Microsoft Allies with Leading OEMs to Pre-Install Apps - Analyst Blog

Software developer Microsoft Corporation MSFT recently struck partnerships with leading Android device manufacturers like Samsung, Dell and eight other regional original equipment manufacturers (OEMs) in a bid to pre-install its apps on select Android products of these companies, later in 2015.

The other eight OEMs that Microsoft has signed deals with are TrekStor (Germany), JP Sa Couto (Portugal), Datamatic (Italy), DEXP (Russia), Hipstreet (Canada), QMobile (Pakistan), Tecno (Africa) and Casper (Turkey), as well as top original device manufacturer Pegatron.

Microsoft’s latest move is clearly an effort to broaden the reach of its mobile productivity tools to more consumers and enterprise customers and battle rival Google’s GOOGL Android ecosystem. The apps on offer will include Microsoft Office suite, OneNote, OneDrive and Skype.

These deals will have two-way synergies. They will help OEMs provide customers an enhanced Android experience, while for Microsoft, it will boost its cross-platform and cross-device service strategy.

The pre-installation of apps will spur usage because people tend to use what’s on their phones or computers already, partly because it’s convenient and partly because it’s free.

The pre-installation will also help OEMs and Microsoft cater to the growing demand of customers for top-rated services and save them the time needed to search and download them separately.

While Microsoft is doing whatever it takes to help its own OS – Windows – expand on both mobile devices and personal computers, it is now shifting toward more of a software-as-a-service model for its other products.  Microsoft is now trying to leverage services such as Skype, Office 365, Web-search service Bing and Software Assurance subscriptions to woo users to its ecosystem.

Also, Microsoft is striving to gain traction in the global smartphone market as Windows Phone holds a nominal market share in comparison to Apple’s AAPL iOS and Google’s Android mobile platforms.

Earlier, Microsoft offered Office applications only on the Windows operating system. However, as the company is still struggling with weak sales, it is seeking ways to make its products and services available on different platforms.

Microsoft currently holds a Zacks Rank #4 (Sell). A better-ranked stock in the technology industry is Groupon GRPN with a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MICROSOFT CORP (MSFT): Free Stock Analysis Report
 
APPLE INC (AAPL): Free Stock Analysis Report
 
GROUPON INC (GRPN): Free Stock Analysis Report
 
GOOGLE INC-CL A (GOOGL): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement