Microsoft Corporation (MSFT), Apple Inc. (AAPL): Is the Surface Doomed?

Google is similar to Apple Inc. (NASDAQ:AAPL). While Google Inc (NASDAQ:GOOG) didn’t start by selling laptops to consumers, it did start off interacting directly with the consumer market. Its search engine was a broad consumer based product from day one. It has repeated its success with Android. The operating system managed to grab 36% of the tablet market in Q1 2013, while Microsoft had just 8%.

In the lower end of the tablet market, Google will continue growing. Thanks to its search engine, it enjoys a fat profit margin of 20.9%, a ROI of 14.3% and a gross margin of 63.7%. With profits rolling in, it can easily afford to continue improving Android.

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Conclusion

Microsoft Corporation (NASDAQ:MSFT) has struggled in the tablet market, and its latest price cuts have little chance of substantially changing its prospects. The majority of consumers use tablets for surfing and communication, and Apple’s sexy iPads are a great status symbol. Price-conscious consumers have more options with Android powered tablets. If you want to invest in the tablet market, Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) are better options than Microsoft.

The article Is the Surface Doomed? originally appeared on Fool.com.

Joshua is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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