Consumer Electronics Expo Pessimistic About Microsoft (MSFT, AAPL, GOOG)

CEO Steve Ballmer of Microsoft

is set to unveil new software for tablets at the Consumer Electronics Show next week. Pessimism is already looming over the Windows-based model by Apple

iPad enthusiasts. Keith Goddard, CEO of Capital Advisors, holds AAPL shares and stated, “By the time Microsoft gets it figured out everybody will already own an iPad. That train has left the station.” The iPad, introducted in April, is a touch-screen device that handles video, music, and computing tasks. MSFT's effort may falter if their features do not live up to consumers' expectations of what the iPad will deliver. Nevertheless, the new Windows will be tailored for battery-powered devices, primarily mobile phones and tablets. Components of Microsoft's new system are integrated with Qualcomm

, Texas Instruments

, and Samsung hardware and software. “Apple has sold more than I'd like them to sell,” Ballmer proclaimed to analysts. Apple has sold 7.46 million iPads through the first three quarters of 2010 according to analysts at Goldman Sachs

. Goldman further noted that AAPL may sell as many as 37.2 million iPads in 2011. Research firm IDC predicts the tablet computer's share of the PC market may rise to 9.2% next year, or 402.7 million. Apple shares have risen 55% YTD, while MSFT have declined 9% YTD. APPL has gained significant market share, and has redefined consumer expectations for what a tablet computer should do, according to analysts from Gartner Inc. Apple surpassed Microsoft in market capitalization in May of 2010, AAPL now has the second largest market cap. in the S&P 500. Google

, with the Android mobile phone operating system, surpassed Apple by number of devices running the software in the U.S., according to NPD Group. “The longer it takes Microsoft to get an operating system into tablets, the less likely the company can challenge Apple and Google,” said Tim Bajarin, President of Creative Strategies research firm. “Given this late move by Microsoft, it would still be quite an uphill battle,” he further added.