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Google Android widens lead on Apple’s iPhone in US smartphone market

Posted on 12 February 2011 by admin

New data released Monday revealed that Google’s Android mobile OS has widened its lead on Apple’s iPhone and gained significantly on Research in Motion, the top smartphone platform in the US.

According to a comScore report released Monday, smartphone ownership in the US grew 60 percent year over year to 63.2 million owners in the three months ending in December 2010. Google saw the biggest gains, climbing within several points of BlackBerry maker RIM.

Meanwhile, Apple grew 0.7 percent from 24.3 percent of total smartphone subscribers in the US in the September 2010 quarter to a 3 month average of 25 percent in December 2010.

Google, which leapt past Apple to take the No. 2 spot in November, continued its rapid growth, posting 7.3 percent growth from last quarter in its platform market share. As of December 2010, the Android maker had taken 28.7 percent of the US smartphone market share, compared to 21.4 percent in the third quarter of 2010.

RIM saw its share of US smartphone subscribers plummet from 37.3 percent in September 2010 to 31.6 percent as of December 2010. With sales of Blackberry smartphones slowing in the US, the Waterloo, Ontario-based company has shifted its focus to international markets as of late, resulting in just one-third of its revenue coming from the US last quarter.

Microsoft saw its share of subscribers drop from 9.9 percent in September 2010 to 8.4 percent in the December quarter, as Windows Phone 7 failed to gain traction. Palm also continued to lose share, dropping from 4.2 percent to 3.7 percent over the same period.

comScore
Source: comScore MobiLens

Last month, research firm Canalys reported that the Google platform, which includes Android as well as Chinese variants OMS and Tapas, had overtaken Nokia to become the top smartphone platform maker in the world.

According to data published Monday by IDC, Apple still holds its position as the No.2 worldwide smartphone maker, though top Android vendors, such as Samsung and HTC, did see impressive growth.

The iPhone maker may post significant gains in market share this quarter with the release of the iPhone 4 on Verizon. The nation’s largest wireless network announced last week that presales of the iPhone 4 beat the carrier’s previous sales records in just two hours. According to one analyst, the preorder and launch supply of CDMA iPhone 4s could include as many as 2 million units.

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Georgia state senator hopes to replace schoolbooks with iPads

Posted on 12 February 2011 by admin

The state of Georgia is reportedly considering a plan to get rid of conventional textbooks and shift middle school classrooms in the state to wireless iPads built by Apple, following positive iPad trials in place by schools around the US.

Republican Senate President pro tem Tommie Williams told the press earlier this week that the Georgia legislature and educators are considering a proposal by Apple to replace printed books, according to a report by Atlanta Journal-Constitution.

“Last week we met with Apple Computers,” Williams said, “and they have a really promising program where they come in and their [sic] recommending to middle schools – for $500 per child per year, they will furnish every child with an iPad, wi-fi the system, provide all the books on the system, all the upgrades, all the teacher training – and the results they’re getting from these kids is phenomenal.”

The senator added, “we’re currently spending about $40 million a year on books. And they last about seven years. We have books that don’t even have 9/11. This is the way kids are learning, and we need to be willing to move in that direction.”

Biggest thing since the overhead projector

A report by the New York Times last month described a pilot program at Roslyn High School on Long Island which started with 47 iPads. The school hopes to expand the program to include all of its 1,100 students.

It noted that the iPads “allow students to correspond with teachers and turn in papers and homework assignments, and preserve a record of student work in digital portfolios,” citing teacher Larry Reiiff as saying, “It allows us to extend the classroom beyond these four walls.”

The school described its initial purchase, which used 32GB iPads combined with a case and a stylus at a $750 each, was a part of an effort to go paperless and cut spending. In addition to just serving as electronic textbooks, the iPads are also described as running math games, being used to study world maps and interactive sky charting of constellations, and to simulate the keys of a piano.

Roslyn school superintendent Daniel Brenner said Apple’s iPad would save money in the long run by reducing printing and textbook costs; estimating that the two iPad classes save $7,200 a year.

“I think this could very well be the biggest thing to hit school technology since the overhead projector,” added school principal Scott Wolfe.

Schools around the country go iPad

The report stated that New York’s public schools had ordered 2,000 iPads, 300 of which went to Kingsbridge International High School in the Bronx. It also noted that 200 public schools in Chicago have applied for iPad grants.

Apple points out that Chicago public schools, the third largest district in the US, are ecstatically supporting iPad as a learning tool. John Connolly, the technology director for Chicago Public Schools, states in a promotional video that “being able to outfit so many our kids with such a low cost machine could be a real advantage for our district.”

The Virginia Department of Education is managing a $150,000 iPad initiative to replace history and Advanced placement biology textbooks at 11 of its schools.

The report also noted the Pinnacle Peak School in Scottsdale, Arizona, which “converted an empty classroom into a lab with 36 iPads — named the iMaginarium,” while the private Morristown-Beard School in New Jersey bought 60 iPads for $36,000 and is considering providing iPads to all students next fall.

A number of eduction initiatives related to iPad are taking advantage of President Obama’s competitive Race to the Top program designed to back the best ideas in education with federal support.

There’s an app for that

Apple lists about 5,400 eduction apps for iPad, about a thousand of which are free. Textbook publishers are eyeing the potential for moving their content to the digital world, enabling them to update material rapidly and include interactivity.

Six middle schools in San Francisco, Long Beach, Fresno and Riverside, California are now teaching the first iPad-only algebra course, developed by publisher Houghton Mifflin Harcourt, which is studying the results of students using its digital program compared to those using conventional textbooks.

In addition to third party apps, Apple’s iPad education page touts its own iWorks apps for iPad, which it says “help students and teachers put together professional-looking documents, presentations, and spreadsheets no matter where they are,” and “when you finish what you’ve been working on, just tap the AirPrint icon to print it out directly from your iPad.”

The company also highlights iTunes U, its listing of more than 350,000 free lectures, videos and other content from institutions including Yale, Stanford, UC Berkeley, Oxford, Cambridge, MIT, Beijing Open University and The University of Tokyo.

Critics complain that tablet-shaped devices using Android can be sold for $100 and supply basic ebook reader features. However, low priced ereaders are failing to rival iPad in the marketplace, with numbers from IDC indicating that Apple’s iPad, starting at $500, continues to outsell low end ereader devices available for as little as $130.

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Apple posts Black Friday deals [u]

Posted on 27 November 2010 by admin

Apple’s retail store deals for Black Friday have posted in Australia, indicating its discounts in the US will translate to around $100 savings on desktops and notebooks, and $25 to $50 on iPads and iPods.

Apple’s Australian website advertises discounts of A$121 on iMac, MacBook Pro and MacBook Air models, but the regular price of those items is significantly more than the retail price (before any sales tax) the company charges in its US stores.

Translated into US dollars, that discount would amount to $118.58 off, but the A$1449 base price of the entry level iMac and MacBook Pro means those products cost the equivalent of $1420.02 in US currency, a significant premium over the $1199 price in the US store.

This suggests that Apple’s discounts offered in the US will be similar to last year’s, when the company discounted iMacs and MacBook Pros by $101. Resellers have posted far more liberal discounts and offers for the Black Friday sale.

Apple Black Friday 2010

Similarly, the iPad and iPod touch are both advertised with discounts of A$51, very close to $50 in US dollars (the exchange rate is A$0.98 to $1 USD.) However, those products regularly list for A$629 and A$289 respectively.

Translated into USD, the iPad in Australia costs $616.42 rather than $499, while the iPod touch costs $283.22 rather than $229.

Similarly, the iPod Nano, which is A$199 and offers a A$25 discount for Black Friday in Australia is only $229 in the US rather than the equivalent of $283.22.

Apple posts US Black Friday deals

Update: Apple has posted its actual deals for tomorrow, and they are nearly inline with expectations.

iMac, MacBook Pro and MacBook Air systems are discounted $101, the iPad is on sale for $41, the iPod touch is discounted by $21, and the iPod nano is $11 off.

A variety of other minor deals apply to the Airport Express and Extreme base stations (both discounted by $11) and TimeCapsule, which is discounted by $21 for the 1TB version and $51 off for the 2TB model.

Other accessories such as keyboards, the Magic Trackpad and Magic Mouse, the iPad case, Camera Connection kit and standard iPhone headphones are all discounted by $5 to $11.

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Rakuten and Baidu Open Online Mall In China

Posted on 21 October 2010 by Leo Pang

Rakuten, Japan’s biggest e-commerce company ($10 billion market cap), and Chinese search leader Baidu have today opened a new online shopping mall in China. Dubbed Lekutian (“Happy Cool Day” in Chinese), the launch of the site was announced back in January. Both web powerhouses will invest US$50 million over the next three years in their joint venture.

Under the deal, Rakuten holds 51% of Lekutian, with Baidu owning the rest. Much like Rakuten’s Ichiba market place in Japan (see here for our extensive case study on Rakuten), Lekutian is a B2B2C platform. Chinese merchants can set up an online shop in the online mall to sell directly to end consumers or source products from suppliers.

Lekutian monetizes through collecting “virtual real estate fees” as well as commission payments from shop owners. The platform started with some 2,000 merchants in beta today, instantly making it the biggest B2B2C platform in China, according to Rakuten.

In Japan, Rakuten dominates the e-commerce market with its gigantic Rakuten Ichiba online mall, currently counting 33,000 merchants and no less than 64 million members (which is half of Japan’s population). The Baidu deal in January was the first of a series of international deals the company inked in recent months. Rakuten acquired US-based Buy.com for US$250 in May and France’s Priceminister for the same sum just one month later.

The launch of Lekutian follows another cross-border joint venture in the e-commerce sector between a Chinese and a Japanese company: Taobao and Yahoo Japan linked their online shopping services back in June this year.

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Target To Start Selling The iPad On October 3rd, Discounts Available

Posted on 24 September 2010 by admin

Target will soon be able to fulfill all your iPad needs. October 3rd is the date that the Apple iPad should hit Target stores throughout the US. Best of all, Target credit card holders can get the iPad for a bit cheaper.

Target’s retail plan includes all six models of the iPad along with a full range of accessories and add-ons. The retailer will honor the suggested manufacturer price starting at $499 for the 16GB WiFi version.


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Target To Sell Start Selling The iPad On October 3rd, Discounts Available

Posted on 24 September 2010 by Leo Pang

Target will soon be able to fulfill all your iPad needs. October 3rd is the date that the Apple iPad should hit Target stores throughout the US. Best of all, Target credit card holders can get the iPad for a bit cheaper.

Target’s retail plan includes all six models of the iPad along with a full range of accessories and add-ons. The retailer will honor the suggested manufacturer price starting at $499 for the 16GB WiFi version.


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Has Yahoo’s CEO Wrecked the Valley’s Most Valuable Chinese Relationship?

Posted on 12 September 2010 by admin

The Chinese aren’t exactly prone to emotional outbursts in front of Western reporters. In China, if you insult a business partner in the press, there’s likely a calculating reason behind it.

Witness the latest volley by Alibaba.com’s CEO David Wei towards Yahoo, which owns 40% of the parent company for his Chinese ecommerce powerhouse. “Why do we need a financial investor with no business synergy or technology?” Wei said to Bloomberg on Friday.

Indeed, the idea that Yahoo and Alibaba have a “strategic partnership” has been stretched pretty thin since those days back in 2005 when Jerry Yang and Alibaba founder Jack Ma walked the grounds of Pebble Beach and negotiated a deal by which a small Alibaba would take over Yahoo China, in exchange for Yahoo getting 40% of the Alibaba Group. But now, without its own search engine, any idea that Yahoo would give Alibaba a strategic advantage is laughable, Wei said.

It’s not the first time Wei & Co. have mouthed off to the press about their largest shareholder: Eight months ago Alibaba executives called Yahoo “reckless” for backing Google in its fight with the Chinese government. Meanwhile, Yahoo has criticized Alibaba for Yahoo’s plummeting search marketshare in China, publicly flirting with the idea of selling the property off.

What’s going on behind the scenes? In short, Jack Ma wants Yahoo out of his company, but Yahoo knows it would be crazy to sell before two of the most lucrative divisions of Alibaba, Taobao and Alipay, go public. And according to several sources close to both companies Carol Bartz is making a tense situation worse. Bartz has been widely criticized for Yahoo’s lack of stock appreciation, revenue or traffic growth during her almost two-year tenure as Yahoo CEO. But if things continue on this course, business professors may look back at see her biggest failing was squandering the relationship with Alibaba.

First some background: The Alibaba deal allowed Yahoo to moonwalk away from the kinds of thorny censorship issues Google and other US properties have had to deal with in China and still profit off the country’s runaway Internet growth. Alibaba spun off Alibaba.com into a $10 billion (77.69bn HKD) public company, and has two phenomena in the wings: Taobao, an eBay-like marketplace with 170 million users, that dominates 80% of China’s ecommerce market, according to several reports. Taobao’s marketplace is already 70% the size of eBay and is growing at a clip of 70% a year. Then there’s Alipay, which is the PayPal equivalent in the country, with over 300 million users and annual growth of nearly 100% per year. Alipay’s annual transaction run-rate is a staggering $64 billion. Stifel, Nicolaus & Co. estimate that Taobao could be worth another $10 billion and Alipay could be worth nearly $5 billion.

Of course none of these businesses has much to do with Yahoo’s core business, and Yahoo China has withered away amid Alibaba, Taobao and Alipay’s success. Even before Yahoo got out of search, there was little real strategic relationship between them but it was one hell of a lucky move, financially speaking. Say what you want about Yang’s tenure as CEO, he excelled at managing the relationship with Ma, and is still on the board of Alibaba Group. Whether savvy or blind-luck, the deal is also helping keep Yahoo’s stock afloat five years later. Research firm Stifel, Nicolaus & Co. says that as much as 85% of Yahoo’s stock price is attributed to the value of Yahoo! Japan and Alibaba, going so far as to call Yahoo an Asian Internet play…. that also has a US business.

By some analyst accounts, the Asia business is the one area where Yahoo is killing its Valley competition. So you’d think that Bartz would be bending over backwards to make sure the relationship is going well, right? Wrong. Sources close to Yahoo and Alibaba say that when Bartz entered the job two years ago, she didn’t reach out to Ma or Wei and when Ma finally came to Sunnyvale to meet with her, she dressed him down in front of his management team criticizing what Alibaba had done with Yahoo’s China portal. Said one person close to the Alibaba side of things, “She displayed the diplomatic skills of a donkey.”

Forgive the mixing of animal metaphors, but that’s called strangling the golden goose. Bartz was hired to be the “anti-Jerry” – direct, decisive and not mincing words. I’d argue that’s what the coddled, complacent US operations of Yahoo needed. But hard-charging, successful Alibaba didn’t need a lecture from a party they already resented giving such a sweetheart deal to five years ago. You think Bartz can be untactful on stage with Michael Arrington? Imagine her in a delicate Chinese negotiation. Yowza.

It’s led to an ugly marriage between the two—which has become more evident as Alibaba’s team continues to speak out about the lack of strategic value to the relationship. It’s clear Ma wants the relationship severed, and it’s increasingly coming up in Yahoo’s meeting with Wall Street analysts. The more Bartz angers the Alibaba team and criticizes the Chinese government, the more ammo she gives Ma to drive a wedge between the two and even potentially force a sale if it’s deemed to be a poisoned relationship. It’s not too late to wake up, lavish praise on Ma –whether it’s genuine or not– and focus on the US business.

For Yahoo’s part, it has told analysts the tax hit it’d take on the transaction is the biggest barrier, but considering how much of Bartz’ compensation is tied up in boosting that stock price and how much of that stock price is being kept afloat by Alibaba, I can’t imagine tax implications are the only reason Yahoo is loathe to sell.

As far as Wall Street pressure to sell-or-not-to-sell, sources say there are two camps. Some buyers who bought Yahoo shares when the Microsoft takeover was in the offing, are looking for something—anything—to boost the stock from the moribund $13-range. A several-dollar-per-share dividend would be better than nothing, some Yahoo bears feel. But to most people, selling off Alibaba’s stake before Taobao and Alipay go public would be tantamount to throwing in the towel and scrapping Yahoo for parts.

It’s hard to know what Bartz is thinking here. I’ve always been a fan of her no-nonsense, no-sacred-cows style, but if she wants to keep Yahoo from being cheap takeover bait, she needs Alibaba and needs Ma. She might even- gasp!- be able to learn something about building a consumer Internet powerhouse from them. As the tension keeps growing and Alibaba executives keep sounding off, Yahoo will have to decide once and for all if it is a franchise worth saving or simply worth more split into pieces.

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YouTube Debuts New Movies Section With 400 Free, Full-Length Films (Updated)

Posted on 27 August 2010 by Leo Pang

YouTube has launched a fresh Movies category on its website, gathering about 400 full-length films for your on-demand viewing pleasure, all free of charge.

The renewed section, which is actually more like the next step in previously announced projects, comes courtesy of deals the Google company struck with U.S. studios like Lionsgate, MGM and Sony Pictures and UK service Blinkbox.

Update: Google checked in to clarify this is a UK announcement only and doesn’t affect the US Movies section announced last year (see link above).

In addition, the company wanted to make clear that the MGM / Lionsgate / Sony Pictures content is currently only available in the US, not in the UK.

What can you find there? Loads of Bollywood flicks, a bunch of Bruce Lee and Jackie Chan films, obscure horror movies and cartoons, among many other sections.

“This is one of many efforts to ensure that people can find all the different kinds of video they want to see, from bedroom vlogs and citizen journalism reports to full-length films and TV shows,” YouTube head of video partnerships Donagh O’Malley told The Guardian.

“We hope film lovers enjoy the range of titles in this free library, whether catching up on a mainstream hit or delving into the vast archive of classic films from decades past.”

Personally, I haven’t spotted many mainstream hits or real classics in the catalog, but maybe it’s just me. Ah well, off to watch Teenage Devil Dolls.

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Skype Group Video Calling Now Available for PCs

Posted on 14 May 2010 by Leo Pang

Skype group video calling is here. The company has just released a new version of their desktop software that supports five-way video calls.

At launch, this beta version of Skype is free to download and use for PC users. Later in the year the company will release a Mac-friendly version. Once the kinks are all worked out — and the company admits that there will be bugs — Skype will also release the official updated version.

All parties involved will need to have the beta version installed to use the new feature. Otherwise, initiating a group video call takes nothing more than a click of the “Add” button to invite participates and then a click of the “Video Call” button to get video up and running.

As we previously noted, group video calling is considered a premium feature. Once the official version is released there will be fee associated with this functionality. Skype asserts that it still has no plans to charge for two-way Skype-to-Skype audio or video calls, although we do know that advertisements are under consideration.

If you’re a PC user, download the latest version, give it a whirl and share your thoughts in the comments.



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Why iAds Could be Bigger Than iPads

Posted on 10 April 2010 by Leo Pang

Apple unveiled the 4.0 version of the iPhone operating system yesterday and a big part of the announcement was about a new advertising platform called iAd. Apple will soon provide an easy way for app developers to put advertisements in their mobile apps and keep 60% of the revenue.

Tech financial analysts are going bonkers over the news, with one headline-grabbing prediction putting the opportunity at $4.67 billion per year for Apple. Why? Because the platform has the potential to change online advertising like nothing else has in a long time.

Cullen Wilson offers this explanation on the Austin Startup Blog:

The reason iAd has a chance to change how users interact with ads is simple: The fear and unknown of clicking on an ad is gone. Apple is throwing its brand behind an entire ad network to create the perception that if you trust Apple, you can trust these ads too! Worried about installing malware from clicking on that ad? Hate that ads open up a new window? No problem, Apple has solved this by keeping these ads within the app itself and vetting all of the ads on their network.

iAd reminds me of two ad networks I’m already a fan of, The Deck and Fusion Ads. Their ads are well designed, they advertise in applications I use and love, and they vet everyone on the network before accepting them. If you’ve ever used the free Twitter clients Tweetie or Twitterrific, you’ve seen these ads.

If Apple can convince its users that it’s safe to click anything with the iAd logo they will have single handedly changed the perception users have of ads, resulting in more clicks and more money made by both Apple and developers.

They will have done this by taking advantage of a closed system, their own brand, and a platform that their users already love (the app store).

The iPad is clearly changing peoples’ experience with computing – take one out around non-geeks and you’ll see strangers clamor to get their hands on it. But if Apple can transform mobile advertising from an annoyance to a trusted, appealing experience – that would be huge. The iAd platform could impact advertising more than the iPad impacts computing. It may very well generate more revenue, too.

Wilson points out that though many people complain about the closed nature of the App Store, this is the other side of the coin and is worth considering. One question I have about this is how scalable vetting such a huge ad platform could be. Where there’s money to be printed, there must be money to pay ad examiners, though.

If the platform can prove effective and make app building all the more financially viable, then we as users can cheer for a new world of apps that will be built in the future. If Apple can deliver a high-quality experience on the iAd platform, then we as users can cheer for a less grating experience than a wild west of mobile advertising would likely deliver. There is something a little frightening about Apple’s end-to-end control over the platform though, isn’t there?

What do you think about iAd? Do you think it will be effective? Revolutionary? Do you think it’s fair?

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