Todays actual Big news: Microsoft is now a integrated vendor

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    Posted: 18 June 2012 11:03 PM

    The big news today is not the details of Micrsofts tablets, but the fact that Microsoft is now an integrated Hardware/Software/Ecosystem vendor.

    Microsoft has taken a giant leap into the unknown with a fully integrated business model of the Apple variety, both for ARM based tablets & x86 computers.

    Microsofts own hardware “partners” now have to compete with the company that creates the OS they use - and microsoft has the big advantage of not having to pay for the OS to ship on its devices - meaning its margins will be bigger.

    In the long run, this will be the main thing everyone will remember about Microsoft in 2012.

    It would now not surprise me if Microsoft bought Nokia outright also.

    [ Edited: 18 June 2012 11:09 PM by Burgess ]

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    Posted: 18 June 2012 11:36 PM #1

    Scared, angry, betrayed, cursing themselves for not remembering playsforsure, exasperated at the feeling that they really had no other “choice” but to keep partnering with Microsoft…

    It’s not a good day to be a Microsoft hardware partner.

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    Posted: 18 June 2012 11:41 PM #2

    Mav - 19 June 2012 02:36 AM

    Scared, angry, betrayed, cursing themselves for not remembering playsforsure, exasperated at the feeling that they really had no other “choice” but to keep partnering with Microsoft…

    It’s not a good day to be a Microsoft hardware partner.

    agreed.

    I bet HP is feelng pretty stupid right about now for killing WebOS.

    Dell? Might as well sell off the parts and return the cash to shareholders.

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    Posted: 19 June 2012 12:09 AM #3

    Don’t want to start a new thread - but is anybody considering buying NOK in light of this? (For an acquisition pop). I suspected Microsoft’s strategy might be to buy them, but today’s release has crystallized it a bith further.

    Google purchased MMI for $12.5B. As of today, NOK’s market cap is $9.40B - and Microsoft has something like 60B in cash if Yahoo finance is correct. I haven’t looked through any numbers in detail though.

    Any takers?

         
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    Posted: 19 June 2012 12:19 AM #4

    Roman - 19 June 2012 03:09 AM

    Don’t want to start a new thread - but is anybody considering buying NOK in light of this? (For an acquisition pop). I suspected Microsoft’s strategy might be to buy them, but today’s release has crystallized it a bith further.

    Google purchased MMI for $12.5B. As of today, NOK’s market cap is $9.40B - and Microsoft has something like 60B in cash if Yahoo finance is correct. I haven’t looked through any numbers in detail though.

    Any takers?

    It would seem to make sense, plus apples future royalty payments to Nokia alone would probably be worth in the hundreds of millions of dollars a year soon.

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    Posted: 19 June 2012 12:24 AM #5

    There’s the Other Stocks thread.

    Nokia is losing cash very, very rapidly.  I’d kind of rather save my penny stock cash for LQMT instead.

    Obviously, buying NOK is a very high-risk play.

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  • Posted: 19 June 2012 11:13 AM #6

    MSFT is “soon” to be an integrated vendor. No release date yet. This is the biggest takeaway from the event yesterday. I would think they could say “4Q12” or “2H12” or something to narrow down the potential release date. I think there is ZERO chance this product comes out this calendar year. Pretty remarkable they would announce this right now. I guess they are more afraid of iPad than I previously thought. Do they see death on the horizon and feel they have to fall on the sword a bit by trying (emphasis on trying) to slow iPad sales by any means necessary right now?

         
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    Posted: 19 June 2012 11:58 AM #7

    It’s hard to blame either Microsoft or Google for lusting after Apple’s profits. They are correct that an integrated model is one of the reasons for Apple’s success. What they do not realize is that such integration is not easy to pull off and that other very important factors are involved.

    The obvious problem in switching business models like this is that they are burning bridges. It’ll be tough to reverse course once they embark on this journey.

    Microsoft can see how Apple’s post-PC devices will eventually eat away at two of their core businesses (Windows & Office). It’s ironic that their response yesterday may actually speed the decline of those businesses.

    This decade’s computing wars are going to be very interesting to watch.

         
  • Posted: 19 June 2012 12:32 PM #8

    This really might be the best thing that has “happened to Apple” in a long time. MSFT is now competing with all the other other Windows based OEMs, even the ones not in the tablet space. If tablets are a substitute for PCs (often they are) then MSFT just said FU to a lot of the partners that helped MSFT become a monopoly. This should only speed up Mac’s growth, if only a bit at first, as OEMs search for alternative strategies going forward.

         
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    Posted: 19 June 2012 01:00 PM #9

    Drew Bear - 19 June 2012 02:58 PM

    very important factors are involved.

    1. hardware supply chain.  Former king: Dell.  New king: Apple
    2. relations with customers.  Mixed models:  Apple, IBM, Microsoft.  Trend: Apple up.
    3. OS fundamentals.  Microsoft: integration from 1995 to 2011.  Apple integration from 2012-2020.
    4. Software armada.  same
    5. Vision:  Steve Jobs armada.  Steve Ballmer herds of cats.
    6. Competing for dollars:  Apple.    (insert superlative)

         
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    Posted: 20 June 2012 03:20 PM #10

    I’m more wondering if this might be an opening for some other OS. If HP and Dell, et.al. are now fighting against Microsoft, and if they know that each Windows PC they sell benefits thir competition, will they look for a third option?

    For many users a tightly locked down Linux with all the spooky parts hidden, OpenOffice, Thunderbird, and Mozilla, would do everything they need. The hard part would be convincing users that it’s just as good. For hardware vendors now competing against MS who gets it’s OS and Office Suite for free it would level the playing field.

    And if not Linux then maybe something else we haven’t seen yet. Desktop Android anyone?

    [ Edited: 20 June 2012 03:22 PM by geoduck ]

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    Posted: 20 June 2012 09:09 PM #11

    geoduck - 20 June 2012 06:20 PM

    I’m more wondering if this might be an opening for some other OS. If HP and Dell, et.al. are now fighting against Microsoft, and if they know that each Windows PC they sell benefits thir competition, will they look for a third option?

    For many users a tightly locked down Linux with all the spooky parts hidden, OpenOffice, Thunderbird, and Mozilla, would do everything they need. The hard part would be convincing users that it’s just as good. For hardware vendors now competing against MS who gets it’s OS and Office Suite for free it would level the playing field.

    And if not Linux then maybe something else we haven’t seen yet. Desktop Android anyone?

    Googles Chrome OS or Android. WebOS may be resurrected. Don’t discount Oracle or Amazon popping up with something. Linux of course, everyones favourite potential usurper who never shows for the party.

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    Posted: 20 June 2012 09:25 PM #12

    adamthompson32 - 19 June 2012 02:13 PM

    MSFT is “soon” to be an integrated vendor. No release date yet. This is the biggest takeaway from the event yesterday. I would think they could say “4Q12” or “2H12” or something to narrow down the potential release date. I think there is ZERO chance this product comes out this calendar year. Pretty remarkable they would announce this right now. I guess they are more afraid of iPad than I previously thought. Do they see death on the horizon and feel they have to fall on the sword a bit by trying (emphasis on trying) to slow iPad sales by any means necessary right now?

    What I don’t get is, what tactical advantage does Microsoft get from this week’s announcement? Why not announce it, even if it isn’t ready, right before the iPad 3 or 4 announcements? Why just put futureware out there in the wilderness right now? I don’t see the point of not waiting until it is ready to ship, unless they are trying to cock-block someone else.

    [ Edited: 20 June 2012 09:27 PM by JDSoCal ]

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