Large Microsoft (MSFT) Windows RT Partner Scraps U.S. Tablet Plans...for Now
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Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.7%
EPS Growth %: +20.0%
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Microsoft (Nasdaq: MSFT) has been pressured most of the early session today following reports that one of its key tablet partners in Windows 8 might be backing off.
According to CNET, South Korean electronics giant Samsung might not bring its latest Windows RT tablet to the U.S. The Ativ Tab was slated for release in 2013, but SVP Mike Abary noted that there were two factors in making the decision.
First, retail checks indicated that demand for the product was only "modest." Second, and somewhat related, Abary said there would be a "significant" investment to get customers up to speed on the benefits of Windows RT.
Windows RT is largely expected to sell at a lower price-point than devices running Windows 8 (or the upcoming Windows Pro), but it would need to make sacrifices to bring down the price, like using less memory. The company ultimately didn't want to do that.
Abary emphasized that it wasn't an issue on Microsoft's side, just on how the product (Ativ) was built.
No word on which markets the Ativ will go to, whether Samsung will rework the tablet to get the price lower, or if there is a time frame of when Samsung will bring a Windows RT tablet to the U.S.
Microsoft is about 0.4 percent into positive territory Friday.
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According to CNET, South Korean electronics giant Samsung might not bring its latest Windows RT tablet to the U.S. The Ativ Tab was slated for release in 2013, but SVP Mike Abary noted that there were two factors in making the decision.
First, retail checks indicated that demand for the product was only "modest." Second, and somewhat related, Abary said there would be a "significant" investment to get customers up to speed on the benefits of Windows RT.
Windows RT is largely expected to sell at a lower price-point than devices running Windows 8 (or the upcoming Windows Pro), but it would need to make sacrifices to bring down the price, like using less memory. The company ultimately didn't want to do that.
Abary emphasized that it wasn't an issue on Microsoft's side, just on how the product (Ativ) was built.
No word on which markets the Ativ will go to, whether Samsung will rework the tablet to get the price lower, or if there is a time frame of when Samsung will bring a Windows RT tablet to the U.S.
Microsoft is about 0.4 percent into positive territory Friday.
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