Just as the Microsoft Windows/Intel Pentium combo (Wintel) came to rule the PC business, smartphones are starting to standardize around their own Big Two. According to a recent study, that standard is the new Qualcomm chip/ Google Android operating system one-two punch. The cool kids are calling it Quadroid.
CNNMoney’s David Goldman takes us inside the numbers:
But now, for the first time ever in the wireless ecosystem, a standard platform is emerging: At least a dozen handset makers have brought to market more than 90 different smartphones that run Android, and more than three quarters of those handsets have Qualcomm chips embedded in them, according to a new study by consultancy PRTM.
The Qualcomm-Android standard, or "Quadroid" as PRTM calls it, is becoming a parallel to the Windows-Intel, or "Wintel," standard that developed in the 1990s.
Qualcomm held their Analyst Day meeting yesterday and the The Street apparently loved what they heard. Goldman Sachs reiterated their Conviction Buy and raised their target to 58 this morning. Credit Suisse upped their target to 60 and gave it a buy rec as well.
As far as Google, Android is not the engine driving the stock right now but it is obviously of immense importance to the company strategically.
It’s too early to tell if this Qualcomm/Google duopoly is really going to own the space but so far their partnership appears to be the front-runner. If you’re trading technology stocks, wireless plays, chips, operating systems etc, you may want to get up on this story.
In my last technology post, I wrote that we are moving to an Internet-centric world where your computing device or operating system are less important because your data will live and breathe in the Internet cloud. Google, in particular, is preparing for this world because it has a dominant role in the Internet through search. But everyone is moving to an Internet-centric service and content delivery strategy.
The telecom providers understand that their networks make them gatekeepers who can extract rents from content providers. Having paid handsomely to build these networks, they are fighting to not become dumb pipes and resisting net neutrality in order to keep that gatekeeper role. This is one reason Google is trying to build its own network and circumvent the telcos. Eventually, I think the land-based telcos will lose and the battle will move to one between mobile operating systems like Apple’s iOS and Android. Although mobile phone operators may still be able to extract rents for a while longer than the fixed-line telcos.
The PC OS landscape
In the past, the operating system has been important in computing because it allowed the same software to be run on different computing devices, permitting users of those devices to transfer data easily as they were using the same software. But, the OS also benefitted as the more installed users one OS had, the more developers created software for the operating system. These network effects made achieving critical mass a defining factor. Going forward, network effects will also be important in monetizing OS-proprietary e-Commerce platforms like iTunes and Google’s new iTunes competitor.
One reason Apple was near bankruptcy before Steve Jobs re-appeared on the scene is because Apple’s Macintosh’s installed base had shrunk. I used a Macintosh from the mid-1980s but was forced to switch to a PC when I bought a laptop in the mid-1990s that I used both at home and for work. As the PC gained sway, millions of users like me were forced to give up the Mac. And, of course, that meant software developers gravitated to the PC platform and the Mac became a niche product.
The Move to the Internet-centric Model
As Internet bandwidth increased, more and more of what had to be done locally or over a local area network on…
Sometimes a picture is indeed worth a thousand words (or a thousand yuan) which is why we present the following map which shows all of the countries that have joined the China-led Asian Infrastructure Investment Bank with no comment other than to say "spot the odd G-7 nations out"...
King Dollar has been on a role since last summer, up over 20% in less than a year. When looking back on the US$, the rally has been rare and nearly historic. Majority of the rally took place inside the steep rising channel above. Over the past month the US$ might have put in a double top. Over the past few days, the US$ has slipped a little below rising support at red arrow above.
The pre-market economic news was the release of the March Durable Goods, which had a strong headline number, but Core Capex posted its seventh consecutive decline and is down 4.0% year-over-year. The S&P 500 vacillated in the opening minutes and then trudged higher to its 0.38% intraday record high. The index then moved sideways most of the afternoon before settling for a 0.23% closing gain -- enough for a new all-time record close.
Today the yield on the 10-year Note closed at 1.93%, down three bps from the previous close but above the 1.87% close last Friday.
Here is a 15-minute chart of the week.
Here is a daily snapshot of SPY ETF, which gives a better sense of investor particiaption...
Here's an interesting argument by Felix Salmon, although I think he is taking two correct observations and mistakenly attributing a cause-and-effect relationship to them: Bitcoin is going nowhere because women are not involved.
More likely, in my opinion, women are not involved in bitcoin because bitcoin is going nowhere (and they know it). Or maybe, simply, bitcoin is going nowhere and women are not involved.
Nathaniel Popper’s new book, Digital Gold, is as close as you can get to being the definitive account of the history of Bitcoin. As its subtitle proclaims, the book tells the story of the “misfits” (the first generation of hacker-l...
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As we get into the heart of earnings season and anticipate the GDP report for Q1, the investor spotlight has been taken off the Federal Reserve and timing of its first interest rate hike, at least temporarily. Even though Q1 economic growth will undoubtedly look weak, the future remains bright for the U.S economy – even though many multinationals will struggle with top-line growth due to the strong dollar – and any near-term selloff resulting from weak economic or earnings news should be bought yet again in expectation of better results for the balance of the year. High sector correlations remain a concern, reflectin...
Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene
The replay is now available on BNN's website. For the three part series, click on the links below.
Part 1 is here (discussing the macro outlook for the markets)
Part 2 is here. (discussing our main trading strategies)
Part 3 is here. (reviewing our pick of th...
In my last post (Part 1 of this article), I looked at alternative ETFs that could be used as hedges against the corrections that we have seen during that long 2 year bull run. Looking at the results, it seems that for short (less than a month) corrections, a VIX ETF like VXX could actually be a viable candidate to hedge or speculate on the way down. Another alternative ETF was TMF, a long Treasuries ETF which banks on the fact that when markets go down, money tends to pack into treasuries viewed as safe instruments. In some cases, TMF even outperformed the usual hedging instruments like leveraged ETFs. There could of course be other factors at play since some of 2014 corrections were related to geopolitical events which are certain...
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PSW Members - well, what a year for biotechs! The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down! The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months. What could go wrong?
Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.
Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies. A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at email@example.com with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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