Microsoft Looks to Cut Into Apple's Tablet Market Share With the Unveiling of "Surface"

NEW YORK, NY -- (Marketwire) -- Jun 22, 2012 -- The major tech companies have started to follow the ways of Apple by building and selling their own integrated devices. Google last month purchased Motorola Mobility for $12.5 billion, while Microsoft has recently announced they were going to produce and sell their own version of a tablet computer, which they have named "Surface." Five Star Equities examines the outlook for companies in the Technology Sector and provides equity research on Microsoft Corporation (NASDAQ: MSFT) and Apple Inc. (NASDAQ: AAPL).

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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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Microsoft's Surface was unveiled Monday by Steve Ballmer, the company's chief executive. "They want to be on their couch, they want to be at their desk and they want to be on the go," Mr. Ballmer said. "People want to do all of that without compromising the productivity that PCs are uniquely known for." Allowing consumers to use the same operating system on their tablets as their work/home PCs may prove to be a major advantage for Microsoft.

Apple last week previewed iOS 6, introducing over 200 new features to the world's most advanced mobile operating system, and released a beta version to iOS Developer Program members. iOS 6 will be available to iPhone, iPad and iPod touch users this fall as a free software update. "We can't wait for hundreds of millions of iOS users to experience the incredible new features in iOS 6 including the new Maps app, expanded Siri support, deep Facebook integration, Shared Photo Streams and the innovative new Passbook app," said Scott Forstall, Apple's senior vice president of iOS Software.

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