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Did Microsoft Just Kill Courier?

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Microsoft (Nasdaq: MSFT  ) just beat Apple (Nasdaq: AAPL  ) . Again.

Trouble is, this win could be meaningless. CEO Steve Ballmer this week told the audience during his keynote address at the Consumer Electronics Show that his company had teamed with Hewlett-Packard (NYSE: HPQ  ) to create a new tablet computer. And this comes just weeks ahead of the Mac maker's unveiling of its own tablet -- or iSlate, as most are now calling it.

Many Fools are expecting Apple's device to be a success, including my friend Rick Munarriz. I'm expecting good things as well. But HP and Microsoft remain undeterred. They think they'll be able to compete.

During his address, Ballmer demonstrated how the tablet's combination of Windows 7 and HP's touchscreen technology makes it easy to read e-books bought through's (Nasdaq: AMZN  ) Kindle bookstore.

"This great little PC, which will be available later this year, I think many customers are going to be very, very excited about," Ballmer said.

Interestingly, it isn't the only one planned. Mr. Softy also has deals to power touch-sensitive tablets from two smaller companies, Pegatron and Archos.

"The emerging category of PCs really should take advantage of the touch and mobility and capabilities of Windows 7, and are perfect -- perfect for reading, for surfing the Web, and for taking entertainment on the go," Ballmer said.

Fair enough. Ballmer's demo showed off devices that do all these things and probably more. But compared to Courier, an intriguing dual-screen tablet that Mr. Softy touted last year, every one of them looks lightweight.

Ballmer said nothing about Courier during his CES keynote. Call it an opportunity missed.

The timing is right. Not only is Apple on the verge of showing us its tablet, but Barnes & Noble (NYSE: BKS  ) also has the Nook, and Best Buy (NYSE: BBY  ) has entered the retail end of the e-reader business. This is a nascent market eager for new offerings, and Apple won't be able to serve every need. No company can, but Microsoft could have come close.

With all the details Gizmodo posted about the device in September, Courier looked like a heavyweight, built to go head-to-head with Apple's best effort. The Next Thing, you might say. Instead, we got just another Old Thing. Another e-reader designed to work with Amazon's software.

Color me unimpressed. Mr. Softy can do better. Apple certainly will, when it officially introduces the iSlate later this month. But that's also just my take. Now it's your turn to weigh in. Please vote in the poll below. You can also leave a comment to explain your thinking or offer a different viewpoint.

Apple, Amazon, and Best Buy are Motley Fool Stock Advisor selections. Microsoft and Best Buy are Motley Fool Inside Value picks. Motley Fool Options has recommended a diagonal call on Microsoft. Try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers had stock and options positions in Apple at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. The Motley Fool owns shares of Best Buy and is also on Twitter as @TheMotleyFool. The Fool's disclosure policy would like to remind the CES revelers that lampshades are for lamps, not people.

Read/Post Comments (4) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 08, 2010, at 10:27 AM, Gandhim3 wrote:

    This HP/Microsoft tablet Ballmer introduced is no different than the multi-touch coffee table they demoed just prior to the iPhone launch. What a blazing success that table was! History repeating itself?

    What MIcrosoft and other tech companies fail to understand about Apple's success is that not only does the device itself have to surpass Apple's offering to lure in consumers, but they have to provide services and products to support the new device. iTunes Store with music movies and now apps, hundreds of accessories, integration with a majority of cars sold today, ongoing support and software updates - that is what you have to bring to the table.

    Palm is trying, but I don't think they have that compelling a product, and certainly don't have the financial muscle. Google has the financial muscle, but their priorities are to sell ads to captive eyeballs, not apps and accessories. Nor is Google consistent with the Android and which version of the OS is on any one smartphone.

    Microsoft has the muscle and the capability, but they are too focused on trying to shoehorn Windows in to everything they make. WHich is fine because even Google and Apple are doing the same with thier respective OSes. Problem with Microsoft is their priority is to maintain their OS monopoly, not make a compelling product.

    And it shows in the end result - uninspiring product that feels flat.

  • Report this Comment On January 08, 2010, at 1:36 PM, gingerebishop wrote:

    Say it isn't so ! Ballmer chose the low road with this one. GIVE US THE COURIER !!!

    Has someone from Apple infiltrated the Microsoft team and keeps chanting, 'copy the iSlate, copy the iSlate, copy the iSlate...' ?

  • Report this Comment On January 08, 2010, at 2:10 PM, AlexSedlacek wrote:

    Great Post Gandhim!

    Apple also has an incredibly valuable trait not possessed by any other company in the tech industry: Brand Loyalty. PC users often have hardware from many different manufacturers, for instance, one might own a Dell computer, a Linksys or Netgear router, a Blackberry, etc. Not so for the MacHead. We own Apple computers, Apple routers, Apple phones, Apple music players, and soon Apple Tablets!

  • Report this Comment On January 09, 2010, at 10:33 AM, stefnagel wrote:

    Key diff between AAPL and MSFT: The one primps and promises and consistently under delivers; the other keeps shtum and thus cannot help but over deliver. It's all about managing expectations.

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