MSFT Stock: Can Microsoft Corporation Finally Overtake the iPhone?

MSFT StockMSFT Stock Finally Has Some Fuel

For the last few years, Microsoft Corporation (NASDAQ:MSFT) has struggled to poach a share of the smartphone market from Apple Inc. and Alphabet Inc. I used to be bearish on MSFT stock, because those early attempts failed miserably. But now I’m fairly convinced the newest “Windows” phone can jumpstart gains for Microsoft stock.

I personally switched to “Android” smartphones early on. Microsoft wasn’t even on the radar at that point. About five years ago, I got fed up with “iTunes” and bought an “HTC Desire” that ran on the Android OS. The open-sourced platform was appealing to me on principle, but I also loved the home and menu buttons.

Then I switched to a “Samsung Note,” which has an absolutely gorgeous screen. As a hyper-consumer of news, the Note’s extra large screen is great for me. Plus, there was no adjustment period between the HTC and the Samsung, as they both ran on the same Android OS.

My contract is almost over now, though, and I’m considering making yet another switch—except this time, my money could go to Microsoft.

The new “Lumia 950” from Microsoft is easily the best Windows phone ever made, but it also adds a really unique feature. The importance of this feature, especially as it relates to MSFT stock, shouldn’t be underestimated. Microsoft has been aiming to dethrone the “iPhone” for a long time, and this time, it may have found its mark.

Microsoft Stock Could Make a Comeback

Microsoft desperately needed a competitive edge and I think they found it by looking at the rest of Silicon Valley. Ask yourself what is a common factor in all of the successful new startups we’re seeing and the answer becomes clear as day: product integration.

Building software that can be used across multiple devices is absolutely necessary. Considering that Microsoft has Windows, the most entrenched software on the planet, it’s in an awesome position. The new “Continuum” feature on Microsoft smartphones is the final bridge that connects its products. (Source: “Microsoft Lumia 950 transforms into a PC, but should you care?,” Mashable, November 20, 2015.)

Continuum allows Microsoft customers to connect their smartphones to a screen and use it as a computer. How cool is that? The endgame for Microsoft is to have our mobile devices as the only tool we’ll ever need. Both desktops and laptops would become irrelevant once the processing capabilities of smartphones catch up.

Imagine plugging your phone into a screen and having comparable functionality to a personal computer. We always thought “Windows 10” from Microsoft was designed to integrate tablets and desktops, but now it appears that the goal is to extinguish PCs altogether. If you can’t beat them, join them; that appears to be the new Microsoft strategy.

The Upside for MSFT Stock

MSFT stock could get a huge bump if the Lumia 950 sells well in its opening week. However, there are still serious obstacles for Microsoft to poach market share from Apple and Android.

The most obvious headwind is that too many popular apps are unavailable on the Windows platform. If it takes a long, complicated process for a user to download Snapchat or Instagram on their phones, it’s inconceivable that we’ll see a mass conversion to Windows phones. Microsoft has to address that issue if they truly want to make it in the smartphone world.

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