THE MICROSOFT INVESTOR: The Windows Phone Will Overtake The iPhone By 2015

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Steve Kovach, Business Insider

MSFT Off With Markets
The market is off in early trading as Europe gets tough on Greek debt and a slew of earnings announcements roll in. Shares of MSFT are off after Friday’s pop in the stock. The rest of the tech sector is currently recovering on strong results from chip-making companies. Upcoming catalysts include Windows 8; entrance into the tablet market; Windows Phone 7 expansion with primary hardware partner Nokia; strides in cloud computing; profitability in the online business, including integration of Skype and improving the search / display business; and continued evolution of Kinect and next generation Xbox. The stock currently trades at 7.9x Enterprise Value / TTM Free Cash Flow. Check out the newly updated Microsoft Model here.Nokia Shipped Around 1 Million Windows Phones Last Year (Bloomberg)
Nokia shipped between 800,000 and 1.3 million Windows Phones in 2011. Nokia’s first Windows Phone, the Lumia 800, launched in Europe in mid-November and the entry level Lumia 710 went on sale in Asia and in Russia in December. This number doesn’t hold a candle to the amount of phones Samsung or Apple might sell in a year, but for a company coming back from the dead, it’s not bad at all.

Microsoft Will Surpass Apple In Smartphone Market Share In 2015 (iSuppli)
Windows Phone will surpass iPhone in market share in 2015, according to iSuppli. iSuppli attributes the giant increase in market share over the next few years “largely” to the introduction of the Nokia Lumia 900, which Nokia launched at CES last week in Las Vegas. In 2015, Android will lead the two runners up by a very hefty margin with 58.1% market share. iSuppli joins Gartner and IDC, which made the same prediction last year.

Nokia Represents 50% Of Windows Phone Market Share (VMPoweruser)
Nokia has succeeded in taken up 50% market share of second-generation Windows Phone handsets, according to a new report from Occasional Gamer. When you bet the farm, then you better be the number one manufacturer. These numbers aren’t likely totally accurate, but Nokia announced its Lumia line sold over 1 million units, suggesting that there are ~2.6 million second-generation Windows Phones in the market.

The Windows Phone Power House Makes Microsoft An Attractive Stock (The Motley Fool)
Microsoft, AT&T and Nokia bring a lot of firepower. The business distribution system of Microsoft combined with Nokia’s and AT&T’s retail channels makes the estimated 1+ million units already shipped seem a likely scenario. For investors, even with the slight pop on Friday, Microsoft stock remains the cheapest in the industry trading at a mere 10.7x earnings. Add to that a dividend of 2.72% and Microsoft has some solid upside. Now throw in 7.5 phone shipments of a million plus and an extremely sound balance sheet and Microsoft starts looking even better.

The Holidays Were Good To Tablets And E-Readers (TechCrunch)
Too bad Microsoft isn’t a player, yet. Ownership of tablets and e-book readers saw a big spike over the holidays. In fact, it nearly doubled in the U.S., according to a study from the Pew Research centre’s Internet and American Life Project. The study was based on telephone surveys conducted in mid-December and January, which found that ownership of both device types nearly doubled in just a month. Now a total of 29% of US adults own a tablet or an e-reader, or possibly both. The jump follows a period during the fall of 2011 where the numbers seemed relatively stagnant.