Research In Motion Ltd (BBRY), Apple Inc. (AAPL) & Microsoft Corporation (MSFT) – Handset Maker Admits Mistakes Were Made: Stay Away

In addition to its new mobile OS, however, Microsoft Corporation (NASDAQ:MSFT) has also launched Windows 8 and the Surface tablet. All three use a similar interface. Essentially, the tech giant has created an ecosystem for Windows users.

The upside potential for Microsoft is that handset makers have become so reliant on Google’s Android that they are looking for other partners. Samsung plans to introduce its own OS, but it will be hard to build it into the industry’s number three OS since competitors aren’t likely to get access.

Other industry players are likely to look for an experienced partner. Windows Mobile is perfectly positioned to fill the void. And if Samsung’s Tizen is a flop, it could come back to Microsoft Corporation (NASDAQ:MSFT), too.

Microsoft Corporation (NASDAQ:MSFT) shares aren’t as cheap as Apple Inc. (NASDAQ:AAPL)’s, trading with a PE of around 16 after an earnings-induced price drop. Second quarter earnings included a big write-down for weak tablet sales, which has investors worried about the company’s mobile push. That said, Microsoft has plenty of time to figure mobile out so investors looking for a turnaround should look here before Research In Motion Ltd (NASDAQ:BBRY).

Avoid the Mistakes

Research In Motion Ltd (NASDAQ:BBRY) is suffering under the weight of so many mistakes that investors should avoid the shares until management has proven it’s back on the right track. Financially strong Microsoft Corporation (NASDAQ:MSFT) should be of greater interest to those seeking a turnaround play. Apple Inc. (NASDAQ:AAPL), meanwhile, is probably the best option in the cell phone space based on its low valuation and still strong industry position.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT).

The article Handset Maker Admits Mistakes Were Made: Stay Away originally appeared on Fool.com.

Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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