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GOOG Down With Market
The market is tanking in early trading as Greece completely melts down. Shares of GOOG are off with the rest of tech. Investors continue look for Android momentum on smartphones and tablets and actually monetizing that operating system; clarity on the Motorola acquisition; 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 11.0x Enterprise Value / EBIT.
Partial Verdict In The Oracle Vs. Google Case (Business Insider)
A jury has found that Google did violate Oracle’s copyrights when it used certain Java APIs in Android. But the jury couldn’t decide whether Google’s use of these APIs should be considered fair use. That’s a critical question, and Google is asking for a mistrial. The judge decided to move on to the next patent infringement phase of the trial immediately. The fair use question will have to be answered before damages can be calculated. It’s technically a win for Oracle, although Oracle may not get any damages out of it.
Smartphone Penetration Blows Through 50%, Android Leads In Mobile OS (Nielsen)
According to Nielsen, in March 2012, a majority (50.4%) of U.S. mobile subscribers owned smartphones, up from 47.8% in December 2011. Consumers purchasing new phones picked smartphones more often, and among smartphone owners Apple was the top manufacturer of smartphone handsets, while Android was the top smartphone OS (49% share versus Apple’s 32% share).
Smartphone Market Set To Explode And Android Will Be King (Ovum)
Smartphone are expected to increase at a compound annual growth rate of 25% over the next five years, according to Ovum. Total smartphone shipments are expected to hit 1.7 billion units by 2017, dwarfing the 488 million devices sold last year 2011. Android to reign supreme. Adam Leach, principal analyst at Ovum, says that, “While Apple has defined the smartphone market since it introduced the iPhone in 2007, we’re now seeing a sharp rise in the shipment volumes of Android, signaling its appeal to leading handset manufacturers.”
Apple Dominating Android In Gaming Revenues (VentureBeat)
There’s a reason why so many developers feels iOS users are more valuable than Android: Apple is killing it in mobile gaming with 84% of all mobile gaming revenue in the U.S., according to a survey by Newzoo. In the U.S., mobile gaming overall grew from 75 million to 101 million players across all platforms. That is broken down into 69% of people playing on smartphones and 21% on tablets. Newzoo predicts mobile gaming will see another double-digit revenue year in 2012.
AT&T CEO Says Google Prevents Android Updates (9to5Google)
AT&T’s CEO Randall Stephenson said some interesting things about the Android ecosystem. Specially, “Google determines what platform gets the newest releases and when. A lot of times, that’s a negotiated arrangement and that’s something we work at hard. We know that’s important to our customers. That’s kind of an ambiguous answer because I can’t give you a direct answer in this setting.” He’s on a roll isn’t he? He then goes on to explain how great Windows is and how he has been using it for a month and that Android needs to work on security. Matt Rosoff at Business Insider says that’s baloney.
Anecdotally, Verizon Is Talking Customers Out Of The iPhone In favour Of Android (CNN)
A study of salespeople trends at Verizon stores has uncovered that the company may be training its employees to preach the benefits of 4G LTE on Android over the iPhone. Some sales personnel are even being quoted as calling the iPhone “outdated.” CNN found a number of users who had stories of going into a Verizon store wanting to buy an iPhone but being convinced to buy something like a Droid Razr instead. The carriers pay much heftier up-front subsidies for the iPhone than for other devices. Verizon is also trying to ease congestion on its 3G network by promoting its more capacious and more efficient 4G service.
Google Getting Deeper Into Content, Invests In Machinima (All Things Digital)
Google is handing out money to video makers so they’ll make more stuff for YouTube. Now it’s putting money into a video maker itself. The search giant is set to invest in Machinima, which focuses almost exclusively on YouTube videos for and about video game players, and generates more than a billion views a month. People familiar with the round believe the company could end up raising more than $30 million with a post-money valuation of $190 million. Google hasn’t invested in content creators before.
Apple Finally Gives Mapping Credit In iPhoto, It’s Not Google (AppleInsider)
Once iPhoto for iOS was released a few moths ago, users immediately began to notice that the software uses a different style of map. But this week’s update to iPhoto shows the proper attribution to OpenStreetMap in the iOS Settings application. The shift is a sign of things to come, as Apple is expected to be developing its own mapping solutions in a transition away from Google Maps. They aren’t he first. Foursquare also left Google for OpenStreetMap.