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And Apple and Samsung and Qualcomm made a huge amount of money." Those shifts aren't finished, and in a world where PC makers are increasingly moving to Android for tablets, Microsoft wants a piece of the device market to replace the revenue it may miss out on. "If you will, touch and low power were huge changes in the way the user interface paradigm worked. And Intel and Microsoft made a lot of money," explains Microsoft CEO Steve Ballmer. "The PC was a new user interface and a new form factor.
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While Microsoft dominates the traditional PC market, it sees the profits made by others who build their own software on top of tablets and phones.
Microsoft wants a piece of the device market, but it has struggled so far "Everybody is trying to adopt Apple's strategy," said Apple CEO Tim Cook in a recent interview discussing Microsoft's Nokia plans. It’s an Apple strategy that Microsoft is envious of. Taking profits directly from owning the software and hardware combination is how Apple has generated vast sums through the iPod, iPhone, and iPad.
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On the devices side, Microsoft will sell its own hardware like Xbox One, Surface, and a range of Windows Phones soon thanks to the Nokia acquisition. "We're creating economic value by doing it." Microsoft simplifies it down to three key areas that overlap: devices, enterprise services, and consumer services. "We have a lot of opportunity with this new model," explains Hood. If it all sounds like a mix of Apple, Google, and Microsoft, that's because it is. In the future, Microsoft wants to make money through selling devices, advertising, cloud-based subscriptions, and its traditional licensing models. Previously, Microsoft has always generated most of its money through licensing software on PCs. During a meeting with financial analysts yesterday, Microsoft CFO Amy Hood detailed how the software maker is moving from its traditional model to a new one based on devices and services. The Australian internet is previously considered “under surveillance” by Reporters Without Borders due to a large number of restrictions placed on internet users there.Microsoft announced a massive company-wide reorganization earlier this year, and now it's starting to reveal exactly how that will impact its businesses going forward. “We urge Australia to consider whether the potential breadth of the obligation imposed on designated platforms is consistent with … AUSFTA, which constrains parties with respect to performance requirements, specifically requirements to ‘transfer a particular technology, a production process, or other proprietary knowledge to a person in its territory’.”
Google is not alone, however, with the US Government also supporting the search company, with the US Trade Representative stating on the 15th January in a submission: And people who want to work with that, in Australia, you’re very welcome. And that’s how things work here in Australia. Australia makes our rules for things you can do in Australia. The Australian government are not currently inclined to give in to Google threats of withdrawal, with Morrison saying: “They’re watching this very closely, and no doubt see opportunities here in Australia to expand,” noted Australian Treasurer, Josh Frydenberg. Google has threatened to withdraw from the Australian market if the government demands they pay for news, and now the Australian Financial Review reports Microsoft has told the Australian government they stand ready to take their place.Īccording to the AFR, Microsoft CEO Satya Nadella had direct talks with the Australian Prime Minister Scott Morrison in the wake of the threats.
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Google would need to pay a license fee not just for excerpts but also links to news sites, and if Gooogle is not able to negotiate a fee, an Australian arbitration judge will assign what they believe is a fair amount. Google and the Australian government are currently embroiled in an argument over whether the company should pay to use snippets from Australian news websites in their Google Search results.
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