Dallas, Texas 06/01/2015 (Financialstrend) – Even before Microsoft Corporation (NASDAQ:MSFT) launches its Windows 10 OS, there is talk of whether it will succeed or not. Analysts think that if OS is successful then the firm will divert its funds to low margin products.
Confident of Windows 10
Investors and Microsoft Corporation both want Windows 10 to be a hit after Windows 8’s failure. The firm thinks that Windows 10 will be a complete OS for enterprises and customers. The firm signaled that it is a risk-free OS, The pricing and distribution model will not shape the PC market.
The firm did let out some of the details about Windows 10 in a blog post. It will release seven versions of the OS. They are Windows 10 Pro, Windows 10 Enterprise, Windows 10 Mobile Enterprise, Windows 10 Home, Windows 10 Mobile, Windows 10 Education, and Windows 10 Iot Core. Tony Prophet, said that the new system will provide more personal computing feel.
Impact Of OS
The failure of Microsoft Corporation’s Windows 8 elevated Satya Nadella to the CEO position, which led to change in the management’s view and revenue generation model. The CEO’s slogan has been ‘mobile first, cloud first’. This has been getting results.
Analysts think that the success of Windows 10 will mean that resources will be diverted to the Devices and Consumer Hardware segment. The free update of Windows 10 will not drive sales nor improve PC market position.
Citigroup Inc (NYSE:C)’s analysts, Steven Rogers and Walter Pritchard, have issued a warning on the success of Microsoft Corporation’s Windows 10. Both the analysts say that the business environment of the firm will get hit in case OS turns out to be a success. The tilt is that the firm’s diversion of funds will result in fewer margins compared to the cloud and enterprise parts of the business. They don’t want the firm to go hammer and tongs to promote the OS and want to show restraint.
Another brokerage, Deutsche Bank analyst, Karl Keirstead, says that he is excited because of its enterprise, as well as, commercial software product scale. The analyst also upgraded to a rating of Buy with a price target of $55.
Microsoft Corporation views Windows 10 as a stable and the failure could invite backlash from investors.