Windows 10 could be a game changer for Microsoft
How Microsoft is expanding its presence through acquisitions (Part 4 of 16)
Success of Windows 10 will be a key factor in determining the future of Windows
In 2Q15, Microsoft reported that revenue plunged in the business unit that includes Windows. On January 21, Microsoft provided a detailed and technical overview of its latest operating system, Windows 10, which offers a single operating system across desktops, PCs, smartphones, and tablets.
Through Windows 10, Microsoft aims to win customers in the mobile space where Apple (AAPL) and Google (GOOG) (GOOGL) are leading players that collectively command ~92% market share of the operating system space, according to IDC (International Data Corporation). While Microsoft reported a decline in net income in 2Q15, its close peer Apple registered $18 billion in profit.
If Microsoft is able to alleviate the geopolitical issues surrounding its stock, it will benefit its investors, as well as ETFs like the Powershares QQQ Trust (QQQ) and the Technology Select Sector SPDR Fund (XLK), which have 8.00% and 9.61% exposure to Microsoft, respectively.
Windows 10 unified code will facilitate apps that run on all computing devices
Windows 10 works on a unified code module, so it helps developers write identical programs for PCs, desktops, tablets, and phones. Microsoft’s success in attracting programmers to generate unified codes that can be easily customized and altered for PCs and handheld devices gives Microsoft a competitive edge. Thus, the success of Windows 10 will be a key determinant in the success of Windows revenues that contribute significantly to the company’s overall revenues.
Surface and Office 365 have shown increased demand
Although Windows revenues declined, Microsoft’s other key Microsoft products, Surface and its Office 365 business, have shown strong demand.
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