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Tablet Wars Continue: Microsoft vs. Apple

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    Rick Newman of U.S. News and World Report argues the Microsoft tablet can compete with Apple’s

  • Duration 2:49
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-- the company is Rick -- with US news and world report.

Rick is the all all of a rebound that is how -- pivot from setback to success I Rick.

How and when will -- office really compete with the iPad.

Well its person of the market most likely later this year if it could be a competitor the iPad right off -- -- I mean it depends on the execution -- Microsoft has said already.

This is gonna have some features and -- notably missing from the iPad such as the a built in stand -- you know -- -- an aftermarket device to prop it up.

A keyboard I -- those are things that basically raise the price of the iPad for people who want to use it that way because I have to go on by those things.

Second at a hundred 200 bucks more -- the costs and it's a Microsoft saying we're gonna bundle that ended basic product.

If the execution is good and it feels the usability is good I think -- could compete with the iPad right off the bat.

That's important because this so -- not really being a competitive to the iPad you could say the Kindle fire.

You could say that that was something of a competitor but along comes Microsoft loaded with fifty billion dollars cash right you say this could be a competitor now -- the question.

This a big move for Microsoft they've never done anything like this before on this scale have.

They haven't they've tried to prick produce a music player the -- their own device that was basically a flop.

They've gotten into the phone business but hardly anybody has a windows -- these days so they're definitely trying something annoying but they have to do this Stewart but it's hard -- This is a massive move into on -- -- you know they're saying I think they're saying let's look at the market in the head that maybe the bigger margins are going to be from a hardware rather -- software which is declining for them as -- -- on them on a margin basis and remember the public market is -- -- grown almost 5050%.

-- 50% per year so even if you have small market -- that's a small share of -- growing and booming business.

Which is good it's almost -- can't -- for Microsoft I think.

Two things which I don't think you -- on note number one at the price that is gonna go off but we don't know that -- if it's gonna.

Have to be competitive with the iPad and -- be Smart to undercut it by just a little bit because the iPad -- a premium product -- be Smart to say this is this is the same model as with computers right.

Apples or at the top.

PCs in the middle or you could buy subsidized do you think this -- -- he got here 54 exam I think I think -- I think they would but I'm not sure they have to Stuart I think that demand is really strong for these products if they can do a lot of things as well as the iPad it undercut on price I think that could easily make it up on -- -- remember the margins on ipads are huge that's why apple sitting on something like nine billion dollars in -- a day.

Laws -- because a small country last want you don't know -- it's going to be -- do you.

I they haven't said yet I think it's probably safe to assume it'll be assembled in China with parts from everywhere army -- that's model these days not going to be the United States it's hard to imagine it could be.

Erica too expensive to do it here all right Rick Newman you say it is a competitive both in the immediate future and long till we appreciate that thanks very -- -- by threatening we still.