If you reference the Google press release, you’ll see that this offer includes a special, discounted price of $99 including hardware, management and support! Now that’s CHEAP! An equivalent Macbook Air with the same package would run more than 10x the prices, that’s right, well over $!,000! Margin compression here we come!
Google ascendance, here we come! For those who don’t know how the Google biz model works and why they actually want the cost of hardware to go down to zero, watch this piece that I did on the Max Keiser show…
Google’s “less than free” business model has successfully put it on track to becoming the next Microsoft. Once it has 90+% market share in mobile OSs (it’s currently knocking on 89%’s door), it will have the door opened to lead as the de facto provider of cloud services, basically acting as the Windows operating system (remember the importance of this OS in the 1990s) of the Web. We’re not even broaching the topic of Google being the shepherd of global data and information throughout the web and the Internet connected world!
The table of contents outlines how we have broken Google down into distinct businesses and identified both the individual business models and the potential revenue streams, as well as valuation for each business line.
Page 57 of the analysis shows a sensitivity table which outlines the various scenarios that can come into play and how it will change our outlook and valuation opinion.
Reggie Middleton is an entrepreneurial investor who guides a small team of independent analysts to uncover truths, seldom if, ever published in the mainstream media or Wall Street analysts reports. Since the inception of his BoomBustBlog, he has established an outstanding track record