Free Making Money

How is Elop going to address this by
using Windows OS? He has to do more than just charge more, he has
to produce better product at competitive prices, which keep getting
lower. Elop will have to license the Widows OS, which is an
expense, one that he would bear to nowhere near the same extent if
he used Android. I feel he mistakenly looks at this as Google
commoditizing the Android platform, in lieu of the more reasonable
perspective of Google commoditizing the entire portable computer
space.

Well, the answer has arrived. Microsoft is buying Xx% of Nokia for paying Nokia over $1 billion to product Windows Phone 7 hardware.
Nearly all of this money is undoubtedly going into R&D and
marketing. Nokia and Microsoft (their new defacto owners) invariably see
Google as the pre-eminent trheat and are pulling out all of the stops
to nullify said threat. This also answers the question of how Elop, the
Nokia CEO will be able to deal with the reduced margins of having to
buy OS licenses while competing with vendors who get Android for free –
Microsoft is not only footing the bill, but investing in the business
as well. You see, the drop in Nokia’s share price is highly unwarranted
and their is visible synergy in this deal. Nokia gets to remove the
costs of OS R&D from its line times, sunk costs that have apparently
had negative incremental returns as they have had their asses handed to
them by Apple and most definitely Google – who knocked them off of
their number one market share perch in just over a year.

Microsoft gets the economic benefits of an existing hardware platform
that happens to have the number one marketshare metric in the world,
and gets it for just over a billion dollars. This is a win-win
situation. The question is,  will it win againt Google. Both companies
will still fail if they don’t execute on Google-time, who has compressed
development cycle years into months – literally!

From the Bloomberg article linked above:

Shrinking Margins (yeah, you’ve hear thist from me often enough)

Espoo, Finland-based Nokia needs to cut
costs to keep operating margins from narrowing further, after they
shrank to 4.9 percent last year from 19 percent a decade earlier. For
2011 and 2012, Nokia may cut its budget for research and development in
devices and services by about a third from last year’s spending of about
3 billion euros, said Sami Sarkamies, a Helsinki-based analyst with
Nordea Bank.

Microsoft spokeswoman Melissa Havel
declined to comment on the specifics of the agreement. Laurie Armstrong,
a spokeswoman for Nokia, said the final contract hasn’t been signed and
the company will share further details when they are complete.

Nokia’s royalty payments will help
Redmond, Washington- based Microsoft make a profit on the accord even
after the payments to Nokia, one person said. Some of the payment to
Nokia would be made before the company starts selling the phones,
meaning Microsoft bears some upfront cost in the partnership.

…

Microsoft shareholders want the company
to salvage its mobile-software business while also reining in costs. The
company doesn’t break out results for its mobile-software unit, and
instead groups them with the profitable Xbox video-game business, making it difficult to evaluate the financial performance of phone software.

Chief Executive Officer Steve Ballmer
has come under pressure from investors and his own board to improve
sales of mobile software after the company lost market share to Google
and Apple. Microsoft stock has declined 7.8 percent so far this year.

The agreement for the more than
billion-dollar payment was part of a campaign by Microsoft to keep Nokia
from choosing Google’s Android operating system, one of the people
said. Nokia also opted for Microsoft because Windows Phone software,
which is newer than Android and has a smaller number of handsets for
sale, gives Nokia a better chance to stand out, one of the people said.

The agreement also has Microsoft paying Nokia for the right to use its patent portfolio, one of the people said.

As part of the deal, Microsoft will use
Nokia’s Navteq mapping products for functions such as geolocation
services and selling local advertising and coupons tied to a user’s
position. If successful, that also could generate additional revenue for
Nokia, which will share in the sales. The two companies will also
divide revenue from services like search and advertising, Microsoft
President Andy Lees said last month.

I’ve been warning my subscribers about margin compression in this
space, and its about to get much uglier – to the extreme benefit of
consumers of personal and enterprise tech. Previous (and prescient)
posts from last year on this topic…

• Don’t Count Microsoft Out of the Ultra-Mobile Computing Wars Just Yet
• After Getting a Glimpse of the New Windows Phone 7 Functionality, RIMM is Looking More Like a Short Play
• As
  I Warned in June, DO NOT DISCOUNT Microsoft in This Mobile Computing
  War! Their Marketing Campaign is PURE GENIUS! and it Appears as if
  the Phone Ain’t Bad Either
• Apple on the Margin
• How
  Google is Looking to Cut Apple’s Margin and How the
  Sell Side of Wall Street Will Enable This Without
  Sheeple Investor’s Having a Clue

Monetizing the Mobile Computing Race

We have a pretty firm idea of who is in the pole position as of now,
but that position is both risky and volatile, not to mention medium to
long term in nature – see Navigating BoomBustBlog Subscription Material To Find The Google Valuation Drilldown.

A more risk averse strategy is to go long on the component vendors
who supply those battling for pole position. Last week we released the
document Long candidate #1 – Hardware: The Mobile Computing Wars
to subscribers that outlined who our number one pick was after an
initial scan. This is not necessarily the absolute final say on the
matter since we have yet to perform a full forensic analysis, but the
company does look good in comparison to over 120 peers. Non-subscribers
should reference The Potential Equity Investments Most Likely To Prosper From the Google/Apple/Microsoft Mobile Computing Battle.

I am releasing the draft of the full shortlist of prospective long
candidates as of now (17 pages, 5 companies) to subscribers. Please be
aware that is a draft document and work in progress, but it is quite
informative nonetheless.  See Mobile Computing Vendor Long List Note WIP. Those who wish to subscribe should click here.

Click here to read up on all of Reggie Middleton’s Mobile Computing War opinion, analysis, and research.

Surface Encounters proudly guarantees buyer satisfaction and total price setting up granite assurance. “I’m constantly skeptical heading with new companies, but your staff has built me a believer!” - Steve, Indianapolis

Surface Encounters may be a fast-growing surface encounters organization and, yet they have stored tempo with every one of the latest purchaser referrals. “This organisation is one of the most cost effective, reputable and friendly corporations with the overall state. I might endorse them to any individual.” - Mike R., South Bend

A whole lot of operate goes into designing attractive countertops from nature. The method involves laser measurement artistic vein matching, precision diamond and water-jet cutting, edging and pro installation. A single are unable to plainly get in touch with within their purchase for the customized countertop and have it within daily or two. High-quality takes time.

Surface Encounters encourages many people to visit a showroom to understand even more about all-natural stone countertops. Apart from the choice and fabrication plan, a further fundamental piece of buyer care is making sure 1 knows the way to care for his or her granite countertop to maintain it wanting new for years to come.

Granite may be a gorgeous healthy stone solution which can be a widely used content employed for countertops and floor tiles in kitchens and bathrooms. Granite has surpassed marble in recognition as a result of is it even more resilient and better to care for. Granite is unmatched by artificial products for its strength and sturdiness, tolerance to temperature changes and resistance to stains and scratches.

Granite is really a naturally shaped stone that is definitely quarried from deep while in the earth, harvested, lower, polished, sealed and installed in households to add beauty, elegance and model. Mainly because it is just a purely natural solution, no two slabs are particularly alike. Granite is accessible in a number of hues in the many different minerals that happen to be discovered inside rock. As it arrives from throughout the world, unique regions and environmental issues ensure it is exceptional.

Granite is predominantly built up of quartz crystal, nonetheless it also comprises diverse amounts of other metals this includes feldspar, mica, copper and iron. Some granite may well include bits of gold or silver. The quantity of every single metal is dependent about the region it comes from. All granite is shaped right into a very hard stone by heat and stress. Rain adds other minerals as it is forming. It happens to be readily available throughout the planet, in each individual country, and just about every region will make a surface encounters completely unique number of granite.

Surface Encounters state-of-the-art machinery ensures the greatest high quality completed merchandise because they design and style and formulate some of the best kitchens and bathrooms. Granite Countertops greatly enhance the warmth and attractiveness of homes although raising their price and strengthening lifestyles.

Surface Encounters can be involved with worker morale; thrilled employees are extra most likely to lead towards the achievements of the small business. Additionally to staying a triumphant organisation and an individual that is wonderful to operate for, Surface Encounters does their aspect to preserve our planet.

Surface Encounters does what is perfect for their buyers, personnel and the environment. Surface Encounters utilizes state-of-the-art water recycling capabilities to recycle up to 43,000 gallons of h2o each day. Additionally, a hundred % on the scrap produced in constructing classy kitchens and spectacular baths is re-used as aggregate in street making, surface preparations and concrete.

The Columbus, Ohio Grand Opening of Surface Encounters capabilities an artwork gallery showroom of Granite, Marble, Quartz and Engineered Stone counter tops. Retailer Supervisor, Scott Donnelly unlocked the doorways for the showroom at 4717 Roberts Road, just west of your I-270 Beltway. The Surface Encounters production practice makes use of precision, automated technological know-how all the way through the fabrication of your customer's custom-made counter the best, such as: a laser measuring alignment that applications the diamond-tipped sculpturing blades. Surface Encounters' operation incorporates computer-driven software package that perpetuates the stone's normal veins. Each individual Surface Encounter keep has a minimum of a person registered, interior designer to help you in constructing the completed task that you're searching for. The craftsmanship continues with the

House owners are determining to remodel rather than promote their homes in today’s market
Granite countertops have grown to be a major decision amongst Wixom customers for kitchen remodeling projects. Kitchen remodeling is often the first challenge tackled with families shelling out three,000 hours or even more each year in their kitchen. Granite countertops supply an natural environment that enhances the excellent time spent with loved ones and colleagues. Granite countertops last a lifetime and improve the good quality of homes.

Surface Encounters Wixom retailer supervisor, Sal Dellacasa, says there are various causes buyers are choosing granite for their countertop desires. “Granite countertops add magnificence and elegance to a kitchen. Granite is accessible inside a selection of vibrant hues and abundant textures and its strength and durability is unmatched by any other natural stone or synthetic countertop materials.”

Surface Encounters’ consumers enjoy specialized services as well as a pleasant, helpful workers to guide them through the kitchen remodeling practice. A large number of of Surface Encounters new consumers are referred to them by former prospects.
"This business has become the most cost-effective, trusted, and pleasant organisations from the complete state. I'd recommend them to anybody." Mike R. Clinton Twp., MI

"The service has often been there to help me in whatever way attainable. Thank you so much!" David V. Lapeer, MI


Surface Encounters Macomb may be the residence of half-off granite for kitchen and bathroom countertops. Granite countertops by Surface Encounters have instantly turn into the best choice for Macomb residents that are remodeling their kitchens. Kitchen remodeling normally takes priority with families investing 3,000 hrs or more each year within their kitchen. Granite countertops offer an surroundings that enhances the high-quality time invested with household and buddies and improve the outstanding of houses.

Surface Encounters Macomb shop supervisor, Sal Dellacasa, says there are several good reasons shoppers are finding granite for his or her countertop must have. “Granite countertops add attractiveness and elegance to a kitchen. Granite is offered inside a number of vibrant colours and rich textures and its strength and sturdiness is unmatched by any other surface encounters purely natural stone or artificial countertop substance.”

Surface Encounters’ users savor professional services as well as a pleasant, very helpful employees to information them with the kitchen remodeling operation. Many of Surface Encounters new prospects are referred to them by previous users.