Where is Microsoft going to end up as a devices company?

So, now we are starting to see interesting developments as Microsoft begins to fully morph into a full devices company.

Meg Whitman, the CEO of HP basically has come right out and said she considers Microsoft to be a competitor and not a partner. This is where it gets interesting and is kinda what I talked about last June.

I basically said that Microsoft had declared war on OEM’s.

In that article, I said:

I think that for Microsoft, the Surface is the just beginning of the big push into hardware. I believe that they are being politically delicate about it because it is (understandably) a sensitive issue for OEM’s.

If this push sees moderate success, I believe they will make a Windows Phone and one or two Windows Desktop devices. Why the heck not? Once you start building your own stuff, why stop at tablets and phones?

Microsoft is a publicly traded company – there would be no rational reason to walk away from potential profits if they didn’t have to.

So a year later we are starting to see some of my predictions come true.

Microsoft is building Tablets and accessories and have driven everyone else out of the Windows RT space. Now they have acquired a phone company. They have also openly expressed the fact that they reserve the right to build whatever they choose whenever they choose.

The question now will be the following:

Will Microsoft becoming a full competitor to ALL it’s former partners be a more profitable move than only making more and better software?

It’s not an easy question to answer.

On one hand, people say that Microsoft HAD to make this move. They were running out of revenue streams and the writing was on the wall for desktop PC’s.

On the other hand, Microsoft could be pushing former partners and allies deep into the arms of Google.

It makes no sense to EXCLUSIVELY push Windows 8 tablets when then vendor is also competing with you a la Surface.

It makes no sense to EXCLUSIVELY push Windows Phone 8 when a Surface Phone by Microsoft/Nokia could be on the way.

I’m not sure how this Opera will end but we will start to see some clues when the new line of Surfaces are released. If the public start to see the Surface as the premium tablet for Windows 8.x, why the heck should they buy anything else?

What do you think? Does Microsoft’s shift to being a devices company make sense?

Use the comments below…

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