How big is mobile? Really big. This slide from analyst Chetan Sharma shows that mobile is the most pervasive technology ever invented.
As you can see, mobile has deeper penetration than electricity and safe drinking water.
Look at how, moving left to right, the red bars extend away from the gray bars.
Know what that means?
It means, in the words of the Distimo analyst who put together the chart, that “the average number of shares per users are increasing.”
That’s profound: The app isn’t just getting more popular, it is becoming a more important part of its users’ lives.
Two bits of news came out yesterday that illustrate how far ahead Microsoft is in the battle for the living room.
First, Microsoft announced it had sold 1.7 million Xboxes in November. That includes 1 million in the week of Thanksgiving.
The firm says that sales of those devices will reach 12 million in 2011, with Apple TV shipping 4 million.
In other words, Microsoft sold more Xboxes in a single week than Apple sells in an average quarter. And Apple is the market leader in that “connected TV players” space. At least when you ignore game consoles.
This isn’t to pick on Apple. It’s simply to point out that Microsoft’s “Trojan horse” strategy with the Xbox has worked amazingly well.
And this was absolutely part of Microsoft’s strategy from the beginning — way back in 2005 before the Xbox 360 launched, Microsoft executives were talking about trying to expand the market beyond hardcore video gamers and turn it into a more general-purpose entertainment device. But Microsoft always knew it had to make a top-notch game console first to get the installed base, then add entertainment features over time.
It’s been doing that, quietly, for more than five years now and has sold almost 60 million Xboxes in the process. With the addition of a whole bunch of TV and other video content last week, the strategy has finally reached full fruition.
Apple, Google, and other connected TV companies could still have a chance if they team up with TV makers so the software is built into your new television set. But any company who hopes to compete with the Xbox by selling an add-on box that DOESN’T play games is in a deep state of denial.
- Microsoft Sold 1.7 Million Xbox 360 Consoles LAST MONTH
- Microsoft Wants TV Execs To Come Make Shows For Xbox
- THE MICROSOFT INVESTOR: Microsoft With Xbox Will Dominate Apple TV
Apple’s price to earnings ratio is at a relatively paltry 14 right now, and it’s driving Apple bulls crazy.
The chart below, which shows Apple’s shrinking PE, from Apple analyst Andy Zaky has been passed around for the last week. (At the time Apple’s PE was 13.3.)
What’s wrong with this chart?
Zaky explains: “Now even though Apple’s growth has far and outpaced the growth of Oracle (16.35 P/E), Amazon (96.15 P/E), Google (19.19 P/E), Cisco (15.11), Qualcomm Inc. (20.62), Amgen, Inc (13.53), Comcast (15.11 P/E), IBM (13.95 P/E), Chevron (13.50), Johnson & Johnson (14.94 P/E), Procter & Gamble (15.49 P/E), and AT&T (13.91 P/E), the stock trades at a far lower valuation relative to these top holdings on the NASDAQ-100 and S&P 500. Some of these companies have actually contracted in 2011. Yet, the market values the earnings out of these companies on the order of 4-5 times more in some cases than they value the earnings out of Apple.”
Of course, there’s more than one way to value a stock. If you value it based on trailing free cash flow, it’s arguably priced fairly, says our Henry Blodget.
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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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