Apple Inc. (AAPL), Microsoft Corporation (MSFT): Here Comes an Old Challenger

Greenway has been losing to its rivals — its overall market share declined 9% between July 2012 and May 2013, and it is currently ranked 11th in overall EHR market share. However, Greenway’s support is critical for Microsoft Corporation (NASDAQ:MSFT)’s Windows 8 tablets to establish a firmer foothold in the health care IT market.

Can the health care industry save Windows 8 tablets?
During the second quarter of 2013, research firm IDC reported that there were 1.8 million Windows 8 tablets sold, establishing a 4% market share — a big jump from the 1% share it held in the previous year. However, that surge wasn’t fueled by sudden demand, but by big price cuts across the board.

Windows 8 tablets also face two major obstacles in winning widespread adoption in health care IT. The first is its fragmented hardware base. Like Android, there is a wide variety of Windows 8 tablets on the market. Different hospitals will invariably select different tablets based on pricing and features. This makes it difficult to create apps for a variety of hardware configurations.

Another problem is the same one that Windows Phone faces — is there really an incentive for developers to produce medical apps for Windows 8, when most physicians already favor the iPad?

The Foolish Bottom Line
Microsoft Corporation (NASDAQ:MSFT)’s intentions to push Windows 8 tablets into the health care industry will be a tough uphill battle. Even though Microsoft’s tablets have some useful features that can’t be found on iPads or Android tablets, they might not be enough to convince physicians and EHR companies to ditch their iPads.

However, just as Microsoft Corporation (NASDAQ:MSFT) was able to establish a growing niche share in smartphones with Nokia Corporation (ADR) (NYSE:NOK)‘s help, it might just manage to grab a small share of the lucrative North American health care IT market, which is forecast to grow at a CAGR (compound annual growth rate) of 7.4% to $31.3 billion by 2017.

The article Can Microsoft Convince Physicians To Ditch Their iPads? originally appeared on Fool.com and is written by Leo Sun.

Leo Sun owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. 

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