Tag Archives: Desktop Computers

Microsoft unveils $4,299 Surface desktop computer



CNN
 — 

Microsoft’s most expensive Surface device is about to get even pricier.

At a press event on Wednesday, Microsoft is set to unveil several Surface Pro tablets, Surface Laptop models and a Surface Studio 2+ desktop computer, the last of which has not been updated in several years.

The new 28-inch Surface Studio 2+, an all-in-one desktop, now has an Intel Core H-35 processor, 50% faster CPU performance and an updated NVIDIA chip for faster graphics. The device also includes an updated display, cameras, microphones and supports a digital pen for on-screen drawing. It also has several ports, including USB with Thunderbolt 4, and the display can split into four different apps at once for greater multitasking.

The Surface Studio 2+ starts at $4,299, and $4,499 with the digital pen. The previous Surface Studio 2, released in 2018, received some criticism for its $3,499 starting price. Microsoft told CNN Business this year’s price jump is attributed to several significant improvements, including the new processor, a 1 TB SSD hard drive for faster file transfers and an enhanced 1080p camera, among other features.

The announcements about the refreshed Surface product lineup will kick off Microsoft’s days-long Ignite developer conference on Wednesday. The event comes as Microsoft marks the tenth anniversary of the Surface line, which originally launched with a tablet to take on the iPad.

Like other tech companies that have unveiled new products this fall, Microsoft is also confronting a more difficult economic environment, including high inflation and fears of a looming recession, that could make it harder to convince customers to spend three or even four figures upgrading devices.

While the new Surface products aren’t much different in terms of design or screen size than previous iterations, the latest devices feature some upgrades, including new chipsets for better performance.

Microsoft showed off its flagship Surface Pro 9 tablet, once again aimed at replacing the laptop. The two-in-one device features an aluminum casing in new colors as well as a built-in kickstand and a PixelSense display. Underneath the display is an HD camera, updated speakers and microphones, and a custom G6 chip. Microsoft said the chip helps power apps with digital ink, such as Ink Focus in Microsoft OneNote and the GoodNotes app for Windows 11, which is designed to make it feel like the user is writing with a pen and paper.

The Surface Pro 9 also offers a choice between processors. The first option is a 12th Gen Intel Core processor built on the Intel Evo platform 4 with Thunderbolt 4 – a combination which promises 50% more performance, better multitasking and desktop productivity, faster data transfer, and the ability to dock to multiple 4K displays. The second option is a Microsoft SQ3 processor powered by Qualcomm Snapdragon with 5G connectivity, with up to 19 hours of battery and new AI features.

The Surface Pro 9 is available in four colors, including platinum, graphite, sapphire and forest. It starts at $999.

Microsoft also introduced an update to its ultra-portable laptop, Surface Laptop 5, which looks very similar to its predecessor but with a processor update that may attempt to bring it closer in competition with Apple’s ARM-based chipsets for macOS laptops.

Surface Laptop 5 runs on Intel Evo platform and comes in two display sizes: 13.5 inches and 15 inches. It comes with updated Dolby Atmos 3D spatial speakers, a front-facing HD camera that automatically adjusts camera exposure in any lighting, and several new aluminum colors, such as cool metal, sage and alcantara. The company also said it promises one day of battery life on a single charge and is 50% more powerful than its predecessor.

The Surface Laptop starts at $999 for the 13.5-inch version and $1299 for the 15 inch. Pre-orders begin for Surface products on Wednesday in select markets and start hitting shelves later this month.

Microsoft hardware devices amount to between 3% to 5% of the tablet market, according to David McQueen, an analyst at ABI Research. Instead, the bulk of its revenue comes from Microsoft OS across different device types and associated applications and cloud services.

“Microsoft is able to stay in the hardware sector because of revenue generated from these services,” McQueen said. It’s an approach similar to Google whose Pixel smartphone remains a niche product but serves as a way for the company to highlight its apps and OS.

On Wednesday, the company also announced a new Microsoft Designer app and Image Creator in Bing and the Edge browser to bring advanced graphic design to mainstream audiences. The platform relies heavily on a partnership with startup OpenAI and its AI-powered DALL-E 2 tool, which generates custom images using text prompts. DALL-E 2 is also coming to Microsoft’s Azure OpenAI Service.

Brands are increasingly using DALL-E 2 for both ads and product inspiration, according to Microsoft. In a blog post, the company detailed how toy company Mattel sought out DALL-E 2 to conceptualize how future cars may look, such as by changing colors and typing “make it a convertible,” among other commands.

Experts in the AI field have raised concerns that the open-ended nature of these systems — which makes them adept at generating all kinds of images from words — and their ability to automate image-making means they could automate bias on a massive scale. In previous test of OpenAI’s system, for example, typing in “CEO” showed images that all appeared to be men and nearly all of them were white.

Microsoft said it is taking the concerns seriously. Inappropriate text requests will be denied by Microsoft’s servers, according to the company, and users will ultimately be banned for repeat offenses.

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Warren Buffett Says Markets Have Become a ‘Gambling Parlor’

OMAHA, Neb.—As recently as February,

Warren Buffett

lamented he wasn’t finding much out there that was worth buying. 

That is no longer the case.

After a yearslong deal drought, Mr. Buffett’s

Berkshire Hathaway Inc.

BRK.B -2.55%

is opening up the spending spigot again. It forged an $11.6 billion deal to buy insurer

Alleghany Corp.

Y -0.62%

, poised to be Berkshire’s biggest acquisition in six years. It bought millions of shares of

HP Inc.

HPQ -2.53%

and

Occidental Petroleum Corp.

OXY -3.40%

And it dramatically ramped up its stake in

Chevron Corp.

CVX -3.16%

, making the energy company one of Berkshire’s top four stock investments.

The big question: Why?

“It’s a gambling parlor,” Mr. Buffett said Saturday of the markets over the past few years. He added that he blamed the financial industry for motivating risky behavior among investors. While he finds speculative bets “obscene,” the pickup in volatility across the markets has had one good effect, he said: It has allowed Berkshire to find undervalued businesses to invest in again following a period of relative quiet. 

“We depend on mispriced businesses through a mechanism where we’re not responsible for the mispricing,” Mr. Buffett said.

Mr. Buffett, 91 years old, shared his thoughts on the state of the markets, Berkshire’s insurance business and recent investments at the company’s annual shareholder meeting in downtown Omaha.

Berkshire also held votes on shareholder proposals, with investors ultimately striking down measures that asked Berkshire to make its board chairman independent and called for the company to disclose climate risk across its businesses. 

Shareholders eager to score prime seats lined up for hours before the doors opened in the arena where Mr. Buffett; right-hand-man

Charlie Munger,

98; and Vice Chairmen

Greg Abel,

59, and

Ajit Jain,

70, took the stage. As Mr. Buffett entered, a lone audience member took the opportunity to send a message. “We love you,” the person shouted. 

Mr. Buffett appeared equally enthused to see the thousands of shareholders sitting before him. 

It was a lot better being able to be with everyone in person, he said.

Up until recently, Berkshire had largely been sitting on its cash pile. Its business thrived; a recovering economy and roaring stock market helped push net earnings to a record in 2021. But it didn’t announce any major deals, something that led many analysts and investors to wonder about its next moves. Berkshire ended the year with a near record amount of cash on hand. (After Berkshire’s buying spree, the size of the company’s war chest shrank to $106.26 billion at the end of the first quarter, from $146.72 billion three months earlier.)

Mr. Buffett’s feeling that there were no appealing investment opportunities for Berkshire quickly gave way to excitement in late February, he said Saturday, when he got a copy of Alleghany Chief Executive

Joseph Brandon’s

annual report.

The report piqued his interest. He decided to follow up with Mr. Brandon, flying to New York City to talk about a potential deal over dinner. 

Warren Buffett headed in to speak to shareholders at Berkshire Hathaway’s annual meeting in Omaha, Neb., on Saturday.



Photo:

SCOTT MORGAN/REUTERS

If the chief executive hadn’t reached out, “it wouldn’t have occurred to me to write to him and say, ‘Let’s get together,’” Mr. Buffett said.

Berkshire’s decision to build up a 14% stake in Occidental also came about with a report. Mr. Buffett said he had read an analyst note on the company, whose stock is still trading below its 2011 high, and decided the casino-like market conditions made it a good time to buy the stock.

Over the course of just two weeks, Berkshire scooped up millions of shares of the company. 

“I don’t think we ever had anything quite like we have now in terms of the volumes of pure gambling activity going on daily,” Mr. Munger said. “It’s not pretty.” 

But the amount of speculation in the markets has given Berkshire a chance to spot undervalued businesses, Mr. Munger said, allowing the company to put its $106 billion cash reserve to work.

“I think we’ve made more because of the crazy gambling,” Mr. Munger said.

Another business that caught Berkshire’s eye? Chevron. Berkshire’s stake in the company was worth $25.9 billion as of March 31, up from $4.5 billion at the end of 2021, according to the company’s filing. That makes Chevron one of Berkshire’s four biggest stockholdings, alongside

Apple,

American Express Co. and Bank of America Corp.

Neither Mr. Buffett nor Mr. Munger specifically addressed Berkshire’s decision to increase its Chevron stake.

But the two men offered a defense of the oil industry. It is a good thing for the U.S. to be producing more of its own oil, Mr. Buffett said. Mr. Munger went further, saying he could hardly think of a more useful industry. 

At the meeting, Mr. Buffett also revealed that Berkshire has increased its stake in

Activision Blizzard Inc.

The company now holds a 9.5% position in Activision, a merger-arbitrage bet from which Berkshire stands to profit if

Microsoft Corp.’s

proposal to acquire the videogame maker goes through.

SHARE YOUR THOUGHTS

Do you agree with Warren Buffett’s market outlook? Why or why not? Join the conversation below.

At the end of the day, Berkshire doesn’t try to make its investments based on what it believes the stock market will do when it opens each Monday, Mr. Buffett said.

“I can’t predict what [a] stock will do…We don’t know what the economy will do,” he said.

What Berkshire focuses on is doing what it can to keep generating returns for its shareholders, Mr. Buffett said. Berkshire produced 20% compounded annualized gains between 1965 and 2020, compared with the S&P 500, which returned 10% including dividends over the same period.

“The idea of losing permanently other people’s money…that’s just a future I don’t want to have,” Mr. Buffett said.

Write to Akane Otani at akane.otani@wsj.com

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