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Edition: U.S. Article Comments (1) Follow Reuters Facebook Twitter RSS YouTube Read Pilot role in focus in Air France crash 11:42am EDT Consumer spending tepid as inflation accelerates 11:09am EDT Hedge fund star calls for Microsoft's Ballmer to go 25 May 2011 Wall Street gains on commodities but home sales off 10:32am EDT EBay and PayPal sue Google over trade secrets 26 May 2011 Discussed 129 As hours tick by, ”Judgment Day” looks a dud 105 Broadcaster silent as Judgment Day hours tick by 94 Obama departs for Europe trip, explores Irish roots Watched Scientists revive ancient spider in stunning 3D detail Tue, May 24 2011 Hundreds missing after tornado 2:40am EDT Deadly Missouri tornado captured on video Mon, May 23 2011 Microsoft not too late for tablet party: Citigroup Tweet Share this (Reuters) - Microsoft is still not too late for the tablet party. And with its Next operating system closer than most expect, the software maker could corner meaningful market share in 2013 and beyond, Citigroup said. Microsoft could bring out a... Email Print Related News Microsoft board backs Ballmer over Einhorn Thu, May 26 2011 Hedge fund star Einhorn calls for Microsoft's Ballmer to go Thu, May 26 2011 Lenovo quarterly net profit more than triples Thu, May 26 2011 IBM passes Microsoft's market cap after 15 years Mon, May 23 2011 Special Report: Sony stumbles: Did Stringer's makeover fail? Mon, May 23 2011 Analysis & Opinion Tech wrap: Microsoft backs Ballmer A cloudy forecast for digital music Related Topics Technology » Media » iPad » Microsoft Corp Chief Executive Steve Ballmer shows Slate PCs (from L-R) Archos, Pegatron and Hewlett-Packard during his keynote speech before the 2010 International Consumer Electronics Show (CES) in Las Vegas January 6, 2010. Credit: Reuters/Mario Anzuoni Fri May 27, 2011 9:15am EDT (Reuters) - Microsoft is still not too late for the tablet party. And with its Next operating system closer than most expect, the software maker could corner meaningful market share in 2013 and beyond, Citigroup said. Microsoft could bring out a tablet-optimized version of Windows Next OS before it releases a PC version, the brokerage said in a note to clients. Citigroup analysts expect the beta version of the operating system by September and shipping to start between January 2012 and March 2013. However, Citigroup was not convinced the product will be a raving success, adding that the overwhelming investor sentiment is Windows Next will not improve Microsoft's position in the consumer devices market. Consumer PC sales have declined for the last three quarters even as smartphones and tablets have become red hot. Apple Inc shipped roughly 15 million iPads in 2010, accounting for nearly the total tablet market, Citigroup said. The analysts said the tablet market has the potential to expand significantly this year, with Apple's release of the iPad 2 in March and a slew of devices running on Google Inc's tablet-optimized Android 3.0 (Honeycomb) OS. "Microsoft can have a meaningful share of the market in 2013 and beyond. Of course this is dependent upon the company's ability to deliver a competitive operating system on partner hardware that is priced competitively," they said. Microsoft would have the enterprise market in its favor if tablets pick up with business users, as these customers are accustomed to Windows devices. The "make or break" element for Microsoft will be the user interface, and the company will have to at least meet the benchmark set by Apple in this. The analysts said both Google and Microsoft will be competing for attention from the same OEMs, such as HTC Corp, Samsung Electronics Co, Dell Inc, Lenovo Group, LG Electronics, Sony Corp, Acer Inc and Asustek Computer Inc. Microsoft shares were trading at $24.70 before the bell. They had closed at $24.67 on Thursday on Nasdaq. (Reporting by Unnikrishnan Nair and Rachana Khanzode in Bangalore; Editing by Joyjeet Das) Technology Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) justuhvoter wrote: Not too late???? In 1999 Apple shares were $25.70 and today they are $348. In 1999 Microsoft shares traded for $58.38. Today they are $24.67. At this rate MS shares will be under $10 in the next decade. When MS was market dominant, there was no competition to their garbage software. Now there are a number of solid, free or near-free competitors in every software segment, and Microsoft is floundering. Ballmar may have been a great college buddy of Gates, but he’s probably the most incompetent CEO in American business today. Dump your shares like the major investors are before this company fades into irrelevance. May 27, 2011 11:50am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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