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MSFT Up With Markets
The market is up as March PPI was flat and core inflation beat numbers. Shares of MSFT are up with the rest of tech. Upcoming events include calendar first quarter earnings to be announced on Thursday, April 19 at 5:30pm ET. Catalysts for the stock include Windows 8, Windows Server 8, Office 15 and Windows Phone 8; expansion in the smartphone market with primary hardware partner Nokia; strides in cloud computing; profitability in the online business, including integration of Skype; and continued evolution of Kinect and next generation Xbox. The stock currently trades at 8.1x Enterprise Value / TTM Free Cash Flow.PC Sales Snap Back As Microsoft Releases New Version Of Windows (BusinessWeek)
The global personal-computer industry unexpectedly grew in the first quarter, marking a turnaround after the sluggish European economy and component supply shortages had dragged down the market last year. PC shipments climbed 1.9% to 89 million units, compared with predictions for a 1.2% drop, according to Gartner. PC makers will benefit from supplies of disk drives returning to normal (from the floods in Thailand) and Microsoft releasing a new version of its Windows operating system, according to IDC.
Gartner Says Microsoft’s Tablet Will Be A Complete Failure (Business Insider)
According to Gartner, Microsoft will have only 8% of the tablet market in 2013, the first year after Windows 8’s assumed release date, and only 12% by 2016. If they’re right, Microsoft’s tablet ambitions will fail, placing the entire company in jeopardy. Let’s be optimistic for Microsoft and assume that only 50% of the tablets sold in 2016 replace PCs. That means 185 million tablets will be bought instead of PCs and 141 million non-Windows tablets will be sold in place of what probably would have been Windows PCs. Will that mean an absolute decline in Windows PC sales? Hard to say.
Microsoft rumoured To Have Only Sold 3.5 Million Smartphones (ZDNet)
Market share for Windows Phone has dropped in recent months, according to market watchers. An inside contact said that number is around 3.5 million handsets. Microsoft hasn’t shared publicly the total number of Windows Phones sold to date. I wouldn’t either if it was that bad. That’s a mind bogglingly poor number of sales if true. There is some dispute about the number. Another Microsoft observer claims 11 million sold. According to more sources, Windows Phones accounted for only about 3% of all smartphones sold by AT&T and T-Mobile in the U.S and they aren’t even a blip on Verizon’s radar screen.
It Costs Nokia $209 To Build The Lumia 900 (IHS iSuppli)
IHS iSuppli has taken a Lumia 900 apart and has determined that it costs Nokia about $209 to build. And it’s not exactly the most cutting-edge phone on the market. The phone contains only 512 megabytes of DRAM memory. The Bluetooth chip is a slightly older model as well. The gyroscope chip, which determines how the phone is being moved, was the one area where the company didn’t pinch pennies. The cost or bill of materials (BOM) represents 46% of the Lumia 900’s $450 retail price, without a service contract.
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