Microsoft (MSFT) Sets Launch Date for Surface Tablet; Notes Expected Margin Pressure
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Price: $34.15 -1.33%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.7%
EPS Growth %: +20.0%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.7%
EPS Growth %: +20.0%
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As announced earlier in July, Microsoft (Nasdaq: MSFT) is planning to launch its next version of Windows -- Windows 8 -- on October 26th (or around then, for those technically inclined). However, not much has been mentioned about the debut of its first PC series, the Surface tablets.
Until today.
According to reports out early Monday which cited Microsoft's quarterly filing with the U.S. SEC, the Surface tablet will launch on October 26th as well.
The first set of Surface tablets will use Windows RT, which utilize ARM (Nasdaq: ARMH)-based chips. Intel's (Nasdaq: INTC) Windows 8 Pro tablets will be available about 90 days later.
Also in the filing was the following line: "We expect to incur substantial marketing costs in launching Window 8 and associated services and devices, which may reduce our operating margins." While margin compression on the tablets was largely expected, competitors, save for Apple (Nasdaq: AAPL), have generally taken a hit on tablets in order to sling higher-margin software and media. The fact that "significantly" wasn't placed ahead of "reduce our operating margins" might cause investors to let out a sigh of relief.
No pricing was announced in the filing, though estimates have been getting rather high lately.
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Until today.
According to reports out early Monday which cited Microsoft's quarterly filing with the U.S. SEC, the Surface tablet will launch on October 26th as well.
The first set of Surface tablets will use Windows RT, which utilize ARM (Nasdaq: ARMH)-based chips. Intel's (Nasdaq: INTC) Windows 8 Pro tablets will be available about 90 days later.
Also in the filing was the following line: "We expect to incur substantial marketing costs in launching Window 8 and associated services and devices, which may reduce our operating margins." While margin compression on the tablets was largely expected, competitors, save for Apple (Nasdaq: AAPL), have generally taken a hit on tablets in order to sling higher-margin software and media. The fact that "significantly" wasn't placed ahead of "reduce our operating margins" might cause investors to let out a sigh of relief.
No pricing was announced in the filing, though estimates have been getting rather high lately.
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Brendi on Jul 31, 2012 05:49 AMMark as Spam | Reply to this comment
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