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MSFT Sideways As Market Drops
The market is sliding as home prices dropped more than expected and a miss in consumer confidence. Shares of MSFT are see-sawing in the red near the flatline, while the tech tape is deeper in the negative. Upcoming catalysts include Windows 8 and entrance into the tablet market; Windows Phone 7 / Mango rollout and adoption with hardware partner Nokia; strides against current market leaders in cloud computing; making money in the online business, including integration of Skype and improving the search / display business; and continued evolution of Kinect and next generation Xbox console. The stock currently trades at 7.4x Enterprise Value / TTM Free Cash Flow. For the Business Insider updated Microsoft model, click here.The Analyst That Took Microsoft Public Says They Have Management Issues (Bloomberg)
Microsoft “has management issues that need to be addressed,” according to Richard Sherlund, analyst at Nomura. Microsoft shares “haven’t done anything in 10 years” and the company “just hasn’t shown that spark of innovation on the consumer side that Apple has,” Sherlund said in a radio interview. “It takes a different type of personality to innovate.” Completely agree, but what are they going to do about it?
Is Nokia Going To Miss Launching Windows Phones In The U.S. In 2011 All Together? (AdAge)
Nokia’s first Windows Phones might miss the U.S. altogether in 2011, allowing Apple and Google to duke it out this holiday season and gain even more of a lead on Microsoft’s platform. Apparently, Nokia is still picking ad agencies and wouldn’t start actively pitching phones in the U.S. until 2012. Clearly, that doesn’t preclude a U.S. release, but it is doubtful Nokia would launch a new platform here without any attention. Because they are going to need it.
It’s The Quarter For Xbox; Holiday Games Take centre Stage (Pocket-lint)
There’s little doubt that Microsoft’s Kinect was one of the big success stories last holiday season. Not only did the company sell around 6.3 million of the Xbox 360 motion sensing cameras before the end of 2010, it went down as one of the fastest selling consumer electronics devices of all time. While sales exceeded expectations (even Microsoft’s own), it has still taken time for publishers to support the add-on with quality compatible games titles. But this season will be treated to a plethora of new titles, including Xbox Live Arcade games, that should have Kinect owners flocking to stores.
Microsoft Boasts Patent Licenses With Over Half Of Android Handset Makers (AppleInsider)
Microsoft announced that a new patent licence agreement with original design manufacturer Compal means that companies accounting for more than half of all Google Android-based devices now have agreements with the software giant. The current list of 10 manufacturers that now pay Microsoft include Samsung, HTC, Wistron, Quanta, Acer and General Dynamics Itronix. The patent agreements covers any tablets, mobile phones, e-readers and other consumer-focused devices running the Android or Chrome OS Platform.
A Different Take On All The Mobile Patent Litigation (Business Insider)
Keith Bergelt heads the Open Innovation Network (OIN), a group that aims to create patent protection around open source software, including Linux and Android. He has a totally different point of view on the assault on Android. Most of the patent litigation going on in the mobile space is more about relative newcomers in mobile phones, mainly Apple and Microsoft, using their cash to stall Android by raising its cost of ownership. A full transcript of his argument can be found here.
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