Blue is expected to hit the market sometime this summer

May 3, 2013 11:32 GMT  ·  By

The Blue upgrade that Microsoft would most likely launch later this year is very likely to boost customer demand for touch-capable devices, Morgan Stanley analysts said in a short note for investors.

While reaffirming the overweight rating on Microsoft’s shares, the analysts explained that a major upgrade for the existing operating system could actually fix many of the issues experienced with Windows 8, so touchscreen devices adoption could skyrocket after launch.

“Windows 8 gives Microsoft an improved story on tablets, a new leg of rev. growth and downstream opps. for synergy with phones. A quicker release cadence with Win ‘Blue’ and better availability of touch-enabled devices in FY14 should improve cons. Demand,” Morgan Stanley wrote according to Mideast Times.

If reports on the matter are true, the Blue upgrade should also cut prices of touchscreen devices, as Microsoft is already offering major discounts to partners in order to bring cheaper units to the market.