New Products Launched At Microsoft Event Can Help The Company To Boost Windows 10 Ecosystem

-0.42%
Downside
421
Market
419
Trefis
MSFT: Microsoft logo
MSFT
Microsoft

Microsoft (NASDAQ:MSFT) has been struggling to gain a foot hold in the hardware industry. The company’s Surface Pro tablets have gained 11% share of the tablet market, holding the third rank after Samsung and Apple. Yet  the company aims to venture into new hardware verticals to ensure that it is able to sustain and grow its Window ecosystem. At a recent event, Microsoft announced a slew of devices including the latest i7 powered Surface Book, Surface Studio Desktop PC for creative professionals, VR headsets for Windows 10 and the Surface Dial, which can be used to control various Windows devices. Apart from the hardware launch, Microsoft also announced Xbox live streaming, 3D Paint, and Windows People to establish its presence in the gaming, creative and communication space. In this note, we explore the offerings and why these launches are important for Microsoft.

See our complete analysis of  Microsoft here

New Launches

Relevant Articles
  1. Up Nearly 70% Since The Beginning Of 2023, Where Is Microsoft Stock Headed?
  2. Up 63% Since The Beginning Of 2023, How Will Microsoft Stock Trend After Q2 Earnings?
  3. Microsoft Stock Is Up 45% YTD And Outperformed The Consensus In Q1
  4. Microsoft Stock Outperformed The Expectations In Q4
  5. Microsoft Stock Is Fairly Priced At The Current Levels
  6. What To Expect From Microsoft Stock In Q3?

Microsoft announced that the Windows 10 is getting a new major update for early 2017. This upgrade is to be called the “Creators Update.”  It includes a number of new features, such as:  1) the addition of new 3D creation tools (within Paint); 2) live-streaming and custom tournaments for the Xbox app; and, 3) a communication app called Windows People that has a focus on communicating with close contacts. A summary of launched products is as follows:

  • 3DPaint:- At the event, Microsoft relaunched a revamped version of its classic Paint app with a focus on 3D. The new app lets users easily turn photos into 3D “memories,” export three-dimensional Minecraft creations, doodle in 3D.
  • VR Headset: – Microsoft also launched VR headsets that will enable creative to view their work. The headsets will start at $299 and run the same Windows Holographic platform as the HoloLens. No concrete date for the VR headset has been announced yet.
  • Xbox live streaming: – Streaming on Xbox Live will allow users to follow gaming events along with their existing Xbox Live friends. This will also introduce social element to streaming as Gamers can also integrate comments and suggestions from viewers directly in-game.
  • Windows People:- Considering the growing propensity of people to communicate with each other, Microsoft has introduced the People app to help users interact with the most important people in their life, like spouses, best friends, and family.
  • Surface Studio Desktop:- Microsoft expanded its Surface hardware lineup with the Surface Studio, a touchscreen all-in-one desktop computer that’s only 12.5mm thick. The desktop has a 28-inch PixelSense display, GeForce 980M, an Intel i7 processor, and up to 32GB of memory and 2TB of storage. The Studio also has a “zero-gravity hinge” that allows the screen to tilt down at a sharp angle, allowing it to move from a more traditional computer design to a drafting board form factor for drawing and creative work.
  • Surface Book i7:- Microsoft has introduced an upgraded last year’s model to include Intel’s i7 processor and a bigger battery. The Surface Book i7 will be available in November for $2,399 and is said to reach up to 16 hours of battery life.
  • Surface Dial:- This is a new input device from Microsoft the interacts with various Windows devices so that a creative professional  can have contextual software control .

Why Microsoft Launched These Products?

Microsoft says that 400 million devices are already running Windows 10. [1] We believe that Microsoft can leverage these existing ties with its enterprise client to sell its laptops and products.  Furthermore, Microsoft has been trying to reinforce integration within its ecosystem by offering features and products that allow its devices (smartphones, tablets and laptop) to work together even more seamlessly.

Microsoft’s own applications, from Xbox to Office, can further supplement app development program, which would be a meaningful step up for Windows 10. A stronger hardware and software offering, with better apps and developer support, could bolster the Windows ecosystem the third platform behind Google’s Android OS and Apple’s iOS. This may help convince customers to persist with Windows PCs, and tablets, and aid in sales of its existing (Azure cloud, Dynmic CRM, Offficer 365) and new services.

We currently have a $56.05 price estimate for Microsoft, which is 10% below the current market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap

More Trefis Research

 

 

Notes:
  1. Official: Windows 10 has hit the 400 million device mark, September 26 2016 []