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Microsoft's New Strategy: 'Out Apple' Apple

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In the wake of the iPhone 5's successful announcement and the Windows Phone failure, Microsoft is down, but not out.

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Another cause for concern should be Mark Zuckerberg's very recent announcement that Facebook (NASDAQ:FB) may be revealing its own search engine in the future. According to experts, the social media company is strategically poised for this due to the massive database of information it has access to thanks to its many users.

However, in other markets, Microsoft has taken a page out of Apple's playbook by encouraging innovation, harnessing the contributions of product users to develop popular apps. Right now, the tablet market is dominated by Amazon's (NASDAQ:AMZN) Kindle Fire and Apple's iPad, leaving Microsoft without a prayer of becoming a major player. In response, the software company is urging its hardware partners to fundamentally change the game.

Computer manufacturer Hewlett-Packard (NYSE:HPQ) recently announced the HP Envy x2, a laptop with a detachable screen resembling a tablet which, on the surface, appears to combine the functionality of both devices. This innovation could be a major development in the industry as it will make all other tablet devices harder to justify: The HP Envy x2 will make it possible to work more efficiently on the go while still having the entertainment capabilities that a tablet provides.


No positions in stocks mentioned.
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