Microsoft (MSFT) Looks to Shrink Its Tablet Problem...Literally
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Price: $397.36 -1.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
EPS Growth %: +16.2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
EPS Growth %: +16.2%
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Microsoft (Nasdaq: MSFT) shares are seeing a little bit of pressure Thursday morning amid a downgrade at Goldman Sachs and Nomura earlier (here and here, respectively) following Q1 global PC sales results, but Microsoft might not be out of the game quite yet.
Reports out have Microsoft working on a smaller version of its Surface tablet computer to compete with offerings from Apple (Nasdaq: AAPL), Google (Nasdaq: GOOG), Amazon (Nasdaq: AMZN) and others. The WSJ said that the new tablet could have a 7-inch panel size, putting it on par with the iPad mini, Kindle Fire, and Nexus 7.
The addition of a smaller Surface comes as Microsoft may be planning a revamp of the entire Surface line, which should go into product by the end of 2013, sources said.
Recent IDC data pegs about half of tablet computers shipped in Q412 sized at 8-inches or less. Given the market data, Microsoft execs shifted plans to create the smaller tablet.
Microsoft needs to get something going and soon. Recent mobile device data has iOS and Android-equipped devices continuing to dominate the market. Gartner and IDC data on Wednesday showed that global PC shipments fell 11 percent or more, not something you want to be a dominant force in (just ask Hewlett-Packard (NYSE: HPQ)).
One of the potential possibilities the might exist is Microsoft integrating its next line of Surface tablets into the next-generation Xbox gaming console. Should the next Xbox take on the best parts of both Sony's (NYSE: SNE) PlayStation series and Nintendo's Wii (and Wii U), Microsoft would be a tough competitor to scale.
For now, Microsoft and its Windows 8 ecosystem are experiencing a little more "pane" than most investors would like. Shares are down 3.5 percent early.
Reports out have Microsoft working on a smaller version of its Surface tablet computer to compete with offerings from Apple (Nasdaq: AAPL), Google (Nasdaq: GOOG), Amazon (Nasdaq: AMZN) and others. The WSJ said that the new tablet could have a 7-inch panel size, putting it on par with the iPad mini, Kindle Fire, and Nexus 7.
The addition of a smaller Surface comes as Microsoft may be planning a revamp of the entire Surface line, which should go into product by the end of 2013, sources said.
Recent IDC data pegs about half of tablet computers shipped in Q412 sized at 8-inches or less. Given the market data, Microsoft execs shifted plans to create the smaller tablet.
Microsoft needs to get something going and soon. Recent mobile device data has iOS and Android-equipped devices continuing to dominate the market. Gartner and IDC data on Wednesday showed that global PC shipments fell 11 percent or more, not something you want to be a dominant force in (just ask Hewlett-Packard (NYSE: HPQ)).
One of the potential possibilities the might exist is Microsoft integrating its next line of Surface tablets into the next-generation Xbox gaming console. Should the next Xbox take on the best parts of both Sony's (NYSE: SNE) PlayStation series and Nintendo's Wii (and Wii U), Microsoft would be a tough competitor to scale.
For now, Microsoft and its Windows 8 ecosystem are experiencing a little more "pane" than most investors would like. Shares are down 3.5 percent early.
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