MSFT's deal with Foxconn is a big victory because it will mean that manufacturers will be paying Microsoft for Android phones instead of Google. Score one for Mr. Softy! Sterne Agee analyst
the deal "increases the cost of Android phones. "Microsoft has taken a more aggressive stance."
However, this isn't going to do major damage to Google's mobile device dominance with its enormously popular Android devices. Wu also doesn't think the Foxconn deal is a big threat to GOOG going forward and will not dramatically improve Microsoft's miniscule presence in the mobile device sales competition.
"In a way, the licensing agreement is a way for Microsoft to monetize mobile without being in mobile," he added. That should contribute to MSFT's future EPS and revenue growth.
Meantime, the anticipation surrounding GOOG's first-quarter earnings report is that the company will be able to demonstrate how successfully it's combining its dominance of the Internet search market with its growing, aggressive entrance into the mobile device market.
The ascent of GOOG and its stock price since late 2008 lows is mind-boggling, as you can see from the chart below. Its quarterly revenue per share growth has been one of the big factors driving the stock higher.
A big contributor to those stellar revenue numbers has been Google's ad sales, the company's #1 way of driving profits. Those ad sales are supposed to improve by nearly 20 percent from the year-ago quarter based on analysts' estimates.
The big number to be watching is sales growth and increased revenue. Analysts' consensus estimate is for a 72.5% whopping increase. Most of this terrific sales growth comes from Google's leadership in the Internet search space, where it controls and receives about two of every three requests for information.