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Why Microsoft is betting on a new $2,999 super-high end desktop

Microsoft may be looking to flip the "I'm a Mac, and I'm a PC" narrative on its head.

A day before Apple is expected to release updated computers, Microsoft has upped its bets on the premium market, unveiling a $2,999 desktop device.

"We're trying to create a new category of device," Yusuf Mehdi, corporate vice president of the Windows and devices group at Microsoft, told CNBC's "Squawk Alley" on Wednesday. "We're going to push the high end."


Microsoft revealed Surface Studio, with what it says is the thinnest desktop display ever made, alongside a slew of new devices.

The Surface Studio features a touch screen, 3-D sketching and super-high-quality display. The company also revealed a new Surface Book, with NVIDIA graphics cards known for gaming.

Journalists use a new dial as they inspect examples of the new Microsoft Surface Studio computer at an event in New York City, October 26, 2016.
Lucas Jackson | Reuters
Journalists use a new dial as they inspect examples of the new Microsoft Surface Studio computer at an event in New York City, October 26, 2016.

"We think we can grow the market for these types of things with this new category," Mehdi said.

Worldwide PC shipments are forecast to decline 7.3 percent year-over-year in 2016, according to International Data Corporation (IDC). But Mehdi said Microsoft has focused its Windows 10 updates on growing categories like gaming computers, Xbox, and mixed reality headset HoloLens.

It comes a day before Apple is expected to release its own pricey wares. A new MacBook Pro and MacBook Air are expected, according to Bloomberg.

"Our strategy with Windows 10 is to grow the devices and drive that innovation forward," Mehdi said.