Digitimes Research: Google to get the brunt of dual OS tablets while Microsoft to benefit the most

Jim Hsiao, DIGITIMES Research, Taipei

Intel and Asustek Computer released dual OS tablets at CES 2014 that combine Windows and Android operating systems into one unit in an attempt to tackle a new segment in the tablet market. However, due to pressure from Google, Asustek has postponed plans to release its TD300 tablet that was presented at CES 2014. Digitimes Research believes dual system devices benefit Intel, PC vendors and Microsoft while Google will get the brunt of such developments due to a possible increase in the Windows penetration rate.

Currently, only Intel's X86 chip can support dual operating systems, giving consumers an option to run either Android or Windows, but on a separate basis. From Intel's standpoint, tablets that have both Windows and Android dual OS is positive for its business model, and vendors can also increase brand value through dual-system products.

For Asustek, it runs the risk of offending Google and Microsoft by releasing dual-system products but on the other hand it benefits Intel. Intel is one of Asustek's main partners for 2014 and is expected to give full support on Asustek's new product line during the year, in addition to price advantages and even marketing funding. Asustek tested the waters at CES 2014 and may later reconsider mass producing such devices.

Although Microsoft's co-existence with Android may jeopardize the survival of Metro App, in the long run Microsoft is looking to expand the penetration rate of Windows in mobile devices, as it currently only has a 3% market penetration rate, so pairing up with Google should prove to be beneficial.

In the short run, dual operating system devices will not become the mainstream and Google is trying hard to avoid its OS being combined with Windows. Windows also could pose challenges for Android-based large-size tablet products.

Digitimes Research also added that other PC vendors now also have intentions to stop plans for producing products featuring dual operating system features.