This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple, Microsoft Need to Innovate, If They Can

Stocks in this article: AAPL MSFT NOK RIMM P

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.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Rocco Pendola is a private investor with nearly 20 years experience in various forms of media, ranging from radio to print. His work has appeared in academic journals as well as dozens of online and offline publications. He uses his broad experience to help inform his coverage of the stock market, primarily in the technology, Internet and new media spaces. He has taken a long-term approach to investing, focusing on dividend-paying stocks, since he opened his first account as a teenager. Pendola, 37, is based in Santa Monica, Calif., where he lives with his wife and child.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs