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  • Is an iPad a Revolutionary Device?

    After all the rumors and geek’s dreams… I’m almost sure some people get disappointed about the device and the general consensus among the people I spoke with about the iPad is that “Wow! But is not for me,” or “It’s only for geeks.”

    Yeah, Wednesday’s presentation was quite impressive and I have to agree that it would be nice to have such a device. But if I already have a computer and an iPhone… the only reason to buy the iPad would be that is not so expensive and that I love to have gadgets.

    But I have to be positive on it. I think it will make a huge difference and it’s the first of a new category of devices that will come sooner than expected.

    I see two main market segments for the iPad. Well, three if we include the geeks.

    Who does not have a photo album at home? The experience of opening the book, sharing and commenting the pictures while handling it and sitting close to our friends… Digital photography has reduced the amount of printed pictures, and we have started to use TV and computer slideshows to view it.

    I can imagine my parents using the iPad just like they were using an ordinary photo album, having it ready to show the pictures of their grandsons to unexpected guests. No need to open the TV, no need to bring the computer.

    In order to fit in this category it will require over the air iPhoto synchronization, something that Apple TV already does. Also, it would be great to have bi-directional synchronization to be able to play with the photos (re-arrange, comment, tag) on the iPad.

    Another area is a segment of professional applications. The list here is long: from doctors handling it in the hospitals, decoration outlets and architects showing their projects and interacting with their customer’s work, to more basic, like a restaurant menu or beauty salons offering it instead of newspapers and magazines.

    What the device is missing?

    Clearly it needs a video camera for video conferencing. It would be great if it also had a rear camera.

    Size is important… and most probably we will see this device in smaller, portable 6” format as well as in a larger format to facilitate reading newspapers and magazines.

    A memory slot and USB connector to connect with the rest of the world are also more than welcome.

    And networking capabilities! Why do I have to have the media in the iPad? Why not let the device mount an AFP or SMB drive, so that it could have virtually unlimited storage capacity?

    My conclusion is that it is only a first step, but the iPad is definitely a revolutionary device.

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    The Apple iPad is Here

  • The Apple iPad is Here

    “It is a magical and revolutionary device at an unbelievable price,” said Steve Jobs unveiling Apple’s “latest creation” yesterday in San Francisco. Although we may doubt if the iPad really brings “magic” and “revolution” to us, we have to admit the prices are unexpectedly low. Yesterday, Apple’s stocks started to climb fast only when Jobs revealed how much we’ll have to spend on the device.

    All the rumors were saying the tablet will be not less than $999, and from this point of view the actual prices look really affordable. $499 for the basic version (16GB, no 3G) is something nobody expected; also $829 for the bloated 64GB, 3G version won’t scare anyone.

    So, what do you get for this price? iPad is 0.5 inch thick, 1.5 pound device with 9.7-inch, 1024 x 768, LED-backlit, responsive high-resolution Multi-Touch display that features IPS technology and has a wide 178 degree viewing angle.

    It’s powered by 1GHz “A4” chip designed by Apple (using their own P.A. Semi technology) and is claimed to have 10-hour battery life and a month of standby.

    It’ll come with a 30-pin dock connector, a microphone, a speaker, Bluetooth (2.1 + EDR), 802.11n WiFi and optional 3G, as well as an accelerometer and a compass.

    iPad comes in two versions—one with Wi-Fi and the other with both Wi-Fi and 3G. iPad includes the latest 802.11n Wi-Fi, and the 3G versions support speeds up to 7.2 Mbps on HSDPA networks.

    Every iPad is unlocked and comes with a GSM micro-SIM. Together with AT&T, Apple announced 3G pre-paid data plans for iPad: 250MB for $14.99 and an unlimited plan for $29.99 a month contract-free (with on-device activation and management, and a free use of AT&T WiFi hotspots). International deals will come in June.

    iPad syncs with iTunes just like the iPhone and iPod touch, using the standard Apple 30-pin to USB cable. The device features 12 Multi-Touch applications. Every app works in both portrait and landscape, automatically animating between views as the user rotates iPad in any direction.

    The operating system is based on iPhone OS, so the iPad can run all iPhone apps – either pixel-for-pixel in a window, or pixel-doubled fullscreen. Apple says they rewrote all of our apps for this display.

    Apple released a new SDK for iPad, allowing developers to target iPad’s specifics while developing new apps. The SDK includes a simulator that lets developers test and debug their iPad apps on a Mac, and also lets developers create Universal Applications that run on iPad, iPhone and iPod touch.

    Apple also announced the new iBooks app for iPad, which includes Apple’s new iBookstore that will feature books from “major and independent publishers”– five new big Apple’s partners: Penguin, Simon & Schuster, Hachette Book Group, Macmillian and Harper Collins.

    iPad has almost full-size soft keyboard but it also connects to the new iPad Keyboard Dock with a full-size traditional keyboard ($70). Additionally, there is a "camera connection kit" to allow to plug a camera in over USB or use an SD card ($30) and a leather case ($40).

    Unfortunately, iPad doesn’t support Adobe Flash and multitasking. There is also no camera and HDMI output.

    New Apple device will be available in late March worldwide for a suggested retail price of $499 for the 16GB model, $599 for 32GB and $699 for 64GB.

    The Wi-Fi + 3G models of iPad will be available in April in the US and selected countries for a suggested retail price of $629 for the 16GB model, $729 for the 32GB and $829 for the 64GB.

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    Is an iPad a Revolutionary Device?

  • Apple Reports All-Time Highest Revenue, Sold 8.7 Million iPhones in Q1 2010

    Two days before the long-awaited unveiling of the company’s “latest creation”, Apple revealed financial results for its Q1 2010 (ended December 26, 2009).

    The company posted revenue of $15.68 billion and a net quarterly profit of $3.38 billion, or $3.67 per diluted share.

    These results compare to revenue of $11.88 billion and net quarterly profit of $2.26 billion, or $2.50 per diluted share, in the year-ago quarter.

    International sales accounted for 58 percent of the quarter’s revenue.

    Apple sold 8.7 million iPhones in the quarter, representing 100 percent unit growth over the year-ago quarter.

    Sales went up especially in Japan (400 percent!), Australia, UK, France, and Germany. Apple’s flag device is now sold in 86 countries. 17 new carriers have added iPhone to their offerings.

    Apple COO Tim Cook said the company is moving slow in China because they are focused on building the brand there and on the quality of point of sale (there are 1500 points of sale for the iPhone in China). Earlier this month Apple activated over 200,000 units in China.

    The company also sold 3.36 million Macs during the quarter (a 33 percent unit increase over the year-ago quarter) and 21 million iPods (an eight percent decline).

    Laptop sales were up 18 percent and sales of the iPod touch went up 55 percent.

    “If you annualize our quarterly revenue, it’s surprising that Apple is now a $50+ billion company,” said Steve Jobs, Apple’s CEO.

    “The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about.”

    According to Peter Oppenheimer, Apple’s CFO, Apple expects revenue in the range of about $11.0 billion to $11.4 billion and diluted earnings per share in the range of about $2.06 to $2.18 in Q2 2010.

  • U.S. Smartphone Market – Only the Strong Will Survive

    According to the recent Canalys Smartphone Analysis, the smart phone market continues to increase as a proportion of the overall mobile phone market in the US.

    Despite a drop in market growth to 6% in Q3 2009, down from 37% in Q2 2009, smart phones represented 26% of all mobile phones shipped in Q3 2009. This is up from 24% in Q2 2009 and will continue to rise in coming quarters.

    The top two smart phone vendors increased their combined market share in Q3 to 76.3%. Research in Motion (RIM) held 48.1% while Apple held 28.2%.

    “Despite what looks like a ‘closed shop’, with continued growth expected in the US smart phone market there is still plenty to play for, and new products are coming thick and fast from the competition,” the report says.

    Four other smartphone platforms in the US market today – Android, Symbian S60, webOS and Windows Mobile – represented only 23.7% of the market in Q3.

    Canalys claims the challenge for the handset vendors on the multivendor platforms is to “differentiate their products, especially as the market gets busier, while also providing competition to Apple and RIM and choice to the consumer.”

    Canalys also thinks that with an increasing number of Android and Windows Mobile devices launching, there can be little, by looking at the specifications, to choose between one and another on the same platform. “A key product differentiator will be seen in the software and the user interface. In short it is all about the user experience, particularly how the user organises their favourite applications, content, messages, people and places,” analysts say.

    Canalys says Verizon needs to fight back against the iPhone’s tremendous success and will be hoping the new Android devices (Motorola’s Droid and HTC’s Droid Eris) will “light up its somewhat uninspiring consumer device portfolio.” Demand for Android devices will be helped by the addition of Google Maps Navigation on Android 2.0.

    Analysts reminds us of the fact that AT&T is the only one of the big four US mobile operators not yet to range an Android device.

    RIM’s US device shipments were up 27.5% in Q3. Around 3.8 million net new subscriber accounts were added worldwide in its fiscal quarter and profits beat analyst expectations. According to Canalys estimates, RIM, with only the Storm, held a 2.2% share of US touch-screen smart phones in Q3 2009. As its entry-level and mid-range (mostly keyboard-based) devices increasingly come up against new touchscreen Android devices, buyers’ appetite for BlackBerry devices will be tested.

    The iPhone remains the leading consumer smart phone in the US. The response to the iPhone 3G S was ‘tremendous’ and ‘very surprising’ according to Apple, so much so that many international markets had limited supply for several weeks.

    Canalys says with each software release the iPhone gets more ‘CIO friendly’. According to Apple, the iPhone is being ‘deployed or piloted’ at more than 50% of Fortune 100 companies and is doing well in higher education institutions and government agencies, though increased device security will still be needed for broad deployment to be considered in government.

    The report shows that US smart phone share of HTC, the leading worldwide manufacturer of Android smart phones, supplying T-Mobile and Vodafone (in EMEA) as well as selling under the HTC brand, has hovered around the 5-7% mark for five quarters.

    “HTC devices are ranged by the big four US mobile operators. These relationships and the installed base of customers it has are crucial to HTC, and Microsoft. From being the first, HTC is now one of many Android device vendors,” says Canalys.

    According to the research group, Motorola “rose from the ashes” of the smart phone market recently with the announcement of the new Android-based smart phones, the CLIQ with T-Mobile and the Droid with Verizon.

    “If the CLIQ and the Droid do anything like as well as the RAZR did it will give Motorola a solid base for 2010. Working on Android means that building its own app store need not be a top priority for Motorola.,” according to Canalys.

    They also think Nokia really needs a big hit in the US (“It has failed to get its most popular Nseries devices ranged by the leading US mobile operators and it has thus far failed to make a significant impression with its Ovi services in the US”), Palm needs the old volumes back (“Mobile operators must be convinced that they can profit from ranging Palm webOS devices. Palm needs their commitment”), and Samsung has lagged in smart phones, although it still leads the overall US mobile phone market and continues to roll out new handsets with all leading mobile operators at a “blistering pace.”

    Canalys notices that there are more vendors planning to launch smart phones in the US in the next few months: Dell, Kyocera Wireless, LG (Android handsets) and Acer (Android and Windows phones).

    “They will all be faced with the same challenges: getting their smart phones ranged by the mobile operators and capturing the imagination of consumers. The mobile operators can only range, subsidise and promote a certain number of devices. As Apple did, new entrants need to come up with something special, and that is no easy feat,” the report concludes.

  • Nokia Sues Apple for Infringement of Nokia GSM, UMTS and WLAN Patents

    Nokia announced that it has today filed a complaint against Apple with the Federal District Court in Delaware, alleging that Apple’s iPhone infringes Nokia patents for GSM, UMTS and wireless LAN (WLAN) standards.

    Nokia says the ten patents in suit relate to technologies “fundamental” to making devices which are compatible with one or more of the GSM, UMTS (3G WCDMA) and wireless LAN standards.

    “The patents cover wireless data, speech coding, security and encryption and are infringed by all Apple iPhone models shipped since the iPhone was introduced in 2007,” according to press release.

    There ware no more details given to the public.

    "The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for," said Ilkka Rahnasto, Vice President, Legal & Intellectual Property at Nokia.

    "Apple is also expected to follow this principle. By refusing to agree appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation."

    Nokia informed the company has already entered into license agreements including the patents in suit with approximately 40 companies, “including virtually all the leading mobile device vendors, allowing the industry to benefit from Nokia’s innovation.”

  • Apple Ranks Highest Among Both Consumer and Business Smartphone Owners

    Overall satisfaction among smartphone owners has increased considerably over time as manufacturers continue to improve styling, feature sets, usability and software, according to the J.D. Power and Associates studies.

    Satisfaction among consumer smartphone owners has increased by 14 index points (on a 1,000-point scale) from just six months ago, while satisfaction among business owners has increased by 43 index points from 2008 as these devices have become more stylish, customizable and user-friendly, the report says.

    Among traditional mobile phone owners, overall satisfaction has declined by six index points from April 2009, likely as a result of heightened awareness among traditional mobile phone owners of advanced features available on smartphones.

    J.D. Power and Associates studies measure customer satisfaction with traditional wireless handsets and smartphones across several key factors. In order of importance, key factors of overall satisfaction with traditional wireless handsets are operation (30%); physical design (30%); features (20%); and battery function (20%).

    For consumer smartphones, key factors are ease of operation (30%); operating system (22%); features (21%); physical design (18%); and battery function (9%). For business smartphones, key factors include ease of operation (29%); operating system (23%); physical design (21%); features (16%); and battery function (11%).

    Apple ranks highest among manufacturers of smartphones used primarily for personal reasons, with a score of 811, and performs particularly well in ease of operation, operating system, features and physical design. LG (776) and RIM BlackBerry (759) follow Apple in the rankings.

    Among customers who use their smartphones primarily for business purposes, Apple ranks highest with a score of 803, followed by RIM BlackBerry (724).

    LG ranks highest in overall wireless customer satisfaction with traditional handsets with a score of 723, performing well across all factors, particularly battery function, features and operation.

    The proportion of consumers who purchase more affordable smartphones (those costing less than $100) has significantly increased among most of the manufacturers included in the rankings, compared with the previous wave of the study six months ago. This indicates that wireless carriers are discounting their devices to attract new customers who are willing to pay for more costly service plans.

    "Attractive rebates or discounts offered to current smartphone owners, as well as incentives given to traditional handset owners to upgrade to smartphones, are effective ways for wireless carriers to generate revenue and increase market share," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates.

    "It is important, however, that manufacturers meet the expectations of those taking advantage of such offers by ensuring the features are intuitive and ultimately rewarding to them in the long run. Providing an easy-to-use, yet powerful operating system with the ability to customize applications to suit owners’ individual needs is essential to providing a high-quality and rewarding wireless experience."

    The studies also find the following key wireless handset usage patterns:
    • Among consumer smartphone owners, 22 percent want Wi-Fi capability in their next handset, while 21 percent want touch-screen capabilities and 17 percent want GPS capability.
    • More than 40 percent of consumer smartphone owners report entirely replacing landline calling with mobile phone calling, while only 27 percent of traditional handset owners have done the same.
    • Among business smartphone owners, more than one-half report downloading third-party games for entertainment, while 46 percent report downloading travel software such as maps and weather applications-indicating business users are also integrating their devices into their personal lives. In addition, nearly one-half of owners (46%) report downloading business utility applications to increase productivity.

  • Canalys Special Report “Smart phone market trends 2009/2010”

    ADVERTORIAL. The mobile industry is pinning its hopes on smart phones as the driver of growth in difficult times. Overall mobile phone shipments are falling, but smart phones are growing and taking an increasing share of the market.

    Companies such as Apple and RIM are seeing increases in demand for their devices, challenging the likes of Nokia, and leading a fundamental shift toward new device form factors and use of mobile applications by consumers and businesses.

    Network operators are struggling to establish the best strategy to open up new revenue streams, while having to manage complex partnerships with strong hardware vendors, as well as other companies that have entered their world with mobile service revenue aspirations of their own, such as Google and Microsoft.

    The Canalys “Smart phone market trends 2009/2010” report pulls together, in a concise format, qualitative analysis of key market trends, top-level market share and shipment estimates for the leading vendors, comparative analysis of vendors’ performance and evaluation of their strengths and weaknesses, and forecasts for future market development.

    “Smart phone market trends 2009/2010” report gives the precise and exhaustive answers to the following questions:

    • Who are the leading smart phone vendors in each region?
    • What impact will application stores have on operators and vendors?
    • How are the different mobile operating systems evolving and why?
    • Which operators have the best smart phone strategies?
    • How will the different regions grow over the next five years?
    • What are the biggest threats to today’s leading smart phone vendors?
    • How can mobile companies make the most of growth in China?
    • What are the implications of a more software-centric mobile ecosystem?
    • What are the key trends in user interfaces and form factors?
    • Where are the key competitive arenas for Google, Apple, RIM, Microsoft, Nokia et al?

    The full report, published in August 2009, is 70 pages and includes supporting definitions and explanation of the research methodologies used, and is only available direct from Canalys – the acknowledged leading market analyst firm in this area.

    Click here to find out more

  • AT&T Enables VoIP over Its 3G Network for iPhone

    After “evaluating customers’ expectations and use of the iPhone compared to dozens of others AT&T offers,” the operator has finally taken the steps necessary so that Apple can enable VoIP applications on iPhone to run on AT&T’s wireless network.

    Previously, VoIP applications on iPhone were enabled only for Wi-Fi connectivity. At the same time, AT&T has offered a variety of other wireless devices that enable VoIP applications on 3G, 2G and Wi-Fi networks.

    In late summer, AT&T said it was taking a fresh look at VoIP capabilities on iPhone for use on AT&T’s 3G network, consistent with its regular review of device features and capabilities to “ensure attractive options for consumers.”

    In August Federal Communications Commission started the investigation asking both Apple and AT&T to clarify the reasons of the removal of Google Voice application from the App Store.

    Although we didn’t even know if the Google’s app would allow VoIP over AT&T 3G network, the company felt obligated to explain: “AT&T had no role in any decision by Apple to not accept the Google Voice application,” said Jim Cicconi, AT&T senior executive vice president, external and legislative affaire.

    And the situation has changed. Dramatically changed. “iPhone is an innovative device that dramatically changed the game in wireless when it was introduced just two years ago,” said Ralph de la Vega, president and CEO, AT&T Mobility & Consumer Markets.

    iPhone users in the U.S. will now be able to use VoIP apps when they’re connected to AT&T’s 3G network.

  • Q2: Nokia Retains Lead but Apple and RIM Are Rising Fast

    “Smart phones continue to shine as one of the brightest spots of the technology industry, with shipments growing despite the global recession,” says the recent Canalys’ report on the Q2 key smartphone market trends.

    “Innovation in interfaces, design, applications and promotion continue to excite consumers, which, in contrast to the PC industry, is helping to keep average selling prices stable. The rise in data traffic seen by mobile network operators is finally generating a return on their investment in broadband capacity and will drive further infrastructure expenditure,” the autors predict.

    According to the report, Apple has established industry leadership in terms of industrial design, ease of use and application availability, offering one of the most desirable devices on the market and setting a standard that rivals are striving to emulate. It reinforced its position during the quarter by launching the iPhone 3GS.

    Pete Cunningham, Canalys senior analyst, said, “Apple has revolutionised the smart phone sector, leapfrogging more experienced rivals. The competition must move much faster to close the gap in terms of functionality and design and at the same time try to target Apple’s weak spots. These are primarily related to its business model, which requires premium upfront pricing, high cost of ownership and, in many countries, a restricted operator line-up.”

    The research shows that the competition is building in a number of different forms. RIM has successfully expanded its product portfolio to include a wide selection of devices and interfaces that appeal to a range of customers at different price points. This includes 2.5G models that are smaller, lighter, lower cost and have better battery life than most of its 3G rivals. Palm has received widespread acclaim following the launch of the Pre in the US during Q2.

    Chris Jones, Canalys VP and principal analyst, added, “As a relatively small company, Palm has shown what creative leadership and focused investment can achieve. By going back to its roots and developing its own operating system, it has produced an innovative and differentiated product. Investors have responded to this, with its share price growing over 70% this year. Palm still has plenty of challenges ahead – it must find the resources to launch the Pre on the global stage, while continuing to fund development of its product pipeline.”

    Another emerging trend is the rise of the Google-led Android OS, which is already taking 3% of the smart phone market. Success so far has been driven through HTC, but with many other vendors, including Samsung, joining the fray, volumes are expected to increase substantially. The free licence model, tight integration with Google applications and the potential for a high degree of vendor and operator customisation are all benefits attracting industry participants.

    Jones continued, “It is noteworthy how differently the smart phone business is developing compared to the PC industry. PCs are a highly standardised, commoditised platform, where one model is often largely indistinguishable from another. Consequently, PC price points are incredibly low, which is good for customers, but the industry lacks excitement. Smart phones are different – Nokia, Apple, RIM and Palm have all achieved success by developing their own operating systems and delivering distinct devices and interfaces. Android customisation will further add to this diverse mix. As a result, new smart phones are front page news around the world."

    “The main loser has been Microsoft’s highly standardised Windows Mobile platform. Its smart phone market share has now fallen below 10% and the trend is likely to continue as many of its OEM partners, including HTC, Motorola and Palm, are focusing investment on other platforms,” he conclude.

    In addition to smart phones, netbooks are the other hot area within the technology industry in this difficult year. The competition and opportunities created between these platforms will be discussed at the Canalys Mobility Forum, taking place on November 17, near London’s Heathrow Airport.

  • Apple Explains the Removal of Google Voice from App Store

    Not long after Apple removed the official Google Voice application and any other applications that use Google Voice functionality from its iPhone App Store, the Federal Communications Commission has asked both Apple and AT&T to clarify the reasons of the removal.

    The companies just answered FCC and published their statements.

    A bit surprisingly, Apple stated that the company has not rejected the Google Voice application, and continues to study it.

    As they explain, “the application has not been approved because, as submitted for review, it appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail.”

    Apple seems to be concerned also about the proper data protection: “When using Google Voice the iPhone user’s entire Contacts database is transferred to Google’s servers, and we have yet to obtain any assurances from Google that this data will only be used in appropriate ways.”

    The company gives the examples of other applications that have also fall into this category.

    Answering the question if Apple did act alone, or in consultation with AT&T, in deciding to reject the Google Voice application, the firm assures that it is acting alone and has not consulted with AT&T about whether or not to approve the Google Voice application.

    “No contractual conditions or non-contractual understandings with AT&T have been a factor in Apple’s decision-making process in this matter,” the statement says.

    “Let me state unequivocally, AT&T had no role in any decision by Apple to not accept the Google Voice application for inclusion in the Apple App Store. AT&T was not asked about the matter by Apple at any time, nor did we offer any view one way or the other,” said Jim Cicconi, AT&T senior executive vice president, external and legislative affairs.

    “AT&T does not block consumers from accessing any lawful website on the Internet. Consumers can download or launch a multitude of compatible applications directly from the Internet, including Google Voice, through any web-enabled wireless device. As a result, any AT&T customer may access and use Google Voice on any web-enabled device operating on AT&T’s network, including the iPhone, by launching the application through their web browser, without the need to use the Apple App Store,” says the company’s statement.

    Apple reminds that “there is a provision in Apple’s agreement with AT&T that obligates Apple not to include functionality in any Apple phone that enables a customer to use AT&T’s cellular network service to originate or terminate a VoIP session without obtaining AT&T’s permission.”

    For example, AT&T’s Terms of Service prohibit an AT&T customer from using AT&T’s cellular service to redirect a TV signal to an iPhone.

    “From time to time, AT&T has expressed concerns regarding network efficiency and potential network congestion associated with certain applications, and Apple takes such concerns into consideration,” Apple says.

    Asked to explain any differences between the Google Voice iPhone application and any VoIP applications that Apple has approved for the iPhone, the company answered that it does not know if there is a VoIP element in the way the Google Voice application routes calls and messages, and whether VoIP technology is used over the 3G network by the application.

    They also assured that they had never approved any application that works over AT&T’s 3G network.