One Player’s Loss is Another’s Gain
Abir is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Microsoft (NASDAQ: MSFT) has been planning for long to bring out Windows 8 and its Surface range of tablet computers as a reply to Apple’s (NASDAQ: AAPL) hit and popular iPad. As the release date approaches, the Windows maker is on its toes to make the event a big success. The company needs partners to make its Windows RT offering successful and that is where it is facing certain hiccups. However, all this in a day’s work for Microsoft and it is managing the situation well.
Windows 8 RT, formerly known as Windows on ARM, will be used as the operating systems on ARM devices or Tablets, as we know them better. Announced on April 16, 2012, “RT” stands for ‘Run time’, the technical term for driving the engine. So, to simplify, Windows RT is a version of Windows 8 which is being optimized for ARM-based Processors that will power most of the tablets and smart phones that are available in today’s world.
This new platform of Windows opens up a new era of limitless possibilities for hardware manufacturers, app developers and consumers by making everything users love about their smartphones available in brand new designs that offer an improved all day battery life and on-the-go connectivity.
Initially Microsoft approached Toshiba Corp. to manufacture the Windows RT devices. But unfortunately Toshiba had to back out on the deal because of delays in getting the components required for manufacturing. Instead, Toshiba decided to focus on bringing Windows 8 devices which will run on chips from Intel (NASDAQ: INTC) and Advanced Micro Devices Inc. (NYSE: AMD). The computer maker plans to focus more on Ultrabooks which have been inspired by Intel. In today's consumer electronics space tablets are gaining more importance than laptops and in such a situation, to maintain its relevance in the space, Intel came up with the concept of Ultrabooks. This new-to-the-market offering has huge potential which Toshiba intends to benefit from. Toshiba also has plans to grow along its AMD powered laptop offerings. Though not being able to work on tablets is a big loss for the Japanese tech giant, the company has future plans which will help it come back into the Windows RT tablet race and on this note the company commented “We will continue to look into the possibility of Windows RT products in the future while monitoring market conditions.”
As a reaction to Toshiba’s action, Microsoft announced officially that Dell, Lenovo, and Samsung will be producing Windows RT devices. However, the product details and exact release date still remains undisclosed. With big names such as these, Microsoft is surely going to create some ripples, if not a lot, and pose as a threat to Apple’s mighty iPad. Though Apple still controls nearly 70% of the tablet market, Microsoft’s offerings look strong to be able to take on the competition and maybe with time it can repeat what Samsung did to Apple in the smartphone space. Dell is pretty optimistic about its plans to work on the Windows RT tablets and even Samsung has chalked out plans to introduce its first in late October, very soon after Windows 8 is launched.
There are high chances of Windows 8 making big bucks and everyone in Microsoft’s ecosystem is likely to benefit hugely from the entire Windows 8 based “converged devices” movement. It is Toshiba’s loss to not be able to work on the Windows RT framework. But, like I said, one player’s loss is another player’s gain and this time it’s a gain for many other players. Dell, Samsung and Lenovo had been waiting to get their hands on the latest from Microsoft and now it’s their turn. With so much happening in this space, I am pretty bullish on Microsoft. What about you guys?
abirk has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Intel, and Microsoft. Motley Fool newsletter services recommend Apple and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.