(NASDAQ:MSFT) is leading up the Nasdaq
(INDEXNASDAQ:.IXIC) today on media reports
that new CEO Satya Nadella
will unveil Office for the Apple
(NASDAQ:AAPL) iPad at an event on March 27 in San Francisco.
So let's think about two big questions.
1. Will the availability of Office boost iPad sales?
If Office on iPad has full functionality, then it does create some additional incentive to switch from a laptop to an iPad.
The new iPad Air starts at $499 and goes up to $799 with 128 gigabytes of storage. Even budgeting for a keyboard, that stacks up pretty well against a decent notebook PC, especially since the iPad has better battery life and durability as well as access to Apple's best-in-class app ecosystem.
However, serious Office users may still prefer a full, traditional notebook PC interface with a bigger screen. The iPad may never be the right solution for them.
This news -- assuming it happens -- is a net positive for Apple.
Whether it actually moves the iPad needle is still unclear.
2. Why is Microsoft making nice with the iPad?
Remember, Office Online for Office 365 is already available for a variety of non-Microsoft devices, including the iPhone, Google
(GOOG) Android phones, and BlackBerry
(NASDAQ:BBRY) devices, with varying capabiltiies.
So Office on iPad seems inevitable.
iPads, as well as Android tablets, are seriously disrupting the traditional Windows notebook PC market, so it makes sense for Microsoft to ride the strongest horses.
And for Microsoft, it's important to protect Office because Windows has a bigger chance of being disenfranchised in an increasingly platform-agnostic world. While it may never admit as much publicly, Microsoft may be okay with the idea that Windows has peaked.
As it stands now, Office is hanging tough. Google Docs and Apple's iWork
just haven't been able to inflict significant damage on the franchise.
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.