According to data gathered by NPD Group, Android phones are now the second most popular handsets behind Research in Motion’s BlackBerry range. RIM’s devices accounted for 36 per cent of the US smartphone market in the first quarter of this year, says NPD Group, followed by Android-based phones with 28 per cent, and Apple’s iPhone with 21 per cent.

However, experts have pointed out that there are more than 30 phones available in the United State that run Android, the open-source mobile operating system backed by Google and a consortium of partners in the Open Handset Alliance. These include handsets from Motorola, HTC and Samsung.

By contrast, Apple’s current iPhone, the iPhone 3GS, is believed to be coming to the end of its life cycle, with Apple poised to unveil the so-called iPhone 4G at the Worldwide Developers Conference in San Francisco next month. Apple said it had sold more than 50 million iPhones worldwide since the device first went on sale in July 2007.

Mobile devices are a key battleground for consumer electronics companies, with many traditional “computer” manufacturers diversifying in to the market. HP recently acquired Palm, while Dell is launching a range of Android-based handsets.

“As in the past, carrier distribution and promotion have played a crucial role in determining smartphone market share,” said Ross Rubin, executive director of industry analysis for NPD.

“Recent previews of BlackBerry 6, the recently announced acquisition of Palm by HP, and the pending release of Windows Phone 7 demonstrates the industry’s willingness to make investments to address consumer demand for smartphones and other mobile devices. Carriers continue to offer attractive pricing for devices, but will need to present other data-plan options to attract more customers in the future.”

Resource:
http://www.telegraph.co.uk/technology/mobile-phones/7711113/Android-phones-outsell-iPhone.html

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Deals

Analysts say 2010’s third-largest U.S. tech acquisition grants Palm’s devices global production and distribution reach while launching the world’s top PC maker into a tech arena experiencing blistering growth.

The news on Wednesday surprised many on Wall Street, since much of the long-running takeover speculation surrounding Palm had shifted in recent weeks to focus on potential Asian bidders, such as China’s Lenovo (0992.HK).

An early pioneer in handheld devices, Palm once dominated the market but has since been surpassed by Apple’s iPhone and Research in Motion’s (RIM.TO) BlackBerry. Palm put out a new mobile operating system, the well-reviewed webOS, last year but even that has been overshadowed by Google Inc’s (GOOG.O) Android software.

In a sign of Palm’s struggles, the money-losing company headed by Jon Rubinstein — an ex-Apple executive famous for developing the iPod — slashed revenue expectations for the current quarter. It said slow product sales have led to low order volumes from carriers.

“If you saw the guidance Palm just put out, it was clear they had to sell,” said Phil Cusick, analyst at Macquarie Research. “Given how quickly Palm’s business was falling off and how fast their cash was going out the door, they’re lucky to get what they got.

Palm reported losses for each of its last two fiscal years.

Shares of Palm, 30 percent owned by Elevation Partners, jumped 27 percent to $5.88, above HP’s $5.70 cash offer. Some investors could be betting on a higher bid, while others could be covering short positions on the heavily shorted stock, analysts said..

HP said the deal for Palm, which both boards have approved, valued the company at $1.2 billion including debt. Based on Palm’s latest filing, the deal values Palm’s 167.892 million shares outstanding at $957 million.

Analysts said HP has deep pockets to invest in Palm, can expand its carrier relationships and negotiate better component pricing from existing suppliers.

“PC companies don’t need cellphone-type margins to make the model work; they can be much more price-aggressive in capturing share and will certainly drive margins down for everyone else,” said Avi Cohen at Avian Securities.

Bank of America Merrill Lynch advised HP, while Goldman Sachs advised Palm.

GOOD DEAL OR NOT?

HP’s foray into the fiercely contested smartphone arena, while it may not immediately threaten Apple, and Research in Motion’s BlackBerry, may increase pressure on Nokia (NOK1V.HE), Motorola (MOT.N) and other device manufacturers now battling to expand their market share.

“Nokia will be one of the most affected players,” said IDC analyst Francisco Jeronimo. Because of a “wrong portfolio and lack of carrier support, Nokia never moved from its eighth position…in the smartphone segment. This deal puts also pressure on Motorola and HTC.”

Others, however, were more skeptical about HP’s ability to turn around Palm, whose Pre and Pixi phones have withered in the face of fierce competition.

“If HP wants to have a global role in the mobile space, spending $1.2 billion in Palm is not the way. Palm has no brand outside the U.S., and it has no distribution outside the U.S.” said John Strand, chief executive of Strand Consult.

“To pay $1.2 billion for a U.S.-centric mobile player that’s not successful is a first-class way to destroy shareholder value. Palm has tried to move from the PDA world into the mobile world for eight years without success,” Strand said.

According to Gartner, Palm held 1.2 percent of the global smartphone market in 2009, compared with Nokia’s (NOK1V.HE) 41.1 percent, RIM’s 19.9 percent and Apple’s 14.4 percent.

Despite Palm’s shortcomings, persistent takeover rumors have attracted many investors to the heavily shorted stock. For example, Philip Falcone’s hedge fund Harbinger Capital Partners LLC bought Palm shares on April 12, when they were trading between $5.43 and $6.29, and had a 9.48 percent stake.

The deal may mark the culmination of a long-running effort by private equity firm Elevation Partners, the private equity firm that boasts U2 frontman Bono among its partners.

Elevation — which bought a quarter of Palm for $325 million in 2007 — had brought in numerous ex-Apple executives over the years in hopes of turning the company around, including Rubinstein.

It was unclear how much Elevation, which has invested about $460 million in Palm, made or lost.

Some investment banking sources had thought that Lenovo (0992.HK) was the leading candidate to buy Palm after the U.S. company was rebuffed by other potential Asian buyers including HTC Corp (2498.TW) and Huawei HWT.UL.

Palm now expects fiscal fourth quarter revenue in the range of $90 million to $100 million, compared with its mid-March forecast that revenue would be less than $150 million.

Todd Bradley, executive vice president of HP’s computer division, said the company plans to “invest heavily” in Palm, increasing spending on sales and marketing and research and development in the hope of spurring the developer community into writing more applications for the platform.

Palm’s app universe now has more than 2,000 applications, dwarfed by Apple’s App store with closer to 200,000 apps.

Bradley also said Palm’s platform is attractive for an entire ecosystem of mobile devices, from smartphones to slate devices to netbooks.

HP Executives expected a few cents” dilution for from the deal in the second half of fiscal 2010 and “mild” impact in 2011 — for a company that in the fiscal first quarter reported non-GAAP earnings of $1.07 per share.

“Coupled with our scale, global reach and investments in the ecosystem, we expect we will see solid growth,” he said.

HP already has a smartphone, the iPaq, which runs on Microsoft’s (MSFT.O) Windows mobile platform. But the device has gained little traction in a crowded market.

Rubinstein is expected to remain with the company, HP said in a statement, adding that the acquisition would likely close during its third fiscal quarter ending July 31.

Shares of HP fell 1 percent to $52.75 in extended trading from their New York Stock Exchange close of $53.28.

HP “would be one of the few companies that I think could successfully turn Palm around. The company has great brand, great international distribution,” said C.L. King Associates’ analyst Lawrence Harris. “That will open a lot of doors.”

Resource:
http://www.reuters.com/article/idUSTRE63R5HO20100429

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RIM, whose low-key public relations style is the polar opposite of Apple’s iPhone hype, still hasn’t made a formal announcement about the new OS, but RIM co-chief executive Mike Lazaridis showed a brief video about it at the company’s annual Wireless Enterprise Symposium in Florida. Lazaridis said the new OS represents one of RIM’s biggest upgrades in years.

Stock analysts at the meeting were favorably impressed and gave a round of spontaneous applause when they were shown the video, according to reports.

Particularly good news for BlackBerry users is Lazaridis’ comment that the firm is working to ensure that the new OS will accommodate existing BlackBerrys. “We are going to try and do our best to allow people to upgrade to 6.0,” he said.

RIM’s other co-chief executive, Jim Balsillie, said that more powerful phone cameras and easy-to-navigate displays will appear in BlackBerry models soon. “You are going to see very powerful extensions on our part,” said Balsillie. “I don’t think you have to be too patient either.”

In recent months Apple’s iPhone and Google’s Android phones have stolen much of the publicity thunder from RIM, but the BlackBerry maker still leads in smartphone deliveries. A new OS with a fast browser along with an improved touchscreen would help the firm’s image.

Earlier this week, RIM announced new phones for carriers and users on GSM and CDMA networks.

Resource:
http://www.informationweek.com/news/hardware/handheld/showArticle.jhtml?articleID=224700089

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A new report by mobile ad company AdMob measures the amount of ad traffic sent from different smartphones in March — and the Droid’s blinking red eye is going to be very pleased with what it found.

AdMob and the Android Lineup

First up, let’s be clear about what exactly we’re discussing here: AdMob measures the number of ad impressions served by applications and mobile Web sites using its platform. In nondipstick speak, that means it’s counting the number of times its little ads show up on apps — you know, the ones that are free and thus ad-supported — as well the number of times they pop up on smartphone-specific versions of Web pages.

That said, here’s what AdMob discovered: The Motorola Droid accounted for nearly a third of all the company’s Android-oriented traffic during the month of March. No other handset even came close to matching the Droid’s 32 percent stronghold: The HTC Hero came in second place, with 19 percent of the traffic. The HTC Dream (T-Mobile G1) and HTC Magic (myTouch 3G) tied for third, with 11 percent each.

Next came the Motorola Cliq, with 10 percent of the total March traffic. Then you have the Samsung Moment, at 6 percent; the Samsung Behold 2, at 2 percent, and the Nexus One, also accounting for only 2 percent of all Android-based AdMob traffic.

Android’s Expanding Options

What’s interesting about this data is how it shows the increasing spread of popular options within the Android ecosystem. Just seven months ago, two handsets were responsible for nearly all of AdMob’s Android-based traffic. Now that same traffic is divided among nearly a dozen different options.

This is truly the key to Android’s inevitable mobile market dominance: choice. I’m not talking about the choice to customize a device and use it the way you see fit (though that’s certainly relevant, too). What I’m talking about here is choice in hardware: Whereas certain unnamed platforms present you with only one basic form, Android devices come in all shapes, sizes, and flavors; there’s something to meet practically any desire.

Case in point: keyboards. Turns out more than half of AdMob’s March Android traffic came from devices with physical QWERTY keyboards — namely the Motorola Droid, Motorola Cliq, and T-Mobile G1. The physical QWERTY keyboard is one reason why I personally prefer using the Droid over newer and more technically impressive handsets such as the HTC Incredible. It’s all about the options.

The Android-iPhone Comparisons

Now, I like a good Android-iPhone smackdown as much as the next guy — but one thing AdMob’s data doesn’t do, contrary to what some reports floating around the blogosphere suggest, is imply that Android has now surpassed the iPhone in overall Web traffic.

In addition to the Android-specific data, you see, the AdMob report breaks down March ad impressions based on mobile operating systems. For the first time, Android does come out ahead of the iPhone, with 46 percent of all U.S.-based traffic compared to the iPhone’s 39 percent. But let’s consider what that really means.

AdMob, as I pointed out early on, measures the number of ad impressions served by applications and mobile Web sites using its platform. The important phrase to take away from that: “using its platform.” When you’re looking within a single operating system like Android, you can draw some general conclusions by treating the data as a broad sample. But when you’re looking from one platform to another, it’s just not a consistent comparison.

AdMob, after all, very well could serve far more apps on Android than it does on iPhone. Developers have options as to whether to include ads and — if they do go the ad-supported route — which mobile ad provider they want to use. Differences in the number of and popularity of AdMob-using apps on each platform would clearly skew any meaning a cross-platform comparison would have.

So, sorry to disappoint, but there’ll be no crown-changing bragging rights awarded here today. That doesn’t mean Android and Apple fanboys can’t still call each other names, though, and mock each others’ platform limitations. Just don’t do it in Apple’s App Store; I hear uttering the word “Android” there can get you banned.

Resource:
http://www.theregister.co.uk/2010/04/27/google_backtracks_on_nexus_one/

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Though Safari and other Apple software, such as Mac OS X, will continue to support Flash technology, developers which create Flash content will not be able to port it to the newly released iPad, and existing or future iPhone’s.

The iPad lacked Flash when it was initially released, but it was hoped and expected that Adobe would throw its cards on the table and attempt, at best, to release a version of Flash for these devices.

As the BBC point out, Creative Suite 5 released last month enabled developers to convert Flash code into iPhone applications. However Apple’s developer terms and conditions change caused controversy amongst developers by limiting their scope of application function, and effectively banning them from using code translators such as CS5.

When considering mobile entrepreneurs and Generation Y developers a month and a bit ago, I knew and still know how powerful the mobile market is.

Yet as Flash technology is an integral part of the Web and application power, regardless of whether HTML5 will negate the need for using the plug-in, it is also a major part of modern technology and creative design degree programmes.

All students from various countries and institutions who study programmes in multimedia design, electronics and computer science engage with Flash and Adobe technology, and passing code and design implementation is vital to their expansion of knowledge and portfolio building.

Not only will this move damage the reputation of Apple and developers as such, but harm the potential of younger developers exploiting the easy-to-use platform and knowledge base to generate revenue and self publicity.

Silverlight is thought to be released for the iPad, and therefore presumably the iPhone and iPod touch devices too; though at this point it is not clear when or whether the negotiations will yield any result.

Will this have a significant knock-on effect to not only Apple developers but consumers also? Could this signal a shift from the almighty iPhone to Android or BlackBerry devices? Or will HTML5 completely trump all arguments and be a much needed shift from Apple and Adobe dominance on the web?

Resource:
http://blogs.zdnet.com/igeneration/?p=4740

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IPhone frenzy quickly spread on the Web Monday, after Gawker Media’s Gizmodo technology Web site posted photos of a similar-looking phone that it said someone found at a bar in Redwood City, north of San Jose. In response to suggestions that Gizmodo paid for the phone, Gawker chief Nick Denton tweeted, “Yes, we’re proud practitioners of checkbook journalism. Anything for the story.”

Late on Monday, Gizmodo provided a full account about how its source got ahold of the phone. It said an Apple software engineer mistakenly left it behind at the Gourmet Haus Staudt, a German beer garden in Redwood City, on March 18. The blog identified the man by name, and published what it said were photos of him as well as links to a page on the photo-sharing site Flickr that it said belonged to him.

A spokeswoman for Apple didn’t respond to a request for comment. In an email, Jason Chen, the Gizmodo editor who wrote the first entry describing the phone, said he received the phone a little less than a week ago. “We were not the people who found it originally,” he said.

Joshua Topolsky, editor-in-chief of Engadget, which is owned by AOL Inc., said that the site was contacted April 17 by people who claimed to have found the device in a bar. These people asked Engadget to pay for access to the device, but it declined to do so after consulting with its attorneys. “We believe it’s the same device,” said Mr. Topolsky.

The device could prove a hoax, but if the phone is an authentic prototype, it could take a bite out of marketing plans at Apple, which goes to great lengths to keep new products a surprise until Chief Executive Steve Jobs can unveil them.

Apple has been working on a new iPhone that is thinner and will have a faster processor than the current model, The Wall Street Journal previously reported, citing people familiar with the device. Apple watchers have expected the company to unveil it sometime in June.

The photos–and Gizmodo’s claim that it has the actual device–had fueled speculation about how an iPhone prototype could turn up at a bar given how carefully Apple controls who can take prototypes out of its offices. John Gruber, who runs a technology site called Daring Fireball, said in a blog entry that Apple considers the phone “stolen, not lost.”

Another theory that had been going around: Someone left it behind deliberately to create buzz.

Gizmodo reported that its device has features that would be new to the iPhone, such as a front-facing camera for video-chatting, a bigger lens, a flash on the back camera, an improved display and split buttons for volume control. The Web site released a video of its editor holding a device that was not functioning.

The screen was slightly smaller than that on the current 3GS model, Gizmodo said, but the phone included a 16% larger battery and is three grams heavier. Unlike past iPhones with curved corners, the Gizomodo find was completely flat in the back, with corners that are more squared off and surrounded by an aluminum border.

Gizmodo said it believes the phone, which was found in a protective case made to look like an iPhone 3GS, is authentic because it had behaved like an iPhone when connected to a computer and the person who found it said it was running the latest operating system that was just announced before “Apple remotely killed the phone.”

Resource:
http://online.wsj.com/article/SB10001424052748703757504575194691720059102.html

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For the people at Apple, it must be like a bad version of the guy walks into a bar joke.

The company is known as the most secretive in Silicon Valley, and leaks are rare. But after the phone prototype was left in a bar in the Silicon Valley town of Redwood City, photos of the device began appearing over the weekend in technology blogs, sparking a frenzy of hype among the Apple-obsessed.

Before long, pictures of the product appeared on Gizmodo, a technology news site, whose editors ripped it apart — as if it were an alien from another planet — to dissect its features. The Web site said late Monday that the phone belonged to an Apple engineer.

The phone’s authenticity was hotly debated, but most bloggers concluded it was real. And a person with knowledge of Apple’s hardware plans who was not authorized to speak on behalf of the company confirmed to The New York Times that it was real.

Apple declined to comment.

“It is very stunning,” said Tim Bajarin, president of Creative Strategies, who has been following Apple for nearly three decades. “Apple has such tight control on new products, and they are kept under wraps diligently and religiously until the day of their release. If it is true, it is really a first.”

Some wondered whether the phone was planted by Apple’s formidable publicity machine.

“For the sake of the person who dropped it, I hope this is a devious marketing scheme,” said Paul Saffo, a veteran Silicon Valley forecaster. “But I think it is unlikely. There is no one else on the planet whose shoes I would less like to be in it at the moment.”

In a blog post on Monday detailing how it obtained the phone, Gizmodo said it was left by an iPhone software engineer at Gourmet Haus Staudt, a German specialty store and beer garden in Redwood City.

The person who found the phone peddled it to Gizmodo, which bought it for $5,000, Nick Denton, chief executive of Gawker Media, which owns Gizmodo, said by instant message.

His company’s sites have had a longstanding practice of paying for scoops, and the windfall was tangible. Traffic spiked on Monday, and at midday more than one million visitors stopped by the site in one hour to see pictures of the coveted gadget.

By late in the day, reports began to surface on the Internet that Apple’s chief executive, Steven P. Jobs, had called Gizmodo to get the device back. Mr. Denton declined to comment, saying any conversation between Mr. Jobs and Gizmodo would most likely have been off the record.

“We haven’t had any formal communication with Apple,” he said. Brian Lam, the editor in chief of Gizmodo, said his publication would “probably” return the device to Apple.

From the front, it looks similar to the current iPhone, but it has sharper edges and is a little thinner. The volume and power buttons are stylistically different, and the back of the phone appears to be a ceramic glass, which would enable better reception. That would address a persistent problem that has plagued the iPhone since its inception three years ago.

Late Monday night, Gizmodo said that it received a letter from Bruce Sewell, Apple’s senior vice president and general counsel, requesting the phone back. “It has come to our attention that Gizmodo is currently in possession of a device that belongs to Apple,” Mr. Sewell wrote in a letter that Gizmodo published.

“This letter constitutes a formal request that your return the device to Apple,” the letter said.

Resource:
http://www.nytimes.com/2010/04/20/technology/companies/20apple.html?src=busln

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That seems to be the message being sent by Cupertino this week in a very public iPhone app rejection fiasco. Word broke on Thursday that Apple had rejected a cartoon app created by Mark Fiore, a cartoonist who recently made history by becoming the first online-only journalist to win a Pulitzer. Fiore received the award for animations he’d published at the Web site of the San Francisco Chronicle.

Fiore’s iPhone app, however, was reportedly shot down by Apple because it “ridicule[d] public figures” — you know, as most satirical political cartoons tend to do. But the story didn’t end there: The general silliness of a ban on political satire, coupled with Fiore’s high-profile honor for that same genre of work, led to a public outcry over Apple’s actions.

And that public outcry has seemingly now led to Apple rethinking its ban.

Apple’s Pulitzer Rejection Reversal

Fiore, according to an interview published in The Wall Street Journal on Friday, received a call from Apple shortly after his story started receiving widespread attention online. The Apple representative, Fiore says, suggested he resubmit his app.

“I feel kind of guilty,” Fiore tells The Journal. “I’m getting preferential treatment because I got the Pulitzer.”

To be fair to Fiore, it’s probably more directly the public attention than the Pulitzer itself that caught Apple’s eye. But the honor, no doubt, illustrated the validity of satirical work in the eyes of the real world — the eyes, that is, outside of Apple’s carefully guarded walls.

Apple’s App Store and Political Cartoons

This wasn’t Apple’s first clash with politically charged App Store content. The Cupertino team put the kibosh on an app featuring the work of Mad Magazine cartoonist Tom Richmond last fall. Richmond’s app, entitled “Bobble Rep,” featured bobblehead-like caricatures of U.S. senators and representatives. Apple eventually reconsidered its rejection following a similar wave of online outrage.

Other authors have faced struggles, too, ranging from a guy who made a caricature-driven election game to a developer who created a cartoony countdown clock for the end of the Bush administration. But with the advent of the iPad and its focus on redefining the way we receive information, the concept of content-based censorship — particularly when the guidelines are so murky and inconsistent — is more troubling than ever.

“Suddenly Apple’s control freak approach threatens the development of the very technology it is supposed to be innovating, by placing restrictions and outright rejections upon the content that would be consumed via [its] devices,” Richmond writes on his blog. “Apps for publications and newspaper content won’t be very useful if [the iPad] only lets us see stuff that Apple and Steve Jobs thinks we should see.”

For now, it appears satire and politics will remain a wishy-washy, gray area within Apple’s app world. Not to fret, though: Bodily functions are still A-OK.

Resource:
Yahoo News

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According to the Skyfire blog post, “Everyone at Skyfire was heartened by this decision by Apple, to open up their platform and believe this sets a solid precedent for additional innovation in mobile browsing from other companies. Skyfire believes this approval is a solid first step and there’s still major consumer demand for great rich media and video browsing on these devices”.

They did of course halt before confirming that the Skyfire mobile browser will at some point come to the iPhone but did say…”The Skyfire team has been watching the Opera submission and the iPhone/iPad market closely, and this will certainly accelerate our strategy on iDevices. Nothing to announce now, but stay tuned for news”.

So it does appear that they are at least looking ahead to possibly taking the same route as Opera Mini for iPhone, although just when that may happen is still a mystery, but who knows, Opera’s success may lead to others breaking into the App Store.

Share a comment or problems with phones and networks.

Resource:
http://www.phonesreview.co.uk/2010/04/15/skyfire-to-follow-opera-with-iphone-browser/

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The new clause was almost certainly targeted directly at Adobe, whose popular, though arguably inefficient Flash plug-in has been locked out of Apple’s mobile platforms. A major feature of Adobe’s new Flash CS5 is the ability to package Flash projects as iPhone apps- a process which now goes against the iPhone Developer Agreement. As a result, apps created in this manner can (and will) be rejected from the App Store and Adobe just spent the last year or so of Flash R&D for nothing.

While section 3.3.1 was more than likely directed at Adobe, the question is, will other third party SDK’s be taken as collateral damage? PhoneGap, a cross platform mobile development suite, which lets users write apps for iPhone, Android, and Blackberry in JavaScript and HTML claims that their contacts at Apple have assured them their tool is not in violation. Another popular third party SDK, Ansca’s Corona, which allows users to write iPhone games in Lua- again seems like it should be out of bounds- though a blog on the company’s site claims Apple has not given them the cease and desist. In fact, none of the third party SDK’s I could find, such as MonoTouch, GameSalad, or Unity3D- all seemingly in violation of Apple’s new Terms of Service- have announced any bad news regarding iPhone OS 4. So what gives?

Well, the truth is, unlike Flash CS5, most of the aforementioned SDK’s produce 100% Objective-C code- they are more pre-compilers than true compilers. However, the vague wording of Section 3.3.1 could mean that if Apple ever wanted to pull the trigger, they would be well within their bounds to ban any or all of these third party iPhone SDK’s. Although there is something to be said about the added inefficiency and possible lack of UI uniformity of a translation layer, since they haven’t done so already I find the possibility of Apple banning such tools outright unlikely. This was, after all, probably a specific jab at Adobe in Apple’s quest to make Flash obsolete. If Apple were to expressly ban all third party SDK’s, however- from the standpoint of 99% of all iPhone developers, nothing will change. These tools are more for people coming from other development environments and those already used to XCode and Objective-C will continue to code as usual.

Despite the understandable optimism of the various SDK’s blogs- we may not get a true sense of the fallout until April 22- the deadline to agree to the new Terms of Service for an iPhone Developer Account. Even then, iPhone OS 4 is still in beta, and therefore subject to TOS changes until it is officially released in June.

Resource:
http://www.pcworld.com/article/194275/collateral_damage_iphone_os_4_developer_agreement_fallout.html

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