Regaining its Lost Position
Rajesh is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
A lot is happening in the technology industry where Microsoft (NASDAQ: MSFT) looks well poised from all angles, preparing to lead in the tech segment. Not only has it planned to introduce the iPad-Killer in the form of the Surface tablet, but it’s innovating other ways to disturb Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG) dominance in this segment by introducing the Windows 8 OS and the Windows Phone.
Lately when Microsoft had announced a write off of $6.3 billion in its books, it raised concerns about its quarter results. But the tech giant knows how to fix things full and well.
Surfacing the real challenger
I agree that Microsoft has been a little lazy in planning its tablet because of which it somewhat lost grounds in this segment. But what a comeback with the Surface! The Surface has shaken Apple with the cool features that it offers. The integrated kickstand enables it to be a perfect substitute for a laptop, making it much more convenient for corporate professionals. What adds to the benefit is the availability of the Surface in two versions; one with Windows RT which shall run on an ARM-based processor, and the second with Windows 8 Pro powered by the Intel processor that allows the running of desktop applications. The second version gives a huge edge to the Surface over Apple’s iPad which has limited uses. The much wanted features of the Surface makes it more holistic in comparison to the Google Nexus and the Apple iPad.
What else is in the making?
Wait, as there’s Windows 8
Next is the launch of Windows 8 which shall be commercially available from this October. Microsoft clearly wins the race when it comes to providing a secured and sophisticated operating system compared to Apple and Google. Windows 8 claims to bring a different level of integration for both computers and mobile handsets. There lies little doubt about the success of its Windows which had tremendous popularity and wide acceptance in businesses and corporate houses. In addition, Samsung and Hewlett-Packard (NYSE: HPQ) have already shown interest in making Windows 8 devices. Also recently the company reduced the upgrade cost of the system from Windows 7 to Windows 8 to $40 relative to $200 which it charged for the Windows 7 upgrade. This was basically a reaction to the $20 upgrade plan of Apple’s OS.
However, the race isn’t won yet, as there are roadblocks. Google has been concentrating on smaller businesses in order to convert them into Google Apps. The company is also working towards getting an approval from the Federal organization to take on their App suite. However, Microsoft still thinks that the rival is way behind, as the company’s Senior Director boasts that they sell Office 2010 every second. This says it all!
Despite this, the company should pay heed to the situation. Microsoft looks like having some grand plan. The company’s move is very strategically taken as it wants to control its offering from all angles. It seems that the company wants to manage the entire process, from manufacturing to organizing the supply chain by itself rather than depending on third parties. What can it do then? A good option is to consider acquiring Research In Motion or Nokia, both of which are struggling at present. However, the acquisition would reduce Microsoft’s struggle and help it gain expertise in making its own handsets just like Apple does.
My Takeaway
Microsoft has a magnificent vision to explore options and expand to regain its leading position in the tech market. However, unseating Apple isn’t an easy job. What needs to be seen is how the majestic plan of the company’s Surface sales, Windows 8 upgrade and the next gen Windows Phone integrate to make the world of Microsoft.
liveinvestor has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, and Microsoft. 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.
