THE GOOGLE INVESTOR: Cable Companies Should Be Terrified Of Google fibre

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GOOG Off With Markets
Markets are getting clobbered in today, and shares of GOOG are also in the red but moving closer to the flat line by midday. Google will announce earnings on Thursday, July 19.  Investors continue look for Android momentum and monetization on smartphones and tablets; integration of Motorola; regaining ground in China; the resurgence of Google TV; continued growth of YouTube; expansion of social network Google +; and progress in other initiatives (location-based services, mapping, Google Wallet, Google Music, etc.). The stock trades at approximately 10.1x Enterprise Value / EBIT.

Android Rules U.S. And Europe Smartphone Sales (CNet)
For the first time ever, Android has dominated smartphone sales over the last 12 weeks in several major markets, including the U.S., Germany, Great Britain, France, Italy, Spain, and Australia, according to data from Kantar Worldpanel ComTech. In all of these countries, Google’s mobile OS has taken at least half of smartphone sales, with the lowest being in Italy at 49.6% and highest in Spain with 84.1%. The data is from sales recorded over the last 12 weeks ending on June 10. Despite Android’s 50.2% share in the U.S., it’s important to note that this number has decreased by 6.8% from last year, mostly due to the iPhone 4S.

Who Will Win The Mobile Social Network? (BI Intelligence)
The move to mobile computing and the rise of social networking are the two defining trends in computing over the last five years. So who is best positioned as social networking goes mobile? Google is in a surprisingly strong position because of its strength in mobile and local businesses, and the lack of engagement on Google+ may not be as big a problem as it seems. Read more about Google’s competition in social networking on the mobile front at BI Intelligence.

Google Might Make Money On The Nexus 7 After All (All Things Digital)
Google’s Nexus 7 tablet may be all about an attempt to compete with Apple’s incredibly popular iPad, but when you crack it open, it sure looks an awful lot like Amazon’s Kindle Fire inside, according to IHS iSuppli. They took a Nexus 7 apart in order to see what components are inside, and to estimate what each of them costs. The early verdict is that the low-end eight gigabyte model of the Nexus 7, which sells for $199, costs $151.75 to build.

Who’s Afraid Of Google fibre? (GigaOM)
Want details on details on Google’s fibre-to-the-home deployment in Kansas City. So does Time Warner Cable. The company, one of the ISPs providing broadband access in the city, is fishing for details on the Google deployment, and is willing to pay $50 tips. Which implies that Time Warner is concerned enough about the potential competitive threat that Google’s deployment represents to suss out all the details it can.  And they should be afraid. It will likely lead to more cord cutters.

Google TV Is Missing Targets (paidContent)
In December, Eric Schmidt promised, “By the summer of 2012, the majority of the televisions you see in stores will have Google TV embedded in it.” Well it’s July and there are currently four Google TV devices, including only two integrated TVs. So what went wrong? Buoyed by Android’s widespread adoption by smartphone manufacturers, Schmidt believed gaining Google TV carriage would be almost as inevitable. But the reality has so far turned out differently. Google has to increase its OEMs creating the software enabled hardware.

Google And Microsoft Pilfering Search Share From Yahoo (comScore)
If you didn’t think Google could get more search market share, it has reached 66.8% in June, up from 66.7% in May. Bing reached 15.6%, up from 15.4% in May. Both are all time highs. Yahoo, on the other hand, was down to 13%. That is the 10th consecutive declining month in which the company has fallen. Bing, meanwhile, has had 26 straight months of either flat or rising market share. This trend has been playing out a while now. Google and Bing pick up a little bit of share, Yahoo loses a little bit. Considering how much money Microsoft has invested in Bing, it has to be disappointing that Google isn’t losing share.

Here’s How Amazon Can Take On Google In The Mobile Phone Market (Crash Dev)
It won’t be easy, but there’s a way for Amazon to do something entirely different and incredibly disruptive. Amazon’s Kindle Fire launch sent a clear message: Amazon is playing to win in this new, vertically integrated mobile device / OS / media war. And it will be Jeff Bezos’ favourite play: minuscule margins and massive patience. We’ve seen glimmers of Amazon’s mobile strategy already:

  • By pricing Kindle Fire at BOM they quickly became the best-selling Android tablet on the market, betting that they’d make up the lost margin in increased share of wallet over time.
  • Experiments with ad-supported Kindles have allowed Amazon to test the waters for other types of hardware subsidies that boost lifetime value while keeping retail hardware prices low.

If you take these ideas to their logical conclusion, it’s not hard to imagine Amazon pulling the biggest move of all: giving away a pretty good smartphone, along with unlimited voice calling, completely free.

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