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| Microsoft Surface Pro 2 |
Could Microsoft Surface Pro 2 be the game changer?
Recently the Microsoft Surface 2 and the Surface Pro 2
reported to be sold out everywhere including the Microsoft online store partly due to the holiday season as well. But to
be honest, I still don’t see Microsoft obtaining a larger market share on their
new gadget. The tag line for Microsoft on the new Surface Pro 2 has been all
about “not reinventing the wheel but making it better.” It seems to me that
Microsoft has been right about it but has it really developed an item that users
want around the world?
Comparing the Surface Pro 2 to the latest Apple iPad Air as well as the Samsung Galaxy Tab 3 10.1 where all three devices have almost similar specifications but differ on the most important thing which is operating system. As a consumer, pricing is always the main highlight to me as I am no fan to any product or operating system. The product that gives me the best value also offering the lowest price would be my main concern and let's take a look on the prices for these three products.
Comparing the Surface Pro 2 to the latest Apple iPad Air as well as the Samsung Galaxy Tab 3 10.1 where all three devices have almost similar specifications but differ on the most important thing which is operating system. As a consumer, pricing is always the main highlight to me as I am no fan to any product or operating system. The product that gives me the best value also offering the lowest price would be my main concern and let's take a look on the prices for these three products.
- Microsoft Surface Pro 2 - $749.29 on Amazon.com
- Samsung Galaxy Tab 3 16GB (10.1) - $317.99 on Amazon.com
- Apple iPad Air 16G Wi-Fi only - $499 on the Apple Online Store
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| 2013 Market Share In Terms of Mobile Operating Systems |
I know by comparing the Microsoft Surface Pro 2 against the other two 'hot' tablets would not be fair due to the 128GB capacity as well as having a 4 GB RAM but it is still the best two competitors to put up against the Surface Pro 2. Think of it in a way that people who really buy the new Surface Pro 2 are there to exploit the power of the device as well as another option other than using the Android tablets. So the idea of it being a laptop/tablet would not naturally come in to the mind of the public moreover the extra price you have to pay to get a keyboard that attaches to it. My choice would be to get a cheaper tablet or a smartphone with a bigger screen particularly those are with Android and a laptop for my daily workload. With that in mind, I would have to conclude that the Surface Pro 2 by Microsoft would not a game changer towards the tablet market. Maybe a couple of percentage gain on market share and that just all.
Since Microsoft has been slow over the last couple of years as well as the announcement of CEO Steve Ballmer to step down has elevated their shares prices. I can see that investors are waiting for the correct moment into buying in MSFT. Why so? Giving it a new head would definitely propel the company to a different direction due to the fact that they were quite slow into entering the mobile devices operating system market. Investors are keen into seeing a new leader that comes in and reshuffles the company pointing them to higher growth where the company is capable of.
Currently the share prices have increased in-line with the S&P500 hitting around 40% return in 2 years with NASDAQ doing 60% gains and that’s about it. Microsoft has always and I believe forever to be the market leader on desktop/laptop operating systems. The company currently heading forward with their growth in the development of new operating system alike the Windows 8 and receiving renewable source of revenue with upgrading the version of the Windows OS. In that sense, we can see a good return on equity with a 10 year normalized Return On Equity (ROE) to be 17.9%. That is really the core structure of this company and to penetrate the mobility market? It would take some time...
The price of the new device is definitely a big factor towards the amount of people buying it seems to be logical with the theory of supply and demand. But with time, more and more devices would be produced that minimizes the fixed cost and we might just see a decline in price for Windows based mobile devices. With that in mind, the market share of Windows 8 users for tablets increases would derive to production companies adapting the Windows to their machines as their default operating system due to popularity.
Would Microsoft be a good buy or not? My opinion on that point towards the process of developing our portfolio. Sudden surge of 100% in returns seems unlikely like the ones we had on Apple (AAPL) but to me MSFT has all been about constant growth. I might just buy a little from time to time searching for a good price on technical analysis basis and wait the wave when their share of mobility devices increases kicking in the factor for more people to jump in. Keep MSFT in view for the near future as when the problem sorts itself out with a new leader and of course more products that could send the share prices flying.
Currently the share prices have increased in-line with the S&P500 hitting around 40% return in 2 years with NASDAQ doing 60% gains and that’s about it. Microsoft has always and I believe forever to be the market leader on desktop/laptop operating systems. The company currently heading forward with their growth in the development of new operating system alike the Windows 8 and receiving renewable source of revenue with upgrading the version of the Windows OS. In that sense, we can see a good return on equity with a 10 year normalized Return On Equity (ROE) to be 17.9%. That is really the core structure of this company and to penetrate the mobility market? It would take some time...
Would Microsoft be a good buy or not? My opinion on that point towards the process of developing our portfolio. Sudden surge of 100% in returns seems unlikely like the ones we had on Apple (AAPL) but to me MSFT has all been about constant growth. I might just buy a little from time to time searching for a good price on technical analysis basis and wait the wave when their share of mobility devices increases kicking in the factor for more people to jump in. Keep MSFT in view for the near future as when the problem sorts itself out with a new leader and of course more products that could send the share prices flying.
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