NewsFactor Network

App Stores: Microsoft, Google Follow Apple

Fri, 05 Sep 2008 13:06:43 -0500

When Apple opened its iTunes App Store in July, the idea of a mass-market Web site that sells downloadable games, tools, and other applications for cell phones was a rarity. Handset owners could buy apps from their carriers or the occasional niche site. But these days, the app store concept is becoming commonplace. The question is, does the world need a warren of wireless app stores?

In the coming six months, at least four would-be rivals of Apple will probably open their own online bazaars where developers of all stripes will sell downloadable software applications to make cell phones more fun and useful. Google has already announced its plans, while Microsoft, Symbian, and T-Mobile USA are in the likely-to camp.

The appeal of an app store is undeniable. Since the App Store debut, users of Apple's iPhone and iPod Touch have downloaded more than 60 million applications, sampling the more than 3,000 games, calendars, and fitness applications on offer for as much as $10 a pop, though some are available at no charge. Sales averaged $1 million a day in the first month.

Microsoft's Skymarket Is Coming

Microsoft and other owners of competing operating systems want to ensure Apple's popularity doesn't take a toll on their own market share. "People are chasing the iPhone," says Van Baker, an analyst at consultancy Gartner. Microsoft's plans to launch a store were laid bare by job descriptions posted Sept. 2 on job board computerjobs.com. The mobile applications marketplace, to be called Skymarket, may launch in tandem with the next version of Microsoft's cell-phone software, Windows Mobile 7, expected in 2009.

While he wouldn't confirm or deny plans for Skymarket, Scott Rockfeld, group product manager for Microsoft's mobile communications business, says the company ultimately wants to provide a resource, akin to CBS's CNET, which...

Bill and Jerry Chat as Confusing Windows Blitz Begins

Fri, 05 Sep 2008 12:17:17 -0500

Microsoft's Seinfeld campaign launched Thursday night. The $300 million campaign starring the well-known comedian Jerry Seinfeld, however, didn't say anything about Windows.

The ad shows Microsoft Chairman Bill Gates picking out a new pair of shoes at a discount store. Seinfeld notices him and helps Gates test several pairs of shoes before finally selecting the perfect fit.

What does buying shoes have to do with Windows? Microsoft is calling it an effort to reconnect with consumers around the globe.

Future commercials will highlight how Windows has become part and parcel of the lives of consumers everywhere on PCs, online and through mobile devices. The first ads seek to start a conversation about the Windows brand using Seinfeld's offbeat humor, Microsoft said.

A New Chapter in Windows History

"Windows is entering a new chapter in our history," said Bill Veghte, a Microsoft senior vice president, said in a feature article Microsoft published to explain the campaign. "We're renewing our commitment to consumers and working with our partners to deliver quality and value on the PC, across devices, and across the Web."

According to Brad Brooks, corporate vice president for Windows consumer product marketing, the effort stems largely from the fact that Microsoft's brand and products, and the way people use technology in general, are vastly different now than they were even a decade ago. Microsoft's historic relationship with consumers has become insufficient in this new world, he said, and that's a situation that has led the company to fundamentally rebuild the customer experience.

"When you think of more than a billion people using Windows across the globe, each person with a unique set of circumstances, and then factor in three Windows platforms and what they can do, it's hard to even comprehend the number of unique scenarios Windows can potentially address," Brooks said. "So how can...

Samsung May Buy SanDisk, Consolidate Flash Market

Fri, 05 Sep 2008 13:52:40 -0500

A major consolidation of the flash-memory market may be in the works. Samsung, the world's largest memory manufacturer, says it may make an offer for SanDisk, which makes flash-memory chips. SanDisk is valued at $3.2 billion.

The flash-memory space has been under extreme pressure with prices falling. The deal would allow Samsung to eliminate its costs to license SanDisk technology.

"We are looking at various opportunities regarding SanDisk, but nothing has been decided yet," Samsung spokesperson James Chung said in response to rumors.

Samsung also identified an acquisition of SanDisk as a possibility in a regulatory filing. SanDisk shares spiked up 24 percent on Friday.

Defeat for Toshiba

If the purchase goes forward, it could be a major strategic defeat for Samsung competitor Toshiba, analysts said. Toshiba is planning to double its flash-chip production in a partnership with SanDisk, so Samsung's acquisition could squeeze Toshiba, which trails Samsung.

"Samsung buying SanDisk would mean big damage for Toshiba," Yoshihisa Toyosaki, the head of technology analyst firm J-Star, told Reuters.

Samsung pays SanDisk more than $350 million a year in licensing fees and is reportedly looking to reduce that cost through the acquisition.

Antitrust Scrutiny

"Although SanDisk and Toshiba are partners, there are doubts as to whether SanDisk will continue to invest" in the joint venture, James Song, an analyst at Daewoo Securities, told Reuters. "So in the medium- to long-term, Samsung would be able to gain more control over the flash market."

In addition, Samsung would take advantage of SanDisk's marketing presence to build its reputation in flash memory. "Toshiba is trying to take business and market share away from Samsung. Samsung could suppress this by taking control of SanDisk and gaining access to its basic patents," Toyosaki said.

But such a move could face strict antitrust scrutiny. C.W. Chung, an analyst at Lehman Brothers, said it's not clear that the...

Chrome Hints Google Aims To Become 'Big Brother'

Fri, 05 Sep 2008 11:11:33 -0500

What's behind Google's release of its new Chrome browser? While the software boasts some impressive technology, does Google seriously mean to reopen the browser wars, even against its open-source partner Mozilla?

On the one hand, observers say, Chrome is an assault on Microsoft, but not in the obvious, browser-war sense. On the other hand, a number of revelations about how Google is using the browser raise substantial privacy concerns.

Indeed, they say, Chrome reveals just how vast Google's ambitions are -- and they go well beyond roughing up Microsoft.

Google vs Microsoft

For starters, Chrome is a "direct attack on Microsoft," said Rob Enderle, principal analyst with the Enderle Group, in an e-mail message. Even the name is a dig. "Microsoft Chrome Effects was the most ambitious attempt to transform the Windows front end, and it failed largely due to internal politics and an untimely disagreement with Intel," Enderle said.

Chrome isn't about unseating Internet Explorer but a stab at Microsoft's fundamental life force -- Windows itself. "Chrome is intended to render Windows irrelevant by taking over the windowing system and allowing it to be platform-independent, breaking the dependency over time on legacy Windows applications," Enderle said.

A PC World article pointed out how Chrome is missing numerous features that users take for granted -- a drop-down menu bar, plug-ins and extensions, a powerful history search. But Chrome isn't about users, Enderle said. It's meant to be a "better front end for applications, not Web browsing," he said. "Chrome is a feint at IE but a flanking move on Windows."

Google vs the World?

The computer world is powerfully dominated by Microsoft. To fundamentally change that equation means, in Google CEO Eric Schmidt's estimation, not a power-sharing arrangement but the decimation of the empire. In the language of geopolitics, Microsoft is the Soviet Union. The question is...

iPhone Gets EA's Spore Origins, More Mobile Titles

Fri, 05 Sep 2008 13:53:04 -0500

If you can't manage to occupy yourself Web surfing, e-mailing or listening to tunes on your iPhone, EA Mobile has just announced a raft of games for the iPod touch and the iPhone. Phone games have become a real phenomenon as more and more mobile devices have enough screen real estate and processing power to become a viable game platform. The EA announcement Friday focused on the release of Spore Origins for the Apple mobile market, but the company also released details of nine other upcoming mobile game titles.

Mobile Spore Origins

It's not the full-blown evolutionary strategy game you'll find on the PC and Mac, but EA's Spore Origins gives iPhone users a taste of "survival of the fittest" by incorporating two modes of play in the mobile version. In evolution mode, players create, edit, tweak and customize their creatures and explore strange worlds. In survival mode, players are prey and predator, advancing through 35 levels of eat-or-be-eaten action.

According to EA Mobile, the game incorporates the motion-sensing capabilities of the iPhone, so gamers can navigate creatures by tilting and moving the handset (as if talking aloud on a wireless headset didn't make you look odd enough). No word on whether the mobile version incorporates any of the more sexually explicit features of the main Spore game.

In a statement released by the company, Travis Boatman, vice president of worldwide studios at EA Mobile, said, "We're really excited to bring Spore Origins to the iPhone and iPod touch. By leveraging the unique capabilities of these devices, players can customize their own creatures and shape their destiny in an exciting evolutionary journey."

In contrast, EA's full-blown Spore allows for nearly total customization of the worlds and creatures that inhabit them, providing ample opportunity to tweak environment and evolutionary features. Supposedly...

Online TV Viewing Approaches the Mainstream

Fri, 05 Sep 2008 13:53:38 -0500

Nearly 20 percent of American households are tuning into TV over the Internet. That's twice the number from 2006, according to new research from The Conference Board Consumer Research Center and market-research firm TNS. The most popular destinations for online broadcasts? The official TV channel home page and YouTube.com.

The growing movement toward watching TV online is attributable, in part, to schedule-bucking viewers who want to watch the shows they want to watch when they want to watch them. Other reasons for the rise in online TV viewing include portability and the ability to skip commercials.

"Most consumers are pressed for time and require flexibility in their daily schedules and TV viewing habits," said Lynn Franco, director of The Conference Board Consumer Research Center. "Being able to watch broadcasts on their own time and at their convenience are clearly reasons why we are seeing a greater number turning to the Internet. And, it is the reason why we would expect to see this trend continue."

Content on Demand Is King

News, drama, sitcom/comedy, reality shows and sports are the top five types of shows viewed online. User-generated content followed close behind.

Specifically, 43 percent of online TV viewers tune into the news, 39 percent watch drama shows, 34 percent view sitcom/comedy shows, 23 percent watch reality shows, 16 percent view sports, and 15 percent view user-generated content. Previews, additional content from favorite shows, soap operas and advertisements are also gaining the attention of online TV viewers.

Despite citing portability as a reason for watching TV online, almost 90 percent of viewers said they watch online broadcasts at home. About 15 percent said they watch Internet broadcasts in the office, and six percent watch from other locations, including the library or a friend's house.

"The shift from appointment TV to content on demand is well under...

Dell Is Considering Selling Its Factories

Fri, 05 Sep 2008 14:25:40 -0500

Dell is tightening its belt by another notch. As part of its continuing effort to cut costs and increase its competitiveness, the computer maker is reportedly considering selling its factories.

An article in Friday's Wall Street Journal reported that, according to unnamed sources, Dell has been approaching contract computer manufacturers in recent months "with offers to sell its plants." One source told the newspaper that the Round Rock, Texas-based company expects to sell most, if not all, of its factories "within the next 18 months."

Unsold factories would simply close, and Dell would get its computers made by contract manufacturers. The Journal report noted that ex-Dell factories could be first in line for contracts to continue making machines for Dell -- an obvious sweetener to any possible deal.

Shares Drop 18 Percent

For more than a year, Dell has been trying to find ways to reduce its expenses and expand its distribution. The reported move toward additional cost-cutting comes as Dell struggles to regain its financial footing and competitive position. Last week, it reported quarterly profits that led to shares dropping more than 18 percent.

The move to close its factories is an indication of how seriously this cost-cutting has become, as Dell once prided itself on highly efficient, build-on-demand PC manufacturing tailored to customer requirements. In ads and publicity, Dell touted that a customer's computer was built after the order had been placed -- often within hours of the order. This just-in-time approach minimized any unsold inventory.

And, by not having to deal with retail channels, Dell also was able to maximize channel efficiency. But, for laptops and other computer products, a number of customers prefer to buy in a brick-and-mortar store, where they can see the product, talk to a real person, and return it if there is a problem. As a...

Comcast Challenges FCC's Authority To Order Neutrality

Fri, 05 Sep 2008 09:59:18 -0500

Comcast fired back at the Federal Communications Commission on Thursday in its long-running duel with the agency. The cable-TV and Internet service provider filed suit in the U.S. Court of Appeals in Washington, D.C.

The filing is the result of a FCC hearing last month in which Comcast was sanctioned for throttling back the broadband speed of customers using the BitTorrent peer-to-peer file-sharing application. The FCC ordered Comcast to provide plans for equitably managing its bandwidth and to make its network-management policies public.

Comcast's View

Comcast had already agreed to the FCC's demands and rapidly put into place a management program that capped home Internet users -- regardless of the application used -- at 250GB per month. The cap was widely reported in media outlets, bill inserts to Comcast customers, and banner announcements on Comcast's Web site.

The suit is not about the nature of the commission's sanction, but whether the FCC has the authority to make such a ruling.

"We filed this appeal in order to protect our legal rights and to challenge the basis on which the commission found that Comcast violated federal policy in the absence of preexisting legally enforceable standards or rules," Comcast said. "We continue to recognize that the commission has jurisdiction over Internet service providers and may regulate them in appropriate circumstances and in accordance with appropriate procedures. However, we are compelled to appeal because we strongly believe that, in this particular case, the commission's action was legally inappropriate and its findings were not justified by the record."

The FCC's Position

FCC Chairman Kevin Martin has said the agency could not have a specific guideline in place regarding network management before the Comcast hearing, since the commission wants to keep the Internet as unregulated as possible. The FCC also believes, according to Martin, that the existing Broadband Policy Statement...

Vodafone To Resell Dell's Inspiron Mini 9 Netbook

Fri, 05 Sep 2008 09:14:10 -0500

Just one day after Dell announced it was moving into the market of netbooks by introducing its new Inspiron Mini 9, which weighs less than 2.3 pounds and has an 8.9-inch LED display, the company said it is partnering with Vodafone to resell the Mini 9 in Europe.

The two companies said Friday that the Mini 9 would be sold with a Vodafone built-in mobile broadband connection, which supports High-Speed Packet Access (HSPA). Sales will be exclusively through Vodafone stores and online, and directly from Dell, later this month in key markets in Europe.

"Dell and Vodafone have teamed up to offer 3G/mobile broadband support in the Inspiron Mini -- a device that is built for Internet connectivity on the go," said Anne Camden, a spokesperson for Dell, in an e-mail. "Dell and Vodafone initially teamed up in 2006 to offer integrated HSPA support across Dell's commercial and consumer laptops and continue to do so today."

"Vodafone will also offer the Inspiron Mini through its retail outlets, which fits our retail strategy: develop the right products that will appeal to our retail partners' customers, and expose Dell products to customers we may not have typically reached in the past," Camden added.

Dell's other retail partners in Europe include Carrefour, Tesco and DSGi.

Round Rock, Texas-based Dell and Vodafone would not disclose in exactly which markets the Mini 9 would be available or how much it will cost. "Details around specific market availability will follow in the next few weeks," Camden said.

Key Features

The Vodafone-equipped netbook will allow owners to surf the Web, share photos on social-networking sites, and connect any place and any time, according to Dell and Vodafone. Features include an solid-state drive that holds up to 16GB compared to a traditional laptop hard drive.

"The recent acceleration in the...

Cablevision Completes First Phase of Wi-Fi Buildout

Fri, 05 Sep 2008 07:07:48 -0500

Cablevision Systems Corp. said Thursday it has finished the first phase of its wireless network buildout in New York and remains on track to complete the project in two years.

The diversified cable operator is offering the Wi-Fi service at no charge to its 2.4 million Internet customers at speeds of up to 1.5 Megabits per second, similar to DSL at home.

The company currently doesn't have plans to offer the service to non-subscribers.

The Wi-Fi network, which is expected to cost about $310 million overall, is Cablevision's answer to a wireless option being pursued by other cable operators.

Bethpage, N.Y.-based Cablevision announced the Wi-Fi project in May, soon after cable operators Comcast Corp., Time Warner Cable Inc. and Bright House Networks joined chipmaker Intel Corp., Google Inc., Clearwire Corp. and Sprint Nextel Corp. in a joint venture to offer a wireless Internet service.

Cablevision's first phase of Wi-Fi deployment comprised parts of Nassau and Suffolk counties and commuter rail platforms and station parking lots in Long Island.

The cable operator already has Wi-Fi pockets in other parts of New York, as well as in New Jersey and Connecticut. These will be folded into the Wi-Fi buildout announced in May.

Consumers seeking more information should log onto http://www.optimumwifi.com.

HP Notebook Will Be Packaged in a Reusable Bag

Fri, 05 Sep 2008 07:10:34 -0500

Hewlett-Packard, responding to a challenge by Wal-Mart Stores to offer more ecologically friendly products, said Wednesday that it was selling a new notebook computer in a fabric messenger bag instead of packaging it in a box.

The change reduced by 97 percent the foam, cardboard and plastic used in packaging, Hewlett-Packard, which is based in Palo Alto, California, said in a statement.

The new computer, the Pavilion PC, went on sale for $798 Wednesday at almost 1,700 Wal-Mart outlets and 594 Sam's Club stores in the United States.

Hewlett-Packard, the largest maker of personal computers, has been trying to win over environmentally conscious customers by promoting its recycling programs for printers and PCs and by improving the energy efficiency of its machines.

With the new packaging, the company also can ship 25 percent more computers in each truck, reducing transportation costs, said Dana Harrold, marketing manager for consumer notebook products.

Wal-Mart, the largest retailer in the world, started a contest in May 2007 that asked 30 consumer-electronics suppliers to rethink product design and packaging. Wal-Mart, based in Bentonville, Arkansas, will gauge customers' interest in the packaging, Shannon Frederick, a spokeswoman, said.

Lexmark International, Sanyo Electric and Philips Electronics were among the other companies that entered the Wal-Mart contest. Frederick declined to disclose the full list of companies that submitted entries.

Wal-Mart judged the products on three criteria: design, product innovation that reduces environmental impact, and packaging design that reduces waste and the use of toxic materials.

Because of its size, Wal-Mart is considered one of the few retailers with enough clout to directly change global energy consumption.

The company has set a long-term goal of using only renewable energy and creating zero waste. It has challenged its suppliers to cut back on packaging and to increase energy efficiency in their products.

EU Preparing Sharp Cuts in Fees for Text Messages

Fri, 05 Sep 2008 07:12:49 -0500

The European Union's telecommunications minister plans to propose a new set of price controls that would sharply cut the roaming fees charged by mobile operators to send short text messages while also reducing the cost of surfing the Internet on a cell phone.

Details of the proposal, obtained by the International Herald Tribune on Wednesday, show that the minister, Viviane Reding, will seek to cap retail roaming fees for short text messages, or SMS, within the European Union at 11 euro cents, or 16 U.S. cents, a message.

That would be a 62 percent reduction from the current average of 29 cents, according to the European Commission, the executive arm of the EU.

Reding also intends to recommend a cap on the wholesale cost of using mobile phones to access the Internet -- the fees operators charge each other -- that would halve the average cost to euro 1 a megabyte from euro 2.

SMS roaming prices range from 6 cents in Estonia to 80 cents in Belgium, according to the European Regulators Group, a panel of the European Union's 27 national telecommunications regulators.

"SMS prices are really too high so bringing them down is best thing that can happen for consumers," said Monique Goyens, the director general of the European Consumers' Organization, a Brussels group representing 41 consumer organizations in Europe.

In 2007, Europeans spent euro 800 million in SMS roaming charges and euro 560 million on data roaming services, according to the commission. They also spent euro 5.2 billion in voice roaming charges that year. Over all, euro 300 billion was spent on telecommunications in Europe, the European Information Technology Observatory said.

Reding devised the EU's limits on charges for voice roaming, which took effect a year ago and have, according to her, saved European consumers an average of 60 percent for the service.

Her new...

Demand Grows for Used Apple iPhones

Fri, 05 Sep 2008 07:34:10 -0500

As the head of a company that sells used consumer electronics, David Chen follows sales of the iPhone with the precision of a mathematician. At the outset, the price of the first version of Apple's music-playing wireless device behaved as expected: When the newer iPhone 3G hit store shelves, demand for the earlier iteration plummeted. Then the unexpected happened.

Within days of the iPhone 3G launch, demand for used, older iPhone models began rising, and prices began a steady climb. "We've been raising our prices over the past few weeks," says Chen, who runs NextWorth.com, a Web site that buys and resells used iPhones and iPods. "It's an anomaly, but there's still a lot of demand for the first-generation [device]." As of Aug. 26, NextWorth Solutions was paying $200 and $300 respectively for gently-used, 8-Gigabyte and 16-GB original iPhone models. That's up $50 from what his company paid a month earlier -- and at the high end, on par with the price of a new 16-GB version of iPhone 3G -- for the latest iteration of the iPhone, with more features and faster download speeds.

The used devices fetch an even higher price, of course, when they're sold to a consumer. On e-commerce site eBay, where NextWorth peddles many of its wares, a 16-GB version of the first-generation iPhone goes for about $600, and an 8-GB model in good condition commands $500. When it was new, the 16-GB phone sold for $499; the 8-GB model went for $399. Today, AT&T's most expensive iPhone 3G model sells for $300 with a two-year service contract. "The old iPhone [in mint condition] is very hard to find," says Shawn Zade, who sells mobile phones through New York-based WirelessImports.com. "There's a lot of demand."

Bustling Competition

Why pay a premium for an older, less advanced model? Some users...