Tablet Wars: Microsoft vs. Apple
Microsoft (NASDAQ:MSFT) will show the world its new touch screen tablet next week that runs on Windows. Can they compete with Apple (NASDAQ:AAPL) and stay relevant.
Microsoft Corp (MSFT) shares have traded between $22.73 and $29.46 over the past 12 months. Microsoft is now trading with a P/E Ratio of 9.8 and EPS of 2.52. MSFT shares closed the day at $24.76 Friday and are 8.2% from its 52-week low.
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Microsoft is expected to show off the new touch-screen tablet version of Windows next week for the first time, but it probably won't ship until the middle of 2012 at the earliest.
By then, the iPad will have been on the market for more than two years, and other competitors like Android, RIM's PlayBook, and HP's TouchPad will have been out for about a year.
Is that too late?
A report today by Citi says no. Even though Citi estimates Microsoft won't enter the market until at least 70 million tablets have already been sold, there's still plenty of room for Microsoft to thrive and become "#2 behind iPad."