How Microsoft Is Pushing into Hardware

At Microsoft’s (MSFT) Windows 10 Fall Creators Update on Tuesday, October 17, the software giant unveiled its Surface Book 2, the successor of Surface Book, launched a couple of years ago. Surface Book 2 will start shipping on November 16.

The 15-inch laptop will be powered by Intel’s (INTC) eighth-generation Core i7 processors and will cost $2,499. It will come with 256 gigabytes of storage and 16 gigabytes of RAM (random-access memory).

The Surface Book 2 can be used as a tablet as well, with touch capabilities. Apple’s (AAPL) MacBook Pro, which comes with the same specifications, costs $100 less but doesn’t have touchscreen capability.

The global PC market has been in decline over the past few years. According to a recent IDC report, the global PC market has fallen 0.5% YoY (year-over-year) as of the end of 3Q17. HP Inc. (HPQ) has managed to solidify its position as the leader in the segment and now has a market share of 22.8%, according to IDC.

Meanwhile, Microsoft’s Surface Book has been seeing stiff price competition. In fiscal 3Q17, revenues from Surface Book fell 26% YoY. But Microsoft’s cloud computing segment, Azure, continues to grow at a breakneck pace and is now the engine of Microsoft’s growth.