Is Microsoft Corporation (MSFT)’s Tablet Simply Misunderstood? – Apple Inc. (AAPL)

Two areas of concern for Microsoft Corporation (NASDAQ:MSFT)
The first area of concern for Microsoft is the split focus. Tom Mainelli, research director of tablets at IDC, said:

Microsoft’s decision to push two different tablet operating systems, Windows 8 and Windows RT, has yielded poor results in the market so far. Consumers aren’t buying Windows RT’s value proposition, and long term we think Microsoft and its partners would be better served by focusing their attention on improving Windows 8. Such a focus could drive better share growth in the tablet category down the road.

While I agree with the sentiment, I wonder if this isn’t something Microsoft already understands. I allow for the possibility that the Surface RT was a way to do a soft rollout on the product before the full Windows version launched. Microsoft has made no mention of scrapping the RT version in the immediate term, but I believe it served its purpose, perhaps exactly as envisioned. Over time, the company will need to streamline its offerings, but as that occurs, a low-cost, full-Windows version will need to be released.

The second issue facing the Surface is its size. IDC reports that roughly half of the tablets shipped so far this year are of a smaller form factor. IDC’s Jitesh Ubrani explains: “Vendors are moving quickly to compete in this space as consumers realize that these small devices are often more ideal than larger tablets for their daily consumption habits.” Neither of the Surface devices are currently available in a smaller size, so this may be constraining sales.

Overall, Microsoft Corporation (NASDAQ:MSFT) is very well positioned to see significant growth in the segment. Even if the company only meets these estimates, this is a major uptick that warrants including the stock in your portfolio. If Microsoft can bring a successful Surface Mini to market and simultaneously turn the tablet into a productive Windows device, it may blow these numbers away. The company wasn’t the focus of the news, but it may be the biggest beneficiary.

The article Is Microsoft’s Tablet Simply Misunderstood? originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple, Google, and Microsoft.

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