IT Knowledge Hub » Apple

Will the iPad Bookshelves Be Sparsely Stocked?

Erika Morphy — Fri, 12 Mar 2010 13:00:00 +0000

There are rumors that Apple's iPad launch has already run into some rough patches that are uncharacteristic for the company, but how much substance is actually behind them? One frequently mentioned challenge is having a sufficiently impressive array of available content that's compatible with the device.

Vlingo Faces Off With the Dragon: A Speech-to-Text Smackdown

Paul Hartsock — Thu, 11 Mar 2010 13:00:00 +0000

When Apple enabled in-app purchases for iPhone applications, it seemed as though the days of "free" and "paid" versions of any given app were coming to an end. Soon, I thought, everything in the store would start out free as a teaser and then charge for an upgrade. That hasn't exactly panned out universally, but Vlingo's new voice application does charge in the way I thought all apps would charge by now.

Rumor Mill: Verizon seizing on iPad launch as an opportunity

Phil Goldstein — Wed, 10 Mar 2010 15:44:07 +0000

AT&T Mobility scored a coup by being Apple's only U.S. wireless partner for the iPad, but rival Verizon Wireless isn't about to let that stand in the way of a potential market opportunity, according to a leaked internal Verizon document.

According to the leaked memo, which first appeared on the blog Engadget, Verizon sees the launch of the WiFi-enabled iPad on April 3 as an opportunity to sign customers up for a MiFi device and its attendant Verizon data plan. The memo includes talking points for Verizon sales representatives intended to make sure potential customers are aware that the WiFi version of the iPad is not exclusive to AT&T, and that customers will need to pay more for the 3G-enabled version of the iPad. The memo also takes a shot at AT&T, noting, "Why pay more for the 3G version and get 3G service on an overloaded network with limited coverage?"

AT&T's 3G service plans for the iPad include a $14.99 per month plan for 250 MB and an unlimited data plan for $29.99 per month. The services will be prepaid, allowing users to cancel at any time, and will include access to AT&T's WiFi network.

A Verizon spokeswoman declined to comment on the report.

The impetus behind Verizon's plans may lie in comments made last week by AT&T CEO Randall Stephenson. Speaking at an analyst conference, Stephenson predicted iPad users would primarily rely on WiFi and not AT&T's cellular network. "We think it's going to be a largely WiFi-driven product," he said. AT&T has around 20,000 WiFi hotspots across the country.

Of course, Verizon is not the only carrier that could benefit from users looking for a mobile hotspot product for their iPad. Sprint Nextel's Overdrive 3G/4G device connects to Clearwire's mobile WiMAX network and broadcasts a WiFi hotspot for up to five devices.

For more:
- see this Engagdet post
- see this Silicon Alley Insider article

Thunder in Cupertino Makes It Rain on Wall Street

Richard Adhikari — Wed, 10 Mar 2010 13:00:00 +0000

Apple has announced the iPad will hit retail shelves April 3, sending the adrenalin surging through competitors' veins. HP and several Chinese manufacturers have announced tablets in what might be perceived as an attempt to capitalize on the not-quite-a-laptop, not-really-a-netbook category.

Smartphones are booming, but is there room for all the players?

Mike Dano — Wed, 10 Mar 2010 11:37:56 +0000

It has become painfully clear that smartphones are where the growth is in the handset market. Evidence of this is seemingly everywhere:

IDC reports the converged mobile device market (translation: smartphones) grew nearly 30 percent year over year in 2009, and will continue to gain momentum this year.
Qualcomm's CEO Paul Jacobs sees the smartphone market splitting into a high-end segment and a low-end one--a trend that is rapidly eroding the market for feature phones.
And a survey last year by the Yankee Group found that around 43 percent of U.S. consumers plan to go "smart" with their next mobile device.

But do these signs mean there is room in the smartphone market for new vendors? Recent news out of Palm and Garmin indicate the smartphone playground isn't necessarily the profit panacea one would expect. Specifically, Palm said it now expects full-year revenue to be "well below" its previous estimate of between $1.6 billion and $1.8 billion, while Garmin said it has so far been "disappointed" with sales of its nuvifone products. Those stumbles could give Dell, Acer, LG and other hopefuls pause as they ramp up their own smartphone efforts.

"Instead of, 'If you build it, they will come,' it's turned into, 'If you build it, will they come?" noted IDC's smartphone analyst Ramon Llamas.

However, both Garmin and Palm faced challenges unique to them, Llamas said. Palm's marketing efforts so far have targeted the "Valentine's Day" crowd instead of more traditional smartphone early adopters (meaning, young men), Llamas explained, while Garmin suffered from a scarcity of promotion and an ecosystem that relied too heavily on interest in mapping and directions.

CCS Insight analyst John Jackson largely agreed. "We knew that Palm would launch the Pre into the teeth of new flagship products (or revs of products in Apple's case) from Apple, RIM, HTC and others," he said. "The same is true for Garmin, compounded by the issue of Google (and now Nokia) basically undermining the navigation proposition with freeware. Without a portfolio, a limited number of stock-keeping units (one in Garmin's case and basically two in Palm's case) are that much more likely to get lost in the mix. Apple is the exception, but that success story is well known at this point."

However, Garmin and Palm's troubles don't necessarily foreshadow across-the-board failures by others hoping to break into a smartphone market dominated by Nokia, Research In Motion, HTC and Apple. Llamas said emerging vendors must foster an ecosystem and promote their devices as on-the-cusp innovations rather than also-rans--tough goals, but doable. The availability of Android, Symbian and Windows can give manufacturers a step up.

"In a sense, the 'smartphone' market is just the new phone market," contended Jackson. "It's huge, but that hardly means you can stroll on in and make money. The traditional mobile phone market has always been tough sledding for new entrants. The availability of Android and other open/open source software platforms doesn't fundamentally change this. Vendors need scale and a degree of differentiation if they are to have any shot at achieving decent margins over time."

That said, though, I think it's clear that the newest batch of smartphone aspirants--which stretches from Dell, Acer and LG to Aava Mobile, Else Mobile, modu, Anydata, General Mobile, ZTE, Saygus and a host of others--face a steep road in their bid to separate themselves from the likes of BlackBerry and iPhone. After all, failed efforts like the Sendo X, the Sierra Wireless Voq and the Neonode N2 show just how difficult it is out there. --Mike

Study: iPhone app usage peaks on evenings and weekends

Jason Ankeny — Tue, 09 Mar 2010 13:14:46 +0000

iPhone application usage reaches its zenith on nights and weekends according to new data issued by mobile analytics platform Localytics. iPhone app behaviors reach their peak at 9 p.m. ET on weeknights, Localytics reports, adding that usage ramps up slowly over the course of the workday and then tops out when East Coast consumers are at home and their West Coast counterparts are commuting from work. iPhone users generate 7 percent greater traffic on weekends than during the average weekday--Saturday traffic is at its lowest ebb at 6 a.m., but accelerates to over 90 percent of peak usage by 11 a.m., remaining at or near its apex for the duration of the afternoon and evening.

Localytics concludes that while the iPhone is making professional inroads, it remains a personal device for most users, adding that the results of its study bode well for Apple's forthcoming iPad tablet device. According to Localytics, the data suggests that consumers looking for entertainment, trip planning, sports updates and music services are already reaching for devices that are smaller and more convenient than their desktops and laptops, indicating the release of the iPad could further galvanize those behaviors.

For more on the Localytics study:
- see this chart
- read this release

Related articles:
Apple cracks down on adult-themed iPhone apps
App Store project starts triple following iPad frenzy

Urban Airship’s Flight Plan: Push Out Info, Pull In Revenue

Jack M. Germain — Tue, 09 Mar 2010 13:00:00 +0000

Given the growing popularity of mobile devices and the great many applications to go with them, you would think that this new niche had plenty of room for newcomers. Many of those newcomers, though, will find it difficult to capture a great deal of consumer attention. Places like the Android Market and the Apple App Store are popular and growing fast, but they're awash in apps that struggle to stand out from the crowd.

Report: Sony cooking up new smartphone to challenge Apple

Phil Goldstein — Thu, 04 Mar 2010 19:54:06 +0000

Sony is developing a new smartphone with Sony Ericsson that will be capable of playing PlayStation games, according to a report in the Wall Street Journal. The report, citing unnamed sources familiar with the matter, said Sony is taking a more active role in crafting handsets in its joint venture with Ericsson, signifying how important mobile phones are becoming to Sony.

The report also said Sony is working on a device that "blurs distinctions among a netbook, an ereader and a PlayStation Portable, or PSP," and is meant to challenge Apple's iPad. Both devices are expected to be launched this year and will have access to Sony's online media service, which is being billed as challenger to Apple's iTunes store. A Sony spokeswoman declined to comment to the WSJ on the topic.

A Sony Ericsson spokesman told FierceWireless that Sony Ericsson is "continuously evolving the collaboration" with both Sony and Ericsson "with a clear strategy to work even closer going forward."

"This includes evaluating exciting new propositions for the end consumer," the spokesman said. "However, it is not our strategy to discuss future products before we make a formal press announcement. Any media report that suggests details regarding future collaboration between us and our parent companies, as well as future products, is based on speculation."

Sony Ericsson had a dismal 2009, with handset sales falling by 41 percent. The company posted its sixth straight quarterly loss in January. The firm has been banking its return to profitability on its new lineup of phones based on Google's Android platform. The company will release the flagship product of the new family of devices, the Xperia X10, in April.

For more:
- see this WSJ article (sub. req.)

Judge halts Apple-Nokia patent spat, for now

Phil Goldstein — Thu, 04 Mar 2010 15:11:39 +0000

A federal judge in Delaware has put competing patent-infringement claims between Apple and Nokia on hold while the U.S. International Trade Commission tries to resolve the dispute.

The order staying the proceedings covers both Nokia's claims and Apple's counterclaims, and means that nothing further will happen until the ITC makes a decision on whether to ban U.S. imports of products from either company. Nokia started the round-robin of litigation in October by claiming that Apple's iPhone infringed on 10 Nokia patents. Apple countersued in December, arguing Nokia was infringing on 13 of its patents.

The ITC has since said it will investigate the claims of both companies. The trade commission has not said when it will rule on the Apple-Nokia spat, but the investigation could take as long as 15 months. Indeed, the ITC has become the battleground for a range of bitter, long-running disputes in the wireless industry, including the now-resolved patent disagreement between Qualcomm and Broadcom.

In the meantime, Apple has been busy in the courtroom on other fronts. Earlier this week it sued smartphone maker HTC, claiming the company's phones that run Google's Android platform infringe on its patents.

For more:
- see this AP article

The iPad’s Looming Identity Crisis

Tim Conneally — Thu, 04 Mar 2010 13:00:00 +0000

We have a problem understanding devices that live outside of the commonly accepted "three screens" model. It's the model that has been pushed by big companies such as AT&T, Verizon, Nielsen, and Microsoft, which says that our main windows into content consumption are the TV, PC and mobile device. If a device's functionality falls somewhere between one of these three screens, it gets marginalized and written off.