Microsoft Tries to Catch Up with Apple's iPad

Strategic Insights -

As Microsoft prepares to unveil its new software for tablets at the Consumer Electronics Show (CES) next week, the tech industry is skeptical about the company's chances of closing the gap with Apple's dominant iPad. Despite announcing a full version of the Windows computer operating system that runs on ARM Holdings Plc technology, analysts believe that Microsoft may struggle to match the features and user experience that consumers have come to expect from the iPad.

Key Takeaways:

  • Microsoft will unveil a new Windows version that runs on ARM Holdings Plc technology at the CES, which begins in Las Vegas on January 6.
  • The new Windows version will be tailored for battery-powered devices, such as tablets and wireless handsets.
  • Analysts at Goldman Sachs Group Inc. predict that Apple may sell 37.2 million iPads in 2011, which would give the tablet computer a 9.2% share of the PC market.
  • Apple has sold 7.46 million iPads through September and has redefined consumer expectations for what a tablet computer should do.
  • Microsoft's new software will have to compete with Apple's mobile-phone OS, which allows for instant start-up, longer battery life, and access to the 300,000-plus iPhone apps.
  • Microsoft is taking a different approach from Apple, but analysts are skeptical about its chances of success.
  • The iPad has captured the largest share of the tablet market, with no other device holding a significant share.

Statistics:

  • Apple has sold 7.46 million iPads through September.
  • Analysts at Goldman Sachs Group Inc. predict that Apple may sell 37.2 million iPads in 2011.
  • The tablet computer's share of the PC market may rise to 9.2% next year, based on a prediction by research firm IDC.
  • Over 100,000 people are expected to attend CES, the premier technology trade show.

Sources:

  • Bloomberg News
  • Goldman Sachs Group Inc.
  • Gartner Inc.
  • IDC (International Data Corporation)