Tech Business Roundup: Zynga May Have a Bust, New Smartphone Leader
In what seems now to be a case of poor timing, Zynga (NASDAQ:ZNGA) bought OMGPOP, the developer of the popular mobile game, Draw Something, for between $180 million and $210 million. Problem is, the game might have peaked at about the time the acquisition was made, as it no longer holds a place among the top 10 grossing iPad apps, according to AppData. Worse, it seems that Draw Something that daily users plateaued, but over the past week have slumped a bit.
The smartphone wars might have a new leader: Samsung (SSNLF.PK) has been increasing its market share in the U.S., Europe, and Asia, according to Canaccord’s Mike Walkley. The analyst figures that Samsung led the market in the first quarter with 28.2 percent compared to 22.4 percent by Apple (NASDAQ:AAPL), and that each had a bit over 23 percent in fourth quarter 2011. Market share losers included RIMM, NOK, and HTC, but benefitting from its increasing LTE phone shipments, QCOM gained chip share.
In September, a little later than the previous summer date, Sony (NYSE:SNE) will launch a set-top box and Blu-ray player supporting Google TV (NASDAQ:GOOG) in France, according to a French newspaper. Sony is currently the sole original equipment manufacturer selling hardware that supports the platform, although several Google TV partnerships were announced at CES. Eric Schmidt had predicted that the majority of available sets would have the platform by summer.
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It’s estimated by ISI’s Brian Marshall that Dell’s (NASDAQ:DELL) acquisition of Wyse Technology, in which it paid between $350 million and $400 million, suitably matched Wyse’ annual sales of $375 million (up 45 percent year-to-year). The purchase should help Dell offset declining traditional PC sales by reinfrocing its PC virtualization offerings, but Marshall does not think it will have a huge top-line impact. Wyse competitors Citrix Systems (NASDAQ:CTXS) and VMware (NYSE:VMW) shares bounced late on Monday.
The recall last week of modules and battery packs made by lithium ion battery maker A123 Systems (NASDAQ:AONE) is still reverberating, and sends shares to a new 52-week low in which they remain near $1. The products are installed in luxury electric vehicles manufactured by Fisker Automotive, which has recently obtained more than $1 billion in new financing.
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