The Future of Microsoft Corporation (MSFT)

In smartphones, an isolated Microsoft Corporation (NASDAQ:MSFT) may not be a bad thing. But when you begin talking about PCs and convertibles, there’s real risk in Microsoft’s strategy. Acer, ASUS, Dell Inc. (NASDAQ:DELL), and Samsung all make PCs and convertible devices that run Windows 8, and having to deal with Microsoft itself as a competitor has to be a bit troubling. Investors will need to watch how Microsoft positions itself over the next year or two because expansion into tablets beyond a weak Surface could be seen as a threat and make device makers look to Google Inc (NASDAQ:GOOG) or elsewhere for an operating system.

The future of Microsoft
On his way out the door, Steve Ballmer definitely set up Microsoft to go hard after the hardware space to create a “devices and services” company. For a company that’s always partnered with others to build the actual hardware, that’s a risky proposition, especially this late in the mobile game. Only time will tell if Microsoft Corporation (NASDAQ:MSFT)-Nokia Corporation (ADR) (NYSE:NOK) is a genius move that can put Microsoft on par with Apple Inc. (NASDAQ:AAPL), or another disastrous acquisition for the tech giant.

The article Microsoft’s New Balancing Act originally appeared on Fool.com.

Fool contributor Travis Hoium owns shares of Apple and Microsoft. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. 

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