Microsoft Surface Pre-Orders Are Selling Out. Good News? | Tech Teardown - 10/7/13 | The Motley Fool

TL;DR

Microsoft Surface 2 models sold out in pre-orders, Twitter faces concerns about user base and advertisers, NTT dok experiences a drop in subscribers after launching the iPhone, Apple sends out invitations for an event, HP provides update on ongoing turnaround, Microsoft considers offering Windows Phone for free to HTC, Acer rumored to be pursuing touchscreen Chrome OS device.

Transcript

Aaron Kennedy here today with Evan new and Jamal carnett for Tech tear down let's get right to headlines Tech Giant Microsoft recently reported that pre-orders for its surface 2 models are selling out it sounds like great news for Microsoft investors do you think it is well we actually this sounds very similar to what happened last year uh the firs... Read More

Key Insights

• ⏮️ Demand for Microsoft's Surface 2 models in pre-orders may indicate solid demand, but caution is advised based on previous experiences.
• 👤 Twitter's user base and its ability to attract advertisers is still behind compared to Facebook's massive user base.
• 💦 NTT dok's drop in subscribers after launching the iPhone highlights the importance of adequate inventory and potential implications for other carriers.
• 🤝 The upcoming Apple event is expected to focus on iPads and may include updates on MacBooks and a potential China Mobile deal, while also providing insights into the smartwatch strategy.
• 👀 Investors are looking for updates on HP's ongoing turnaround strategy, particularly revenue growth and progress in the enterprise segment.
• 🥶 Microsoft's offer of free Windows Phone to HTC may be a desperate move to gain market share in the mobile industry.

Questions & Answers

Q: What can be learned from last year's experience with Surface RT models?

Last year's Surface RT models also sold out quickly in pre-orders but ultimately did not perform well. This suggests caution in interpreting the current sell-out of Surface 2 models as a sign of solid demand.

Q: Why are advertisers skeptical about Twitter's user base?

Twitter's user base, especially domestically, has a long way to go before it reaches the critical mass that Facebook has achieved. Twitter's smaller user base hampers its ability to attract advertisers seeking large user bases.

Q: Why did NTT dok experience a drop in subscribers despite launching the iPhone?

NTT dok attributed the drop in subscribers to inventory issues, indicating a potential supply constraint. It is unclear why Apple did not allocate more inventory to NTT dok, especially considering its position as Japan's largest carrier.

Q: What can be expected from Apple's upcoming event on October 15th?

Investors anticipate a major iPad announcement, alongside potential updates to MacBooks and other overdue product refreshes. Additionally, there is hope for progress on a China Mobile deal and information on Apple's smartwatch strategy.

Q: Is HP's turnaround strategy showing positive results?

While HP shares have rebounded, all major segments are still experiencing revenue declines. Meg Whitman's ongoing turnaround strategy will be closely watched for updates on revenue growth and progress in the enterprise segment.

Q: Is Microsoft's offer of free Windows Phone to HTC a desperate move?

The move can be seen as a sign of desperation, as Microsoft's business is selling software and offering it for free could negatively impact their business model. However, it also highlights the disruptive power of Android and the need for Microsoft to gain a foothold in the mobile market.

Q: What can be expected from Acer's rumored touchscreen Chrome OS device?

Realistically, the market opportunity for a touchscreen Chrome OS device is limited, given the small size of the Chromebook market. Chromebooks have historically been low-cost devices, and the high-end Pixel model has not gained significant traction.

Summary & Key Takeaways

• Microsoft's Surface 2 models are selling out in pre-orders, signaling potential solid demand. However, caution is advised based on the previous year's experience with the Surface RT models.

• Twitter is facing challenges with its user base, especially domestically, and advertisers are skeptical about the platform's reach compared to Facebook. LinkedIn offers a more professional user base.

• Japanese telecom NTT dok saw a record drop in subscribers in September despite launching the iPhone, attributed to inventory issues. This could serve as a cautionary tale for other carriers.

• Apple is expected to announce new iPads and possibly other product updates in an event on October 15th.

• HP's ongoing turnaround strategy will be discussed at an analyst meeting, providing updates on revenue growth and the effectiveness of their repositioning for the enterprise segment.

• Microsoft is considering offering Windows Phone for free to HTC, potentially out of desperation to gain market share in the mobile industry.

• Acer is rumored to be developing a touchscreen Chrome OS device, which may face limited market opportunities given the small size of the Chromebook market.