For more analysis of Apple & the industry, join us at ACTIVE 2025.

Android licensees: If you're not paying, you're being sold

The latest litigation lollapalooza over Android reminds one of the old web adage that if you’re not paying for content, you’re the asset being sold.

That’s certainly one of the consequences of the Android licensing model. The mobile phone vendors with no software intellectual property are pawns in a game between IP holders. It’s clear that Microsoft and Apple and Oracle (and perhaps Nokia) have IP issues with Google. But it’s the licensee device vendors which are most often the accused. Whether Google indemnifies or not is an open question, but the evidence is that the vendors are exposed.

The proof is in the fact that HTC is paying Microsoft for the use of Android. It’s conceivable that Microsoft also asked Motorola for Android royalty payments but were rebuffed. It’s also possible Continue reading “Android licensees: If you're not paying, you're being sold”

Microsoft suits target Android phones

Microsoft Corp. said Friday it has filed patent-infringement lawsuits with the International Trade Commission and in the U.S. District Court for the Western District of Washington against Motorola Inc., targeting Motorola mobile phones based on Google Inc.’s Android software

via Microsoft suits target Android phones – MarketWatch.

This follows infringement suits by Apple against HTC targeting Android and by Nokia against Apple targeting GSM patents (with obligatory counter-suits, of course.)

There was a time when Motorola was a key design win for Microsoft and their Windows Mobile in 2003 with the MPx series. In fact, Motorola still ships Windows Mobile devices like the ES400 and FR68. These are for industrial applications but there were many mainstream Motorola Windows Mobile volume products. The most famous perhaps was the MOTO Q in 2006.

I’m sure part of the value pitch for Windows Phone is indemnification from IP infringement. Windows Phone will be the only licensed OS that offers this coverage and it’s a non-trivial selling point.

Is Google's income from the iPhone offsetting its losses from Android: Cataloging Google's non-Google Phones

Google has created a partial list of phones that run Google services.

Google Phone Gallery.

I notice with interest that it’s called a Google Phone Gallery not an Android Phone Gallery.

What’s more, there is a distinction of All Phones and Phones “with Google”. Of course that implies that we can get a list of Google Phones “without Google” (or maybe more accurately, “with partial Google”).

To clarify, according to Google there are three categories of Android Phones: Continue reading “Is Google's income from the iPhone offsetting its losses from Android: Cataloging Google's non-Google Phones”

Apple's segmentation strategy, and the folly of conventional wisdom

This mindset is compelling because it is simple and familiar, but it also leads to blind obsequiousness.

Historical edifices are held as indelible fact. “It’s Microsoft v. Apple all over again.” “There has to be one absolute, dominant leader.” “Open will always prevail — and should prevail — over proprietary systems.” “Market share matters above all else. Even profits.”

…it helps to see the continuum of connected devices from the perspective of their means of mobility; namely, whether they are wear-able, pocket-able, bag-able or portable.

[Apple] target specific user experiences, and build the product around that accordingly.

via Apple’s segmentation strategy, and the folly of conventional wisdom – O’Reilly Radar.

Lots of concepts that readers of this blog should find familiar ground.

Unix's Revenge

With QNX now firmly roadmapped at RIM and Android spreading among vendors like a virus, I wanted to point out that these operating systems share one ancestor: Unix.

A technical triumph

Technically Linux, which underlies Android, among others, is walled off from Unix from an IP point of view, but the philosophical and architectural lineage goes back to 1969’s Unix. It was an amazingly well thought-out operating system which has stood the test of time mostly due to its modular architecture. It was not always clear that Unix would make it this far, and in many ways it was written off. Continue reading “Unix's Revenge”

Correlating Innovation and Share Prices

In the last article on the P/E ratio vs. Growth for some of the largest companies, the question of PEG came up. PEG is the P/E over Growth and it’s a good way to index valuation relative to growth. Usually Growth is measured as the forward twelve months consensus and a PEG of 1 is, as a rule of thumb, considered “fair value”. However, forward growth is based on possibly inaccurate analyst consensus. If we instead look at historic growth, we have some actual performance to evaluate. Let’s call this PEhG for P/E over historic Growth.

The following chart shows 30 large cap technology companies[1] and their five-year compound EPS growth vs. their current P/E multiples. If we draw a line at the PEhG of 1, i.e. when the P/E ratio is equal to the historic growth rate and split the pack into PEhG > 1 (overvalued)[2] and PehG < 1 (undervalued), we have the following split:

The chart makes for an interesting Continue reading “Correlating Innovation and Share Prices”

Amazon App Store For Android

Yep, Amazon Launching Their Own App Store For Android Too.

No surprises here. Amazon, a retailer, is building a retail experience for apps. They are taking Android and throwing away Google’s app store and a few other things as well and making their own tablet while at it.

Maybe they’ll put Bing on it and Facebook too.

WebOS: HP, and HP Only. QNX: RIM and RIM Only

WebOS: HP, and HP Only.

With the launch of RIM’s tablet computer based on QNX and HP’s confirmation that WebOS will not be licensed, we have

  • Apple the largest tablet and music player company,
  • HP the largest PC company,
  • RIM the largest smartphone company in the US, and
  • Nokia largest smartphone company in the world

avoiding Android.

These are the companies which today are profitable and enjoy large market shares. Why did they choose integrated (aka “closed”) software with their hardware vs. the modular (aka “open”) approach offered by Google and Microsoft?

See also: asymco | Android’s Pursuit of the Biggest Losers

Morgan Stanley analyst predicts Microsoft will buy its way to triple smartphone market share in 2 years

“You could buy your way in, if you are Microsoft,” he said. “This is a market where a deep balance sheet will help Microsoft determine where they want to go.”

He notes a good marketing campaign can do wonders for adoption, with Ehud predicting Microsoft will hit 15% market share in 2012 (about the same as the iPhone’s share now)

“With [Microsoft’s] resources, I think they can sustain double-digit market share,” he said.

He notes Microsoft, with $36.8 billion in the bank, could win market share in multiple other ways, including subsidizing phone costs.

He still however predicts Android will lead the pack with 30%, Apple next with 25%, and RIM, Nokia and Microsoft all having 15% of the market.

via Morgan Stanley analyst predicts Microsoft will triple smartphone market share in 2 years.

There you have it: users are so easily persuaded that a platform purchasing decision can be acquired via small outlays of cash for ads and subsidies for vendors and operators.

Asymco

Asymmetric Competition

Skip to content ↓