Microsoft’s 2 Biggest Announcements on Wednesday

The tech company launched a new product category.

Microsoft (NASDAQ: MSFT) is primarily a software and cloud computing company, but the technology giant continues to play its hand in hardware as well. On Wednesday, it unveiled a new lineup of Surface-branded devices, including some refreshed hardware and a few entirely new products.

The event featured a total of six new Surface products, four of which will be launched this holiday season. Two will arrive toward the end of next year.

Microsoft’s new products include:

  • Surface Laptop 3: a new laptop, available in 13.5-inch ($999) and 15-inch ($1,199) sizes.
  • Surface Pro 7 ($749): the latest iteration of its two-in-one device lineup with greater processing power and other internal upgrades.
  • Surface Pro X ($999): a thinner and lighter version of the Surface Pro 7 with narrower bezels and a rechargeable Surface Pen that can be docked on the keyboard.
  • Surface Earbuds ($249): Apple (NASDAQ: AAPL) AirPod-like earbuds with touch and voice controls.
  • Surface Neo: an all-new, foldable dual-screen device with a removable keyboard and Surface Pen support.
  • Surface Duo: a surprise announcement of a new dual-screen smartphone, built on Alphabet‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Android operating system.

The Surface Laptop 3, Surface Pro 7, Surface Pro X, and Surface Earbuds are available for pre-order today in select markets and will debut this holiday season. But the products that will be available next year — the all-new Surface Neo and Duo — were the most surprising announcements on Wednesday.

Here’s a closer look at both devices.

Surface Neo

The Surface Neo and Surface Duo represent Microsoft’s bet on a new category of dual-screen devices. With two foldable screens, “Neo and Surface Duo are optimized for the way we naturally multi-task, helping people get more done on the go,” Microsoft said in a press release. (No prices were announced for either.)

Microsoft's new Surface products

In the foreground, left to right, are Microsoft’s new Surface Neo, Surface Duo, and Surface Earbuds. At rear, left to right, are the Surface Laptop 3, Surface Pro 7, and Surface Pro X. Image source: Microsoft.

Microsoft has big ambitions with the Neo, which product chief Panos Panay called “the next category” during the product launch event.

The device’s two displays can work together or independently of each other. In addition, there’s a keyboard that attaches to the device magnetically. When the foldable device is open, users have a full 13-inch display.

Surface Duo

Another version of Microsoft’s vision for a dual-screen device is its new Surface Duo. It’s the company’s first attempt at a smartphone since it shut down its Windows Phone business. Learning from its mistake of trying to compete in mobile operating systems against juggernauts Apple and Alphabet, the company created a new phone that runs on Alphabet’s Android operating system.

“Surface Duo brings together the best of Microsoft productivity experiences, Android apps and Surface hardware design into a single device you can take anywhere,” the company said. “And, yes, it makes phone calls.”

The Surface Duo features two thin 5.6-inch screens.

Perhaps by giving its users access to the Android app store, Microsoft will have a shot at capturing meaningful market share in the smartphone business this time around. But investors shouldn’t count on it. The smartphone business is extremely competitive. Apple recently released its own new smartphones, and Alphabet will likely announce new Pixel-branded smartphones during its Oct. 15 Made by Google event.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Microsoft. The Motley Fool has the following options: short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, and long January 2021 $85 calls on Microsoft. The Motley Fool has a disclosure policy.

More on Tech Stocks

man looks worried about something on his phone
Tech Stocks

What’s a Great Tech Stock to Buy Right Now?

Apple (NASDAQ:AAPL) looks like a cheap tech giant worth picking up amid the tech wobbles.

Read more »

investor faces bear market
Tech Stocks

3 Canadian Stocks to Buy If the TSX Pulls Back 10%

A dip in the market can turn a watchlist stock into a "buy now," especially if the business is growing…

Read more »

dividends grow over time
Tech Stocks

1 Growth Stock Down 51% to Buy Hand Over Fist in March

Constellation Software (TSX:CSU) stock is down 51%! Grab this 38,000% compounding legend at a rare "clearance rack" price before the…

Read more »

A person's hand cupped open with a hologram of an AI chatbot above saying Hi, can I help you
Tech Stocks

The Canadian AI Stock That Could Soon Go Public

Microsoft (NASDAQ:MSFT) Copilot and other AI innovators could make for a huge Cohere IPO in 2026 or 2027.

Read more »

Paper Canadian currency of various denominations
Tech Stocks

1 Practically Perfect Canadian Stock Down 38% to Buy and Hold Forever

Topicus has slid hard from its highs, but its cash-flow compounding engine may still be running underneath the noisy headlines.

Read more »

chip glows with a blue AI
Tech Stocks

TFSA vs. RRSP: Where Should You Buy Micron Stock?

Micron stock has rallied 350% in 12 months. Is there more upside to the stock? If you are considering investing,…

Read more »

man is enthralled with a movie in a theater
Tech Stocks

Netflix Lost. Netflix Won. Film at 11.

Netflix lost the bidding war for Warner Bros. Why are investors celebrating?

Read more »

Sliced pumpkin pie
Tech Stocks

The Canadian Company Wall Street Is Ignoring — and Why That’s Your Opportunity

I don't usually pick stocks, but this TSXV naval defence startup is going on my watchlist.

Read more »