At NZ$700, Surface Go rounds out the bottom end of Microsoft’s tablet-to-laptop range. It’s a small, thin tablet with a 10-inch screen. No doubt people will compare it with another small, thin 10-inch tablet: Apple’s NZ$540 iPad.

Before going further, we should be clear, the tablets come from different ranges. They have different design perspectives. Despite the obvious similarities, few people will choose between the Surface Go and an iPad. For the most part, they aim at distinct markets. You also need to remember these are the cheapest models in each range.

That said, they are low-cost tablets from the two biggest names in personal computing. Both are versatile mobile devices. They both have large touch screens by mobile device standards. Each offers a huge catalogue of software covering almost every possible application.

Microsoft Surface Go

Size, weight

Apple’s iPad is smaller and lighter than the Surface Go. It measures 240 by 170 by 7.5 mm and weighs 470 g. Surface Go is about 10 percent heavier at 520 g. It’s thicker at 8.3 mm.

Although the frame is fraction larger at 244 by 178 mm, that’s used for a bigger screen. The Surface Go display is 10.6 inches, while the iPad is 9.7 inches. The Apple display has more pixels: you get 2,048 by 1,536. The Go is has 1,800 by 1,200 pixels. I’ll save you the maths of working out that means the iPad has 264 pixels per inch compared to Go’s 217.

Both support an optional pen for writing on-screen. Apple’s drawing tool is the Apple Pencil.

Processors

Microsoft uses a two-core Intel processor; the Pentium Gold 4415Y. Apple’s is the A10 Fusion chip. Without benchmarking, it’s hard to know which has the more powerful processor.

On paper Apple’s hardware choices give you a little more battery time than the Surface Go. How that works in practice is more a matter of how you use your tablet.

Apple appears to have an edge here, but we’d need to wait for formal tests to know. Both processors are a generation behind the top models in their respective ranges. As it says at the start of this post, people will use the devices in different ways. So their relative power is less important than the suitability for applications.

The Surface Go has a clear edge when it comes to storage. The extra NZ$140 buy double the Ram and double the built-in flash storage. The Go has 4GB and 64GB. Again it’s hard to know what these numbers mean in practice without testing, but as a rule more is better.

Surface Go expandable memory

You can expand the storage on a Surface Go. There is a MicroSD card slot. There is nothing like this on the iPad. This will matter a lot to some people. It would interesting to know how many people use a memory slot in a device like this.

Apple’s iPad runs iOS. It’s the same operating system as on the iPhone. In recent iterations Apple updated iOS to make better use of the iPad’s size and capabilities. As you’d expect it integrates well with an iPhone and the MacOS.

The Surface Go comes with Microsoft’s Windows 10 running in the S Mode. This limits your software choices, but it’s a piece of cake to upgrade this to Windows 10 Pro.

At the risk of triggering angry comments, I find iOS has a better touch screen interface. Although Windows 10 handles touch, at times the old user interface peeks through. It can cause problems. Your experience may differ.

On the other hand, I find Windows 10 makes more sense on a tablet than a desktop. Again, you might have a different view.

Microsoft’s marketing makes a lot of fuss about the kickstand. This allows you to prop the Surface Go up in the landscape orientation on a flat surface. Some Surface Pro users love this feature, it’s popularity bewilders many iPad fans.

Microsoft’s Surface Go Signature Type Cover adds NZ$220 to the price. The Surface Pen is NZ$160. Apple’s Pencil is the same price. Apple has its own keyboard covers for iPad Pro models. For the plain iPad, Apple’s online store offers a NZ$150 Logitech Slim Folio Case with integrated bluetooth keyboard.

Storage options

Both ranges offer models with more storage. A 128 GB iPad is NZ$700, the same price as the basic Surface Go. For the well-heeled Microsoft has a 128 GB model with 8 GB of Ram at NZ$950.

Let’s put the Surface Go price into context. The same money will buy a Lenovo ThinkPad 11e Chromebook or one of a range of low-price Windows laptops.

By the time you add the official keyboard you could buy a ThinkPad with an Intel Core i3 processor. Of course these would not be as portable. Yet you will find a better processor, better keyboard and better screen.

If you’re already happy with Apple or Microsoft’s comforting embrace, then you’d do well to stay put. That way you can be productive from the moment you open the box. Most of the time, you will get more from your existing investments in software and services.

At first sight the iPad and Microsoft app store look to be roughly equal, after all, this is Windows we are talking about. Yet in practice many popular Windows apps are either not optimised for touch or have occasional touchability lapses. You may also find some popular, well-known apps are not there.

It’s odd, but on a personal note I find Microsoft Office works better on an iPad than on a touch screen Windows tablet. Although this could be a matter of familiarity and taste, you couldn’t say the same for MacOS where Office is noticeably inferior.

Microsoft Surface sales yet to take off

Microsoft-branded hardware has yet to strike a chord with buyers. The brand doesn’t register in the global PC sales statistics collected by IDC and Gartner.

Over the last three months of 2017 Microsoft’s Surface line made $1.3 billion in revenue. That’s impressive, but the dial hasn’t shifted from two years earlier. Sales are flat. That is despite a slew of new Surface products in 2017.

In round numbers Apple makes more than six dollars from its iPad models for every dollar Microsoft earns from all its hardware products excluding the Xbox.

There’s nothing to suggest Surface Go will change the market dynamic. The device looks neat and will meet an unmet need, but it doesn’t look like a surefire winner.

Surface Go: Tempting, but no iPad challenger was first posted at billbennett.co.nz.

Edited story. Original version says Windows 10 S upgrades to Windows 10 Home, it should be Windows 10 Pro.  

PC shipments perked up in the second quarter of the year. While this is the first increase in six years, no-one is talking about a revival yet. It could be what people in the finance industry call a dead cat bounce.

Both Gartner and IDC published sales estimates showing a small increase in sales. Gartner put the increase at 1.4 percent. IDC has a more bullish 2.7 percent increase.

It’s worth noting here the two market research companies are not measuring quite the same thing.

Also, a shipment is not a sale. It is a computer that has moved from a factory to a retailer’s warehouse. But PC supply chains are tightly managed so, in general, shipments closely mirror actual sales.

PC Shipments joy not evenly spread

IDC’s more bullish estimate includes sales of PC-like devices such as Chromebooks, but doesn’t not include Windows tablets such as Microsoft’s Surface. Gartner counts a Windows tablet with an attached keyboard as a PC. Its number does not include other tablets nor does it include Chromebooks.

Both IDC and Gartner say that at least some of the increase is down to business computers running Windows 10.

Mikako Kitagawa, a principal analyst at Gartner says: “PC shipment growth in the second quarter of 2018 was driven by demand in the business market, which was offset by declining shipments in the consumer segment.

“In the consumer space, the fundamental market structure, due to changes on PC user behaviour, still remains, and continues to impact market growth. Consumers are using their smartphones for even more daily tasks, such as checking social media, calendaring, banking and shopping, which is reducing the need for a consumer PC.”

All of which has been true since 2012.

Recovery or dead cat bounce

Kitagawa expects business sales to weaken again when the Windows 10 replacement cycle ends.

IDC says the top five PC makers all saw sales growth and collectively they now account for a larger share of the market. This year they make up 78 percent of all sales.

Gartner and IDC can’t decide whether the top PC company is Lenovo or HP. Gartner has Lenovo a nose ahead shipping 12,000 more units than HP. IDC has HP in front by around a million machines. Remember the two companies are measuring different things.

Both put Dell, Apple and Acer in that order behind the leaders. IDC and Gartner also agree that Apple experienced the least growth during the quarter. New MacBook Pro models this week could change that.

Neither of the market research companies is prepared to say if the PC shipments uptick is the start of something new, a one-off before the slide resumes or an indication that shipments have bottomed out. The only certainty is that these top five PC brands are likely to strengthen their hands against the rest of the market. PC manufacturing is a game when volume matters.

PC shipments up: Recovery or dead cat bounce? was first posted at billbennett.co.nz.

The Commerce Commission wants to continue regulating mobile roaming. At present it can make Spark, Vodafone or 2degrees give a new network owner wholesale access. This is part of the Telecommunications Act.

The Act also says the Commission faces a review of its responsibilities every five years.

Wholesale access to existing networks helps a new network get a foothold in the market. Something similar happened when 2degrees started and customers could roam on Vodafone’s network. At the time 2degrees only had coverage in four centres.

Roaming matters

Telecommunications Commissioner Stephen Gale said in a press release:

National mobile roaming helped 2degrees deliver a nationwide service for its customers from day one, in advance of rolling out its own national network infrastructure. We believe the power to regulate remains an important competition safeguard, especially with 5G networks and potential new entrants on the horizon.

The key phrase in that quote is “potential new entrants“.

After all there is little prospect of a new mobile carrier entering a saturated market. Yet that doesn’t mean there isn’t a potential new entrant looking to enter the cellular market.

That would be Malcolm Dick’s Blue Reach. The Commerce Commission mentions this company in its review of the market.

The allocation of 5G spectrum may influence mobile competition:
The allocation provides a potential opportunity for a new entrant to purchase spectrum. A new mobile provider will almost certainly require a NR arrangement while it rolls out. We note that Blue Reach Services has entered as a fourth provider and has publically stated intentions to roll-out 5G.

Dick is a wealthy man who has succeeded in telecommunications before. He is a co-founder of CallPlus and an investor in the Hawaiki Cable network. The latter is set to start operating next month.

Blue Reach

His Blue Reach project has been public for a couple of years. Early on Dick described Blue Reach as a 5G wholesaler. The idea is that it will offer fixed wireless broadband to retail service providers. In some ways it is like the failed Woosh Wireless operation. That company was ahead of its time.

At the time of writing carriers around the world are building the first 5G networks. Both Spark and Vodafone have trials here in New Zealand. The technology still hasn’t settled. More to the point, the extra spectrum needed to make it work is not ready in New Zealand. We can expect that to happen over the next 12 months.

Blue Reach plans a service resembling Spark’s fixed wireless broadband. Both Spark and Vodafone sell a similar RBI wireless product to rural customers. So do wisps (wireless service providers). Presumably the wisps are among the retailer Dick hopes will buy his services.

The Commerce Commission’s review hints that we are about to see more competition. Bring it on.

The Commerce Commission has called for submissions on the issue to before July 30. It expects to release a final decision on September 4.

Galaxy S7There are signs the lack of innovation in recent times is hurting phone makers.

Reuters reports from Seoul:

Samsung is expected to post its smallest profit growth in more than a year in the second quarter, as lackluster sales of its premium Galaxy smartphones overshadow its highly profitable chip business.

Analysts expect Samsung’s smartphone sales to drop in the April-June quarter, following a more than 2 percent drop in the previous quarter as consumers flock to cheaper models from Chinese rivals such as Xiaomi Corp.

Samsung’s lead over Apple in the global smartphone market is under pressure after the U.S. firm’s iPhone X exceeded market expectations while a lack of technological innovation dogs Samsung offerings.

“Functions (that) Samsung’s mobile phones have are not attractive enough for customers to spend more money on,” said Song Myung-sup, analyst at HI Investment & Securities.

It’s not just Samsung, other phone makers are rubbing up against the same issue. We’re on the top, flat part of the innovation S curve as far as the current generation of phones are concerned.

Phone makers go on improving cameras and bumping speeds. Yet there hasn’t been an improvement that makes a significant difference for at least three years. A better camera, smaller bezel or a library of childish emoji is not innovation, it’s window dressing.

Why upgrade?

For most people that means no pressing reason to upgrade.

At the same time, cheaper phone brands have caught up to the point where they now offer all the essential features at a lower price. In some cases that’s a much lower price. If you own a three year old Android phone from a top brand like Samsung you can swap it for better technology and pay half what you paid for your existing model.

We’ve been here before with the PC and no doubt we’ll be here again. Stable designs are not necessarily a bad thing for consumers, but they kill hardware company profits.

Ben Brooks gets close to the heart of the problem with pay walls when he writes Subscription Hell. It’s hard to make money from pay walls.

The only online sites that do well are those like New Zealand’s National Business Review or The Economist. Both serve well-heeled audiences with unique, quality content readers can’t get elsewhere.

Brooks makes two interesting points.

First, differentiation. Brooks is thinking about podcasting, but it applies to all online media. In essence he says there are thousands of undifferentiated podcasts chasing the same audience.

…but will they pay?

The implication that no-one will pay to listen to one of the podcasts when there are dozens of free alternatives. You could say the same about most online media. This, in part, does not apply to pay wall successes like the NBR and The Economist. Their audiences don’t have obvious alternatives.

The other point is subtle. Brooks makes the connection between people paying for apps and buying pay wall subscriptions.

On the surface these are two quite distinct markets. And yet, recently I was thinking about exactly this concept from the opposite point of view. I have a number of subscriptions to pay each month. Some are for apps or online services. Others are for, it’s not the best word to use, but let’s go with it: content.

Pay wall, subscription software: two aspects of the same thing

In my budgeting, I see the two as aspects of the same thing. I allow myself so many dollars a month for subscriptions. It’s a single pool of money to cover things like cloud storage, online music, movie downloads, pay walls, apps and services. What isn’t spent on  apps is available for media. What isn’t spent on online media can be spent on apps.

A decade ago the budget was zero. It’s not zero today. While it isn’t a huge amount of money, it’s about the same as I spend on coffee. It may grow larger in the future.

The issue is, consciously or not, people only budget so much money for subscriptions. I have a limited pool of funds. So does everyone else. The world has a limited pool of funds for subscriptions. On a world scale it is huge and still growing. Even so, there is not enough to go around for everyone who would like to earn money selling pay wall subscriptions or apps. Too many sellers, too few buyers.

And there’s the problem. It’s not hopeless. Services like Press Patron (see the red button at the foot of this page) offer a way out. People can choose to set their own amount to pay. If you go back to my budget approach, if I don’t buy software one month, I can flip a few bucks into someone’s Press Patron.

But it’s difficult. The market for content pay walls or subscription software is not infinite.