The No. 1 Reason Microsoft's Tablet Strategy Will Work
Jun 23rd 2012 8:38PM
Updated Jun 23rd 2012 8:42PM
Maybe that's true. But even if it is, Microsoft was copying elements of Apple's iPad strategy years before anyone had heard of Surface. Don't believe me? Rewind to 2009, when Microsoft first announced plans to open a network of retail stores. Today, there are 26 stores across 15 states and Puerto Rico.
I'll be the first to admit that I wasn't a fan of the original idea, if only because it sounded like a tone-deaf attempt to show off Windows rather than engage consumers who might be interested in Microsoft's digital-entertainment products. As I said at the time:
"So, Microsoft's retail stores will help show off ... Windows? That's a funny way of expressing Apple envy; the iEmpire's own stores are designed for playing with Macs, iPhones, and iPods."
Now think about where we are today. Microsoft, like Apple, has used stores to engage with consumers as it rolls out new phones, game consoles, and finally tablets. Surface isn't Microsoft's copycat play here; retail is. And it's brilliant.
By seeding big markets with stores, Microsoft has positioned itself to win just as Apple has. Consumers will show up and play with the tablet. Get enough to fall in love, and Google (NAS: GOOG) -- which relies on not only Samsung and Asus but also Best Buy (NYS: BBY) to generate enthusiasm for its Android products -- has a big problem.
I've had a losing underperform CAPScall on Microsoft since January. I'm ending that today and opening a new call, this time a three-year outperform based on Mr. Softy's expanding retail strategy. A broader footprint will not only promote the Surface -- to the detriment of Android tabs, I'm afraid -- but also help Nokia (NYS: NOK) in its quest to boost Windows Phone sales while aiding consumers who need the occasional PC repair.
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The article The No. 1 Reason Microsoft's Tablet Strategy Will Work originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple and Google at the time of publication. Check out Tim's Web home, portfolio holdings, and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of Apple, Google, Microsoft, and Best Buy. Motley Fool newsletter services have recommended buying shares of Microsoft, Apple, and Google and creating bull call spread positions in Apple and Microsoft. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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