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Can Microsoft's Windows 8 Take a Bite of Apple's iPad Sales Next Year?

Yesterday at its BUILD developer event, Microsoft ( MSFT ) unveiled a detailed preview of the next major release of its next version called Windows 8. Windows 8 seems to have a radically different look and feel, and the most attractive aspect of Windows 8 would be the flexibility to accommodate new tablet devices as well as more traditional desktop PCs that rely on keyboards and mice, which could give Apple's ( AAPL ) iPad a run for its money in a few years time.

While its too early to call it an iPad killer, we do believe that Microsoft's commitment to tablets and having a more robust OS bodes well for its outlook and could pose problems for Apple longer term. The iPad accounts for around 12% of our $510 price estimate for Apple stock , which is about 30% above market price.

Microsoft Windows 8 present a real challenge to Apple

A few weeks, we had covered a note titled Why Apple Still Dominates Tablets , in which we discussed that Apple ( AAPL ) iPad could continue to dominate the tablet market in the medium term (next 1-2 years) due to the fact that Google ( GOOG ) has a different operating system for tablets and smartphones while Microsoft's Windows 8 operating systems won't be available until 2012.

However, this equation could change longer term with Windows 8. Microsoft already dominates the PC OS market, and if it could extend this lead to tablets through Windows 8, it could present a real challenge to Apple in the long term.

See our complete analysis for Apple stock here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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