Hewlett-Packard Company (HPQ), Microsoft Corporation (MSFT), Dell Inc. (DELL): The Tablet Supremacy

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The company has been experiencing issues related to the decline in PC shipments and is running late in a fiercely competitive segment like the tablet one. Dell Inc. (NASDAQ:DELL) posted first quarter 2014 revenue of $14 billion which decreased 2% compared to the same quarter last year but had serious problems with its operating expenses as its operating income fell 73% to $226 million and so did its net income that followed at a 79% decline totaling $130 million. Dell Inc. (NASDAQ:DELL) is in a quest to go private, and must solve this rapidly if it does not want to be engulfed by the veering technology industry.

Final comment

Microsoft Corporation (NASDAQ:MSFT) seems to be the fittest of this peer group. All segments of the company have improved from the same quarter last year and it posted an 18% improvement in revenue. Entering new markets will be difficult for Microsoft Corporation (NASDAQ:MSFT), but investors should know that this giant has the proper shoulders to withstand the impact: expect some revenue growth.

Dell Inc. (NASDAQ:DELL) and Hewlett-Packard Company (NYSE:HPQ) are both late in entering the tablet segment but are trying to offset the decline of PC sales. Hewlett-Packard Company (NYSE:HPQ)’s share price seems expensive considering the revenue drop experienced by the company in the last quarters. Dell Inc. (NASDAQ:DELL)’s success seems to be linked to Microsoft Corporation (NASDAQ:MSFT)’s performance as it continues to deliver PCs and tech devices with that company’s operating system. Moreover, it has had problems with operating expenses and a fierce activism quest regarding whether it should go private or not. Investors should wait for these problems to be solved before acquiring shares.

The article The Tablet Supremacy originally appeared on Fool.com and is written by Vanina Egea.

Vanina Egea has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Vanina 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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