Dell, HP Already Backing Microsoft’s Windows 8 For Tablets
Microsoft (NASDAQ:MSFT) is expected to launch the next version of the Windows OS – Windows 8 – in the second half of 2012. It recently showcased the developer preview of Windows 8 at its Build conference. Windows 8 will be targeted at both the computer and tablet markets. While it is the dominant platform in computers, it will compete primarily with Apple‘s (NASDAQ:AAPL) iOS and Google‘s (NASDAQ:GOOG) Android in the tablet segment. Dell (NASDAQ:DELL) and HP (NYSE:HPQ), the largest computer manufacturers have already started planning and working on Windows 8 tablets. [1] They will be launching their tablets soon after the official launch of Windows 8.
Windows is one of the most valuable businesses of Microsoft, and accounts for around 25% of Microsoft’s $28 Trefis price estimate, which stands nearly 3% above its current market price.
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Microsoft Has a Good Chance to Capture the Tablet Market with Windows 8
Apple currently rules the consumer tablet market with the iPad, and is starting to gain traction in enterprises as well. Google’s Android platform has largely been unimpressive, although that might change with the launch of the next version of Android – Ice Cream Sandwich.
Microsoft now has the backing of two of the biggest computer manufacturers – Dell and HP. It will also presumably be backed by HTC, Samsung and other device manufacturers which make Windows Phone devices. It is the only alternative to Android for them, which isn’t doing very well in terms of sales.
It stands a good chance of beating Android and dethroning iOS as the top tablet platform in a few years time, though this view has many naysayers. However, there is still almost a year before it gets to market, which might turn out to be a bit late.
Windows 7 sold nearly 450 million copies until now, and we expect Windows 8 to break that record. We expect Apple to sell around 55 million iPad units in 2012, with a market share of around 60-70% by then. If Microsoft is able to grab a significant share of the tablet market, it could mean a huge boost to its Windows revenues, which have been on a marginal decline lately, due to slowing Windows 7 sales.
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