Microsoft partners with local tablet brands in Asia-Pacific

Microsoft will put more focus on local-brand tablets across the Asia-Pacific region using its Windows operating system. Worldwide, around 40 local brands in many countries have brought Windows-based tablets to the market, and this region is the main driver for this trend.

Cesar Cernuda, president of Microsoft Asia-Pacific, said local brands of both tablets and smartphones were needed in these markets. More and more mobile devices are coming into the market. 

While a lot of multinationals such as HP and Dell sell Windows tablets, Microsoft also focuses on local brands. Cherry Mobile in the Philippines offers tablets and phones based on Windows, and Q-Mobile in Vietnam has brought out a Windows phone. Similar brands exist in Malaysia and Indonesia.

“Working with local partners is the key strategy of Microsoft in each country. The way we go to market is through partners,” Cernuda said.

He noted that Thailand, with a population of about 65 million to 70 million, saw only 3 million new tablets come on to the market each year, so there was still a lot of opportunity here for every brand. 

The Thai firm Computer System Connection International is a local partner that has announced this country’s first locally branded Windows tablet, the Wisebook, seen as an important milestone for Microsoft. 

“Surface Pro 3 and Wisebook are for different markets. Surface Pro 3 is a premium device focusing on the high-end market represented as a two-in-one device, which can be a tablet and PC in one device. It is a real tablet that can become a PC. Meanwhile, Wisebook is an alternative tablet to serve every market at different price points.” 

In Thailand around 85 per cent of the 3 million tablets sold each year cost less than US$300 (Bt10,000). Surface Pro 3 is over that price point, he said. 

The Asia-Pacific region, especially emerging markets like those in Southeast Asia, is seeing strong momentum in tablet usage. People here uses such devices a lot, which is why Microsoft has been partnering with local brands in each market to provide affordable tablets using its Windows platform. 

“We work with partners to provide tablets according to different market needs. For example, 80 per cent of tablets in the United State have no 3G [third-generation cellular access], while 80 per cent of tablets sold here in Thailand do have 3G. That is why we have to have a local presence and work with local partners in order to understand local needs,” Cernuda said.

“We are a global company that has been investing in Thailand for more than 20 years. That is important for us. 

“About 1,800 Thai companies every day represent the different services and solutions that Microsoft has in the country. For every single dollar Microsoft [earns], these companies [earn] between $12 and $15 each. That is a big contribution to the local ecosystem.” 

Cernuda said the cloud was playing a critical role in international communication technology. Consumers use the cloud every day when they use social networks. 

The second thing that is happening more and more is the lack of differentiation between business and consumer – in other words, the important thing is the person. 

“We believe in the new world that is mobile first and cloud first. The new world is about [mobility]. The way we interact with each other and the way we share information is different – it is about different types of devices including smartphones, tablets, phablets, laptops, desktop [computers] and television. Different devices are connected and interact in different ways,” Cernuda said.

He added that Microsoft usually spent $10 billion a year on research and development.