The all-new Surface Studio from Microsoft Corporation (NASDAQ:MSFT) was only released a few months ago. Despite this, the brilliant, all-in-one PC is already beating some analyst expectations. Microsoft’s trend-defiant approach to consumer technology is clearly paying off. It sets the U.S. software major’s products aside with distinct and alluring features that eclipse conventional hardware. However, even though the large, vibrant, touchscreen machine threatens the likes of the Apple iMac, it should ideally be recognized in a class of its own.
The Surface Studio continues with the same appeal that has pushed the Surface range to the fore. It is a powerful, Windows-based and ultra-premium machine with a 27-inch touchscreen display which supports the Surface Pen and new Surface Dial. The display can even be leveled flat and used as a digital drafting desk. The gadget outperforms and outclasses its competitors in many ways. However, anyone expecting the Surface Studio to simply fly off the shelves should probably think again. After all, it is directed at anyone capable of forking out $3,000 for its beauty.
Apple losing to Microsoft?
In some circles, Microsoft Corporation is said to be knocking Apple Inc. off its long-held pedestal. The maker of the iMac has held the all-in-one PC market in the palm of its hand for years now. However, its failure to innovate has many fans looking elsewhere for more relevant devices. The Studio is said to be one of the products that has won the market’s attention.
“Either their brewing something up, or maybe it’s time for someone like Microsoft to start coming in and take some of their market.” That comment came from Nick Cronan. the founding partner of Branch Creative. “Their long overdue to blow us away,” he said.
Struggles of Microsoft Surface Studio
At its price point, the Microsoft (NASDAQ:MSFT) Surface Studio does not appear to be high volume product. In spite of this, it managed to sideswipe a number analyst projections. Around 15,000 units were expected to be shipped during the last quarter of 2016. Citing sources, DigiTimes offers a report which doubles that figure. The outlet also projects another 30,000 shipments will be made in the first quarter of 2017.
These figures are impressive if you consider the Surface Studio on its own. Although, when set up against the overall PC market, the gadget is unlikely to make much of an impression. For instance, Apple is reported to ship more than 3.5 million iMacs a year. Sure, the iMac is losing its hold on the all-in-one PC market, but the product still outdoes most rivals in its segment. Top spot goes to Chinese multinational tech giant Lenovo. The company’s reign in the all-in-one PC market would take a great effort to beat.
Is the Studio a big deal yet?
At a rate of about 30,000 Surface Studio’s a quarter, or 120,000 a year, Microsoft’s share of the all-in-one PC space has a lot of growing to do. The computer sells at an average $3,000. That is around $3.6 million pulled in a year, which is great, but a mere blip on the screen compared to Microsoft’s projected $100 billion earnings for 2017.
There is no doubt that Microsoft’s (NASDAQ:MSFT) Surface line-up will win markets over. The company’s innovative approach to hardware can no longer go unnoticed. It stands to significantly boost Surface Studio sales over time. However, rivals could also step up their own game in the all-in-one PC space in order to enhance their market shares. Beyond that, the market for a highly priced, ultra-premium PC like the Surface Studio is relatively small. Clearly, the new all-in-one computer from Microsoft has a lot of ground to cover before it can be formidable player in the PC market.