Apple Inc. (AAPL), And Big Risks For Microsoft Corporation (MSFT)

Page 2 of 2

The risk is that Microsoft isn’t an accomplished hardware maker. The Xbox 360 had numerous issues when it was launched, the Zune was a disaster, and the Surface hasn’t been a hit by any stretch. Can it really pivot from software to being a “devices and services” company?

With risk comes opportunity
Despite the challenges facing Microsoft, the door is open in mobile. Apple is losing share and Google’s open-source strategy has left a disjointed collection of devices running many different versions of Android. Microsoft will have to price its devices to compete with Android, but if it can offer seamless integration with hundreds of millions of computers running Windows worldwide, we’ve seen that consumers are willing to switch mobile devices when their old one goes out of style. Just look at how fast Android gained market share in smartphones. Will Microsoft be able to catch fire in the same way?

The article Microsoft: The Next Apple? originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Apple and Microsoft. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2