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MSFT Off After Morning Highs
The markets are sporadic today as investors continue to be apprehensive about Europe. Shares of MSFT are off after a resilient morning. 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 7.1x Enterprise Value / TTM Free Cash Flow.Microsoft Will Grab The Number Two Spot In Tablets (Forbes)
Morgan Stanley analyst Kathryn Huberty upped her sales projections for the tablet computer market. Huberty and the tech team at Morgan Stanley are now estimating shipments of 133 million tablets in 2012, up 57% from their original estimates; and 216 million tablets in 2013, up 112%. The bold call: Microsoft will grab a substantial chunk of the market. She argues that Microsoft will grab the number two spot in the market, after Apple iPad and ahead of tablets running Google’s Android software, with the launch of Windows 8 later this year.
Microsoft Is Winning In The Living Room (Forbes)
Xbox has become Ballmer’s weapon of choice. Over the last 10 years, Microsoft has been feeding its living-room secret weapon a nonstop diet of software updates and hardware upgrades. This spring, for the first time, subscribers to Xbox’s Live online service in the U.S. spent more time consuming video and music than multiplayer games. Xbox is Microsoft’s profitable Trojan Horse. If the Xbox division keeps growing as it has, it will account for far more than the 7% of Microsoft it does today.
Xbox Is The Best Selling Console In The World (Engadget)
Before Microsoft had even set off any of its gaming fireworks, Don Mattrick, president of Microsoft’s Interactive Entertainment Business, took to the stage at E3 to tell the audience that its Xbox has now graduated from best-selling console in North America to best selling console in the world. We’ve already seen that new versions of Halo and Splinter Cell are both incoming — so it looks unlikely that Microsoft’s good run will be ending any time soon.
As Xbox Becomes More Mainstream, Will Gamers Look Elsewhere? (The Next Web)
The Xbox strategy, Microsoft’s living room strategy, is interesting. The Xbox’s gaming popularity may be at risk, if Microsoft’s plan to push the device further, and further into normal content succeeds. Could young gamers become disenchanted with the console if they constantly see their parents using it for Netflix, or sports? Such brand image isn’t immaterial to younger minds, and gamers do skew younger, regardless of the fact that gaming is popular in every age bracket. The days of the Xbox being preeminent, in the gaming sense, could be coming to a close.
What Is Microsoft’s ‘Summit’ For Windows Phone All About? (The Next Web)
Microsoft announced a ‘summit’ for Windows Phone on June 20th. So what is this all about? Here’s the speculation:
- Windows Phone 8
- Xbox integration
- New hardware
- Microsoft buys Nokia
- Something small and disappointing
All we have for now is “A sneak peek of the future of Windows Phone.”
The State Of The U.S. Smartphone Market (pingdom)
According to comScore, more than 100 million Americans now own a smartphone, a number that keeps growing. One of many signs that smartphone adoption is exploding is that as of May this year, 9.1% of all web usage in the U.S. happened via mobile devices. Two years ago, that number was just 3.3%. Notable trends include:
- The dramatic fall of BlackBerry
- Android has reached a plateau
- iOS is growing faster than Android
- iOS has been pulling away from Android since last fall
- Windows Phone is gaining, but slowly
Apple’s grip on the US mobile market is strengthening.