uploads///Global PC Market Has Been Declining

How Microsoft Is Pushing into Hardware

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Oct. 23 2017, Updated 10:09 a.m. ET

MSFT to launch Surface Book 2

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.

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The PC market has been declining

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.

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