Lenovo not worried about Microsoft's Surface tablet, expects to beat it

IDG News Service - Lenovo said on Thursday the company was not worried about Microsoft's new Surface tablet, with its CEO stating the PC maker is confident it provides better hardware than its competitors including Microsoft.

"They (Microsoft) are strong in the software, but I don't believe they can provide the best hardware in the world. Lenovo can," said Lenovo CEO Yang Yuanqing during an earnings call.

"Although we don't like Microsoft providing the hardware, but even though they are starting this hardware business, we think for us that just adds one more competitor," he added.

Earlier this month, the CEO of rival PC maker Acer said the company was opposed to Microsoft selling its Surface tablet, which he said would be negative for the industry's ecosystem.

In the past, Microsoft has relied on PC vendors to push out its Windows product through their notebook and desktop products. But for its upcoming Windows 8 release, the software giant has decided to sell its own "Surface" tablet device using the OS, which would compete with its partners products.

Reports have also emerged that a version of Microsoft's Surface tablet will be priced at US$199. During Thursday's earnings call, however, Lenovo's CEO said, "Regarding of the Surface, to be frank, we are not that worried about that."

"We are still confident in ourselves. We are providing much better hardware than our competitors including Microsoft," he said.

Microsoft could not be reached immediately for comment. Windows 8 and the Surface tablet are scheduled to be released on Oct. 26.