Google Inc (GOOG), Microsoft Corporation (MSFT) – Tablet Roundup: One Stock to Buy, One to Avoid, and One to Watch

Also important to note is Microsoft Corporation (NASDAQ:MSFT)’s announcement that the extremely popular franchise Halo will be available on Windows 8 devices (phones, tablets, PC) a move that will solidify the device as “the” gaming tablet. Microsoft has some big plans to really integrate all Windows devices, which can prove to be lucrative. As an example, a user can start playing a game on one device, pause the game and continue on another device, making Windows the only true cross-platform device. In another move to gain market share, Microsoft Corporation (NASDAQ:MSFT) recently announced that their 7 and 8 inch Windows 8 tablets will get Office for free.

Closing remarks

According to IDC, tablets will outsell notebooks in 2013 and projected to outsell all PCs in 2015. Buying the current leader (Apple) is a no brainer as the company has demonstrated a commitment to revamping their iPad line with new releases, and having an extraordinary collection of apps in their repertoire. Aside from the tablets, Apple Inc. (NASDAQ:AAPL) remains a strong buy based on their renewed commitment to returning shareholder value, and a renewed focus on new devices.

Google Inc (NASDAQ:GOOG) is certainly not a wise choice to buy, as they face the possibility of seeing Samsung Electronics Co., Ltd. (KRX:005930) part ways. I can’t imagine any scenario in which Google Inc (NASDAQ:GOOG) can win the tablet war without their star player.  To demonstrate how important Samsung is to the Android umbrella, Samsung Electronics Co., Ltd. (KRX:005930) makes up to 95% of Android’s overall device profit. In fact, Samsung Electronics Co., Ltd. (KRX:005930) earns more revenue and profit from Android than Google Inc (NASDAQ:GOOG) does.

The smallest player in the game (Microsoft Corporation (NASDAQ:MSFT)) seems to have the most potential for upside. I love the fact that both Office and gaming will be coming to the tablet very shortly along with Windows 8.1. Investors need to familiarize themselves with the information I have provided to understand the upside potential. However, I wouldn’t rush to invest yet, I would recommend sitting on the sidelines waiting for the next set of data to come out. If the data is positive, investors will obviously pay a premium compared to today’s price but this seems to be the safe bet and strategy.

Note: Data from Strategy Analytics

Jayson Derrick has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Jayson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Tablet Roundup: One Stock to Buy, One to Avoid, and One to Watch originally appeared on Fool.com is written by Jayson Derrick.

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