Other investment alternatives
Microsoft Corporation (NASDAQ:MSFT), on the other hand, could be winning some customers as Piper Jaffray survey results shows that 5% of teens will be making their next phone purchase a Windows 8 phone. The brand’s power will have carry-over from the XBox One (once it’s released) along with Windows 8. The Xbox One will have an operating system that will have a similar interface to Microsoft Metro for Windows.
The company is hoping that by standardizing Windows across every single platform, the user will understand how to use the device — which will have a direct impact on the amount of revenue this company will generate across all of its product platforms. The company also saw a turnaround in its entertainment and devices division, which grew revenue by 56.42% year-over-year. The company on a consolidated basis grew revenues by 17.71% in the first quarter of 2013. The company is expecting tapering demand from Windows, but hopes to make up for it with growth across all of its other businesses. Analysts project that the company will grow earnings by 11.30% in its fiscal year ending June 2014.
Apple already has cloud based features that make it superior to other user platforms. Software that is purchased with an Apple ID is duplicated across all of the customer’s Apple Inc. (NASDAQ:AAPL) devices. This has been a sticking point that Microsoft Corporation (NASDAQ:MSFT) has been trying to address.
One of Microsoft’s greatest strengths is that it still has Microsoft Office Suite across all of its Windows devices, making it very worker-friendly. Now it’s a matter of coming up with cloud virtualization for the everyday user that will make sense, something Apple has already figured out with iCloud.
I anticipate significant pent-up demand for Apple Inc. (NASDAQ:AAPL)’s iPhone devices, and going forward it would be wise for investors to load up on Apple shares. Apple trades at an unusually low multiple relative to the projected growth rate for earnings. Also, Apple’s market capitalization makes it free from hysterical market manipulation, but at the same time, subjects it to massive swings in sentiment. For now, the company’s $60 billion share buyback plan, paired with its 2.79% dividend yield, should keep the stock from experiencing wild swings in volatility.
Conclusion
Sony Corporation (ADR) (NYSE:SNE) is transitioning from being a consumer electronics company to a laptop, smartphone, and tablet company. Sony’s future remains bright when strictly focusing on the mobility segment. Currency market fluctuations are what are keeping the company from being a great stock.
The article Sony Stepping on Apple’s and Microsoft’s Turf originally appeared on Fool.com and is written by Alexander Cho.
Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
