News Roundup

Microsoft will stop selling its XP operating system today. This applies to both boxed software sales, as well as pre-installed software through PC manufacturers. Why do this? Well, the popularity of XP has been somewhat fueled by consumer distaste for Microsoft's new Vista OS.

In the short term Microsoft will certainly stop cannibalizing Vista sales with XP sales. (Most companies would love to have its own products as its main, if not sole, competitor.) However, this signals a loss for Microsoft in the fight over the hearts and minds of the computer user. After XP is off the table, expect many long-time PC users to make the switch to Apple. Once Apple's market share is in the double digits, that might be the point of no return for Microsoft. Although still relevant, the company will find itself in a truly competitive environment in which it will have to better cater to consumer preferences.

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Nokia's Symbian acquisition might be good for Google. I can definitely see why Google makes Ballmer's blood curdle. No matter what the news is, it all seems to be good news for Google. Microsoft to buy Yahoo? Good for Google. Yahoo rejects Microsoft's offer? Good for Google.

Despite the seeming absurdity of this win-win situation, it certainly has some merit, as does the win-win situation in Google's play for the mobile advertising market. If Android-enabled smartphones dominate the mobile market, Google wins. If Nokia's Symbian-run smartphones continue its current momentum, Google still wins.

What Google is really looking for is smartphone penetration. Smartphone users are heavy mobile internet users. The faster the adoption of mobile web applications, the faster Google will be able to create a new revenue stream that investors have coveted for years. Regardless of whose operating system consumers are using, users will likely flock to Google's mobile sites. It's difficult to argue with Google's current 61% mobile search market share (according to Nielsen). There's currently no reason to believe this dominance will abate in years to come, so long as people are given a relatively uninhibited choice of web search applications.