MicrosoftToday in Los Angeles, Microsoft ( MSFT) could change the game. With the new cross-platform Windows 8 coming later this year, the company is already prepped to provide Apple and Google's ( GOOG) Android with their first formidable mobile challenge. However Microsoft chooses to go about it, it needs to gain smartphone and tablet traction, while maintaining its foothold in the computer market. Xbox SmartGlass could hold the key. It comes as no surprise that Microsoft will release this new app -- designed to connect the living room across devices -- in time for the holidays. Expect an advertising onslaught. And expect PC and Xbox owners to take a long hard look at the new Windows 8-based devices and apps Microsoft releases. There's great potential here for synergy across platforms and devices. Even if Microsoft's efforts do not pan out or achieve solid results, the mere threat of an actual challenge to Apple and Google's smartphone dominance and Apple's tablet superiority should pressure Apple's stock. Once we get the first quarter of 2013 under our belts, we should have a clear picture of the material impact.
No Steve Jobs to Answer the ThreatRob Enderle put it best at Forbes this past Friday in an article titled Microsoft: Anticipating The iPad-Beating Xbox UltraPad:
There is no Steve Jobs, who was so well connected he often seemed psychic in his ability to anticipate and kill off competitive products. Finally the iPad is kind of old news now, while people still love it, the terms "magical and wonderful" really aren't used to describe it anymore. It remains an impressive product but not the icon of technology perfection it once was.Enderle likely will get ripped for his thoughts, but, with blinders off, you have to admit he makes a valid point. In much of the article, he jokes about what Microsoft might call its tablet. But, when you cut through the fun he had with the situation, you have a well-connected guy making observations you should not ignore: Microsoft is not playing games with its Windows 8/Xbox-related plans. And this will be the first real competitive salvo Apple has to face without Steve Jobs at the helm or available for consult.
Let's take the last first and suggest that if there was ever a time to surprise Apple it would be post-Steve Jobs because the firm likely isn't as connected to competitive events as it once was. Jobs had no problem bending or breaking rules to get information,
TimCook isn't that kind of guy and he'll be much easier to surprise as a result.