,000.
Of course, Surface used to build affordable PCs in the form of the Surface Go and Surface Laptop Go, both of which started at well under $600. But that was back before the component shortage forced price hikes, and under entirely different Surface leadership.
Today, the focus is on its premium Surface PC lineup, and we’ll hear more about the company’s new Surface Laptop Ultra on October 7.
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