More excited about its pipe than the contents Verizon reported good Q3 18 results headlining with 510,000 smartphone post-paid net adds, 5G and 6% YoY revenue growth and playing down the awful performance of its digital assets (Oath). Oath is the amalgamation of two ageing giants of the early days of the Internet (AOL and Yahoo) both of which look...
Google, & Co. have their tentacles in almost everything that’s “free” RFM’ use of Google as the developed market’s benchmark for monetisation gains greater foundation as it turns out that 88% of free Android apps available on Google Play can share data with a Google-owned entity. This enables Google to gather data on almost all activities that are being carried...
Even at $15 per unit, the impact is catastrophic. Google’s price list for its apps minus Chrome and Search is an indication that the economics of the EU remedy are completely unworkable, ensuring that everything will continue as before. The price list for what handset makers will have to pay to Google to be able to install Google apps on...
Yet another AI red flag. Another small slip-up by Facebook reveals just how challenging its AI problem is and why it must continue to hire humans to do the jobs of the machines resulting in the announced 1000bp decline in operating margins over the medium term. This slip-up involves only one user but serves as a great example of how...
Must-have, not me too needed to survive. The clue to a recovery for Essential Products Inc. is in the name but so far, none of the rapidly diminishing workforce appear to have really taken this to heart. I continue to stand by my position expressed in January 2017 (see here) which is: for Essential Products to have any chance in...
$25 per unit will shatter what little profitability there is. Google is set to change its licensing practices in Europe such that Google apps will be unbundled from both Google Play and Chrome but I suspect that the economic consequences of these options for handset makers are untenable. Google is making three changes for devices that are destined to be...
75% of almost zero is still almost zero. Google is making some noise about how quickly Pixel users are upgrading to Android Pie (version 9), but their numbers are so tiny that they don’t even warrant a mention on Android’s own developer website. Furthermore, when one looks at Oreo (Android 8), it becomes clear that devices are being upgraded more...
Mobile gaming is much trickier than it would appear. Zynga appears to be attracting interest for acquisition (see here), but I think that the notion that buying Zynga will suddenly fix one’s weakness with regard to mobile gaming is problematic at best. Bloomberg has made the case as to why Ubisoft could benefit from owning Zynga (see here) which similar...
Verticalisation remains the way forward for now. Apple’s verticalisation continues with its semi-acquisition of Dialog Semiconductor making a lot more to unravel when the iPhone bandwagon finally grinds to a halt. Apple has struck a deal with Dialog Semiconductor where it is paying $300m to acquire certain assets (the bulk of which must be intellectual property or perpetual licences to...
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.
Spotify – Campaign launch
The assault on the labels begins. Spotify has formally launched what I think is the first element of a strategy that will see the obsolescence of the record labels resulting in the enrichment of both the streaming services and the artists. Spotify has brought out of beta testing a tool that allows anyone with a Spotify for Artists account or...