This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Microsoft's New Model: 'Every Man For Himself'

NEW YORK ( TheStreet) -- I'm starting to hear rumblings that both computer giants Dell (DELL) and Hewlett-Packard (HPQ - Get Report) are now starting to feel "betrayed" by Microsoft (MSFT - Get Report). In its competition with Apple (AAPL - Get Report), the software giant last week unveiled its Surface tablet, a move that seems to have sent its computer-building partners the message: it is now "every man for himself."

As annoyed as I have become with the idea that both Dell and HP somehow expected a certain level of loyalty from Microsoft, it bothers me even more for them to pretend that the partnership was even remotely working when the numbers show that Apple has been eating their lunch over the past 12 quarters.

Essentially, the message Microsoft sent on Monday was that it had grown tired of being bullied and going hungry -- and for that it shouldn't be blamed. Furthermore, in an interview after the announcement, the company's CEO Steve Ballmer said its PC partners knew about the Surface tablet well in advance of the announcement.

Now, exactly who he was referring to is unknown, but I think it is safe to say that the top two Windows vendors over the past decade certainly would have been on any short list of phone calls made -- at least one would hope.

There are definitely at least two sides to every story. What we know is that Microsoft cloaked the event leading to the announcement with secrecy. First, it announced a press conference, sent invitations to the media, but opted to be purposely vague in terms of its description of the event, except to say that it would make a "major announcement."

So, do HP and Dell have legitimate gripes here? Well according to a recent Reuters article, Microsoft offered its partners the same level of treatment as it did with the press.

The article claims the company did not provide its partners with any details about what it was going to say to the public until three days (Friday) before the announcement. The report claims that its partners didn't even know the tablet was going to be called "Surface." For that matter, they didn't even know it was going to be a tablet. So now what?
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
AAPL $126.44 0.00%
HPQ $30.69 0.00%
MSFT $44.40 0.00%
FB $87.28 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs