ES 2012: Microsoft aims to go out with a bang

CES 2012 will be Microsoft's last - but that's not stopping the software giant from using it to make a serious bid for new mobile, tablet and business markets

As the world’s largest technology show begins in Las Vegas today, it’s set to be dominated by industry giants on the comeback trail: Apple may have hogged the headlines since the launch of the iPhone five years ago today, but it’s Nokia and Microsoft that are seeking to reclaim the places they have occupied previously.

Indeed, according to Forrester analyst Sarah Rotman Epps, there’ll be “dazzling” demonstrations from Microsoft at the Consumer Electronics Show (CES) of their new Windows 8 operating system working on tablets. The company is trying to capture some of a market that is increasingly dominated by Apple, fearing that the business market may move away from its reliance on desktop computers and laptops altogether.

Windows 8 is set to unite Microsoft’s offerings for phone, tablets and PCs into a single, uniform look, if not literally a single product. The company aims to challenge both Apple and Google by providing a suite that is attractive to both businesses and consumers. Much of it will run on Intel chips, which will be able to offer security at the level of the microchip itself, thanks to their recent acquisition of McAfee.This makes Windows 8, tablets and phones a serious, integrated play for the business market.

Consumers, too, are seriously interested in buying the stylish new ‘utlrabook’ laptops, of which between 50 and 60 are set to launch at CES. Rotman Epps cautions against the current pricing strategy, but costs are likely to fall rapidly. Intel reckons four out of 10 laptops sold in 2012 will be ultrabooks, and even at $1,000 22 per cent of interested US consumers told Forrester that they would buy one. Manufacturers are already struggling to differentiate their various devices but even so, with such high levels of interest, Intel may be wondering why ultrabooks only got real interest thanks to a $300m subsidy to manufacturers from the chip maker.

Microsoft’s other key announcements will be made with Finnish handset manufacturer Nokia. Having recently launched its first handset to use Windows Phone in Europe, the company will launch its first bid to seriously tackle North America. In doing so, it should capitalise on the increasingly precipitous vulnerabilities of BlackBerry.