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GOOG Down As Markets Recover
Markets are erasing morning losses after initial unemployment claims slightly missed expectations. Shares of GOOG are off. Google will report calendar first quarter earnings on Thursday, April 12th at 4:30pm ET. Investors continue look for Android momentum in the smartphone and tablet markets worldwide, especially with the Motorola acquisition integration; regaining ground in China; resurgence of Google TV; and continued growth of YouTube; expansion of social network Google+; and progress in other newer initiatives (location-based services, mapping, gaming, daily deals, Google Wallet, Google Music, etc.). The stock trades at approximately 12.6x Enterprise Value / EBIT.Android As A Business Model Doesn’t Even Compare To iOS (Asymco)
Horace Dediu of Asymco points out that most of the increase in Google’s smartphone revenue is from the iOS platform. Revenue per device from the Android platform is actually on a slight decline. Google is making money on its prime placement as the default search engine on iOS devices (such as the iPad, iPhone, and iPod Touch). Dediu also notes that Google makes roughly $1.70 annually per device whereas Apple makes over $576 per iPhone sold.
Google Inks Deal With Paramount To Bring Movie Rentals To YouTube (9to5Google)
YouTube announced a new licensing agreement with Paramount Pictures that will bring 500 new rent-able movie titles to YouTube and Google Play. “With the addition of Paramount, we now have five of the six major studios and over 10 independent movie studios offering nearly 9,000 movies for rent to millions of people around the world,” announced YouTube Director of Content Partnerships Malik Ducard. Google plans to continue adding new titles and expanding its service to more countries later this year.
Sony To Bring Google TV To Europe This Fall (GigaOM)
Sony will start selling Google TV-based products in Europe in September. The new Sony boxes will apparently have a Google Play button on their remote controls, giving direct access to Google’s app and content store. The box will also come with Sony’s own content offerings, including Music Unlimited. Google TV has so far only been available in the U.S. This is the first time the company has provided a clear timeline for its plans to enter the European market.
Android And iOS Take 80% U.S. Smartphone Platform Share (comScore)
comScore released its data of the top smartphone platforms and OEMs in the U.S. Android was up 17-percentage-points from a year ago with 50.1% of the U.S. smartphone market followed by Apple at 30.2%, an increase of 5-percentage-points. In terms of manufacturers, Samsung is the largest with 25.6% share followed by LG at 19.4% and Apple at 13.5%. So, Android might be winning, but the phone makers aren’t.
Google To Build Taiwan Data centre To Keep Up With Gmail Demand (Bloomberg)
Google will spend more than $300 million building its largest Asian data centre in Taiwan to meet the region’s demand for its Gmail and YouTube services. The site in Changhua, central Taiwan, will be 5x larger than locations already being developed in Singapore and Hong Kong, and bring total spending on facilities in the region to more than $700 million. The investment will help tap into growing demand for mobile advertising in the Asia-Pacific region.
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