What is Microsoft’s play here?Clearly, Microsoft is going through a lot of transformations these days. It is moving from its traditional software company to cloud based software, gaming and even building its first hardware device, the Surface. Is it based off of the Apple strategy? The fact that its recent tv ads are so similar to what Apple has produced certainly makes me wonder about it. One major hurdle that Microsoft faces about building hardware is that it has no experience/infrastructure. But Dell (DELL) does? Could this be the start of an alliance between the two?
Sure, it could simply be Microsoft putting some of its cash reserves to use but that seems unlikely doesn’t it? Microsoft, Apple and other companies with huge cash reserves rarely start behaving as hedge funds, trying to rack up big returns, etc.
Disclaimer: No position on Microsoft (MSFT)