While it might seem reasonable to assume that Company A makes more money from sales of its own product than from those of its competitor, Company B, thanks to the magic of licensing, it's actually possible for the reverse to be true, especially if Company B has a much larger market share. Spoiler alert: Company A is actually Microsoft, and Company B is actually Google, and the products are Windows Phone and Android, respectively. According to Citi analyst Walter Pritchard, to date, Microsoft has actually made five times as much money from Android as it does from Windows Phone. Here's how the math works:
A rough estimate of the number of HTC Android devices shipped is 30 million. If HTC paid $5 per unit to Microsoft, that adds up to $150 million Android revenues for Microsoft. Microsoft has admitted selling 2 million Windows Phone licenses (though not devices.) Estimating that the license fee is $15/WP phone, that makes Windows Phone revenues to date $30 million.Does that mean Microsoft should just give up and concede the mobile market to Google? Absolutely not: Most analysts agree that the smartphone market will be much bigger five years from now than it is today, so fighting for that market share still matters. (Asymco via BGR. title pic via GottaBeMobile.) Read More
Not an April Fools' joke: On the first of the month, e-mail marketing firm Epsilon disclosed that it had been subject to a security breach, leaving the email addresses and names of customers exposed. While Epsilon may not be a household name, many of the clients on whose behalf it handles email newsletters and updates are: Among them, Best Buy, TiVo, Walgreens, Kroger, Brookstone, Disney, Destinations, JPMorgan Chase, Capital One, Citi, McKinsey & Company, and even The College Board.
While Epsilon says that "a rigorous assessment determined that no other personal identifiable information associated with those names was at risk," the breach remains a big deal in that it could leave the people affected more vulnerable to phishing attacks. It stands to reason that malicious emails that address recipients by name and appear to come from the brands that people regularly receive email from are more likely to successfully hoodwink people than are blind emails.
To this end, many, though not all, of the brands impacted by the breach have sent out emails notifying customers to be aware. As Epsilon has refused to disclose which of its clients' email databases were affected, it's possible that more brands will announce that their customers' data was compromised. To this end, if you regularly receive emails from the brands mentioned above, the brands mentioned here, or any major brands, it's best to stay on the safe side and be extra vigilant until more information becomes available.Read More