Microsoft MSFT recently unveiled Surface Duo, a smartphone with dual displays connected by a 360-degree hinge.

The foldable device will initially be available in the U.S. markets on Sep 10 at a price tag of $1399. Pre-orders for the phone have already begun.

Surface Duo will be powered by Google’s Android 10 operating system. the new device also comes with the option wherein users can work with Windows 10 in the cloud with Windows Virtual Desktop.

Management is expected to divulge more details on the global launch of Surface Duo in the days ahead.

The Android-based Surface Duo features two sleek screens. The device enables users to make calls, leverage Microsoft productivity experiences and adapt the device as required.

Surface Duo dual-screen device is designed to enhance productivity on compact and sleeker mobile form factor. The device is based on the concept of bridging the gap between smartphone, laptop and tablet and enable seamless multi-tasking without switching between devices.

Following the news, shares of Microsoft shares rose 2.9% on Aug 12. Notably, on a year-to-date basis, the stock has rallied 32.6% compared with industry’s growth of 26.2%.

Features in Detail

Surface Duo’s specifications are quite impressive. The phone has two 5.6-inch AMOLED displays, which when combined turn into an 8.1-inch PixelSense Fusion display. It is powered by Qualcomm’s QCOM Snapdragon 855 processor. The device has a memory of 6GB while the in-built storage options of 128 GB or 256 GB, with a dual battery capacity of 3,577 mAh. It has a single front camera of 11 megapixels.

In a blog post, Microsoft added that Surface Duo has stringent security layers to keep the data secure. One such feature is the custom engineered Unified Extensible Firmware Interface (UEFI). This allows full control over firmware components. Also, to stop malware from accessing personal information, Surface Duo uses Application sandboxing technique to separate Android apps. For protection of software, the smartphone utilizes Google Play Protect.

We believe that these features will boost adoption of the device, as foldable devices come mainstream. However, it should be noted that there is no 5G support on Surface Duo.

Competitive Scenario

Bendable smartphones could be the next big development in the mobile phone space. Microsoft’s Surface Duo is expected to heat up the competition in the foldable smartphone market.

Surface Duo is Microsoft’s latest offering after the Windows phone. Microsoft had partnered with Nokia for its Windows phones. However, these smartphones were not commercially successful.

Though Microsoft refrains from calling Surface Duo a smartphone, it essentially combines the features of a tablet and a smartphone that can fit in your pocket.

However, stiff competition is a key concern for Microsoft. Korea-based giant Samsung launched Samsung Galaxy Fold last year at a price tag of $1,980. In February 2020, the company unveiled Galaxy Z Flip foldable phone for $1,380. Apart from Samsung, Huawei Mate X, Motorola Razr and Oppo have also launched their foldable smartphones.

As foldable phones technology is in a nascent stage, there are likely to be some road bumps. Last year, Samsung had to delay the launch of its Galaxy Fold phone after receiving lacklustre reviews, initially. Also, the high cost of these phones could dampen prospects.

Meanwhile, Apple AAPL is looking to make iPhones more affordable. This could also pose a problem. Apple launched iPhone SE at a price tag of $399. Notably, Apple does not have any plans for a bendable phone in the near term.

Markedly, the smartphone industry was already hit hard by economic volatility and US-China trade tension and the coronavirus outbreak only made things worse. Depressed consumer spending and supply chain disruptions will lead to 11.9% fall in global smartphone shipments to 1.2 billion units in 2020, per IDC data.

Zacks Rank & Key Pick

Microsoft currently carries a Zacks Rank #3 (Hold).

Blackbaud BLKB is a better-ranked stock worth considering in the broader computer and technology sector, currently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate Blackbaud is pegged at 7.6%.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>
 

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
 
To read this article on Zacks.com click here.
 
Zacks Investment Research