Another major problem with touch-based Windows 8 notebooks is the price. Higher-end ultrabooks are currently priced above $1,000 – making them more expensive than the Apple’s MacBook Air. That simply doesn’t make any sense, since ultrabooks, heavily influenced by the MacBook Air’s popular design aesthetics, were originally intended to be a cheaper alternative to Apple’s popular lightweight laptop. Meanwhile, clumsy hybrid devices, such asDell’s XPS 12 and Microsoft Corporation (NASDAQ:MSFT)’s Surface, simply showcase the confused approach of creating a combination tablet/laptop that ends up being inferior to both.
A matter of DNA
Another major issue with Windows 8 and PCs is the matter of shared DNA. Google Android smartphone owners are more likely to purchase an Android tablet as a complementary device, because purchased apps can often be installed and synchronized between both devices. iPhone owners are more likely to purchase an iPad for the same reason: iOS.
Now consider the whopping combined market share of Android and iOS smartphones – 92% at the end of the fourth quarter of 2012 – and it’s easy to see why Windows 8 tablets, hybrid devices, laptops and desktops are being ignored by consumers.
Microsoft is aware that smartphone sales are driving tablet sales, which is why it partnered up with Nokia Corporation (ADR) (NYSE:NOK) to boost the profile of Windows Phone 8. But just like Microsoft Corporation (NASDAQ:MSFT), Nokia’s market share has been marginalized by Android and iOS devices. Creating some shared DNA between the two devices might help both companies stay in the race, but Microsoft’s poor performance on the PC front is showing that it may actually be a liability, and not an asset, to Nokia.
If Nokia wants to truly boost its sales, I think that breaking ties with Microsoft in favor of Android would make much more sense. In addition, Facebook Inc (NASDAQ:FB)’s Home launcher, which was created for Android devices, could give Nokia Corporation (ADR) (NYSE:NOK) the social shot in the arm that Microsoft promised but never quite delivered. Switching over to Android could also allow Nokia Corporation (ADR) (NYSE:NOK) to release tablets of its own, easily unified by shared DNA with its own smartphones and the rest of the Android ecosystem.
The Foolish Bottom Line
It’s obvious that Microsoft Corporation (NASDAQ:MSFT), Hewlett-Packard and the rest of the PC industry is in serious trouble. While I believe Microsoft will survive, I believe that its top line will decline significantly in the near future as it struggles to find ways for its other segments (entertainment, business, IT servers and tools, and online services) to offset these losses.
So in other words, stay far away from this industry. Microsoft just shot its own allies with the silver bullet meant for Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG), and things are about to get a whole lot bloodier.
Leo Sun owns shares of Apple and Nokia. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.
