Why Microsoft Won’t Make A Branded Tablet

There’s a rumour floating around that Microsoft intends to produce its own branded “Windows 8” tablets.

Specifically, the rumour comes from a June 8 article in the publication “DigiTimes,” itself citing unnamed “sources from the upstream supply chain.” The article further suggests that Microsoft will collaborate on the branded tablet with Texas Instruments and a variety of Taiwanese manufacturing partners.

Microsoft’s own-brand hardware failures

As DigiTimes points out, Microsoft has a bit of a mixed track record when it comes to this sort of thing: “Xbox 360 is currently the only own-brand product line that Microsoft has achieved success…while Zune media player, Kin smartphone and own-brand TVs all had unsatisfactory performance.”

Just as a bit of a refresher: Windows 8 (which isn’t necessarily the final name of Microsoft’s next-generation operating system; that’s just the company’s internal code name du jour) offers a user interface composed of colourful tiles that can be clicked or tapped, accessing applications. It’s totally different from previous versions of Windows and their focus on a folder-loaded desktop. And it’s built for a variety of form-factors, ranging from desktops and laptops, down to tablets.

Every so often, rumours start to float that Microsoft is jockeying to purchase a company that builds hardware. Nokia was the most recent target of those acquisition rumors, despite Microsoft’s sweetheart deal with them, which basically provides all the benefits of a takeover for far less cash.

Those rumours never seem to pan out, and for good reason: Microsoft might take a stab at building hardware for initiatives like the Xbox, but ultimately hardware-chain management (particularly for something as big and complex as mass consumer-tablet production) isn’t among the company’s core competencies. Logistically and financially speaking, it’s much easier for them to sell software to companies like Hewlett-Packard or Dell, which then have to worry about integrating and deploying it on their devices.

A risky move?

That’s why I’m not putting an incredible amount of faith in these “DigiTimes” rumours. If anything, it seems that Microsoft’s devoting more of its tablet-related energies to keeping its manufacturing partners on the proverbial tight leash. According to a June 1 article in “The Wall Street Journal,” itself based on discussions with unnamed “people familiar with the matter,” the company wants five chip makers to pair with a single tablet manufacturer. The chip makers include Intel, Advanced Micro Devices, Nvidia, Texas Instruments and Qualcomm, which would eventually be allowed to expand beyond that single partner.

If Microsoft did decide to build its own branded tablets, it would risk irritating partners that have demonstrated their absolute willingness to throw their weight behind Android devices. Not exactly the smartest move. The manufacturing partners also have experience in actual tablet-building, unlike Microsoft. When it comes to Windows and tablets, executives in Redmond could very well decide the path of least aggravation lies in replicating the model that worked so well with Windows and PCs: Let the OEMs handle the hardware.