Feeds

Pegatron named as Microsoft Surface fondleslab foundry

Low margins may annoy Redmond's partners

The Power of One Infographic

Taiwanese electronics manufacturer Pegatron has been awarded the contract to build Microsoft's Surface tablet, and sources suggest Redmond's got a twin strategy for tablets.

According to DigiTimes, Pegatron will be building both the Intel and ARM versions of the fondleslab, with the Ivy Bridge-powered slab going for around $799 (Intel's guide price for Ultrabooks) with a $599 alternative for the Tegra 3 system.

Microsoft didn’t give pricing details at its launch on Monday, but indicated the Ultrabook as a guide price, and sources said Microsoft isn't planning on making a massive margin on the tablets.

This would suggest Microsoft will aim the ARM fondleslabs at Apple, although it would have to take a loss to match the iPad on price. Redmond does this with other product lines it sells at a loss, and may judge this to be a reasonable price to pay in order to get established in the tablet market. And while Intel will welcome more Ultrabook players, companies like Samsung, Dell, and Hewlett-Packard won't.

"I think this is the major purpose of them doing a tablet, as it can enhance their ecosystem, to help them promote and get a lot of developers to make apps to share in their store," Charles Lin, chief financial officer for Pegatron told Bloomberg. "This kind of device may help them to promote their Win8 solutions and demonstrate the strengths and capabilities of the new Windows 8."

Pegatron, which is a spin-off of Asian giant Asus, said in its last financial statement that it expected its shipments of notebooks and tablets to rise 30 to 35 per cent in the second half of the year. It has got good capacity if demand for the Surface proves strong, and it has cash to burn if expansion is needed – revenues grew over 100 per cent to over $2bn in the last year. ®

The Essential Guide to IT Transformation

More from The Register

next story
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.