Microsoft Eyes Economies of Scale, Delays Release of Surface Hub

Microsoft Eyes Economies of Scale, Delays Release of Surface Hub

Microsoft announced today (July 13) that it wishes to expand its distribution channel for its Surface tablets, in order to meet its expectations of increased demand for the same. This has caused a delay in the release of Microsoft's Surface Hub, which was earlier stated for a September 1 release.

The tech giant made the announcement on the first day of its annual Worldwide Partner Conference in Orlando (July 13). The company said that it intended to extend the distribution of its desktop Surface tablets from a few hundred to a few thousand across the world in the coming months. This 'broader production' would require it to have a dedicated fleet of distributors.

Microsoft's Surface Hub was first discussed in January. The company boasted of an 84 inches touch-optimized display, which has been designed for collaboration. This device would cost upto $20,000, which is way higher as compared to existing projectors and videoconferencing systems. This means that if sales meet Microsoft's estimates, it would leave the company with a massive profit.

However, since the company had a limited business channel for sales of its Surface tablets, it has devised a dedicated Microsoft Partner Network Device Partner Portal for securing more Surface partners. Any partner can sign up for the expanded Surface distribution program, though each distributor will have qualifications based on volume.

In a statement from Microsoft, it made clear that it would upgrade its existing line of Intel-based 'Surfaces' to Windows 10. "This expansion of our partnerships is directly related to our optimism for much broader success that will come with the release of Windows 10", it said.

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