Category: Mobile

Mobile marketers are wasting no time trying to cash in on the iPad hype. Jumptap this morning crowed that it was the first to offer a mobile ad solution for Apple’s new tablet, and Motally is extending its analytics offering to support the gadget. The early moves indicate that the iPad will be a battleground between the pure-play mobile advertisers and traditional Internet ad firms. And the lack of Flash support on the iPad tilts the field heavily in favor of the mobile guys.

It’s an easy move for mobile advertising firms to embrace the iPad. The tablet runs the familiar Safari browser and will support all those iPhone apps that have fueled recent growth in the mobile ad space, and which — if recent online trends are any indication — is poised for huge growth. And wireless ad firms are salivating over the iPad’s knockout 9.7-inch touchscreen, which will help marketers make their pitches in more effective ways without crowding out the content that users are looking for in the first place — a feature that mobile phones can’t hope to achieve.

So the mobile guys can easily take advantage of the iPad, but what about the traditional online advertising firms that already have relationships with the big media companies  that want to be on the iPad? After all, the device looks to be a great platform for accessing news and other online content from traditional media outlets, which depend largely on Internet advertising dollars. The traditional online ad players aren’t going to want to give that up.

But most of the online ads supporting the likes of the New York Times or Conde Naste magazines — or most other ad-supported sites, for that matter — are rendered in Flash. So advertisers that want to sell next to Thomas Friedman or in The New Yorker have a few choices: they can invest heavily to rebuild those ads to strip out Flash and make them iPad-friendly, they can lean on the ad-serving platform Apple acquired when it picked up Quattro Wireless, or they can do business with one of the countless smaller players in mobile advertising that deliver ads to the iPhone and other handsets.

Traditional online ad firms have struggled mightily to gain a foothold in wireless, with many having to buy their way in via acquisition if they want a piece. So if the iPad can find a sizable audience, it could substantially increase the value of the pure-play mobile ad guys still left on the field.

Image courtesy Flickr user Serge Melki.

Nokia, which recently launched a new, free version of its Ovi Maps application, may also open up the app to outside developers via a more robust API than the one currently available, according to Dr. Tero Ojanperä, the company’s EVP of services. The company, which offers a basic version of the Ovi Maps application programming interface (API), is looking to extend its capabilities even further.

I ran into Ojanperä at the DLD Conference this week in Munich, Germany, where we got to talking about the launch. He was clearly quite pleased with how things have turned out. The mapping and navigation app has seen a steady increase in downloads, according to Ojanperä, and while he wouldn’t give me exact numbers, it was obvious that the initial response was much better than Nokia had expected. Which is great news for the company given that, despite having a head start in the mobile phone-focused maps and navigation space, has been losing ground to the mapping and navigation efforts of Google and Apple .

When I asked Ojanperä if Nokia would consider further opening up Ovi Maps to outside developers, he said that was a possibility. I think it would be a smart move — it would go a long way toward helping Nokia win over developers to its platform.

Nokia has previously said that mapping and location are the underpinnings of all mobile experiences. “We want maps to be part of everyday life, and as a result, we are working on building a richer experience on top of the map,” was how Ojanperä put it to me in an earlier interview. A good example of what can happen when outside developers have access to the app is the Share Location feature via Ovi Maps for Facebook, which allows you to add location context to your Facebook status messages.

And in Ovi Maps, Nokia actually has a winner on its hands — especially in emerging markets, where mapping and navigation services have not yet been as widely adopted as they are elsewhere in the world. Even in more developed markets, Ovi Maps is a fantastic application. Having used it on a Nokia N97, I would recommend it to anyone who owns a Nokia smartphone.

In the wake of Apple’s iPad unveiling yesterday, some are speculating that the device will find early success as a tool for mobile workers. There are several reasons, though, why that is unlikely to be the case, and why Apple won’t focus on this as an early goal.

Ted Schadler, writing on the Forrester Research blog, says:

“It will catch on quickly as an employee-provisioned third device, particularly for Mobile Professionals, 28% of the workforce. IT will support it in many organizations. After all, it’s just a big iPhone to them and already 20% of firms support them.”

Regarding the iPhone, Apple officials noted on the company’s earnings call this week that 70 percent of Fortune 100 companies are trying iPhones. However, the word “trying” is key, as the iPhone has never been taken anywhere near as seriously as a business device as, say, the BlackBerry, which sports both a physical keyboard and the ability to very easily access multiple email accounts.

In his review of the iPad, Om noted that while it is reasonably good for checking email, “the iPad’s primary purpose is to help you consume the ever-expanding amount of digital content on offer.” That’s one big reason why the device will be a much bigger hit among consumers than business users.

One very telling clue to how focused Apple itself will be on the iPad as a consumer device as opposed to a business device is that it’s only making its iWork set of productivity applications available on a piecemeal basis. iPad owners can get Pages (word processing), Numbers (spreadsheets) and Keynote (presentations) for $9.99 each, but they won’t get a bundled suite, as one would expect if Apple had designs on the iPad’s early success among business users. (The iWork apps are also redesigned for the iPad, and have less functionality than the desktop versions.) I could see some limited use of the iPad as a tool for delivering slick Keynote presentations, but not as an all-around workhorse business device.

I’m inclined to agree with CNet’s Rafe Needleman that the iPad may, in some ways, be to the MacBook as the netbook is to the PC. The $499 iPad will be Apple’s lowest-priced computer, even lower priced than the Mac Mini. It may very well be popular as a device that sits in a family room or kitchen.

Microsoft tried to champion tablet computers as The Next Big Thing years ago, but the category never quite took off. Few of the early tablets were positioned as connected devices for content consumption, but rather as handwriting recognition-centric working tools, and they even failed to live up to the promise of that goal. As far as the iPad’s place among business users, it’s unlikely that Apple itself — a company known for skillful, targeted marketing — will make significant attempts to position it for them.

No matter what you think of the newly launched Apple  iPad, it confirms a shift in the way mobile broadband services are priced, albeit a subtle one. Yesterday I wondered if Apple had it in for AT&T because the prepaid data plan offered more data for less than existing AT&T prepaid plans, and because with an unlimited plan that mirrored the pricing on the iPhone plan, it seemed like AT&T would have double or quadruple the traffic without a corresponding increase in revenue.

But after listening in on the AT&T earnings call today, I realize that AT&T thinks it won’t be so hard up, and that the iPad data pricing continues a pattern of pricing mobile broadband based on the device. Much like prices are different for data via a data card or dongle based on the expected usage pattern, the data plan on the iPad is less because AT&T hopes a “substantial” amount of the web surfing will occur over the Wi-Fi network, AT&T’s CFO Rick Linder said on the call. If it turns out that isn’t the case, then Linder said AT&T would re-evaluate the pricing plans. AT&T does expect the iPad data consumption to fall somewhere between that of an iPhone and a laptop.

Plus the fact that AT&T isn’t subsidizing the iPad — and doesn’t have subscriber billing and other costs associated with it — means the carrier isn’t terribly concerned about the iPad’s effect on its margins. Check out the chart below to see the costs for AT&T associated with the two devices.

Today’s unveiling of the Apple iPad, which resembles a slightly larger iPod touch and has the tech world all a-twitter, seems like a brutal blow to AT&T. First of all, it’s unlocked, and as such can run on other GSM-based networks, which means that AT&T may not be the only place iPad users can get their mobile broadband. Plus the pricing seems like it will cut into AT&T’s profits.

Granted, the extent to which a consumer could find another mobile broadband provider in the U.S. is unclear, as the micro SIMs that CEO Steve Jobs mentioned in his onstage presentation may not be tuned to other networks (see Why Your Nexus One Won’t Work on AT&T’s 3G for an explanation). PCMag has a nice story on micro SIMs for those who are curious — they’re basically smaller SIM cards. AT&T won’t comment on the announcement, but I imagine it will be a topic on the carrier’s quarterly results call tomorrow morning.

The revolution in pricing offered by the iPad is very clear. Jobs said those wanting 3G connectivity could get a prepaid AT&T data plan that allows about 250 MB of data downloads for $14.99 or an unlimited plan for $29.99. The 250 MB plan costs half as much as AT&T’s other prepaid data plans, presumably cutting into Ma Bell’s data margins. And the unlimited plan is the same price that folks currently pay for unlimited data via the iPhone, which had AT&T executive Ralph de la Vega complaining in December that folks were downloading too much. And giving folks a bigger, faster device isn’t likely to get them to cut back on their data consumption.

For more details on the iPad, a roundup of how AT&T has prepared its network for this moment, and some great facts about the average monthly data consumption on a superphone vs. a data card, check out my latest piece at GigaOM Pro (subscription required). Hint: the average superphone user already consumes more data in a month than a 250 MB plan accommodates.

For a long time, the world has been searching for a device whose capabilities and design place it right smack in the middle of a phone and a laptop. But while some have argued that netbooks were the answer, to me they’re nothing more than cheap laptops. Today, that third device came out of stealth, thanks to Apple. It’s essentially a super-sized iPhone with the power of a laptop. Thanks to an uber-mobile chip and stunning 9.7-inch IPS display, the iPad is an ideal device for today’s world.

Despite their evolution, laptops and desktop computers as we know them are essentially work tools. They’re designed for content creation — be that of writing blog posts (or a book), editing photos or creating videos. On the iPhone, we create content of another kind — personal, communication-centric content.

The iPad, on the other hand, is made for the consumption of digital media: games, music, photos, videos, magazines, news papers and e-books. Sure you can use it to check your email or work on a keynote, but the iPad’s primary purpose is to help you consume the ever-expanding amount of digital content on offer.

iTunes App running on an iPad

So in many ways, today is a brand new day for content creators and owners alike. For if we’re smart, all of us — from large media giants such as Fox to upstarts like my little company — will figure out how to build a new magazine/news experience that leverages the iPad’s powerful processor, great graphics, stunning display and most importantly, Internet connection. In fact I’ll go out on a limb and say that today may be the day we start to rethink how we build web sites.

In the meantime, here’s a short and sweet hands-on review.

Despite the size, the device is light (1.5 pounds) and is easy to both grip and use. The screen size is ample, the processor powering is beefy and as a result, the iPad is amazingly brisk. And onscreen reading is easy on the eyes.

YouTube Running on an iPad

Most impressive are its multitouch capabilities, which work anywhere on the massive screen. Since I was already familiar with the iPod touch and iPhone, figuring out how to use the iPad was easy.

Will iPad Kill Kindle? I think so!

First the good stuff:

• There is one single button on the entire device, which I think is just brilliant because it means fewer distractions.
• There’s a sleep/wake button at the top, much like the iPhone.
• There’s a headphone jack.
• I like how the device switches from landscape to portrait mode so quickly in all four orientations.
• The web browsing experience is easy and satisfying, thanks to an ultra-responsive touchscreen.
• The Maps application is pretty stunning, especially the street view, which comes alive on the iPad screen like never before.
• YouTube works as advertised, including the HD videos. It’s a damn shame there isn’t an iPad version of Hulu.
• The iTunes store and iTunes Video work very well, and the music buying experience is no different than, say, on a Mac.
• It’s simple enough to plow through a whole bunch of email very very quickly.
• iPhoto is a much better experience on the iPad than you would imagine, especially the slideshows.

Now here is the stuff I don’t much care for:

• The onscreen keyboard isn’t as great as I thought it would be.
• The screen resolution of 1024 X 768, or about 4:3, is underwhelming.
• There’s no way to lock the device into either portrait or landscape mode.
• The decision to work with AT&T for a wireless 3G data is just straight-up dumb. It’s not like Apple doesn’t know how bad the performance of the AT&T network is. (Related GigaOM Pro report: “How AT&T Will Deal with iPad Data Traffic“)

And a couple of additional facts:

The device will work with any Bluetooth keyboard, but not with a Bluetooth mouse. The keyboard dock for the device will cost about $69. A case/stand is going to cost $39.

Bottom line: If I didn’t own a Kindle or an iPod touch, the decision to buy an iPad would be an easy one. But I own both, and even if I only owned one of them, it would be a tough decision. More thoughts on this device later, when I’ve had time to digest its impact and implications.

Mobile app usage can vary dramatically from handset to handset, according to new data from Distimo, but here in the U.S., the love for Facebook is handset-agnostic. The social networking site’s app was among the top 10 downloaded by U.S. users in all five major OS-specific app stores in December, said the Dutch analytics company, and was among the top five apps downloaded from Apple’s App Store, RIM’s BlackBerry App World and Google’s Android Market.

Distimo’s report underscores the amazing traction Facebook has gained as it’s expanded into mobile. The company last fall said 65 million people were accessing Facebook through their phones, and today Opera Software reported that Facebook traffic through its Opera Mini browser jumped more than sixfold last year as the site became the most popular social network for Mini users. Meanwhile, the new startup Ground Truth this week said Facebook was the second-most visited site on the mobile web in the first week of 2010, placing behind MySpace. That kind of traction indicates that Facebook is well on its way to reaching the potential Om envisioned for the company in mobile almost a year ago.  And it will only increase as Facebook continues to integrate more closely with mobile phones via features like contacts and comments.

Interestingly, Distimo also found that European developers charge more for their offerings than those from elsewhere, while apps produced in Japan cost the least. And the average price of apps for BlackBerry and Windows Mobile devices is more than twice that of apps for other handsets (see chart) — which is not surprising given their business focus. That suggests there may be an opportunity for both players to differentiate themselves (GigaOM Pro, sub. required) from the rest of the app- store crowd by offering a smaller number of high-value apps in contrast to the cheaper novelty apps that litter bigger storefronts.

Related GigaOM Pro Content:

• Wanted: A Nieman Marcus for Mobile Apps
• Will Facebook Join the Mobile App Store Craze?

Thumbnail image of Facebook’s mobile site courtesy Flickr user sonofabike.

As part of a recently created pro-consumer task force at the Federal Communications Commission, the agency is sending out letters to the top four wireless carriers and Google asking about their early termination fees (ETFs). The FCC already quizzed Verizon after Big Red raised the fees a consumer pays for canceling their contract early to $350 for smartphones — and the answers provided by Verizon were pretty much an exercise in obfuscation.

So now the agency has sent out letters to Verizon, Sprint, AT&T, T-Mobile and Google asking about ETF policies, including what each company’s ETF supports and even things like how much a consumer has to pay in restocking fees if they return a phone early (a personal pet peeve of mine since it’s hard to get a feel for a phone that’s attached to the wall via a security tether). Google and T-Mobile get special attention for their fees associated with the Nexus One, but I find it odd that questions weren’t sent to other retailers of mobile phones. Overall I hope to see a bit more clarity around consumer billing for mobile service.

Maybe the next inquiry could ask why carriers are forcing folks to pay for data plans they may not want with certain phones. An even more forward-looking inquiry might ask whether certain phones need voice plans at all.

Image courtesy of Flickr user Neubie

Things are looking dire for dead tree media of all sorts as the consumer electronics industry takes aim at newspapers, magazines, and the humble mass of paper known as a book. But between iPhones, dedicated e-readers and the much anticipated tablet, what does the consumer electronics industry’s infatuation with reading mean for those providing the components that make such devices work?

The answer could be big for the chip industry, as In-Stat estimates that up to 28.6 million dedicated e-readers could be sold in 2013. However, such a prediction don’t take into account the launch of Apple’s tablet and may not accurately factor in the habits of those who read on their smartphones. Mobile application analytics provider Flurry, as Om noted back in November, sees books becoming the leading category of apps downloaded on the iPhone.

David Carey, a teardown expert at Portelligent, says it’s not clear if dedicated e-readers or tablets designed to consume media will displace existing netbooks, notebooks or smartphones. If they add to our overall gadgets then yes, they will expand the market opportunity for chip vendors. If they don’t, they’ll just help to redistribute consumer device spending.

It’s an obvious point, for sure, but less obvious is how the success of a particular type of device may affect industry players. Currently Freescale Semiconductor is the market leader in the dedicated e-reader space with chips in the Kindle and the Sony Reader. When it comes to smartphones, companies like Qualcomm, Samsung (its applications processor powers the iPhone) and Texas Instruments are vying for domination. Those same companies, along with Marvell and its Armada line of chips, will also attempt to power a tablet with Samsung said to be providing the silicon inside the new Apple device.

That covers the brains of the reading devices, but what about their displays? When evaluating the total cost of a reading device certain form factors will imply more spending on the brains than the display — the component that I think of as beautiful. Dedicated e-readers have overall higher costs thanks to the proprietary nature of e-ink displays, and those costs are unlikely to come down as fast as the price for LCD screens. Using the brains vs. beauty ratio (application processor vs. display), Carey said dedicated e-readers have a 1:2 ratio with manufacturers spending $2 on beauty for every dollar spent on applications processors.

With smartphones or superphones, for every dollar a manufacturer spends on beauty, they spend 75 cents on brains. For example, in Google’s Nexus One the Snapdragon processor with integrated cellular radio costs $30.50 and the screen plus the capacitive touch components costs $41. In the iPhone 3G S, the applications processor plus the cellular radio (it’s not integrated in the iPhone) costs $27.46 while the screen and touch components cost $35.75.

It’s likely that the ratio of brains to beauty will start out closer to the 1:2 ratio for dedicated e-readers, but that the prices will drop as the cost of LCD screens drops, estimates Carey. Of course, as consumers decide they want their tablet to do more, the demand for smarter slates could force the application processor innovation (and costs) up.

So for the chip firms hoping that e-readers will provide a steady market for their wares, the future is still cloudy. The end products are so different they can’t possibly meet the needs of every consumer. Dedicated e-readers last longer on a single charge, but likely won’t ever deliver as rich media a experience that a tablet or smartphone could (plus young people aren’t that into them), while words on LCD screens used by smartphones and potentially on a tablet can be hard to read over a long period of time. Some folks may use a smartphone, since they don’t read that much anyhow, while others will go to their graves clutching their ripped, dog-eared novels proud to have only owned printed versions of the printed word.

Related GigaOM Pro Research:

• Evolution of the e-Book Market
• As Devices Converge, Chip Vendors Girding For a Fight

Image courtesy of Flickr user timetrax23