He then goes on to argue a $37 price target on the stock on the basis of sub-$1,000 product becoming more common in 2013 and OS upgrades by enterprise customers because they need Microsoft Office.
Get a load of these numbers from Digitimes: Q3 2012 PC notebook shipments dropped 11.6% year-over-year and 4.5% sequentially. Apple saw shipments increase by 30% between Q2 and Q3 2012.
Right. I'll buy MSFT on hopes the PC market crash will reverse because of software Microsoft, in a bonehead move, makes available to anybody willing to pay to license it. If Microsoft had any faith in Windows 8 and the hardware that will run it, it would keep a tight lid on Office.
But it has no faith because it does not have an original way forward. It's using somebody else's existing way forward.Though not to such a pathetic extent, that's what's happening at Apple. Tim Cook can only "refresh" existing product lines for so long. When we get iPad Mini later this month (and, I am on record calling the Mini a good idea if we get premium pricing), we'll also get Apple's solid Retina Display slapped onto a smaller model MacBook. This is all fine and good. Just like my 15-inch MacBook Pro with Retina Display, a 13-inch model will be out of this world, luring a slightly more frugal consumer. No worries. Unless, of course, this is all Apple has got -- building, not very creatively, on what already exists. Because of its head start and abysmal competition, things aren't nearly as dire at Apple. However -- and, again, it's all relative -- the company needs a groundbreaking iTV or something we haven't heard about yet almost as badly as Microsoft needs Windows 8 to defy the odds and achieve success across platforms. At the time of publication the author held no positions in any of the stocks mentioned. Follow @RoccoPendola This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.