Microsoft Stock As You Know It Is Dead

Microsoft (NASDAQ: MSFT  )  doesn't have the experience to be a successful hardware company, Fool contributor Tim Beyers says in the following video.

Too harsh an assessment, you say? Tim isn't so sure, pointing out that the new Surface tablets are priced above Apple's (NASDAQ: AAPL  ) iPad counterparts. After a $900 million inventory write-off from its last try with Surface, you'd think Mr. Softy would be more price-competitive.

Or more careful. In asking $1,799 for the highest-end Surface Pro 2, Microsoft has signaled its intent to compete with some of its most enduring partners, including Dell and Hewlett-Packard.

Will the strategy pay off, or is now the time to be shorting Microsoft stock? Tim answers this question and more in the video. Please click to watch now, and then leave a comment to let us know where you stand.

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Comments from our Foolish Readers

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  • Report this Comment On September 28, 2013, at 5:18 PM, nivadia274 wrote:

    The Surface Pro is NOT competing against the iPad! It's competing against the MacBook air. The surface pro can use any Microsoft program and is just like any other computer. When comparing it properly, the surface pro has much higher specs making it much faster, while still getting roughly the same battery life as a MacBook air and on top of that is less expensive. Even more so, it becomes a tablet so instead of going out and buying a MacBook air and an iPad, you have it all on one device. The surface RT is competing against the iPad, and is not only faster, but has Office and is less expensive.

  • Report this Comment On September 28, 2013, at 5:46 PM, toraji40 wrote:

    Tim,

    You can not seriously compare the ipad against the surface pro. They are two completely different machines and the Ipad can not stand in the shadow of the pro (not even app wise)

    if you want to compare then you can compare the Ipad with the surface 2 and then the S2 is suddenly a lot more interesting (pricewise) because of all the things included (usb 3.0, office, 200gb skydrive keyboard etc) And if you want to compare the Ipad Mini you have to wait until the surface mini comes out (which will have office too)

    The way you compare is just not fair to any surface product.

    But besides that you also seem to forget what Microsoft has in the pipeline for its users which also will be a HUGE improvement for its App developers. Probably by spring 2014 WP8 and Windows 8 will be "unified" which means that every app developed can run on all MS windows 8 devices (including xbox one).

    I think that the surface Pro an RT are great devices and I own both I cant wait to get my hands on the new Pro 256G and 8G ram.

    The ecosystem works fantastic already, seamless syncing with my desktop at work, my desktop at home my two surface devices and my Nokia wp8 through skydrive

    I think MS investors will be pleasantly surprised in the coming years.

    You can't compare oranges to apples so also don't compare a suface Pro to an ipad

    regards

    t

  • Report this Comment On September 28, 2013, at 8:14 PM, wwu12345 wrote:

    It is incredible that you compared Surface RT with iPad Mini and Surface Pro with iPad. You should compare Surface RT with iPad. Surface Pro is at a different level. It is a full-function laptop.

  • Report this Comment On September 28, 2013, at 8:41 PM, wwu12345 wrote:

    I posted my honest criticism of the author's view. Why is it deleted?

  • Report this Comment On September 28, 2013, at 10:53 PM, GameBot wrote:

    clear click bait, TMF has become exactly what it protested 10 15 years ago.

  • Report this Comment On September 28, 2013, at 11:11 PM, techy46 wrote:

    Why do these Apple fan boys keep it up - oh, it's Apple's stock price their pumping. I going to keep buying Microsoft products and investing in INTC and MSFT as a highly satisfied, retired, professional enterprise application developer. Windows 8 is really fun and I don't care about Apple and their over priced monkey toys.

  • Report this Comment On September 29, 2013, at 6:25 PM, chilero wrote:

    I have to agree with the other comments.

    The Surface Pro 2 is a laptop replacement and will be competing against ultrabooks and the MacBook pro.

    The Surface 2 competes against the iPad.

    The Surface mini (as yet unannounced) would compete against the iPad mini.

    I do agree that the pricing is still a little high, especially for the Surface 2 and the higher end Surface Pro 2. Too bad the entry level Surface 2 didn't come in at $399 instead of $449.

    You didn't talk about the accessories. They have place a tremendous emphasis on accessories this time and their "blade" strategy may pay off. This may turn out to be the differentiating factor that turns their Surface strategy around.

  • Report this Comment On September 30, 2013, at 11:52 AM, wwu12345 wrote:

    I bought an iPad for my wife before Christmas last year. It costed $499 for a 16 GB model.

    I recently bought a Surface Pro with 128 GB for $899 minus a 10% discount as an educator in a college. This discount is available in Microsoft Stores only, not at Best Buy or other places.

    Be honest, if I compare the iPad with Surface RT, same storage size, 32 GB or 64 GB, the Surface RT not only has a price advantage (not considering the 10% discount for educators) but also much advantage in functionality. What does my wife needs in such tablets for her time off work? She checks emails, calls people with Skype, watches movies online, and plays some games. One thing she does at home after work (she is paid certain hours each month for this job) is related to her work: Using Excel work sheets for scheduling dialysis nurses/technicians in her unit. For this job, she uses a separate computer/laptop at home.

    Since I purchased my Surface Pro, she has been doing all the above using my Surface Pro.

    Next time I drive to Houston, I plan to visit the Microsoft Store there and trade in her iPad with a Surface 2. The Surface RT or Surface 2 is a lot more capable in terms of functionality. The pricing is better than the iPad when you compare models with the same GB storage. No need to stretch my mind. I see this easily.

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