Wednesday, March 30, 2011

Invest in Microsoft for Windows 7 (MSFT)

According to International Data Corporation, Nokia's (NOK) recent announcement to shift from Symbian to Windows Phone will have significant implications for the smartphone market going forward. "Up until the launch of Windows Phone 7 last year, Microsoft (MSFT) has steadily lost market share while other operating systems have brought forth new and appealing experiences," added Llamas. "The new alliance brings together Nokia's hardware capabilities and Windows Phone's differentiated platform. We expect the first devices to launch in 2012. By 2015, IDC expects Windows Phone to be number 2 operating system worldwide behind Android."

Sounds like crazy talk right? Chew on this -- Windows 7 phones are now predicted to surpass iPhone sales by 2015.

Apple (AAPL) and Research In Motion (RIMM) are expected to stagnate. IOS, which powers the iPhone, iPad and iPod Touch, is forecast to maintain its roughly 15.5% market share, while BlackBerry is projected to slip to 14% from 15%.

MASTERY Bottom line:

It almost feels like Microsoft (MSFT) is the underdog these days - and everyone loves the underdog. The company has already announced the shipments of 10 million Kinect units, and the trend in the market is moving ahead with no change as the demand for the revolutionary gaming platform is still remaining strong.

Shares are down nearly 10% in the last 3 months, if the company can pull off another winner with Windows 7, shares are looking very compelling at current levels. Microsoft Corp shares are 10.72% from its 52-week low and trading at $25.46 per share.

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