Since it launched in late 2012, Microsoft has positioned its Surface tablet as a fun, hip alternative tablet, emphasizing its construction and form factor. That failed. So with its latest commercial, Microsoft has returned to its corporate roots: productivity.
Microsoft's latest Surface ad is oddly named—"Imagine"—but it's actually the most grounded of the Surface advertisements Microsoft has produced so far. And the real kicker of the ad, which began airing last week, is the tagline: "Microsoft Surface. The tablet that runs Office." The key message is clear: OK, so we weren't really able to position the Surface as the bridge between work and play. Instead, let's get down to business.
Recall that, to date, Microsoft's Surface ads have been all sound and fury. Witness the "Movement" premier, followed by "Groove" as well as " Vibe." But what have they signified? Little. Microsoft has seemed inordinately proud of the rhythmic noises the Surfaces', er, surfaces make, as well as how easily the hardware opens, shuts, and snaps together. Every so often there's been a shot of the Start screen--look, Netflix! And is that a chart?--but, by and large, Microsoft's Surface strategy appears to be predicated on dancing its way into our hearts and briefcases.
And we all know how that's worked out.
Unlike Apple, which has consistently published its device sales numbers quarter after quarter, Microsoft hasn't. In its most recent earnings call, Microsoft vaguely referred to its plans to "expand" Surface into new geographies. In all, Microsoft has sold an estimated 1.5 million Surface tablets since its launch in October. Contrast that to Apple, which has sold 60.3 million iPads in the last two quarters.
When analyst Heather Bellini of Goldman Sachs asked Microsoft chief financial officer Peter Klein about expanding the OEM tablet market, Klein responded that the biggest thing Microsoft was doing was helping improve user experiences across the board, with different form factors and price points, and developing a compelling Windows 8 experience. "We are expanding both the product set and distribution, and that is broadly, all devices, inclusive of Surface," Klein said.
So Microsoft sees Surface as part of the broader Windows tablet ecosystem. Fine. But Windows 8 doesn't seem to be selling many tablets. Neither are Windows apps, as anemic as that market has been. But Office does have the power to stir user interest. In fact, the inclusion of Office arguably offsets some of the weakness Microsoft introduced with its subpar Windows RT ecosystem.
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