Microsoft stores are acting as a tech emporium showcasing new technology from all the various suppliers - Sony, Toshiba, HP, Dell (AlienWare), even Amazon. They get the margin on the hardware, and, of course, the OS and related software. I wasn’t certain what they would do with a store, but they got this right. There aren’t many places to actually play with this stuff. The one at the Bellevue Mall is drawing a lot of people, highlighting how much MS does do, including game products, phones, tablets, etc. My market tester, son Rielly, really liked the place and I’m sure if we stayed we would have spent money. You’ll see lot’s more MS stores in big malls as it’s a great use of their cash and a lift for the brand. When the analysts in Wall Street take their kids, they will think “Hmmm…” I agree on the price target… it might be even a bit higher. Finally!
I think Apple could have problems. Their stuff is great, but starting to get all kinds of weird problems with clocks, apps getting confused, overheating, battery drain, etc. I went to the Apple store the other day and the service line was 2 hours with another 90-minute delay. All kinds of issues. There are so many good phones and tablets now, people may start to switch. Watch out for stock price drop.
Posted by BruceDMilne, Founder on 21 January 2011