Advertisement
Canada markets closed

  • S&P/TSX

    21,969.24
    +83.86 (+0.38%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CAD/USD

    0.7316
    -0.0007 (-0.09%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • Bitcoin CAD

    86,258.49
    -1,858.30 (-2.11%)
     

  • CMC Crypto 200

    1,304.48
    -92.06 (-6.59%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • RUSSELL 2000

    2,002.00
    +20.88 (+1.05%)
     

  • 10-Yr Bond

    4.6690
    -0.0370 (-0.79%)
     

  • NASDAQ

    15,927.90
    +316.14 (+2.03%)
     

  • VOLATILITY

    15.03
    -0.34 (-2.21%)
     

  • FTSE

    8,139.83
    +60.97 (+0.75%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6838
    +0.0017 (+0.25%)
     

Microsoft Bundles Productivity Apps with Lenovo Devices

Zacks Equity Research
Updated

Microsoft Corporation MSFT has added Lenovo to the list of companies with which it has patent cross-licensing deals. The deal will allow Lenovo to use some of Microsoft’s intellectual properties in its own as well as its subsidiary Motorola’s devices. Lenovo acquired Motorola from Google in 2014.

In addition, Lenovo’s Android-based devices will get Microsoft’s Office, OneDrive and Skype preinstalled. However, the financial terms of the deal and the models slated to get the features weren’t disclosed.

A Win-win situation

It seems that with this partnership Microsoft aims to boost its licensing revenues that were down sharply in the most recent quarter. Notably, in the recently reported fourth quarter fiscal 2016 results, the company witnessed a 21% year-over-year decline in its patent licensing revenues mainly due to a fall in licensed units and license revenue per unit. In addition, the company could get access to a large part of the PC and smartphone market that Lenovo covers.

ADVERTISEMENT

Microsoft inked similar deals with more than 70 Android device makers such as Samsung, LG, Asus and Xiaomi to name a few. Since the launch of its IP licensing program in 2013, Microsoft has signed more than 1200 licensing agreements.

From Lenovo’s point of view, by offering customers Microsoft’s popular apps, it can win back some of the mobile market share that it has lost lately.

MICROSOFT CORP Price

 

MICROSOFT CORP Price | MICROSOFT CORP Quote

Zacks Rank & Stocks to Consider

Currently Microsoft shares carry a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering include Callidus Software Inc. CALD, Datawatch Corporation DWCH and DST Systems Inc. DST, each carrying a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DST SYSTEMS (DST): Free Stock Analysis Report
 
MICROSOFT CORP (MSFT): Free Stock Analysis Report
 
CALLIDUS SOFTWR (CALD): Free Stock Analysis Report
 
DATAWATCH CORP (DWCH): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research