AOL Money & Finance

Microsoft (MSFT): A store, just like Apple's (AAPL)

More

If imitation is the sincerest form of flattery, Microsoft (NASDAQ: MSFT) must love Apple's (NASDAQ: AAPL) chain of retail stores. But, will it help Redmond to have stores of its own?

Setting up a Microsoft store is probably going to be difficult. Apple has a fairly limited number of products. Will Microsoft have its Xbox in the stores? How about its Zune of PCs running the new Windows 7 OS? Will it display business software for servers?

According to Reuters "Microsoft Corp announced plans Thursday to open its own chain of branded stores as it looks to catch up with rival Apple Inc's successful move into retailing."

The key to the success of the outlets may prove to be how many people actually think Microsoft products are "cool" enough to go out of the way for. No one is willing to buy a Zune even two years after its launch. Very few people want to look at server software.

The benefit of the stores would probably fall to Xbox and the new Windows 7 OS. The Xbox is already sold in tens of thousands of retail outlets but Microsoft may benefit from the buzz of showing new features in its own stores to help control the early PR.

The real beneficiary of Microsoft retail stores if there is one, is Windows 7. The Vista product which it replaces has been unpopular. Microsoft needs people to upgrade from earlier versions of Windows if it revenue is to hold up for the next two or three years. Showing all the features and benefits of the software with Microsoft experts to do the demos could be a very good way to bring the software to consumers.

The new stores might as well be called the "Windows 7 Outlet Shops"

Douglas A. McIntyre is an editor at 24/7 Wall St.

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA-42.3310,408.62
NASDAQ-13.612,162.40
S&P 500-3.361,102.88

Last updated: November 24, 2009: 01:56 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines