Apple Inc. (AAPL), AT&T Inc. (T), and Microsoft Corporation (MSFT) at War

At this rate, you might as well say Microsoft Corporation (NASDAQ:MSFT) will need a whole century to catch up, because Apple is that much further ahead of the pack. 38.90% market share is phenomenal, considering Apple is a lone wolf, and Android is a collection of mobile phone developers (Samsung, LG, Motorola, and HTC). Not to down-play Samsung’s success and Motorola’s survival in Smartphones- It’s just that consumers have already made up their minds; it is all about Apple, and so as long as Tim Cook doesn’t ruin Apple’s product execution strategy, Apple’s shareholders should eventually see a recovery in the stock price.

Conclusion and guidance

Analysts on a consensus basis expect Microsoft’s earnings to grow by 0.70%. It is likely that Microsoft will be able to pull well-ahead of those low earnings growth estimates analysts have had in the company. Microsoft’s performance in its Windows division may receive a boost due to its upgrade cycle, and it also helps that the Xbox 720 is rumored to launch at Christmas. Ignore Christmas: The fact is Skype is killing it in the telecom space.  Who wouldn’t want to place long distance calls at a deep discount? Microsoft’s mobile strategy, in terms of Skype, is a success. Microsoft’s attempt at mobile in Smartphones and Tablets is leery at best. The Surface was a failure in terms of generating demand. With that said, the business and cloud division more than make up for Microsoft Corporation (NASDAQ:MSFT)’s weakness in the tablet and mobile space.

Investors should lower their expectations from Microsoft’s mobile efforts going forward. But what should keep investors upbeat is the Windows refresh cycle, Xbox 720, Skype, and the Cloud. The 3.09% dividend yield is a bonus- sort of like the whipped cream that comes with your strawberry Frappuccino.

The article AT&T, Microsoft, and Apple at War originally appeared on Fool.com and is written by Alexander Cho.

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