Microsoft’s Move into Tablet Market May Be Too Late, According to Leading Financial Newsletter Profit Confidential

Share Article

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.

Microsoft’s Move into Tablet Market May Be Too Late, According to Leading Financial Newsletter Profit Confidential

Microsoft’s Move into Tablet Market May Be Too Late, According to Leading Financial Newsletter Profit Confidential

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.

Past News Releases

RSS

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.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.

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%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Michael Lombardi
Follow us on
Visit website