Microsoft Should Launch Windows 8 ASAP as Tablet Demand Spikes

Microsoft (NASDAQ:MSFT) is one of the largest enterprise and consumer software company, which dominates the operating system market with the Windows OS. It’s expected to launch Windows 8, the next version of Windows, in 2012 and will target both the PC market and the tablet market. Apple (NASDAQ:AAPL) launched the iPad around 2 years ago, and it is still dominating the tablet market with more than 80% market share, while Google‘s (NASDAQ:GOOG) Android comes second with tablets from various device manufacturers.

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Microsoft Needs to Fast Track the Launch of Windows 8

Microsoft is already late to the tablet party, but a survey in Q2 2011 suggested that around 46% consumers would prefer to use a Windows tablet, instead of an iOS or Android tablet. However, their patience may be wearing thin. According to a recent report by Forrester, Windows is no longer the number one choice when it comes to tablets. The number of users wanting a Windows tablet has dropped to just 25% in Q3 2011. ^[1]

Microsoft is expected to launch Windows 8 in mid-2012, but there is speculation that the launch of Windows 8 may be delayed further. We currently expect that Windows 8 will generate more sales than Windows 7, which sold nearly 500 million licenses to date. However, Microsoft needs to move fast and launch Windows 8 as sooner in order to generate maximum sales before consumers get tired of waiting and migrate to another platform.

Windows accounts for nearly 25% of Microsoft’s $32 Trefis price estimate, which stands nearly 25% above its current market price.

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1. Microsoft’s Shrinking Window For Tablets: Its Fifth-Mover Product Strategy Is Late, Forrester Blogs [↩]