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Archive for the ‘Market’ Category

Free Microsoft Antivirus “Morro” And Immediate Impact

Today’s headline on yahoo news:Microsoft will soon unveil free anti-virus software“.

Immediate Market Impact: Symantetc shares fell 0.5 percent on Nasdaq and McAfee fell 1.3 percent on the New York Stock Exchange, while Microsoft was up 2.1 percent. The Nasdaq composite index was down 0.47 percent.

Investors Reaction: Investors are closely monitoring the free service, code-named Morro after Brazil’s Morro de Sao Paolo beach, amid concern it could hurt sales of products from Symantec and McAfee, which generate billions of dollars of revenue a year protecting Windows PCs from attacks by hackers.

Competitors Reaction: Officials with Symantec and McAfee have said they do not see Morro as a threat.

Analyst Reaction: “It’s a long-term competitive threat,” said Daniel Ives, an analyst with FBR Capital Markets, though he added that the near-term impact was minimal.

Is Microsoft attempting to challenge commercial antivirus makers just like  OpenOffice.org challenged Microsoft?

Maybe microsoft is planning to make morro an integral part of its OS for future sales strategy. The reason behind comment is below:

The reason that today’s computers and today’s computer networks are so easily infected stems back to a decision made at Microsoft, for marketing reasons.

In other words, we’re all being screwed by Microsoft Marketing. Let me explain. Read full story….

Source: Yahoo news and bnet.com

Motorola to break into 2 companies

Motorola Inc. bowed to pressure from investors Wednesday, announcing a plan to split its struggling cell phone business from other operations to form two separate publicly traded companies.

The widely expected deal comes as the suburban Chicago cell phone maker faces a second straight year of agitation from billionaire investor Carl Icahn, who has become increasingly frustrated with Motorola’s eroding phone sales.

Executives said the move will allow the two companies to better focus on their respective strengths and weaknesses, while accelerating the turnaround plan for the cell phone unit, which has seen its fortunes slip after trend-conscious customers lost interest in the Razr flip phone.

“The creation of the two independent publicly traded companies provides improved management focus and a capital structure that’s more tailored to the individual business needs,” said Chief Executive Greg Brown, who will remain at the helm of the split company’s non-cell phone unit. “And it will provide some improved alignment and agility and will help us going forward.”

Specifics of the deal haven’t been disclosed, but Motorola said its handset business will operate separately from another company offering its TV set-top boxes and modems and its computing and communications equipment.

Schaumburg-based Motorola said it anticipates the transaction will be tax-free, allowing shareholders to own stock in both of the new companies. If the deal is approved by regulators, the two units would be separated in 2009.

Officials haven’t said whether one company or both will retain the Motorola brand name or which company will distribute stock to existing shareholders.

Icahn called Wendesday’s announcement “much delayed and long overdue” and continued to push for the election of his four board members.

“As one of the largest Motorola stockholders, I continue to have concerns about the speed and manner in which a new management team is selected for the mobile devices business and the separation transaction is consummated,” he said in a statement.

“Time is of the essence, and decisive action is required to reposition the Mobile Devices business for success as an independent company,” Icahn said.

Samsung sees double-digit oper margins – 11th Feb, 2008

Samsung Electronics expects to maintain double-digit operating margins in the medium-term for its handset business, and expects to ship more than 200 million units this year.

David Steel, vice president for marketing at Samsung, said medium-term refers to a roughly one-year time frame. He said maintaining average selling prices for its phones is important even as it sells to emerging markets.

“It does not mean we are opening the gates for cheap products. We need to sell something with more of a premium,” Steel told analysts on the fringes of the Mobile World Congress.

Samsung executives said the company will introduce 11 new handsets at the wireless trade event.

In all, it will ship more than 200 million handset units in 2008, according to Geesung Choi, president of Samsung’s telecommunications business.

Samsung expects to have four or five WiMax phones out this year. WiMax is a wireless technology similar to WiFi but with longer range and stronger signals.

The company says its market share could reach a percentage range in the high-teens if it hits 2008 sales goal, depending on the global market size.

In addition, Samsung hopes to have a phone based on Google’s Android mobile phone software platform by early next year, it said at the Mobile World Congress on Monday.

Motorola, Nortel in talks to combine units – paper – 11th Feb, 2008

Motorola Inc and Nortel Networks Corp are in talks to combine their wireless infrastructure units, The Wall Street Journal reported, quoting people familiar with the situation.

The talks could create a joint venture with sales of around $10 billion, combining businesses that make network equipment for wireless phone carriers.

Motorola, the world’s third-largest mobile phone maker, which has been losing market share to market leader Nokia Corp and Samsung Electronics Co Ltd, is under pressure from activist investor Carl Icahn to split up and increase value for shareholders. Icahn owns a 5 percent stake.

Any deal between Motorola and Nortel would follow a wave of mergers in the global telecoms sector, as equipment makers combine in a bid to gain economies of scale and more pricing power against telephone carriers that are also merging.

The biggest deal in the telecoms equipment industry was Alcatel-Lucent, whose market value has shrunk by more than $20 billion since a merger in 2006. The French-American group said last week it wrote down 2.94 billion euros ($4.3 billion) against the assets it bought in 2006 and gave disappointing forecasts for 2008.

Motorola shares were up 16 cents, or 1.4 percent to $11.42 and Nortel’s U.S. shares were up 1 percent, or 10 cents, at $11.17 in early trading on the New York Stock Exchange.

Top Five Mobile Phone Vendors, Worldwide Full Year 2007

mobile-2007.jpg

  • Shipments in million
  • Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 25, 2008

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