Are Microsoft's Hardware Ambitions Bad News for Investors?

Updated
Are Microsoft's Hardware Ambitions Bad News for Investors?

After years of talk and poor results, it's finally looking as if software giant Microsoft's transition to mobile is beginning to take root.

Granted, it still isn't a significant player on the scale of either Apple or Google, but for the first time in a good while, Microsoft has more than just ambitions to make an impact in mobile. Last year, it introduced its best attempt yet at a mobile OS in Windows 8, whose follow-up update, Windows 8.1, is just around the corner. Microsoft's also made strong progress in introducing its own hardware. It launched a mainstream line of tablets and deepened its hardware bench by purchasing Nokia's handset business.

This progress is encouraging and much-needed, but it doesn't come without risks. In particular, investors have worried about how a shift to a more hardware-centric model might affect Microsoft's monumental profits in the years to come. In the following video, tech and telecom analyst Andrew Tonner examines those concerns in greater depth.


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The article Are Microsoft's Hardware Ambitions Bad News for Investors? originally appeared on Fool.com.

Fool contributor Andrew Tonner owns shares of Apple. Follow Andrew and all his writing on Twitter at @AndrewTonner. The Motley Fool recommends Apple and Google and owns shares of Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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