table market currently is segmented similar to the mobile handset market: iOS and Android. in business, you either have a complete monopoly, very few duopolies and frequently, a third player. it actually makes more sense for Apple, Google and hardware companies to let Microsoft enter the competition for these reasons:
- being over exposed to Android is a risk. hardware guys need MS (or a 3rd player) to have some bargaining power their respective competition otherwise low margin hardware married to the latest and greatest specs with 3 month product life cycles will be the best they can hope for. ask Acer to see how they feel about that...
- Microsoft's default competitor in this case is Google as both company's business model (licensing OSes) are more similar. Apple basically gets a free partner against staving off Google.
- by keeping Microsoft in a weaker position* in the licensed OS-tablet-market, Google and Apple have less to worry about new entrants crashing the party as MS makes a potent buffer against the next likely entrants: HP and RIM.
basically all players can benefit from a 3rd... of course HP and RIM will try their very hardest to cement that position before Microsoft does. long story short, MS will be fine in the post-pc era. keep in mind that the battle of ecosystems means differently for those involved. Apple's battle is directly influencing customers**. Google/Microsoft have to court the hardware makers who then impacts the end user. the hits and misses from Android and Windows is highly dependent on the Acers/Dells/Motorolas of the world being successful in marketing and understanding consumer trends*** which... well... is a another topic.
*note: this is assuming the tablet landscape plays out like smartphones
** from Apple's 2010 annual report
*** from Microsofts 2010 annual report and assuming Google faces similar risks due to same business model
If they plan on shoving an unoptomized OS onto each device that isn't designed for that device they might as well pack up and get out. What we actually saw of their Windows 8 plans for tablets was painful.
The market is already handing the tablet segment to Apple in part due to this woeful strategy.
Not, yet. But it's quite telling. Just like they're in Apple's rearview. Very, very telling. And who would have thought that possible a few years ago.