Friday, March 11, 2011

Making Money on Line

On Monday evening, I watched my initially, The Last Phrase host Lawrence O’Donnell.
Even while O’Donnell laudably attempted to target the audience’s consideration onand hopefully previous, Charlie Sheen trainwreck interview, courtesy of the tragic undertow that threatens to pull Sheen underneath for excellent, I was overtaken, not through the pulling on the thread, and therefore the voracious audience he serves. It did not make me unhappy, it crafted me angry.

Regarding celebrities, we will be considered a heartless country, basking in their misfortunes like nude sunbathers at Schadenfreude Seashore. The impulse is understandable, to some diploma. It could possibly be grating to listen to complaints from people who take pleasure in privileges that most of us can’t even just imagine. Once you can not muster up some compassion for Charlie Sheen, who can make more income for any day’s get the job done than most of us will make inside a decade’s time, I guess I can not blame you.



Together with the quick pace of activities on the internet and then the details revolution sparked through the World wide web, it’s quite simple and easy for the solutions business to consider it is exceptional: frequently breaking new ground and carrying out things that no one has at any time finished earlier than.

But you will discover other kinds of enterprise that have already undergone a lot of the same radical shifts, and also have just as fantastic a stake inside the future.

Consider healthcare, as an example.

We frequently suppose of it being a immense, lumbering beast, but in fact, medication has undergone a sequence of revolutions inside previous 200 many years which might be not less than equal to those we see in technological innovation and specifics.

Much less understandable, but nonetheless inside of the norms of human nature, is the impulse to rubberneck, to slow down and look at the carnage of Charlie spectacle of Sheen’s unraveling, but in the blithe interviewer Sheen’s lifestyle as we pass it in the right lane of our daily lives. To become sincere, it may be hard for men and women to discern the distinction amongst a run-of-the-mill interest whore, and an honest-to-goodness, circling the drain tragedy-to-be. On its very own merits, a quote like “I Am On the Drug. It’s Termed Charlie Sheen” is sheer genius, and we can’t all be expected to consider the complete measure of someone’s daily life every single time we hear one thing funny.

Rapid forward to 2011 and I am endeavoring to look into indicates of currently being a bit more business-like about my hobbies (generally new music). Through the conclude of January I had manned up and started to promote my blogs. I had made a lot of various weblogs, which were contributed to by associates and colleagues. I promoted these routines thru Facebook and Twitter.


Second: the minor abomination that the Gang of Five around the Supream Court gave us a year or so back (Citizens Inebriated) basically is made up of a touch bouncing betty of its personal that can very perfectly go off from the faces of Govs Wanker, Sacitch, Krysty, and J.O. Daniels. As this ruling prolonged the principle of “personhood” to both firms and unions, to consider to deny them any best to run inside of the legal framework that they were organized below deprives these “persons” for the freedoms of speech, association and motion. Which implies (when yet again, quoting law school educated family members) that either the courts should uphold these rights for your unions (as person “persons” as guaranteed through the Federal (and most state) constitutions, or they have to declare that these attempts at stripping or limiting union rights should utilize to main companies, also.


How is Elop going to address this by
using Windows OS? He has to do more than just charge more, he has
to produce better product at competitive prices, which keep getting
lower. Elop will have to license the Widows OS, which is an
expense, one that he would bear to nowhere near the same extent if
he used Android. I feel he mistakenly looks at this as Google
commoditizing the Android platform, in lieu of the more reasonable
perspective of Google commoditizing the entire portable computer
space.


Well, the answer has arrived. Microsoft is buying Xx% of Nokia for paying Nokia over $1 billion to product Windows Phone 7 hardware.
Nearly all of this money is undoubtedly going into R&D and
marketing. Nokia and Microsoft (their new defacto owners) invariably see
Google as the pre-eminent trheat and are pulling out all of the stops
to nullify said threat. This also answers the question of how Elop, the
Nokia CEO will be able to deal with the reduced margins of having to
buy OS licenses while competing with vendors who get Android for free –
Microsoft is not only footing the bill, but investing in the business
as well. You see, the drop in Nokia’s share price is highly unwarranted
and their is visible synergy in this deal. Nokia gets to remove the
costs of OS R&D from its line times, sunk costs that have apparently
had negative incremental returns as they have had their asses handed to
them by Apple and most definitely Google – who knocked them off of
their number one market share perch in just over a year.


Microsoft gets the economic benefits of an existing hardware platform
that happens to have the number one marketshare metric in the world,
and gets it for just over a billion dollars. This is a win-win
situation. The question is,  will it win againt Google. Both companies
will still fail if they don’t execute on Google-time, who has compressed
development cycle years into months – literally!


From the Bloomberg article linked above:


Shrinking Margins (yeah, you’ve hear thist from me often enough)


Espoo, Finland-based Nokia needs to cut
costs to keep operating margins from narrowing further, after they
shrank to 4.9 percent last year from 19 percent a decade earlier. For
2011 and 2012, Nokia may cut its budget for research and development in
devices and services by about a third from last year’s spending of about
3 billion euros, said Sami Sarkamies, a Helsinki-based analyst with
Nordea Bank.


Microsoft spokeswoman Melissa Havel
declined to comment on the specifics of the agreement. Laurie Armstrong,
a spokeswoman for Nokia, said the final contract hasn’t been signed and
the company will share further details when they are complete.


Nokia’s royalty payments will help
Redmond, Washington- based Microsoft make a profit on the accord even
after the payments to Nokia, one person said. Some of the payment to
Nokia would be made before the company starts selling the phones,
meaning Microsoft bears some upfront cost in the partnership.



Microsoft shareholders want the company
to salvage its mobile-software business while also reining in costs. The
company doesn’t break out results for its mobile-software unit, and
instead groups them with the profitable Xbox video-game business, making it difficult to evaluate the financial performance of phone software.


Chief Executive Officer Steve Ballmer
has come under pressure from investors and his own board to improve
sales of mobile software after the company lost market share to Google
and Apple. Microsoft stock has declined 7.8 percent so far this year.


The agreement for the more than
billion-dollar payment was part of a campaign by Microsoft to keep Nokia
from choosing Google’s Android operating system, one of the people
said. Nokia also opted for Microsoft because Windows Phone software,
which is newer than Android and has a smaller number of handsets for
sale, gives Nokia a better chance to stand out, one of the people said.


The agreement also has Microsoft paying Nokia for the right to use its patent portfolio, one of the people said.


As part of the deal, Microsoft will use
Nokia’s Navteq mapping products for functions such as geolocation
services and selling local advertising and coupons tied to a user’s
position. If successful, that also could generate additional revenue for
Nokia, which will share in the sales. The two companies will also
divide revenue from services like search and advertising, Microsoft
President Andy Lees said last month.


I’ve been warning my subscribers about margin compression in this
space, and its about to get much uglier – to the extreme benefit of
consumers of personal and enterprise tech. Previous (and prescient)
posts from last year on this topic…


  • Don’t Count Microsoft Out of the Ultra-Mobile Computing Wars Just Yet
  • After Getting a Glimpse of the New Windows Phone 7 Functionality, RIMM is Looking More Like a Short Play
  • As
    I Warned in June, DO NOT DISCOUNT Microsoft in This Mobile Computing
    War! Their Marketing Campaign is PURE GENIUS! and it Appears as if
    the Phone Ain’t Bad Either
  • Apple on the Margin
  • How
    Google is Looking to Cut Apple’s Margin and How the
    Sell Side of Wall Street Will Enable This Without
    Sheeple Investor’s Having a Clue

Monetizing the Mobile Computing Race


We have a pretty firm idea of who is in the pole position as of now,
but that position is both risky and volatile, not to mention medium to
long term in nature – see Navigating BoomBustBlog Subscription Material To Find The Google Valuation Drilldown.


A more risk averse strategy is to go long on the component vendors
who supply those battling for pole position. Last week we released the
document Long candidate #1 – Hardware: The Mobile Computing Wars
to subscribers that outlined who our number one pick was after an
initial scan. This is not necessarily the absolute final say on the
matter since we have yet to perform a full forensic analysis, but the
company does look good in comparison to over 120 peers. Non-subscribers
should reference The Potential Equity Investments Most Likely To Prosper From the Google/Apple/Microsoft Mobile Computing Battle.


I am releasing the draft of the full shortlist of prospective long
candidates as of now (17 pages, 5 companies) to subscribers. Please be
aware that is a draft document and work in progress, but it is quite
informative nonetheless.  See Mobile Computing Vendor Long List Note WIP. Those who wish to subscribe should click here.


Click here to read up on all of Reggie Middleton’s Mobile Computing War opinion, analysis, and research.


James Franco Told Frida Giannini He’s Making A Gucci Film









The March issue of Harper’s Bazaar just won’t quit…and it hasn’t even hit newsstands yet. In addition to pieces on Kim and Liz, Prabal and DVF, Daphne and Hillary,  the magazine also features an interview James Franco conducted with his friend Frida Giannini.


The Gucci creative director dished on all sorts of things with the actor/director/soap star/student/overachiever who had this to say about the designer: ”Frida and I have been in sync since we met. I love her work, and she supports mine. Creatively, I know we will always be in line with each other.” (Also, Franco joked that his next project is “making a documentary about you and Gucci.” But we just don’t know if he’s kidding.)



On Gucci’s pragmatism:


JF: When you see the clothes at a fashion show, sometimes they’re more extreme than what you see in the store, right?


FG: Well, not always at Gucci. I believe what we are showing on the catwalk needs to be in the stores. The big stores like in New York or London or Paris, the main flagships, they always have the entire collection–even the extreme pieces. There are people who are waiting for the extreme pieces from the fashion show. We are not the kind of company that thinks, Okay, I’ll do something for the runway, and I’ll make an entire new collection to sell.


FG: Chanel is always doing incredible sets, and they change it every time. We’d rather spend money on other things than make a big, spectacular thing you would see for 10 minutes because we are working for six months on a collection.


On fashion globalism:


JF: So then, because Gucci is all over the world and you’re thinking about people actually wearing these clothes, do you have to think slightly differently for each part of the world?


FG: I never think about it because I think people in the world, from the U.S. to Asia, love Gucci because it’s about aspiration. I don’t think if I made a speciic collection for a Chinese woman, she would be happy. They don’t want something speciic for them. I did a collection that was very Russian, inspired by the artists in Russia in the ’20s and ’30s who left and went to Paris. It performed very well all over the world–except in Russia.


JF: And why, do you think?


FG: I talked to the managers in Russia, and they said they didn’t like the reference to them. So this is an example that was quite strange. Maybe if I make a collection inspired by India, with the colors of India, people in India won’t like it.


On criticism:


JF: I know Harper’s Bazaar is here listening to us, but if you’re criticized heavily in a big fashion magazine, does that have any real effect on sales or what people like?


FG: The first couple of seasons, I was in shock sometimes because I had very mixed reviews, especially because it was right after Tom Ford. Can you imagine the pressure? I am a woman; he is a man. I am Italian; he is American. Very, very different. Now I am much more relaxed; sometimes I receive very bad criticism and read between the lines of the bad reviews.


Sometimes I have thought it was a good suggestion for me because I know that the journalist has a great mind and has much more experience than me. Generally speaking, I’m very open to criticism. I will never say, “I had a bad review from you; I don’t want to meet you anymore.” I believe in what I am doing, and I believe in my ideas, but I think it is very constructive to be open to understanding other thoughts.


[Harper's Bazaar]





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