Microsoft takes a step backward

Just when it looked like the company could be on the verge of something big with Windows 8.

By Jim Cramer Jun 19, 2012 9:57AM

Holly Molly, look out, Hewlett-Packard (HPQ) and Dell (DELL). You just got your first new competitor in ages, and it's your insides: Microsoft (MSFT).

 

Yes, Microsoft's Surface tablet is a replacement for the notebook, laptop, whatever, and it can easily be seen as a method to supplant the offerings of Microsoft's best customers.

 

Faced with a tablet-less group of clients, it seems Microsoft decided it could wait no longer, certainly not wait long enough, for Meg Whitman's HPQ or Dell's Dell and just decided to launch.

 

It's a bold and gutsy move. And I would think it has a chance because of Microsoft's heft, except for two reasons: It's built on the same operating system that the Nokia Lumia is built on, and the Lumia is a failure right out of the box (the device looked to be heavily supported by AT&T (T) now seems to have disappeared for good).

 

I worry about Microsoft here. I had been thinking that this company could be on the verge of something big with Windows 8, which I like, but I now think the lack of uptake from the Lumia 900 coupled with the fact that Microsoft was late with mobile, social and cloud may mean that this is a step backward, not forward, especially when you consider the wrath of Dell and HPQ. Maybe those two are trapped? Maybe they have no choice? Maybe they can accept the competition? Maybe Microsoft is better than Intel (INTC), more secure, because if Intel did this, Dell and HPQ would immediately go to AMD (AMD).

 

Plus, Apple seems to be willing to take on Samsung and also buy from Samsung, so maybe Microsoft thinks it is in a stronger position to compete and also be allied with its customers.


I just don't think it's all that good an idea longer term.

 

But you have to get a kick out of this feisty new Microsoft.

 

Even as Anton Wahlman says in a great piece, the real winner is Nvidia (NVDA), which has the tablet chip and is the chip in the new MacBook and is rumored to be the chip in the Google tablet to come next week.

 

Do nothing, Microsoft, and buy Nvidia.

 

Random musings: Still confused about how Oracle (ORCL) could be doing so well yet nobody seems to think it is doing all that well. Odd, hastily conceived conference call because of the resignation of the key sales guy. The whole thing seemed out of body to me.


(Microsoft owns and publishes Top Stocks, an MSN Money site.)


 

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in the stocks mentioned.

 

 

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28Comments
Jun 19, 2012 10:57AM
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What in the world. There are so many mistakes in this article. You have no clue what you are talking about. Go ask someone to explain to you the difference between Windows 8 and Windows Phone 7. This tablet doesn't run on the same OS as the Nokia phones. I couldn't even make out what you were talking about at times while I was reading this article. Stick to something you know about. This article is terrible and inaccurate!!!
Jun 19, 2012 2:33PM
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>> It's built on the same operating system that the Nokia Lumia is built on

AFAIK, Nokia Lumia uses Windows Phone operating system while Surface uses Windows 8 - two completely different operating systems... Do you know anything about technology or do you just speculate everthing?

Jun 19, 2012 10:43AM
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Microsoft invented the tablet, they were just way ahead of technology. With smarl cell phone technology, smaller processors, memory and Gorilla glass, PC makers just fell asleep on

the concept, Microsoft software was there but not Dell, HP, etc, who are struggling in identity.

Apple hasn't ever invented anything new, but is the early adopter, and puts investment in

pushing technology.  Microsoft  has to push tablet technology just as they did gaming, or

wind up drifting in the software market, a dinosaur.

Jun 19, 2012 1:55PM
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It does not run on the same OS that Nokia runs on, it runs windows 8. It's both PC (for productivity) and Tablet at the same time. No one offers this. Not too much time and thought put in writing this article.
Jun 19, 2012 10:14AM
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Wow Jim you really are a complete idiot. The surface tablet and Lumia run completely different OS, maybe you should stay out of tech and stick to giving people bad stock tips
Jun 19, 2012 4:16PM
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Moron.  You didn't even see the demo or read CNN.

USB ports, bigger screen, full Win 8, real detactable keyboard.  

For us power users who think iPads are toys made for kids, we welcome this new game changer to the market.    
Jun 19, 2012 10:44AM
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Jim, this article is so factless it is mind boggling. Now go back to your ranting, raving, and silly button pushing on TV and leave tech to the grownups.
Jun 19, 2012 10:12AM
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Um Windows RT is not built on the same operating system that the Lumia 900 is built on. In fact tomorrow Microsoft will be unveiling the next version of Windows Phone which is believed to be running Windows RT itself (A lighter weight version anyway) so any app written for Windows RT will run on Windows Phone with only a user interface meant for a smaller screen.  Windows RT itself is a subset of Windows 8 for Intel so any app written for Windows RT is also a Windows 8 application.
Jun 19, 2012 10:53AM
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Hey Cramer, Bill Gates just  called.  He's devastated that they don't have your blessing on this.

What a maroon!

Jun 19, 2012 10:41AM
Jun 19, 2012 10:40AM
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Jim, do us a favor - step aside from analyzing technology. will ya?

Jun 19, 2012 10:19AM
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Jim you are completely clueless around technology. Perhaps you should try to do some research before you make an 4ss out of yourself.
Jun 19, 2012 6:29PM
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Devoted ipad users won't be switching over to a Microsoft product, however, this tablet will be readily accepted by business users and will give MIcrosoft a very solid footing in the tablet market.  Looking forward to trying one out as our trial with ipads at work has been disappointing.
Jun 19, 2012 10:14AM
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Wow Jim you really are a complete idiot. The surface tablet and Lumia run completely different OS, maybe you should stay out of tech and stick to giving people bad stock tips
Jun 19, 2012 11:40AM
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MSN has zero credibility allowing this carnival barker on its site
Jun 19, 2012 10:37AM
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the self loving expert knows all......but most of all he knows how to profit from the gullible
Jun 19, 2012 11:22AM
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What did you all expect here, something insightful?
Jun 19, 2012 12:15PM
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The PC makers don't have any other viable options of operating systems in this game. So, no, it's not a mistake. And the windows smart phone operating system is gaining traction albiet slowly. So why shouldn't they do this?

 

Google is taking the same approach. You have to build the entire device to make sure your software works more fluidly with the hardware.

Jun 19, 2012 1:29PM
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I think Cramer is short...... short sighted.

The new Microsoft offering will be the only tablet running Win 8.  It will be the only one with the greatest Intel chip.

Jun 19, 2012 3:52PM
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Holly is that pretty dark green Christmas bush, but if you get stuck by it it really hurts.

 

I'm going out for a smoke, be right back.

 

 

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