If Surface heats up, the other OEMs have two stark options. They can continue their race-to-bottom, devouring each other in consolidations and acquisitions until only the brand names are left and every PC component and system has been outsourced to Malaysia -- or they can start building names for themselves as innovators.
This.
Adapt or Die. That is the mantra of the computer industry. Apple has seized on this notion and have reaped the rewards for it. Microsoft is learning, but they have a long way to go. Personally, I am glad that they didn't let their OEMs know what is going on.
"But Dharma, you charismatic stallion, why would you support an Evil Empire like Microsoft," you ask, It's quite simple....Microsoft is willing to step out of its' comfort zone. Look at the XBox, look at the Zune, look at the Windows Phone. Sure, all of those products had the missteps and out and out failures, but they got past that and made a better product up the road, and the consumer has been better for it on the whole.
HP and Dell have forgotten how to innovate because they stopped making things. And when they stopped making things, they stopped thinking about how to make things better. Making things in Malaysia does not count here, because those people over there are not making things. They are following a blueprint that has already been set in stone. They do not innovate. They are robots made of meat and it seems to me that this is what business in the 21st Century wants is robots made of meat.