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Dell Inc. (DELL) May Not Be Bought Out, So Buy Apple Inc. (AAPL)!

Believe it or not, I took on the challenge of visiting a Best Buy Co., Inc. (NYSE:BBY). When going into Best Buy, I was dismayed by a couple things about the Windows Operating System that the Geek Squad technician briefed me on. First Microsoft Corporation (NASDAQ:MSFT) didn’t implement a feature that would allow users to transfer programs from Windows 7 onto Windows 8. In fact, programs aren’t transferrable between the two operating systems. This means that users would have to purchase another copy of the software. In order to counter this negative effect, software developers like Adobe Systems Incorporated (NASDAQ:ADBE) is offering its Creative Cloud through a subscription rather than selling the product through a perpetual license. This allows users to upgrade from Windows 7 to Windows 8 without worrying about purchasing another software program.

More and more software companies are likely to adopt a subscription based approach in order to maximize revenues and make it easier for users to upgrade computers.

Apple dominates cloud

Apple Inc. (NASDAQ:AAPL) remains a compelling investment opportunity as it was able to increase sales for its Apple desktop and laptop products. Apple allows users to store data and programs through its Apple ID making it easier for users to transfer files and programs between all of the user’s Apple devices. This allows for faster adoption of Apple products and makes it easier for users to upgrade. It also helps that Apple Inc. (NASDAQ:AAPL)offers customer support through its genius bar at Apple store locations across the United States.

Apple Inc. (NASDAQ:AAPL) is pulling ahead in market share while Microsoft is hounding Apple Inc. (NASDAQ:AAPL) with Windows 8 mobile. In the mobile wars, Apple is certainly far ahead. But what’s surprising is that Windows 8 mobile is actually a very usable operating system that users should be able to become familiar with through the use of Windows 8 on laptops and desktops. Windows 8 gives users the added dimension of touch screen capabilities across the laptop, and desktop. Making the user experience more superior as it offers a third input alternative. After all, the more control a user has over the device, the higher the quality of the user experience.

Conclusion

Dell reported a pretty tough quarter as its net margins have declined while also losing market share to Apple Inc. (NASDAQ:AAPL). Increasing consumer adoption of Windows 8 brought by a product refresh cycle may increase the demand for Windows based computers.

Investors wanting a safer alternative should consider investing into Apple. Apple Inc. (NASDAQ:AAPL) offers a dividend yielding 2.84% plus it trades at a very reasonable 10.4 earnings multiple. Analysts on a consensus basis anticipate Dell to grow earnings by 9.67% per year over the next 5-years versus the growth that is projected for Apple at 20.88% per year for the next 5 years.

It seems like the clear winner is Apple Inc. (NASDAQ:AAPL).

The article Dell May Not Be Bought Out, So Buy Apple! originally appeared on Fool.com and is written by Alexander Cho.

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

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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