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MSFT On The Rise With The Market
With Occupy Wall Street trying to take over the world, the market is rebounding as April ISM blows past expectations despite disappointing construction spending figures. Shares of MSFT are up with the markets. 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.LG No Longer Producing Windows-Based Phones (WP Central)
LG told the Korea Herald that it will no longer continue to produce Windows Phone-based handsets because “the total unit of Windows Phone[s] sold in the global market is not a meaningful figure.” That said, the company revealed that it will “continue research and development efforts” on the mobile OS. Steve Ballmer is due to arrive in South Korea later this month, so this public statement to the local press could be more of a strategic move. With LG pulling out, this leaves Nokia, HTC, and Samsung as the three major companies producing Windows Phone handsets.
Microsoft Takes $300 Million Stake In Barnes & Noble (Apple Insider)
Microsoft announced that it will take a $300 million stake in bookseller Barnes & Noble’s digital Nook e-book business. The new partnership will create a subsidiary that will include not only the Nook business, but also Barnes & Noble’s college textbook business as well. The deal also means Barnes & Noble will create a Nook application for Windows 8. The critics weigh in:
- Microsoft May Have Solved A Big Problem (Business Insider):It is possible now that when consumers buy a Nook, they will get a Windows tablet capable of running thousands of new-style Windows apps. Microsoft would actually make some money from these tablets.
- It’s A Bad Deal For The Mobile Industry (Business Insider): It’s not about e-books. It’s about Android and Linux and preserving Microsoft’s ability to be a patent bully.
- Nothing Like Buying Share Of The Tablet Market (BI Intelligence): Microsoft is also buying into the perilous field of building content ecosystems. It’s doubtful that the Nook is a sufficient beachhead for Microsoft into tablets.
A mixed bag.
Why Windows Will Be The Dominant Tablet Platform (VilleAho)
Blogger Ville Aho believes that mobile operating systems could replace desktop operating systems. And if it does, the largest operating system would be the one that would be the most attractive to the consumers also in the future. That means that Windows, with its 90% market share, is still dominating the market left, right and centre. And he believes With Windows 8, Microsoft is essentially changing the name of the game and showing it is not kidding around. That’s find and dandy, but developers don’t build for installed base alone. They also look at which platforms are shipping in the biggest volumes now. That’s where the users are going to be. That’s where the growth and opportunity is. And Microsoft is no where in the game.
Apple Co-Founder Loves His Windows Phone (aNewDomain)
Steve Wozniak is known for playing around with all kinds of mobile tech, even if it competes with iOS devices. He recently bought Nokia’s new Lumia 900 Windows Phone, and shared some of his thoughts on Microsoft’s Mobile platform in a podcast interview. Overall, Wozniak says he prefers the look and feel of Windows Phone apps over Android and iPhone apps. He also likes Windows Phone better overall than Android. That said, he still uses his iPhone 4S as his primary phone.