Microsoft Corp (NASDAQ:MSFT)

CAPS Rating: 3 out of 5

The world’s leading software company, Microsoft is the force behind the Windows operating systems and the Office suite of software.


Player Avatar knam (72.89) Submitted: 12/20/2012 8:11:39 PM : Outperform Start Price: $25.30 MSFT Score: +43.73

Personal opinion: I believe there is a reason Microsoft made Windows 8 platform the way it is. Though macs will continue to eat away window's share of the PC market, windows will still be the dominant player when it comes to the PC market. The people who upgrade from windows 7 to 8 will get accustomed to the window 8's "live tiles" platform which is congruent throughout all their devices(smartphones, tablets, etc). This will, in the long run, help windows capture more smartphone and tablet markets.

Competition: There is no doubt that the iPad is the dominant device in the tablet market. Though it will continue to lose market share, it is a rapidly growing market. I currently use the iPad 3 for numerous purposes. I am a college student and in classes, it is a lot easier to take notes and do assignments on the iPad which is more portable and easily accessible. The iPad is a remarkable device and the iOS is a remarkable operating system. It is so simple that even my old Asian parents understand how to use it. However there are problems concerning the iPad when using it for educational/work purposes. Compared to the Surface's OS, it is hard to download a file from online to edit or use in MS word or MS pp. However, through the Microsoft Surface, users will be able to download documents easily through the pre-installed MS office. Not only that, but the USB port accessibility on the Surface allows people to print directly from their tablet; no need to transfer the file on to the computer to print! However the main problem with many OS's in the marketplace right now is their complexity. I currently own a Samsung Galaxy Note 2, and many of the features available are, in concept "cool" but in real life, useless. These complexity problems are also present in the Surface, the lives tiles are something people will have to get used to before it is easily understood. This is also the reason Apple will continue to dominate the market, their iOS is simple yet complex enough for all users to understand. And this is what Microsoft must do if they want a chance at the market.

Smartphone Competition: I also wrote in my NOK thumbs up that NOK will beat RIMM in the lower end/emerging smartphone market. My belief is the same as my previous statement regarding the tablet market. The windows 8 platform will get people accustomed to the "live tiles" set up present on Nokia's Windows 8 Smartphone, Lumia 920. They will still struggle to gain shares in the U.S. where phones are heavily subsidized. The reasons NOK will beat RIMM is too complex but in a simple way: RIMM is also too complex. Their concept ideas and features present on the BB10 smartphone will not be easily understood by the general population.

Disclosure: Long AAPL, NOK

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