Author: Tricia Duryee

  • Is Palm Putting Itself Up For Sale?


    Palm's new phone covers for CES 2010

    After persistent rumors that several suitors might be interested in the ailing Palm (NSDQ: PALM), now Bloomberg is reporting that the company has put itself up for sale and is seeking bids as early as this week.

    According to three people familiar with the situation, Bloomberg said the company has hired Goldman Sachs and Frank Quattrone’s Qatalyst Partners to find a buyer. In the past week, HTC and Lenovo were identified as two of the companies that may be potential bidders. The sources said Dell also looked at deal, but decided to pass. On Friday, Palm’s stock jumped based on rumors that the Pre-maker may receive a takeover offer. The company’s market value now hovers around $870.8 million. Bloomberg said a Palm spokeswoman declined to comment.

    The company has launched two products to fairly rave reviews, but has failed to gain significant market traction. It was criticized for partnering initially with Sprint (NYSE: S) Nextel, which was having its problems of its own, and then the handset-and OS-maker blotched its launch with Verizon Wireless. It now has a significant backlog of unsold devices, and is facing a cash shortage.

    Still, CEO Jon Rubinstein made the point in a recent interview that Palm was a turnaround story and would have been dead in the water with out the new webOS, which is a valuable asset. In the company’s previous earnings call, Rubinstein dismissed the idea that the company could be up for sale, and said that if any offers were serious, he’d be obligated to bring them to the board’s attention.

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  • Is HTC Interested In Palm?


    Palm's CEO Jon Rubinstein at CES 2010

    Palm’s stock is gaining ground based on reports that Taiwanese handset maker HTC has “opened discussions about an intent to acquire” the company.

    In the past four months, Palm’s stock has plummeted, falling from $12 to $3 a share based on poor sales at Verizon Wireless. The low valuation has led to several rumors that companies, such as Lenovo or Dell, might be interested in the company to gain ground in mobile. But today, the rumor that HTC was interested appeared in Taiwan’s Economic Daily News, according to Reuters, which led to the stock soaring 11 percent in late afternoon trading to about $5.15 a share. An HTC spokesperson said the company does not comment on rumors.

    The speculation comes just a day after an interview with Palm’s CEO Jon Rubinstein appeared in Fortune’s Brainstorm Tech blog. In the frank conversation, Rubinstein admits the company has hit a speed bump, and that the set-backs are really disappointing and frustrating.

    As with all of Palm’s likely buyers, none of them make total sense. For instance, HTC is primarily a hardware maker and does not own its own operating system, but rather relies on Microsoft’s Windows Mobile and Google’s Android. Some analysts speculated awhile back that HTC could be interested in Palm (NSDQ: PALM) for its intellectual property rights, which could come in handy as HTC battles Apple (NSDQ: AAPL) in an infringement lawsuit.

    But Rubinstein remains confident despite loads of excessive inventory and dwindling cash resources. “The company has tremendous assets, he said. “We’ve got a great team we’ve built over the last couple of years. Remember this whole thing was a transformation story…We started off with a company that had no future, and we have been transforming it….We do have $590 million in the bank, and we have a plan that carries this company forward. Now, we need to be frugal and we need to invest in those areas that have the best return for us, but when I read that we’re going out of business or our stock is worth zero or those kinds of things, it defies logic to me.”

    However, Rubinstein was quick to deflect questions about selling the company. Fortune’s Adam Lashinsky, suggested one way to get more cash would be to sell Palm to a company that has a billion dollars to spend on marketing. Without even coming close to the question, Rubinstein answered: “Remember that the carriers have something to do with all this too in that they get to pick and choose what products they’re going to sell. They want to make sure the customers have choice. As long as we have their support, I think we can succeed.  It may take longer than we’d like, but I think we can get there.”

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  • The Highlights Of iPhone OS 4.0: Multi-tasking, A New Mobile Ad Network, More


    Apple iPhone Os4 iAd

    Apple (NSDQ: AAPL) is announcing today the latest version of the iPhone operating system, which will come with at least 100 new features, like five times zoom in the camera. But Steve Jobs says there’s seven major updates coming today. Here’s the list in real-time:

    1. Multi-tasking: This is the big one that everyone has been waiting for: Apple is enabling multi-tasking. It allows people to flip between different applications at once and allows them to run in the background. Apple’s CEO Steve Jobs said: “We weren’t the first to this, but we will be the best…just like cut and paste.” To access other applications running in the background, hit the home button twice, and a small scroll bar appears at the bottom, displaying all of the applications that are running, like mail, the browser and a game. This feature won’t be available for iPhone 3G and iPod Touch 2nd gen, as well as older models of each device, as their hardware isn’t able to support it. Several tasks are now enabled with multi-tasking:

    —Background audio: this enables services, like Pandora, to run while users browse the web, or go into iTunes to buy a song they like.
    —VoIP: This enables you to receive Skype calls when the applications is closed.
    —Other background services revolved around location, push/local notifications, task completion and fast-app switching.

    2. Folders: People currently have to flick from page to page to find all the apps they are downloading. Now, people can store a few apps within a folder.

    3. Unified Inbox: Now users can access all their own email accounts in one mail client, including multiple exchange accounts. You can now open attachments using an app from the app store.

    4. iBooks: They are making the iPad bookstore available on the iPhone. You can buy on either one, and read on the iPad or iPhone.

    5. Data protection: Now there’s better encryption in email, including attachments. Mobile device management, and wireless app distribution (no longer do employees have to plugin to iTunes to get enterprise apps.).

    6. Gaming preview: There’s more than 50,000 games on the iPhone. Apple is adding a social gaming network, so you can play with your friends, or match-making (so you can play with strangers).

    7. iAd: Apple’s new mobile advertising network. Jobs: “We think most of the mobile advertising really sucks. We thought we might be able to make some contributions. This way you can keep your free apps free.” With this unveiling, Apple directly targets Google (NSDQ: GOOG). Jobs said people aren’t searching on their phone, they are using apps. iAd is in the OS itself. “We have figured out how to do interactive and video content without ever taking you out of the app. People will be a lot more interested in clicking on these, because they don’t have to find their way back to the app.” Apple is going to sell and host the ads, and developers will get a 60 percent split.

    Video of the presentation (in Quicktime).

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  • Steve Jobs: Here’s How Apple Will Beat Google At Mobile Advertising


    Apple CEO Steve Jobs discusses iPhone 4.0 in Cupertino

    Apple (NSDQ: AAPL), still riding high from a successful iPad launch, added another feather in to its cap today. By far the biggest consumer-facing new feature in the latest iteration of iPhone OS 4.0 is multi-tasking, but the game-changer is iAd, a mobile advertising platform that could result in bigger revenue streams to support developers and publishers that build applications for the iPhone, iPod or iPad. More below on how iAd will work.

    On stage at today’s unveiling, Apple’s CEO Steve Jobs was chipper and eager to poke fun at a bevy of companies from Microsoft (NSDQ: MSFT) to Adobe (NSDQ: ADBE) and Google (NSDQ: GOOG). “We weren’t the first to this [multi-tasking], but we will be the best,” he said. About iAd, he declared: “We think most of the mobile advertising really sucks…We thought we might be able to make some contributions.”

    For the first time since Jobs returned from sick leave, he took questions from the audience at a press event—and eagerly answered them. At one point, he took a swipe at the way other handset-makers handle multi-tasking. The iPhone will not have a task manager, where you can kill apps that are draining too much of the phone’s resources. Jobs: “The user doesn’t have to worry about it all. If you see a stylus, they blew it. If you see a task manager, they blew it. Users should never have to think about that stuff.”

    He also spoke directly about Google’s acquisition of AdMob. “Google came in and snatched them from us. We bought a much smaller, but good company Quattro,” he said. With iAd, Apple directly targets Google. Jobs said people aren’t searching on their phone, which is how Google primarily sees ad revenue coming in in mobile—they are, instead, using apps. He thinks user behavior is different on the phone vs. the PC because the 185,000 apps currently available on the iPhone “get you into every corner of the internet…They don’t exist on PCs. This is a new phenomenon that is occurring on the iPhone for the first time in history.” Note: Jobs may be underplaying search’s relevance on mobile phones: Google often talks about the significant volume of searches that are done on the iPhone.

    The prime difference between iAd and other mobile ad networks is that iAd is built into the OS. “We have figured out how to do interactivity and video content without ever taking you out of the app,” Jobs said. “People will be a lot more interested in clicking on these because they don’t have to find their way back to the app.” Apple will sell and host the ads, and developers will get a 60 percent split. (Apple did not mention whether it, like Google, will share any of the revenues with carriers.) Apple provided a couple of advertising examples, in which an advertisement is almost like a mini-app that opens when a user clicks on a banner. In a mock-up for Toy Story, Jobs shows how a user could watch a trailer, download wallpapers, play a free game, or buy a game.

    He calculates that by summertime, the iPhone will be generating one billion ad impressions a day. On average, he said an iPhone user spends 30 minutes a day in applications. If they serve one ad every three minutes, and there’s 100 million iPhone and iTouches as of this summer, there will be one billion ad impressions a day. “It’s not the largest number but it’s a large number, and the demographics are one of the most desirable in all of advertising—not just in digital.”

    The iPhone OS 4.0 is being released today to developers, so they can start integrating the features into their apps, but won’t be available to the public until summer. Only iPhone 3GS and iPod touch (third generation) owners will be able to multi-task, although iPhone 3G or iPod touch (second generation) will be able to upgrade to OS 4.0. The iPad will get the OS update this fall.

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  • The Latest iPad And iPhone Stats


    Apple iPhone Os4 Steve Jobs1

    We are all here in Cupertino today to hear about the next stage of the Apple (NSDQ: AAPL) iPhone, but Steve Jobs treated us with a few statistics before the show kicked off:

    —On Saturday, 300,000 iPads were sold. As of today, 450,000 were sold. Jobs said: “Best Buy is out of stock…We are hand to mouth.”

    —4 billion apps have been downloaded from the App store, and there’s 185,000 apps in the store. There’s 3,500 iPad apps.

    —250,000 iBooks were downloaded on the first day, now it’s up to 600,000.

    —50 million iPhones sold, and 85 million iPhone and iPod touches have been sold altogether.

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  • Five Things We’ll Be Watching For At Apple’s iPhone Announcement


    New York City Apple Store

    Tomorrow is a big day for the wireless industry, as one of the most influential innovators in the mobile world announces the latest edition of its mobile phone operating system. With every major iteration of the iPhone’s operating system, Apple (NSDQ: AAPL) has disrupted the mobile ecosystem (first with the iPhone itself, and later, for example, by adding the app store). So the obvious question is: will Apple be able to do it again with iPhone OS 4.0?

    With mounting competition from Microsoft (NSDQ: MSFT), Google (NSDQ: GOOG), Research In Motion and others, Apple cannot afford to release a mediocre update – it has to come up with something special to please investors, developers and fanboys. We will be at Apple’s headquarters tomorrow morning to find out if it passes the test. But in the meantime, here are five things we’d like to see at tomorrow’s announcement. Our list isn’t meant to predict the actual list—rather it’s the five services and capabilities that we think Apple should roll out to keep the iPhone momentum rolling. Please add your own suggestions, in the comments, for what iPhone OS 4.0 should look like.

    1. Multi-tasking: This is an obvious one that many others have mentioned. Especially with the release of the iPad, Apple needs to add the ability to run multiple applications simultaneously. The devices become much more powerful when you can listen to Pandora while checking email, or receive a Skype call while also streaming TV.

    2. Live Widgets: The iPhone’s home screen is embarrassingly stagnant. There’s no excuse for it to always be 73 degrees in Cupertino. The weather app should be able to track your location and update the temperature accordingly. Google Android currently has this capability, and Microsoft’s upcoming Windows Phone 7 is taking it to even further with tiles that can sift through photo albums and and provide short-cuts to the people you care about most.

    3. Distribution/price points: To keep developers and advertisers happy, Apple must increase its market share. During a recent three-month period, Apple’s growth remained flat, while Android’s share rose by 5.2 percent. How can Apple compete in the U.S. when the iPhone is only available on AT&T? (NYSE: T) Price points are also important. While an entry-level iPhone costs as low as $99, it will have to compete with Android phones that will be free by the end of the year.

    4. Advertising: Apple is expected to roll out a new advertising service tomorrow that is the result of its purchase of Quattro Wireless. While it’s very speculative, the service could be instrumental in keeping application developers and carriers happy. As we reported, Google is sharing advertising revenues from search with operators that adopt Android. Microsoft, as well, could offer that. While carriers are still eager to adopt the iPhone, Apple may need to provide some financial incentive in the future to keep the relationship healthy and give carriers a reason to invest in their network infrastructure. At minimum, an advertising network would potentially help application developers monetize their applications.

    5. Content and services: While there’s hundreds of thousands of iPhone applications—many of them free—the phone itself does not come pre-loaded with a lot of services. That leaves customers sifting aimlessly through a mind-numbing list. Other handset makers are seeing value in partnering with content companies as a way to differentiate themselves. Google started offering free turn-by-turn navigation; Nokia (NYSE: NOK) quickly followed suit. Likewise, T-Mobile USA recently integrated an e-reader and a Blockbuster (NYSE: BBI) video subscription service into the HTC HD2 running Windows Mobile; Samsung has announced content partnerships with Paramount Pictures and others for future Android phones. Apple, of course, lets you buy video and songs from iTunes to play on your iPhone, but it needs to also offer subscription services and/or pre-loaded standalone applications based on this treasure chest of music and video.


  • Is Nokia Underrated? Analyst Upgrades Stock To ‘Buy’


    Nokia Logo

    Nokia (NYSE: NOK) is frequently belittled for being slow to develop the latest smartphones and touchscreen devices, and its market share in the U.S. stinks, too.

    But this morning, UBS analyst Gareth Jenkins saw something the rest of us may be missing, and raised his rating on the stock to ‘buy’ from ‘neutral’ and increased his price target to $19.55 from $14.16 a share, reports Barron’s. The stock is currently trading down 7 cents at $15.50 a share.

    He said there’s two primary reasons why Nokia’s underrated. First, he said Nokia will be able to leverage its global market share as more people adopt smartphones. Second, he said they should be able to leverage their market share to sell services in addition to devices. “Nokia is one of few vendors who can profitably offer lower priced smartphones for the emerging markets,” he wrote, adding that “we believe Nokia’s current valuation implies no value to its ability to transition consumers into Nokia service subscribers.”

    Both points are valid, however, the company faces a number of challenges. It is still waiting for their Symbian and MeeGo operating systems to be significantly updated in order for the phones to have a competitive look and feel. Those are coming this year, and will be updated again next year. On the services front, Nokia has been trying for some time to offer things, like email and mapping and navigation. But it faces steep competition from Google (NSDQ: GOOG), Microsoft (NSDQ: MSFT), Yahoo (NSDQ: YHOO) and others. It may have a better chance to win consumers over in countries where online habits are not yet formed. Still, Nokia had to stop charging for its mapping services after Google started offering theirs for free. Since then, it successfully recorded millions of downloads, which they hope will translate to paid downloads as people become aware of other services.

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  • Zynga Brings Social Gaming To The Phone—Using SMS


    Zynga's Mafia Wars

    Social gaming tycoon Zynga is testing out a way to bring its games to the mobile phone, but despite what you might think, it’s not by building a bunch of fancy smartphone applications.

    One way it’s approaching mobile is by tapping into SMS—something nearly every phone in the U.S. is capable of doing. The company, which raised a jaw-dropping $180 million in its last round, surely has the resources to build an app for every platform. So far, it’s released a dozen or so for the iPhone, but this way it can capture most of their customers in one move. Right now, users of the popular Facebook game Mafia Wars can sign-up for the service, and use it to fight opponents, perform jobs, visit the hospital, and most importantly, top off their accounts while on the go.

    The basic qualification is that the users must have a Facebook account in order to sign up. Otherwise it is free and works with any SMS-capable phone (which goes way beyond those smartphones that everyone keeps talking about). Once registered, users send a command to MAFIA (62342). Examples include “A” to “assist a mafia member on a job, or “FF” to fight your last opponent again, or “PE” to “purchase energy refills.”

    For now, Zynga is currently testing Mafia Wars SMS with select users and will roll out the feature to more users over time. Users wanting to participate in the trial can sign-up at http://apps.facebook.com/inthemafia/, where there’s more information under the “help” button. If you want to make sure Mafia Wars won’t disturb an important business meeting or distract you while you are driving, Zynga makes it easy to manage the time and frequency of messages.


  • HTC Sales Ramp With The Introduction Of New Ad Campaigns


    HTC Booth at MWC 2010

    Taiwanese Handset-maker HTC said it easily beat its own revenue expectations for the first quarter, and in particular, saw strong sales growth in March—the same month that Apple (NSDQ: AAPL) slapped it with a patent infringement lawsuit.

    HTC, which is best known for its Android and Windows-Mobile devices, attributes the sales spike in part to its advertising campaign that is designed to raise the awareness of the company’s brand. The company’s multi-million dollar advertising campaign hit late last year timed for the holiday shopping season, but has continued into the new year, which HTC has coined The HTC Brand Year. HTC’s revenues for the first three months of the year totaled NT37.8 billion (about $1.2 billion), easily beating its forecast of between NT32-34 billion. (about $1 billion).

    The month of March was particularly strong when revenues rose sharply to NT$16.4 billion, an increase of about 60 percent from February and 32.4 percent compared to the same month last year. HTC said the better-than-expected figures prove that it has adopted successful branding strategies.

    The company reports very few numbers, so it’s hard to get a complete picture of how the company is doing. However, Morgan Stanley recently raised its target price on HTC’s stock, which trades on the Taiwanese stock exchange, and Macquarie Securities reiterated its “outperform” rating for the company. BNP Paribas Securities raised its forecast for the sale of HTC phones in 2010 from 14.5 million to 15.8 million units.


  • Microsoft Will Need To Explain Its Mobile Strategy Next Week


    The rumored Project Pink phone may launch on Verizon as soon as Summer 2010

    Microsoft (NSDQ: MSFT) will have to justify why it is launching two separate mobile-phone projects after it presents the much-rumored “Project Pink” devices next week to a crowd of journalists.

    The software giant invited the media to an event on Monday in San Francisco, which sources tell Reuters is designed to announce two mobile phones that will be sold by Verizon Wireless. The phones, which are reportedly based on the Sidekick software that Microsoft acquired from Danger, will focus heavily on social networking and other Microsoft services, like Zune. The code names for the devices have been Turtle and Pure.

    If the phones do not run a version Windows Phone 7, which is coming out later this year, Microsoft will have to explain how it intends on supporting a two-pronged strategy that could result in consumer and developer confusion. The market is already extremely fragmented with several different operating systems, so there has to be good reason why it makes sense for two software platforms to come from one player.

    In leaked photos, the phones look a bit like a Palm (NSDQ: PALM) Pre in that it has a slide out keyboard and a large touchscreen display. The devices are likely to be made by Sharp, which makes Microsoft’s Sidekick.

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  • Android’s U.S. Marketshare More Than Doubles In Just Three Months


    google_cupcakeandroid

    Google (NSDQ: GOOG) Android’s U.S. smartphone market share jumped by an impressive 5.2 points in the three months ended in February to 9 percent. Meanwhile, Apple’s iPhone share remained relatively flat, comScore finds.

    If those trends continue (and, that’s a big ‘if’), Google could catch-up to the iPhone by the end of the year. Still, BlackBerry-maker Research In Motion remains the pack leader with a dominating 42.1 percent share of the smartphone market.

    The big differentiator that Google has going for it is the number of handset makers that are pumping out Android phones. ComScore (NSDQ: SCOR) said the top handset makers in the U.S. are Motorola (NYSE: MOT) (22.3 percent); LG (SEO: 066570) (21.7 percent); Samsung (21.4 percent); Nokia (NYSE: NOK) (8.7 percent) and RIM (NSDQ: RIMM) (8.2 percent).

    Of those, the top three are all making handsets based on Android. It’s important to note that these figures are based on current ownership, and not sales, so likely there’s still a ton of Motorola Razrs out there skewing the figures.

    Also interestingly, Android and RIM were the only two handset makers to grow in the past three months. RIM grew by 1.3, and Android grew by 5.2 percent. Microsoft (NSDQ: MSFT) dropped the most, losing 4 percentage points and Apple (NSDQ: AAPL) lost 0.1 percent.

    Here’s the chart:

    1. RIM: 42.1 percent, up 1.3 percent
    2. Apple: 25.4 percent, down 0.1 percent
    3. Microsoft: 15.1 percent, down 4 percent
    4. Google: 9 percent, up 5.2 percent
    5. Palm (NSDQ: PALM) 5.4 percent, down 1.8 percent


  • Nokia Seals Handset Deals With China Worth $2 Billion


    Nokia 6700 Slide

    Nokia (NYSE: NOK) has renewed two handset deals with Chinese distributors worth $2 billion that will help it continue being the world’s largest mobile phone maker.

    However, the annual contracts are smaller for the third straight year in a row, reports Reuters. One of the deals, worth more than $1 billion, is with China PTAC, and the other $1 billion-plus contract is with Telling Telecommunication Holding Co. In 2009, the one with PTAC was worth $1.76 billion.

    Last year, China represented Nokia’s third largest region with revenues of 6.4 billion euros ($8.6 billion), flat year-on-year.


  • Lenovo Considers Acquisitions For Mobile Growth


    Lenovo Mobile Phones

    As computer-makers like Dell get ready to launch their first handset in the U.S., Lenovo has started considering acquisitions in order to beef up its mobile operations.

    In November, the world’s No. 4 PC brand, bought back Lenovo Mobile, a mobile handset maker it founded in 2002 and spun off in 2008. Lenovo paid $200 million in cash and shares in order to get the group back together. At the time, the company said it doesn’t intend on competing internationally, but rather will focus on China, where Lenovo Mobile primarily operates. But Lenovo’s CEO told a German newspaper over the weekend, that it’s considering further acquisitions, Reuters reports. “Let’s say, we are keeping an eye out. We will make an acquisition if a company really fits, if the price is good and if we think we will be able to integrate it into our group.”

    Names frequently dropped as likely buy-out candidates are Palm (NSDQ: PALM) and BlackBerry’s Research In Motion. But Lenovo wouldn’t necessarily have to buy a OS and handset maker in order to be more aggressive in the space. It could purchase an OEM, and then rely on open-source operating systems, like Google’s Android, Symbian, or LiMo. It could even work with Microsoft (NSDQ: MSFT), like it does on the PC side.

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  • No-Name App Developers Thrived On iPhone—Do They Have A Chance On iPad? The Case Of iBeer


    Apps Screen

    If you want to know how much things have changed in the app world in less than two years, consider this: When Apple’s App Store launched in mid-2008, it had a paltry 500 apps—and not one from a major entertainment company. Fast forward to the iPad, which now has more than 2,000 applications, including content from nearly every major media property, like ABC (NYSE: DIS), CBS (NYSE: CBS), MTV, and the NBA.

    The dearth of bigger media players during the iPhone launch created some rare opportunities for no-name app makers. Take magician and gag artist Steve Sheraton, who created the iBeer, which simulated pouring and drinking a beer using the phone’s accelerometer. It quickly became the 10th-most-popular paid application. When Apple (NSDQ: AAPL) published a list of the hottest apps five months after the store’s launch, also high on the list were apps like Koi Pond (which lets you watch fish swim around; it hit No. 1 on the list), LightSaber Unleashed (of Star Wars fame), Flashlight (which lit your way), myLighter (which displayed a flame) and A Level (which allowed you to make sure a line was straight). And some of the start-ups behind these playful productions went on to become much bigger companies. Urbanspoon, for one, was bought by IAC (NSDQ: IACI), and Tapulous, the creator of Tap Revenge, and Shazam are now well-funded by venture money.

    Some bigger media companies are the first to admit that with the iPhone, the train left the station and they failed to get on it. Cameron Clayton, the VP of Mobile at The Weather Channel, said they were six months late with their app. In many ways, he says, the Weather Channel is just now starting to get into the groove with its mobile-app development efforts. The Weather Channel iPhone application has gone through eight or nine versions. “We learned a lot and are still learning a lot about how people interact with the content and what kind of content do they want to consume from us,” he says.

    The Weather Channel’s iPad application aims to accommodate the two ways most consumers interact with The Weather Channel today: on their phones or PCs, or via TV. The application, which is free and sponsored by Toyota, melds video from the TV channel with lots of data that you’d find online. “I hope we pulled it off, but just like with the iPhone this is 1.0, and then we’ll have 1.1, and then 2.0.”

    When the App Store first launched in July 2008, there were 554 applications, and of those, only 20 were music- or video-related, with the most prominent ones coming from Pandora and AOL (NYSE: AOL). Not a single application came from a TV network, movie studio or music label. It took another two months before that happened, and first out of the gate was CBS’s citizen-journalism application, which allowed people to upload photos about events they were witnessing in real-time.

    With dozens of big-time media companies participating on the iPad launch, do the odds shrink dramatically for people like Sheraton? This time around, he’s developed the iBeer Keg app, which is another visual gag that lets you pour beer from the iPad into your iBeer application on the iPhone. He’s confident that the iPad still will offer plenty of room for little developers to thrive. “Certainly because you and I still love to laugh…there’s room for both,” says Sheraton, who has been developing applications since Palm’s early days.


  • Apple To Unveil iPhone OS 4 On Thursday


    Apple announces iPhone OS 4 event for April 8, 2010

    Given all the attention on the iPad this weekend, this takes us for a bit of a surprise: Apple (NSDQ: AAPL) has sent out invitations to the media today, saying that it will be holding a “sneak peek of the next generation of iPhone OS software” on April 8 at 10 a.m. at Apple’s headquarters in Cupertino, Calif. In the accompanying image, there’s a reflection of the numeral “four.”

    Potentially, the event could also discuss new hardware, which has a pattern of rolling out every July. The WSJ reported recently that two new handsets may be in the works, including one for the Verizon Wireless network. Another potential subject would be mobile advertising and how Apple will integrate the recently acquired Quattro Wireless.


  • HTC Keeps Trucking Despite Apple’s Suit Moving On


    HTC Device Portfolio with the Hero out front

    A new investigation kicks off by the U.S. International Trade Commission today into Apple’s claims that Taiwanese-based HTC is infringing on its patents.

    Despite the impression that the suit will take a much larger toll on the smaller HTC, the handset-maker maintains that it’s business as usual. “It’s part of business…We need to face it and everyone can talk it through,” said HTC’s CEO Peter Chou, who appeared at a press conference where HTC launched new smartphones, according to Reuters

    Last month, Apple (NSDQ: AAPL) sued HTC, claiming it infringed on 20 hardware and software patents related to the iPhone. Just because the ITC is looking into the claims doesn’t mean that it believes the case is particularly strong, however, the ITC has the power to order a ban on HTC phones if a violation is found. Part of HTC’s defense is that it’s been making smartphones for way longer than Apple.

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  • More Than Half Of Smartphones In U.S. Have Touchscreens


    Iphone And Blackberry

    U.S. consumers are not only buying phones with touchscreens, but they are tending to be more satisfied with the experience than people who bought phones with physical keyboards, according to a J.D. Power and Associates’ wireless satisfaction survey released today.

    It found that more than half of the respondents said their smartphone had a touchscreen, which is in line with a report that came out in February from the NPD group that said in the fourth quarter of 2009, the top 10 best-selling mobile phones all came equipped with a touchscreen, a Qwerty keyboard, or both.

    In addition to being more satisfied, smartphone owners with touchscreens are more likely to download or watch video. JD Power found that 17 percent of smartphone owners with touchscreens indicated they frequently watch content on their device, which is significantly higher than the segment average.

    Other findings:

    —On a scale of one to 1,000, touchscreen smartphone owners have an average satisfaction of 771, which is 40 points higher than those who don’t have touchscreens.

    —Perhaps, smartphone users satisfaction with touchscreens are impacted by the fact that Apple (NSDQ: AAPL) continues to rank highest in customer satisfaction among manufacturers of smartphones with a score of 810.

    —BlackBerry is in second with 741 points (despite only having one touchscreen device in its line-up).

    —When it comes to feature phones, LG (SEO: 066570) ranks highest in satisfaction at 729 and Nokia (NYSE: NOK) is in last place with a score of 667. Surprisingly, Samsung, which is the largest handset manufacturer in the U.S., ties with the industry average of 703 points.


  • A New First In Mobile: Data Traffic Outstripped Voice Traffic Last Year


    Mobile Money

    Mobile data has been growing at a fast clip since the iPhone went on sale almost three years ago. But with the introduction of many more data-focused devices, the industry continues to break records.

    In a report released today, telecom consultant Chetan Sharma tallied up the financial statements of carriers from around the world to get a comprehensive look exactly what happened last year. For the first time ever, he said that on a global basis mobile phones were used more for accessing data than they were to make calls, and that global data traffic exceeded an Exabyte of data. What’s more, if this pace continues he said both North America and Western Europe will exceed an Exabyte each in 2010, and that the total number of mobile broadband connections will exceed the number of fixed connections. In all, there’s 4.6 billion cellphone subscribers worldwide with a penetration rate above 68 percent.

    The comprehensive report covers everything from revenues to applications to text-messaging trends and mergers and acquisitions. But the high-level take-away is that the mobile data trend is continuing to be a large part of the business and is extending to much more complex things beyond text messaging. Sharma reported that global mobile data revenues reached $220 billion and that mobile data now contributes 26 percent of all revenues worldwide. However, data revenues were unable to offset declines in voice revenues, so overall revenues stayed flat at around $1.1 trillion. Sharma explains that declines were mostly due to the recession and from fierce competition.

    Regional breakdown:

    Of course not all regions are equal, and the adoption of data is occurring unevenly around the globe. On a global basis, data revenues contribute 26 percent of all revenues, but for some carriers, like Japan’s NTT DoCoMo (NYSE: DCM), it is as high as 50 percent.

    —The U.S. extended its lead over Japan as the most valuable mobile data market in service revenue with U.S. adding $44.56 billion, and Japan recording $32.5 billion in 2009. China was in third place with $20.3 billion. The U.S. registered the fastest growth among the top three carriers with more than 40 percent increase in 2009 compared to 2008.

    —NTT DoCoMo continues to dominate the wireless data industry by recording more than $16 billion in data revenues in 2009. NTT DoCoMo was followed by Verizon Wireless, China Mobile, AT&T (NYSE: T), KDDI, Sprint (NYSE: S) Nextel, Softbank Mobile, T-Mobile USA, O2 UK, and China Unicom to round up the top 10 operators by wireless data service revenues.


  • RIM’s Q4 Revenues Fall Short Of Estimates; Remains Bullish In New Year


    Blackberry Curve

    BlackBerry-maker Research In Motion’s stock is down nearly 6 percent in after-hours trading after coming short of analysts’ expectations for Q4 ended Feb. 27.

    Still, the Waterloo, Ontario-based company’s revenues increased 35 percent compared to the year ago period and the company insists that it is seeing strong momentum in the current quarter. In Q4, RIM’s net income totaled $710.1 million, or $1.27 a share, on revenues of $4.08 billion. Analysts expected RIM (NSDQ: RIMM) to earn $1.28 a share on revenues of $4.31 billion, according to a poll by Thomson Reuters.

    For fiscal 2010, RIM’s revenues totaled nearly $15 billion, up 35 percent from the prior year, and had profits of $2.46 billion. Jim Balsillie, RIM’s Co-CEO, said: “We are off to a great start in fiscal 2011 and expect strong shipments, revenue, subscriber and earnings growth in Q1. We are also very excited about our portfolio of products and services for the coming year and we continue to see exceptional opportunity for sustained growth.”

    Other figures:

    —RIM shipped about 37 million devices in fiscal 2010 and about 10.5 million devices in Q4.
    —About 4.9 million net new BlackBerry subscriber accounts were added in the quarter.
    —BlackBerry’s subscriber account base now exceeds more than 41 million.
    —RIM says that in Q1, it expects revenues to range between $4.25 and $4.45 billion.
    —Q1 net subscriber additions in Q1 are expected to range between 4.9-5.2 million.
    —Q1 earnings per share is expected to fall between $1.31 and $1.38 a share.

    Balsillie was a little more illustrative on the earnings call, however, was careful not to let anything that hasn’t been announced slip. “I can’t talk about what’s not announced,” he said, but added “if you saw the road map, you’d be blown away.” At Mobile World Congress, the company showed off its new browser that is based on Webkit standards, which are also used by Apple’s Safari and Google’s Android. Balsilie said some of the new things could be revealed as soon as April, and that they could be talked about more on the next conference call in June, but new products would be trickling out all year. As for missing financial targets and disappointing analysts, he said: “You have to be careful about one-time events or inventory adjustments, so that you don’t misconstrue it…I love our road map and our plans—you’ll see it all in play really really soon.”


  • Kleiner Perkins Bets The iPad Is ‘Magic’; Doubles iFund To $200 Million


    KPCB's Partner John Doerr

    Kleiner Perkins Caufield & Byers, one of the iPhone’s biggest and earliest supporters, is doubling the size of its iFund to $200 million. The specialized venture capital fund, which was founded two years ago with the launch of the original iPhone, will now make investments in start-ups based on Apple’s family of products including the iPhone, iPod Touch and the iPad.

    The announcement was made today in the venture firm’s Sand Hill Road offices and was broadcast over a fuzzy telephone line. But Kleiner’s John Doerr’s praise of Apple’s Steve Jobs came through resoundingly clear. He believes the launch of the iPad on Saturday marks the start of a new revolution in PCs: it sheds the tired user interface and replaces it with touch, and retires the click with a “swoosh,” he said. “It’s direct and natural. Instead of holding a mouse you are going to be holding magic.”

    The fund had to be extended to make any further investments. In just two years, it had become fully committed with investments across 14 companies. In addition, Kleiner said iFund companies had been supported by an $330 million more from other investors.

    So far, iFund-backed companies have already starting building more than 20 applications for the iPad with 11 expected to be available on April 3 when the device is available. Seven of them are games from ngmoco. Kleiner’s investment areas of interest on the iPad are broad and include entertainment, communication, social networking, commerce, health care, and education. 

    So far, it’s unclear how much success iFund-backed companies are doing since not one has had an exit, and perhaps, others are struggling. But Matt Murphy, who heads up the iFund, said in a release that the companies in aggregate have achieved more than $100 million in mobile revenues so far in 2010; and more than 100 million downloads.

    Doerr is not the first one to call the iPad magic. The day the tablet was unveiled, Jobs called it “magical and revolutionary.” While Kleiner has the kind of money to bet on whether that’s true, the rest of us can wait until Saturday when it launches and we can see for ourselves. The big questions are: Will it change computing? Will it save the publishing world? And, will it become a $100 million-plus business opportunity, so that Kleiner can at least break even?

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