Microsoft Corporation (NASDAQ:MSFT)’s Windows 10: Will Succeed Or Not?

0
624

Dallas, Texas 06/01/2015 (Financialstrend) – Even before Microsoft Corporation (NASDAQ:MSFT) launches its Windows 10 OS, there is talk of whether it will succeed or not. Analysts think that if OS is successful then the firm will divert its funds to low margin products.

Confident of Windows 10

Investors and Microsoft Corporation both want Windows 10 to be a hit after Windows 8’s failure. The firm thinks that Windows 10 will be a complete OS for enterprises and customers. The firm signaled that it is a risk-free OS, The pricing and distribution model will not shape the PC market.

The firm did let out some of the details about Windows 10 in a blog post. It will release seven versions of the OS. They are Windows 10 Pro, Windows 10 Enterprise, Windows 10 Mobile Enterprise, Windows 10 Home, Windows 10 Mobile, Windows 10 Education, and Windows 10 Iot Core. Tony Prophet, said that the new system will provide more personal computing feel.

Impact Of OS

The failure of Microsoft Corporation’s Windows 8 elevated Satya Nadella to the CEO position, which led to change in the management’s view and revenue generation model. The CEO’s slogan has been ‘mobile first, cloud first’. This has been getting results.

Analysts think that the success of Windows 10 will mean that resources will be diverted to the Devices and Consumer Hardware segment. The free update of Windows 10 will not drive sales nor improve PC market position.

Analyst Comments

Citigroup Inc (NYSE:C)’s analysts, Steven Rogers and Walter Pritchard, have issued a warning on the success of Microsoft Corporation’s Windows 10. Both the analysts say that the business environment of the firm will get hit in case OS turns out to be a success. The tilt is that the firm’s diversion of funds will result in fewer margins compared to the cloud and enterprise parts of the business. They don’t want the firm to go hammer and tongs to promote the OS and want to show restraint.

Another brokerage, Deutsche Bank analyst, Karl Keirstead, says that he is excited because of its enterprise, as well as, commercial software product scale. The analyst also upgraded to a rating of Buy with a price target of $55.

Microsoft Corporation views Windows 10 as a stable and the failure could invite backlash from investors.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.