This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Microsoft Surface needs a Mini Me

Stocks in this article: AAPL INTL MSFT

By Chris Lau for Kapitall.

Microsoft ( MSFT ), through its Surface Pro 3, continued to push forward its innovation in the ultraportable computing market. What the company is missing in its line-up is a Mini version of the Pro. The Pro 3 device should find a strong fan base, made up mainly of power users, but the computer technology giant needs to offer something that would fit the mainstream. Size, price, and power all need to resonate with consumers. A Mini Pro would fit that bill.

Surface 3 Pro

The Microsoft Surface 3 Pro is much lighter and thinner than its predecessor. With its magnesium casing, Microsoft has a tablet that should compete well against Apple’s ( AAPL) MacBook Air and Pro laptops. The resolution is 2160 x 1440 and the high-end model runs on an Intel ( INTC) i7 chip. i3 and i5 chips are also available, but the chips are the thinnest Intel has ever made.

Microsoft’s challenge with the Surface 3 Pro is that it is a high-end device that will appeal only to power users and professionals. To promote Windows 8.1 and boost market share, Microsoft needs a scaled down version of the device.

Ideal Specs for a Mini Surface

Ideally, The Mini at a smaller size could be marketed as an electronic notepad for students. The smaller screen size in the 8 or 9 inch range would be lighter and easier to carry. It would also cost less. This would appeal to a wider audience, from budget conscious students to consumers looking for a mainstream product.

Acting like a reference design, the Mini Pro 3 would guide other manufacturers in designing hardware that complements Windows 8.1. Microsoft would benefit immensely from a growth in tablets that run Windows 8.1. The software giant is doing what it can to promote Windows 8.1 on low-end devices. To wit, it is giving Windows for free for these devices.

Hardware sales will be a less important profit driver for Microsoft. Sales of its operating software will matter most to its profitability. If Microsoft finds the sweet spot for boosting Surface Pro sales, investors will be rewarded with a higher share price.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs