In case you miss the disclosure at the bottom, I am short Microsoft stock. That's because I think it's more likely than not that Microsoft will take a beating from Google (GOOG) and Apple (AAPL) in the wake of the Windows 8 launch.
That said, as a consumer who uses multiple Windows PCs and multiple Windows phones, I would like Microsoft to succeed, both for the sake of the products and as a check on the increasing competitive dominance of Google and Apple.
First, let's look at the three versions of Windows 8 that Microsoft is expected to launch on or around Oct. 26:1. Windows 8 for x86 computers: This is the traditional PC version for desktops, laptops and tablets. Intel is the main chip supplier here, and AMD (AMD) presumably is the second source. 2. Windows 8 for ARM (ARMH) processors: This new version will look a lot like the x86 version and will initially be available for tablets, some of which will be "convertible" into laptop-style devices with detachable keyboards. In February Microsoft said it will make this version, which is known as "RT," available for traditional laptops and desktops, but it now appears that this iteration will come later than the initial launch. The chip vendors for this version are Nvidia (NVDA), Qualcomm (QCOM) and Texas Instruments (TXN). 3. Windows Phone 8: The first phones from Nokia (NOK) and Samsung were shown recently, although not with final or working software. The only chip vendor, at least initially, is Qualcomm, although one might surmise that Nvidia and Texas Instruments may be added in 2013 or 2014. I have a "backdrop" theory as to how the market is geared up for Windows 8. I estimate there are close to 1 billion people around the world who either have a Microsoft PC, a Microsoft phone or some other non-Google/Apple device. They're all potential future Microsoft customers. Many of these people are frustrated users who have been watching friends, family and co-workers switch to Apple and Google products including Android smartphones, Chrome OS PCs, Apple Mac PCs and of course Apple iOS devices such as the iPhone and the iPad.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV