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Microsoft Debuts New Surface Devices Ahead of Holiday Season

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Microsoft (MSFT - Free Report) recently expanded its Surface family with the addition of new products featuring robust capabilities at an event in New York City. The major takeaways from the event werethe introduction of Surface Laptop 2, Surface Pro 6 and Surface Studio 2 devices.

In a first, the tech giant also introduced smart Surface Headphones. Considering other accessory hardware, the company also announced Surface Pen, Surface Dial, variants of Surface Mouse, to mention a few.

We believe that the launch of new products just before holiday shopping season is a smart decision. This move is also in sync with the company’s attempt to take on Apple (AAPL - Free Report) which dominates the market with Macbook Pro and Macbook Air.

In a bid to be consumer friendly, Microsoft announced Surface All Access program. It allows users to avail Surface Devices and Office 365 ("O365") subscription for low monthly installments. For instance, the installment of Surface Go Bundle starts at $24.99 per month.

Features, Pricing & Availability

Surface Pro 6

Surface Pro 6 functions on Intel’s (INTC - Free Report) latest 8th gen Quad Core processor. It is touted to be over 67% faster compared with its predecessor, Surface Pro 5. The12.3”PixelSense Touch Display technology and intelligent O365 capabilities bolster creativity.

With up to 13.5 hours of battery life, the device also features an 8.0 MP auto-focus camera.

Surface Pro 6 comes in black and platinum colors. Itwill be available from Oct 16. The pricing of the device starts from $899.

Surface Laptop 2

Microsoft features Intel’s new Quad Core 8th gen processor which gives it an 85% improvement in performance compared with its predecessor, Surface Laptop.

The device features 13.5” PixelSense Touch Display, Corning’s Gorilla Glass 3, low-noise keyboard, trackpad, battery life of 14.5 hours and premium OmniSonic speakers

It comes in a matte black finish apart from Cobalt Blue, Burgundy and Platinum colors. The pricing of the device starts from $999 and will be available from Oct 16.

Surface Headphone

In a first of its kind, Microsoft debuts Surface Headphones which will be made available “in time for the holidays” across the United States and the U.K., per company’s Chief Product Officer, Panos Panay.

The smart wireless headphones are integrated with Cortana and priced at $350. The noise-canceling feature is noteworthy and enables the product to take the fight to Bose's Quiet Comfort II and Sony's 1000XM3, among other similar devices.

Surface Studio 2

Surface Studio 2 comes as a treat for the graphic designers given the enhanced graphics performance features, one of which being the 28” Brilliant PixelSense Display.

The latest Pascal graphics, Intel’s Core i7 processor, 50% faster NVIDIA (NVDA - Free Report) GPUs along with enhanced display and contrast features makes it a superior over its predecessor.

The creative heads can avail Surface Pen, Surface Keyboard and Surface Mouse to craft an artistic canvas. The company introduced different variants, with capacity of 1 TB and 2 TB of storage.

What the Investors Need to Know?

Notably, shares of Microsoft have returned 36.9% year to date, outperforming the industry’s rally of 29.7%.

This outperformance can primarily be attributed to its rapidly expanding efforts in artificial intelligence (AI) and Internet of Things (IoT) based developments. Undisturbed focus on Azure continues to remain a key catalyst.

The new Surface devices debuting around fall, ahead of holiday season presents consumers with quality choices. In fact, Microsoft’s Surface revenues surged 25% (21% at cc) in the fourth-quarter fiscal 2018 on a year-over-year basis on the back of strong performance of the latest editions.

Microsoft is strengthening almost all its services, hardware and software alike, with advanced AI and machine learning tools. We believe the new products will help the company gain market share, going forward.

Zacks Rank

Microsoft carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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