Microsoft is planning an initial production run of over three million units. This amount is small, considering Apple sold about 17 million ‘iPad’ units in its fiscal third quarter.
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New York, NY (PRWEB) September 06, 2012
According to George Leong, contributor to Profit Confidential and financial expert, Microsoft needs to grow its mobile business on its own, but this will not be easy, due to the strong brand awareness surrounding Apple. Leong contends that the future for Microsoft will lie with its new “Surface” tablet; however, Leong notes that, unless the tablet is truly amazing, Microsoft’s move into the tablet market might be too late.
“For Microsoft, this will be its first venture into hardware sales, so it will be interesting to monitor,” notes Leong. Citing research firm IDC, Leong reports that “Microsoft is planning an initial production run of over three million units. This amount is small, considering Apple sold about 17 million ‘iPad’ units in its fiscal third quarter.”
In the article “Microsoft Betting on its New “Surface” Tablet,” Leong notes that even Microsoft’s $300-million investment for a 17% stake in a new division of troubled Barnes & Noble, Inc. is sinking fast: “It was a gamble, but a bad one,” says Leong.
There was speculation Microsoft would buy Nokia, but, based on Leong’s stock analysis, it is doubtful that this will happen due to the sinking strength of the Nokia brand.
“…the key will be the pricing, assuming everything else is equal,” argues Leong.
The Profit Confidential contributor also notes that Research In Motion tried to sell a cheaper “PlayBook” tablet, but it failed. He claims, however, that the PlayBook was not a great product, with no clear advantage, except price, over the iPad, which Leong reports is the tablet leader with 70% market share.
Leong states that the Surface will face stiff competition, and could give Microsoft a foot in the door of the tablet market.
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Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
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