Microsoft's (MSFT) Tablet Will Be Late To the Game
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Price: $399.04 --0%
Rating Summary:
52 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 16 | New: 3
Rating Summary:
52 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 16 | New: 3
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Microsoft Corp. (NASDAQ: MSFT) is already irrelevant in the smartphone market, and now the company will not have a tablet powered by Windows ready to ship until mid-2011, according to Jefferies analyst Katherine Egbert.
If this is the case, Apple Inc.'s (NASDAQ: AAPL) iPad, which has been a overwhelming success, will have a 1.5 year head start in the tablet marketplace. Also the PlayBook from Research in Motion Ltd. (NASDAQ: RIMM), and devices running Google Inc.’s (NASDAQ: GOOG) Android operating system will be well penetrated into the market once a Windows tablet finally makes an appearance.
The mid-2011 estimate might even be generous according to Egbert who said, "Early reports about Windows 8, which has been rumored for release in late 2011, make it appear to be more suited to the tablet market with features such as instant on, GPS support and restoration tools."
The problem right now is that Windows 7, which was vastly more popular than its predecessor, is not supported on the popular SnapDragon processor from Qualcomm Inc. (NASDAQ: QCOM). The anticipated Oak Trail processor from Intel Inc. (NASDAQ: INTC) will not be ready until March.
According to Egbert, “Microsoft could introduce Windows-based tablets on the existing Atom chips, but the risks associated with the introduction of a less optimized system outweigh the risks of waiting for the right technology to become available."
This poses another problem for Hewlett-Packard Co.’s (NYSE: HPQ) Slate tablet, which was seen running Windows 7 on a leaked video. The Slate was first mentioned at the Consumer Electronics Show in January, and if it is waiting for Windows 8, then it will be well behind at that point.
There is no point of rushing a product to market if it’s not ready, but it seems Microsoft was not ready for the Tablet explosion; much as it was not ready for the emergence of the mp3 player.
Any Microsoft tablet could be to an iPad, what Zune was to the iPod; a late arrival that will be overlooked and dismissed.
Shares of Microsoft are trading flat on Thursday in midday market movement at $24.50.
If this is the case, Apple Inc.'s (NASDAQ: AAPL) iPad, which has been a overwhelming success, will have a 1.5 year head start in the tablet marketplace. Also the PlayBook from Research in Motion Ltd. (NASDAQ: RIMM), and devices running Google Inc.’s (NASDAQ: GOOG) Android operating system will be well penetrated into the market once a Windows tablet finally makes an appearance.
The mid-2011 estimate might even be generous according to Egbert who said, "Early reports about Windows 8, which has been rumored for release in late 2011, make it appear to be more suited to the tablet market with features such as instant on, GPS support and restoration tools."
The problem right now is that Windows 7, which was vastly more popular than its predecessor, is not supported on the popular SnapDragon processor from Qualcomm Inc. (NASDAQ: QCOM). The anticipated Oak Trail processor from Intel Inc. (NASDAQ: INTC) will not be ready until March.
According to Egbert, “Microsoft could introduce Windows-based tablets on the existing Atom chips, but the risks associated with the introduction of a less optimized system outweigh the risks of waiting for the right technology to become available."
This poses another problem for Hewlett-Packard Co.’s (NYSE: HPQ) Slate tablet, which was seen running Windows 7 on a leaked video. The Slate was first mentioned at the Consumer Electronics Show in January, and if it is waiting for Windows 8, then it will be well behind at that point.
There is no point of rushing a product to market if it’s not ready, but it seems Microsoft was not ready for the Tablet explosion; much as it was not ready for the emergence of the mp3 player.
Any Microsoft tablet could be to an iPad, what Zune was to the iPod; a late arrival that will be overlooked and dismissed.
Shares of Microsoft are trading flat on Thursday in midday market movement at $24.50.
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