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Analyst says Microsoft’s Surface tablet will fail just like the Zune

by Doug Drinkwater

August 3 2012

Canalys analyst Tim Coulling doesn’t think much of Microsoft’s Surface tablets; he expects them to fail just like the company’s brand of Zune portable media players.

"The information available to date suggests the prices of both will be too high to capture significant market share, and a direct sales approach will prove inadequate," said Coulling, when speaking to InformationWeek.

“We expect the Surface pads to have a similar impact on the PC industry as Zune did in portable music players.”

The first of Microsoft’s Zune’s range of portable music players launched back in late 2006, but barely made a dent on the iPod’s dominance in the market. It was to no surprise when Redmond then killed off the Zune line in October of last year.

Coulling’s concern over Windows 8 tablet pricing echoes Canalys’ report from earlier in the week, in which the research firm advised Microsoft to subsidize the cost of Windows 8 development.

Intel has done a similar thing with its Ultrabooks, pumping in $300 million to aid vendors looking to progress the development of Ultrabook technology and components. 

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