Why This Company Will Still Lose the Tablet Race

Updated

Consumer goods analyst Austin Smith warns investors about future prospects for Barnes & Noble (NYS: BKS) and its Nook tablet. Microsoft's (NAS: MSFT) investment in Barnes & Noble and subsequent creation of subsidiary Newco may indicate hopeful prospects, but Microsoft's new Surface tablet could just as easily take away from Nook sales. With declining revenue and difficulty competing with the app foundation of Apple's (NAS: AAPL) iPad and the price of the Amazon (NAS: AMZN) Kindle, Barnes & Noble may be a company worth avoiding.

Barnes & Noble is trying to tap into a cousin of what our top analysts are calling "The Next Trillion-Dollar Revolution," but it's stumbling. And so is the problem with investing in a company that marries your fortunes to the success or failure of one product. That's why we recommend going with a component play inside mobile phones instead. It's a company that will profit no matter which company is selling more devices. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.

The article Why This Company Will Still Lose the Tablet Race originally appeared on Fool.com.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Amazon.com, and Microsoft. Motley Fool newsletter services recommend Amazon.com, Apple, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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