LG trades margin upside for safety. LG has struck a patent deal with Google which looks to be almost exactly the same as the deal struck with Samsung on 27th January 2014. I continue to believe that this deal was a huge strategic blunder for Samsung (see here) but in LG’s case there is little...
The journey to ecosystem remains very hard. Sony reported a difficult set of results but there were no real surprises. Q2 14A Revenues / operating profits were slightly better than forecast at JPY 1,902bn / LOSS JPY 85.6bn compared to consensus at JPY 1,812bn / LOSS JPY 62.7bn. The main reason for the better than...
Microsoft’s Band is another shot at the ecosystem. The new Microsoft Band is not much to look at but if it is robust and works as well as promised, then it could see some traction. Microsoft Band is the latest is a slew of products that promise to monitor the key aspects of user’s daily...
Samsung does not seem to have any idea what to do. Samsung reported awful Q3 14A results as profitability in the handset business collapsed far below RFM’s bearish expectations. Q3 14A Revenues and operating profit were KRW47.45tn / KRW4.06tn compared to RFM forecasts at KRW49.86tn / KRW6.84tn. The biggest problem was the IT and Mobile...
The easy growth looks over. Investments are now required. Facebook reported good Q3 14A results but there are signs that growth is starting to slow meaning that investments have to ramped up to develop the addressable market further. . Q3 14A Revenues / EPS were $3.2bn / $0.43 compared to consensus forecasts at $3.1bn /...
Twitter is not the next Facebook. Twitter and Facebook are often compared directly against one another but in reality they are very different animals. Facebook productises its 1.3bn users who spend 18% of their smartphone time using its app and sells this data to advertisers. Twitter has a core of active users that generate content...
Apple Pay is the victim of a much bigger conflict. It looks like mobile based payments are at last about to see some traction, catalysed by Apple Pay, but already the battle lines are being drawn CVS and Rite Aid, the number 2 and 3 pharmacy chains in the US have both decided withdraw support...
Microsoft has the bit between its teeth while Amazon flounders. Microsoft and Amazon reported results on 23rd October leaving me in no doubt that a strong preference for Microsoft over Amazon is the right way to go. Microsoft Q1 15A Microsoft reported excellent results with Q1 15A revenues and EPS of $23.2bn / $0.54 compared...
Apps for Android signal a real change in strategy. Microsoft Garage is a skunkworks inside Microsoft known for being a geeky haven, and it has just released three free apps for Android. These apps are free and feature no internal purchases meaning that there is no direct means by which these apps can be monetised....
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
Xiaomi – Reality check
There is very little left for investors at $45bn. If Xiaomi can raise money at a valuation of $40bn-$50bn, this will be its greatest achievement to date. Now that Xiaomi is the leader in the Chinese smartphone market, it is beginning to turn its eye to other potentially huge markets such as India and Russia....