Google and Amazon Face New Competitor in the Tablet Market

NEW YORK, NY -- (Marketwire) -- Jun 22, 2012 -- The tablet market will soon face a tough competitor as Microsoft has recently announced plans to produce and sell their own version of a tablet computer, which they have named "Surface." Of the 107.4 million tablets expected to be shipped in 2012, nearly two-thirds will be from Apple, while 36.5 percent will be from tablets using Google's Android operating system. Five Star Equities examines the outlook for companies in the Technology Sector and provides equity research on Google Inc. (NASDAQ: GOOG) and Amazon.com, Inc. (NASDAQ: AMZN).

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Surface's hardware and software will fully be made by Microsoft. This is a major shift in strategy for Microsoft, who in recent years has focused on producing operating systems for hardware vendors. Vendors like Hewlett Packard and Dell will now see Microsoft as a direct competitor instead of a partner and supplier. Tablet sales in 2012 are expected to nearly double to approximately 119 million units, in comparison PC sales are predicted to rise just 2.7 percent according to research firm Gartner Inc.

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Google has adopted a "software-only" strategy for the tablet market. The company's Android system is used by tablets such as Amazon's Kindle Fire. Google last month announced the acquisition of Motorola Mobility for $40.00 per share in cash. The acquisition will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

Amazon.com recently announced that developers can now submit apps for distribution this summer in the United Kingdom, Germany, France, Italy and Spain, with plans for further global expansion in the near future. This move is the first major step for Amazon to begin selling their tablet internationally.

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