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
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
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
“…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
To see the full
article and to learn more about Profit
Confidential, visit 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 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.