Business News Holding

Category: smartphone

  • EXCLUSIVE INTERVIEW: Eric Mergy, CEO of navigation software company ZorroGPS

    Zorro Confident Free GPS Software Download Will Capture Market Share

    Giving potential paying customers 48 hours to try out your product is a smart move – especially when you’re an unknown GPS navigation software company trying to break into new territory.

    That’s just what ZorroGPS is doing in an attempt to capture a chunk of the European and North American GPS markets.

    The company provides "on-board" navigation software that’s compatible with Windows Mobile devices – PNDs, smartphones and GPS mobile phones.
    It is already firmly established in China, where it launched a year ago and has its headquarters.

    Eric Mergy, CEO of ZorroGPS, told smartphone.biz-news that as a result of a partnership with Ritu Information Systems – which he described as the Chinese equivalent of TomTom – his company would be the leading GPS navigation software provider in China in 2009.

    Ritu supports more than 100 device brands and Mergy said it was gradually migrating ZorroGPS’s software to its product range.

    "Now we are launching into the European and North American markets, with Navteq as our partner," he said.

    "We have a special business model, which is mainly based on Internet downloads for mobile phones."

    Free software trial

    Mergy said since ZorroGPS is a newcomer and unknown to western consumers, users can download the software for a free 48-hour trial period from 19 January.

    He said they were aiming at the mass market and, for that reason, were offering easy-to-use software that was "very cute and attractive".

    "People do not know our software, but if they download it we are confident that they will be very happy with it," he said.

    Low Price Adds To Product’s Appeal


    Mergy, who trained as an engineer, said they are initially offering 28 country packages, with each solution containing detailed regional maps.

    ZorroGPS runs NAVTEQ MAPS for Europe, North America and Mexico and Ritu maps for China.

    The Frenchman believes their products are bringing something new to what are already fairly mature markets.

    "The most obvious thing is price – we are quite low compared to other products," he said.

    Key to ZorroGPS’s strategy in these new markets are those customers who buy 3G contract-free handsets.

    "There are those who are not interested in paying a high monthly charge with a telecom operator," said Mergy.

    "We are targetting customers who buy 3G mobile phones with unlocked SIM cards. In this case they have no navigation software.

    "Normally if they want to buy it, it will cost USD $100 for a whole country. We are selling that for USD $20."

    ZorroGPS expects to be able to offer its software to RIM handsets within the next six months and then to Symbian-based phones.

    Unique Features

    Clearly enthusiastic about his company’s potential, Mergy is refreshingly candid about the product.

    "We are not saying we are better than anybody else. But ZorroGPS functions very well and at a fifth of the price," he said.

    "Based on that we hope to attract people by offering some very attractive and unique features.

    "We truly believe we have some very new and interesting functions."

    These include being able to using your finger to map scroll during navigation, cartoon navigation, and day-time calculation.

    Other features include:

    • Calculation speed: 2,000km in 5 secs
    • Different user interfaces
    • Screen rotation
    • POI and text search
    • Radar and camera alerts: TTS
    • Highway and City guidance

    ZorroGPS software is available to download from 19 January, initially for France, Spain, Germany, Italy, Portugal and the UK.
    Over the next few weeks it will be rolling out a total of 28 countries, including the US.

  • Apple's Cook Strong Stand-in During Steve Jobs' Absence

    Apple COO Tim Cook is take over the company’s day-to-day running after it was announced that Steve Jobs is to take a six month medical leave of absence.

    Having previously stepped into the CEO post when Jobs was treated for pancreatic cancer, there is no doubt about his leadership abilities.

    A veteran employee of large companies in the technology industry, he has an MBA from Duke University and a Bachelor of Science degree in Industrial Engineering from Auburn University.

    Tim Cook, Apple’s COO

    He started his career at IBM – where he went on to head its manufacturing and distribution functions.

    This was followed by a stint as vice president of Corporate Materials for Compaq before he took up his position at Apple in March 1998 as the Chief Operating Officer.

    This has seen him take responsibility for the company’s worldwide sales and operations.

    So, a more than capable stand-in which should ensure Jobs will be able to concentrate on regaining his health without having to worry about Apple’s.

    The following is the email Job’s sent to all Apple employees:

    Team,

    I am sure all of you saw my letter last week sharing something very personal with the Apple community. Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.

    In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June.

    I have asked Tim Cook to be responsible for Apple’s day to day operations, and I know he and the rest of the executive management team will do a great job. As CEO, I plan to remain involved in major strategic decisions while I am out. Our board of directors fully supports this plan.

    I look forward to seeing all of you this summer.

    Steve

  • Mobile Banking To Flourish – Security Still Issue


    More than 150 million mobile phone subscribers worldwide will carry out banking transactions on their handsets within three years.

    That’s the prediction of a Juniper Research report, which also expects that much of the growth in this area to come from mature markets.

    The analysts believe this will be down to users coming to rely on mobile banking rather than adoption in emerging markets where financial services are lacking.

    However, Howard Wilcox, a Juniper analyst, warns that security will be paramount to the continued success of the service.

    He said user perception will largely dictate whether the service is trusted, regardless of the reality of the strength of the security.

    Wilcox said that mobile banking is currently most advanced in the Far East, but there are growing numbers of mobile banking services being offered in North America and Western Europe.

    The developed nations of the Far East, North America and Western Europe are forecast to account for over 70 per cent of the mobile banking user base by 2011.

    "Transactional or "push" mobile banking is being offered increasingly by banks via downloadable applications or the mobile web, complementing existing SMS messaging services for balance and simple information enquiries," he said.

    "Mobile banking is a key element in banks’ distribution channel strategies as they compete to attract and retain customers."

    The Juniper report said a key element to the service’s growth in mature economies is the extra user convenience afforded.

    With many mature markets approaching, or already having exceeded 100 per cent capacity, mobile banking is an addition to the wide choice of applications and services accessible via the handset to make life easier, especially via smartphones such as the iPhone.

    Do you use your smartphone for banking transactions? We would be interested in hearing your experience of mobile banking services.

  • Dell Smartphone Needs To Shine


    Suggestions that Dell is to launch a smartphone have surfaced again following a research note by Kaufman Brothers analyst, Shaw Wu.

    Wu speculates that the move would be to offset the impact smartphones are having on notebook sales.

    But the analyst warns that Dell would have to make its device truly distinctive to stand any chance of securing a healthy slice of the extremely competitive smartphone market.

    For this reason, Wu suggests Dell would be well advised to consider acquiring a software maker.

    The comments come after investigations within Dell’s supply chain reportedly indicate that lengthy discussions with potential component suppliers are reaching fruition.

    While details such as device specifications and a launch date are unknown, some reports suggest Dell is planning a handset launch as early as next month at 3GSM or the Mobile World Congress.

    Dell has publicly tried to play down rumors of it launching a phone but has stopped short of openly denying the claims.

  • Can Nokia Rise To Apple's challenge?


    Nokia will see its share of the global smartphone market halved from 40 to 20 per cent by 2013, according to Generator Research.

    And who is going to be gobbling up Nokia’s lost business? Why Apple, of course.

    Generator believes Apple’s embryonic mobile business could knock Nokia from the top spot in the smartphone market and transform the mobile services market in the process.

    It predicts Apple could ship as many as 77 million iPhones in 2013 – while Nokia’s share would sit at just 38.5 million based on the analysts’ calculations.

    But is it likely the Finnish company will allow itself to be toppled so dramatically – even given the iPhone’s phenomenal success and Nokia’s continued under-performance in the US?

    Based on Generator’s analysis, the matter may be out of Nokia’s hands.

    Its report suggests that with cash reserves exceeding USD $25 billion, 33 per cent gross margins and the iPhone just about to enter its fastest-growth phase, Apple is extremely well placed.

    The iPhone-maker has the "resources, competencies and motivation" to invest in the mobile sector just at the time when the economic climate is forcing
    many established players in the mobile industry to cut back on product development.

    Generator adds that the impact on some incumbent players is likely to be substantial – not least Nokia’s.

    Andrew Sheehy, head of research at Generator, said the iPhone and App Store constitute a vertical platform for the delivery of advanced mobile services that will be developed in a similar manner to how Apple developed its digital music platform – including the iPod and the iTunes Music Store.

    "Outsiders are rewriting the mobile industry’s rulebook for how to deliver mobile services and the new rule number one is that you need a fully-integrated service development platform that has a rich API which is open to third party developers on favourable commercial terms," he said.

    "Right now, Apple has the best platform and the best-looking forward roadmap."

    Sheehy adds that Apple will use its financial strength and revenue velocity to try to get one or more design cycles ahead of the competition.

    "By that time the iPhone will include a range of different models, each addressing different market segments and the App Store will have developed to
    the point where third party developers have access to network assets that will allow them to write programs that can send messages and establish voice
    calls between different iPhones," he said.

    Fanciful ruminations or worryingly accurate (if you’re Nokia)? We would like to hear your comments.

  • Mobile WiMAX Revenues Grow – But Freeze Likely


    Worldwide mobile WiMAX infrastructure revenues nearly quadrupled in the third quarter of 2008 over the third quarter of 2007, according to the latest figures.

    Scott Siegler, senior analyst of Mobile Infrastructure research at Dell’Oro Group, said that with LTE still a couple of years away, WiMAX has become the first next generation technology with commercial service.

    “Mobile WiMAX revenues were very strong in the third quarter of last year, and we anticipate revenue for the fourth quarter to set another record," he said.

    "However, as we look into 2009, we expect the WiMAX market to be hit rather hard by the economic downturn."

    Siegler said building out brand new networks from scratch requires tens, if not hundreds, of millions of dollars of capital.

    He anticipate many network buildouts will be put on hold or delayed into 2010 as a result of the tightening in the credit markets, the increasing cost of capital and the decrease in demand for broadband data as consumer spending weakens.

    "With initial LTE rollouts coming in the 2010 to 2011 timeframe, these delays will shorten the time to market advantage WiMAX currently has over LTE,” he said.

    The report also shows that the top four Mobile WiMAX vendors in the quarter – Samsung, Motorola, Alcatel-Lucent and Alvarion – represented nearly 90 per cent of the total market.

  • Wehrs Named As New MMA President & CEO


    Former Nuance exececutive Mike Wehrs has been appointed president and CEO of the Mobile Marketing Association.

    The move follows the departure of Laura Marriott.

    Mike Wehrs, CEO MMA

    Wehrs joins the MMA from Nuance Communications, where he was vice president of Industry Affairs and Evangelism.

    He has also served on the board of directors and executive committees for a number of organisations, including the CTIA.

    In the new role Wehrs is to concentrate on promoting the MMA’s charter to "build a sustainable ecosystem for the mobile marketing industry globally, focusing on delivering benefits to MMA members, establishing guidelines and best practices for future growth, and driving mobile adoption worldwide".

  • Apple Signs USD $ 500 Million Deal With LG


    Apple and LG Display have agreed a deal that will see the South Korean electronics manufacturer supply flat panel displays for Macs and handheld products over the next five years.

    In exchange for a guaranteed supply of LCD screens until 2013, Apple will prepay USD $500 million to LG later this month.

    LG, which is the world’s second-largest maker of flat panel displays behind Samsung, presently supplies Apple with 70 per cent of its LCD panels.

    Prices for the parts, which have been falling rapidly during the recent global slowdown, are expected to begin rising again in the near future.

    In 2005, Apple made a similar deal with five memory suppliers which ensured the iPhone maker established a competitive edge in the digital media player and cell phone markets.

    In that agreement Apple prepaid a total of USD $1.25 billion to secure its supply of NAND flash memory.

    This type of strategic deal allows better prices to be obtained for components and can put pressure on competitors’ margins.

  • Motorola to cut mobile staff by half


    Motorola is considering reducing the workforce in its mobile devices group by as much as 50 per cent.

    The company is reportedly set to start major layoffs this week that would reduce staff levels by half and is said to be dramatically scaling back its phone development as a whole.

    Nearly all development for smartphones is already believed to be switching exclusively to Android while Motorola’s own phone introductions may scale back to as few as 12 devices per year.

    The company is also reportedly shelving plans to have a booth at the CTIA show in April despite its being the premier cellphone event in the US, according to Phone Scoop.

    The cutbacks if accurate suggest increasingly desperate attempts to revive the company’s fortunes.

    In the last quarter, Motorola had a USD $397 million loss and phone sales by the American cellphone producer dropped by a third in just 12 months.

    Much of the blame for this has been put on substantial drops in high-end phones as well as the lack of a compelling low-end product.

    The company’s popular RAZR recently lost its top ranking in the US to the iPhone and BlackBerries.

  • Palm Unveils New Pre smartphone


    Palm finally revealed its new smartphone, the Pre, along with an exclusive partnership with Sprint to distribute it.

    The new touch-screen device and operating system, WebOS, received a positive welcome at CES in Las Vegas.

    Much has been made of the importance of the new device’s success if Palm is to resurrect its fortunes in the highly competitive smartphone market.

    Initial positives for the Pre include its emphasis on fast Web browsing and efficient multitasking.

    The handset will be available in the first half of the year. No pricing information is available as yet.

    The Pre has a sophisticated interface and can be charged on a special platform without the need to attach a cable.

    It comes comes with eight gigabytes of storage, GPS navigational capabilities, Wi-Fi networking and a slide-out keyboard.

    A possible hurdle in Palm’s path to renewed success could be apps for its new device.

    Software developers are now concentrating on RIM’s BlackBerry devices and the iPhone because they represent a large and growing market.

    Apps are seen as crucial to the success of smartphones because of the functions such as games and navigation services that they provide.