Friday, March 4, 2011

Microsoft (MSFT) to Release Windows for Tablets in 2012

People with knowledge of the matter said Microsoft Corp. (NASDAQ:MSFT) won't be releasing a tablet competitor to Apple (NASDAQ:AAPL) or Google (NASDAQ:GOOG) until the 2012 back-to-school season.

A beta version won't be available for testing until sometime near the end of 2011, said the sources.

"Microsoft needs to update its Windows 7 operating system with programs more tailored to the touch screens, size and battery life of tablet computers to win a place in the surging market for the devices. The longer it takes Microsoft to release its operating system, the more time Apple and Google have to strengthen their hold on the market, Bloomberg noted.

“If 2011 is the year of the tablet wars, Microsoft will be awfully late suiting up for that battle,” said Michael Gartenberg, a New Jersey-based analyst for research firm Gartner Inc. “It’s not a good position to be in.”

Gartenberg added a 2012 debut for Microsoft would probably put it up against a third-generation iPad from Apple and second and third versions of devices based on Google’s Android system. Hewlett-Packard (NYSE:HPQ) and Research In Motion Ltd. (NASDAQ:RIMM) will probably also release second-generation tablets by then, he concluded.

While that will probably be the case, it will depend upon what Microsoft offers, as possibly dozens, if not over a hundred different tablet offerings will probably be made over the next year or so, and even if some make some headway, Microsoft will gain some share.

And if they provide an excellent Windows version for the device, they could grab a built-in customer they've been serving for a long time.

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