What if I block the loss of my iPad into the enterprise market?

Microsoft's first quarter earnings for fiscal year 2015 showed that its surface flat surface had revenues of $0.908 billion, up 127% year on year. Not long ago, the industry also reported that Microsoft may stop its surface development in the future due to poor performance in the tablet market (mainly due to low market share and loss. However, Microsoft CEO Nadella subsequently denied the rumor and said that the Microsoft platform can bring the most suitable Enterprise hardware, the applications developed by the public, and the rich Microsoft ecosystem. Microsoft is fully supporting the surface product line to provide great and outstanding hardware for enterprises of all sizes.

However, it is undeniable that, despite surface's revenue of nearly $1 billion in the latest fiscal quarter, given Microsoft's various marketing initiatives on surface, for example, if you buy surfacepro3, keyboard cover, and docking station at one time, you can get a discount of $150 on the basis of the total price. The Surface tablet is still at a loss in Microsoft's business. In this case, why should Microsoft stick to the surface investment?

As we know in the industry, Apple's iPad, the originator of the tablet market, has suffered a decline in iPad shipments, revenue, and profits due to its weakness in the industry and its own innovation, the growth momentum in the tablet market began to shift to price-driven, so Apple had to use the enterprise market as a new growth point for iPad. Prior cooperation with IBM and Apple CEO Cook repeatedly mentioned that the prospect of iPad applications in the enterprise market is undoubtedly the best proof.

In fact, the iPad has been used in the so-called enterprise market, but its popularity and recognition are not as good as it is in the consumer market. This is also the main reason why Microsoft's Surface tablet, especially the surfacert tablet, did not make waves in the tablet market. That is to say, when it comes to tablet computers, the market and users are more likely to think of their consumer markets. As a result, surfacert, which is also positioned in the consumer market, will naturally be eclipsed, surfacepro, which focuses on the enterprise market (or has a stronger productive property), does not show its unique advantages because of its market and user inertia. Therefore, it is reasonable that the surface has suffered a loss of $1.7 billion over the past two years.

However, as time passes and mobile phones and low-cost Android tablets become increasingly weak, the iPad will eventually choose the enterprise-level market as a new growth point, this undoubtedly indirectly advertises Microsoft's surface. Or let the industry start to pay attention to surface through iPad, which is exactly what Microsoft cannot expect. After all, the biggest selling point of surface is enterprise applications.

In fact, as long as you observe carefully, it is Apple's announcement of cooperation with IBM in the enterprise market (mainly iPad-based enterprise applications) that the surface is frequently placed in a confrontation with the iPad by the media, especially its latest surfacepro3. It can be said that Microsoft's surface has become the biggest obstacle for iPad to enter the enterprise market in the future. In this sense, Microsoft will not give up even if the surface will continue to suffer losses in the future. For Microsoft, the loss of $ more than 1 billion may be a blow to Apple's third-largest revenue and profit source product line. In contrast, even in the latest quarter, its surface revenue increased by 127% year on year, it is close to $1 billion, but it only accounts for less than 1/23 of Microsoft's total revenue (it is definitely Microsoft's non-core business ). Use your own non-core business to block new competitors from the third largest business, or even the export related to the business development prospects. This strategic value is far from a loss of more than 1 billion US dollars. Moreover, with the increase in surface flat shipments, the cost will inevitably decrease, and the loss quota will be gradually reduced.

As the saying goes: When the 1949th day is over, it is a trembling. In the past, Microsoft's surface had not received any attention from the industry or the market, and it had not abandoned it. Now, it is getting more attention and is its biggest selling point. Why does Microsoft give up? If the low-end Android tablet continues to squeeze the iPad in the consumer market, the wealthy Microsoft will block the iPad in the enterprise market, forming a force to kill the iPad with Android.

What if I block the loss of my iPad into the enterprise market?