"The addition of a tablet would radically alter profitability in the Windows business, which now sells just software with operating margins of more than 60 percent. By comparison, computer maker Dell Inc. (DELL)’s operating margin for the most recent fiscal year was about 7 percent."
With Nokia's big trouble with market price, and Google likely announcement of its tablet, Apple's iPad taking over every market, a "simple" solution for Microsoft is to just purchase Nokia, and instead of phones starts making Windows 8 tablets in high volume... That is, if it can sell in large numbers...
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