Oops! BlackBerry even worse off than it thought

BlackBerry CEO Thorsten Heins doesn't have much to cheer about lately.

More bad news for BlackBerry. The smartphone company said Wednesday that its business is in even worse shape than what it reported just a few weeks ago.

BlackBerry (BBRY) said the 4,500 employees it is laying off by the end of the year will cost $400 million -- four times as much as the company had previously expected. That's particularly bad news, since BlackBerry is racking up giant quarterly losses and rapidly burning through its cash.

The company is also quickly losing its appeal in key markets. BlackBerry said Wednesday that customers in typically loyal international markets are switching allegiances to Google (GOOG, Fortune 500) Android devices.
BlackBerry also said consumers are looking for devices with the largest number of apps. That's definitely not BlackBerry's forte.
Related story: Terrible apps killed BlackBerry
Making matters even worse, BlackBerry said that its core base of corporate customers are also now looking towards greener pastures. Long delays in the BlackBerry 10 platform have angered corporate IT departments, which like to deploy new BlackBerry phones and software together.
Many business professionals have been demanding Apple (AAPL, Fortune 500) iPhones and Android devices for years. But BlackBerry said it was surprised by the rate at which it is losing support from corporate customers.
The company also said that uncertainty surrounding its ongoing "strategic review" impacted demand for BlackBerry smartphones -- something that should impact sales to an even greater extent now that the company has announced plans to go private.
Shares of BlackBerry fell 2.5% Wednesday morning.
Wednesday's financial release was an update to its latest quarterly report on Friday. BlackBerry announced a $965 million quarterly loss, which included a $934 million charge for unsold BlackBerry Z10 devices, the first phone launched on the new BlackBerry 10 operating system.
BlackBerry said it delayed the full report of its numbers due to its ongoing negotiations to be taken private by Fairfax Financial, a Canadian insurance company.

Japanese social app to take on Facebook in the US

Popular Japanese instant messaging application Line plans to take challenge Twitter, Facebook and Google

 

 

 

Noriko Suzuki, a 22-year-old office worker in Tokyo, sends about 50 messages a day via the Line messaging app, including reports on her summer vacation and pictures of her lunch. 

 

TOKYO — Japan’s most popular instant messaging application, Line, has outlined its plans to take on Twitter, Facebook and Google to become “the number 1 online service” in the world.

In an interview with the New York Times, the company’s chief executive Akira Morikawa said that he wants Line to become “first global Internet company from Asia” and “a common language for the world”, reported the Daily Telegraph.

Line, which already has 230 million monthly users, lets users exchange text messages, graphical ‘stickers’ and video and audio media, as well as make free VoIP calls, and hold free audio or video conferences.

Originally developed as a mobile application for Android and iOS smartphones, the service has since expanded to BlackBerry, Nokia Asha, and Windows Phone, and also exists in versions for laptop and desktop computers.

Mr Morikawa claims that Line has a critical advantage over applications like Facebook and Twitter, which is that it was originally conceived and created for smartphones, so the company does not have to design software that can leap from desktop computers to mobile devices.

Stickers – which are used during chat sessions between users and act as large-sized emojis – are one of Line’s most popular features. Stickers feature original characters as well as a number of popular manga, anime and gaming characters, movie tie-ins, and characters from Disney properties such as Pixar.

Users can purchase stickers as gifts, but many stickers are available as free downloads, depending on country availability. Purchased stickers are attached to an account and can be used on other social media platforms. Line says its users send more than 1 billion stickers per day.

However, the company makes most of its money from games, with offerings like Line Pop and Line Bubble recently moving into the Top 10 lists on Google Play and the Apple App Store.

Like other popular online game providers in Asia, Line lets users download its games free, making money through in-app purchases, which provide players with special powers, for example.

As part of its plan to conquer the US, Line has teamed up with nine top video creators on Vine – the mobile app owned by Twitter that enables users to create and post short video clips – for a series of promotional videos.

All of the creators are involved with Collab, the LA studio working with Line to run the promotion.

“LINE is one of the most fun and addicting new mobile apps, so Collab is excited to help introduce Line to the United States market,” said Collab chief executive Tyler McFadden.

“There’s a lot of crossover between the young audiences on Vine and Line and we’re confident that the Vine Influencers we work with will be extremely effective in driving new Line users.” AGENCIES

Hold the iPhone - Apple TV May Get Update as Well

Sept. 10 may bring more than just iPhone news, recent shipping documents suggest. Rather, it looks like there may be an update to Apple TV as well. "They'd have to boost processing power and add the Apple Store to it," opined nScreenMedia founder Colin Dixon. "That could be one of the things we can expect, as it could allow purchases from the armchair in front of the TV."

Sept. 10 has already been the focus of frenzied attention among those anticipating the next iPhone, but in the last few days another rumor has popped up as well. Specifically, Apple might also use its widely hyped event to announce an update to its Apple TV set-top box product, the rumors suggest.

It all started when Apple received a shipment called "Set Top Box with Communication Function" last month from BYD Precision Manufacture in Shenzhen, China. That was actually the second such shipment it received in August, global trade intelligence platform Panjiva pointed out on Tuesday. Also received last month was a shipment labeled simply, "Set Top Boxes."

"So what are these set top boxes?" wrote Panjiva blogger Katelyn Holbrook in a post entitled, "It's Not an iPhone."

Possibilities, Holbrook suggested, include "A) Apple's long rumored TV-focused product; B) A new version of the old school Apple TV; C) Something that's not particularly interesting, but that has an interesting description to throw us all off."

 

'It Has Been a While'

Of course, "there isn't really much to go on," Colin Dixon, founder and principal analyst at nScreenMedia, told MacNewsWorld.

"It has been a while since this device has been refreshed, so it would be possible," Dixon added, "but I would be stunned if this was actually heralding the arrival of a new Apple TV product."

Apple did not respond to our request for further details.

'This Is Apple's Hobby'

It has actually been 540 days or so since the latest refresh to the Apple TV product line. This has put the rumor mill into high gear, with a number of suggestions as to what Apple might reveal -- if anything.

One thing it likely won't be is a flat-screen TV -- "at least not this year," video analyst Greg Scoblete of Digital Trends Consulting told MacNewsWorld.

More likely, it is "an update to the existing box," he suggested. "At a minimum, the new box is likely to have a faster chip for a more responsive user interface. Apple may also rework the interface itself, as they've added several major content partners of late, including Disney, ESPN, Vevo, etc.

"This is Apple's 'hobby,'" Scoblete added, "so I'm not sure if they're poised to do something very radical with it just yet -- if they are, they've done a better job of keeping it from the leakers, unlike the forthcoming iPhones."

'An Economy of Games and Apps'

If Apple does actually roll out a refresh to Apple TV, "they'd have to boost processing power and add the Apple Store to it," opined nScreenMedia's Dixon. "That could be one of the things we can expect, as it could allow purchases from the armchair in front of the TV."

That, in turn, would create "an economy of games and apps for TV, which hasn't happened from the Apple ecosystem," Dixon noted. "Apple could be looking to a game service such as OnLive, especially as Comcast had suggested they might offer a professional gaming service -- Apple might follow suit."

This could mean that Apple would need to consider a gyroscopic remote and possibly look at NFC options between its iOS devices and the Apple TV product.

"With NFC to connect to the phone and NFC in the box, then you could literally touch the phone to the box -- that could be really simple but convenient for consumers," Dixon suggested.

The Chromecast Factor

Given the success of Google's Chromecast device, meanwhile, it's possible Apple may strike out in a different direction altogether.

"We're at the point where Apple might look to copy Google," said Dixon. "The bar has been set quite high, and Apple TV is falling behind."

The Chromecast has "completely blindsided Apple and Roku, and really anything less than a stick that plugs into the back of a TV from Apple is going to be seen as underwhelming," he predicted.

Meanwhile, Netflix has gotten into the content-creation business and Google and Amazon are both looking at TV services -- could Apple be considering a full TV service itself?

"We'd have expected to hear rumors coming from Hollywood," said Dixon. "We haven't heard those, so I'd be surprised if they announced anything like that."

Apple faces new China labor allegations

Apple is looking into claims of poor working conditions at a supplier in China that is said to be working on a new, cheaper iPhone.

China Labor Watch, a New York-based watchdog, accused the supplier of forcing employees to work excessive overtime in violation of Apple's 60-hour workweek limit.

The factory is owned by Jabil Circuit, an American electronics manufacturing company based in Florida. According to China Labor Watch, the plant is currently producing the rear plastic covers for a less expensive iPhone that Apple may launch as early as next week.

China Labor Watch said that workers at the plant would stand for more than 11 hours a day, and alleged that new employees were forced to sign contracts stating their overtime would be considered voluntary.

Jabil said in a statement that it was troubled by the new allegations. It has sent a team to the factory in Wuxi to investigate the claims, and pledged to take action to ensure its standards on working conditions are upheld.

Apple (AAPL, Fortune 500) says ending the industry-wide practice of excessive overtime is a top priority for the company. Apple mandates that employees can't work more than 60 hours a week "except in unusual circumstances."

Jabil said it conducts more than 100 annual audits of its operations.

Other concerns raised by China Labor Watch include health and safety issues, discriminatory hiring practices, and a lack of appropriate channels for workers to air grievances.

In an audit earlier this year, Apple found at the Jabil facility that "some employees had worked more than six consecutive days and that Jabil was working with Apple to manage overtime," said Kitty Potter, a company spokeswoman. Apple has conducted three audits of the factory in the last three years, performing a total of 14 audits since 2008.

This isn't the first time Apple has been in the hot seat over working conditions.

In March, China Labor Watch said another major supplier, Pegatron, had violated a wide range of labor rules and industry standards. Employees at three key factories in Shanghai and Suzhou suffered from excessive overtime and low wages. The report detailed various management abuses, pollution issues and problems with underage workers. 

Foxconn, another major Apple supplier China, has also been fingered amid growing public concern for similar labor violations.

A spate of suicides at Foxconn factories in 2010 garnered media coverage of allegedly harsh working conditions, including unsafe facilities and illegal amounts of overtime.

In January 2012, Apple joined the independent labor-rights organization Fair Labor Association, which promptly began inspections of the working conditions at Foxconn's many factories.

Nokia: Finland mourns the demise of its proud tech heritage

Entrepreneur Antti Vilpponen explains the national mood following the sale of Nokia's handset business to Microsoft

Nokia: 'the largest early stage investor in Finland'.

So, it finally happened.

That was more or less my first reaction to the news of Microsoft buying Nokia's handset business as I read it on Twitter during my morning commute. It's an outcome many have feared, some have expected and that no one was really able to prepare for. 

I was surprised to find myself also relieved – Nokia would no longer be kept a prisoner of its past, having to explain to Finland on a quarterly basis why it is losing the game in the handset business. The company has enjoyed such success in the past that the general public has not given up hope that Nokia would regain its spot as the No 1 phone manufacturer. That Finnish distortion field has now dissolved.

It's hard to try and form an honest opinion on today's news. Nokia has surprised Finns in the recent years with multiple rounds of layoffs, a partnership with Redmond and now this sale of its its best-known business to the controversial giant Microsoft.

Entrepreneurs live with constant change, and thus are usually able to see the opportunities in situations like this – perhaps more so than the public at large.

Nokia, however, is such an integral part of Finnish society that it keeps on bringing out new sides to people, even those close to me. It's a subject everyone has an opinion on, possibly more than our national politics.

It does have to be acknowledged, however, that Nokia and its staff have played a key role in supporting Finland on several levels. Much of our mobile industry owes its success to the presence of Nokia and its willingness to source services and applications from local companies. This has generated a huge pool of talent that continue to bear fruit for the Finnish technology space.

Nokia has also supported recently successful entrepreneurs, those who leave the firm to start their own companies with enough money to set up for the first 12 to 18 months. It has been said more than once that Nokia's severance packages make it the largest early stage investor in Finland.

While Finns are beginning to overcome cultural taboos around failure – and, in the case of some startups, celebrate failure with champagne – it would be madness to celebrate failure of this magnitude. It's a sad day to have to acknowledge that the once so mighty Nokia and its widespread handset business is no more. 

After the emotional rollercoaster on comments on Twitter and Facebook when the news broke, discussion and analysis became more rational; the consensus now is on the future, and what Nokia will do with the fresh cash in its coffers.

Working in the technology field, I do believe this is perhaps the best way to reboot the company for the future, and I'm personally optimistic that the legacy and burden of its previous success is now gone and Nokia is able to start fresh and light.

Perhaps a status update I saw earlier today sums up the prevailing general view quite well: "Nokia's catastrophe may be a good opportunity for Finland – we're a nation that tends to get stronger the heavier we're kicked between the legs."

Antti Vilpponen is the general manager of cloud hosting company UpCloud. He has followed the Nordic and Baltic entrepreneurship scene closely through his previous job as chief executive and founder of ArcticStartup, a media company profiling startups and technology companies in the region

Lenovo CEO to share $3 million of bonus with workers

Yang Yuanqing: The Lenovo CEO will share $3.6 million of his bonus with workers. Photo: Bloomberg

Lenovo chief executive Yang Yuanqing will share at least $US3 million ($A3.3 million) of his bonus with workers for a second straight year after posting record sales.

About 10,000 workers at the world's largest PC maker will get payments this month to recognise their contributions, Gina Qiao, senior vice president of human resources, said in a memo to some workers. The memo was confirmed by spokesman Jeffrey Shafer, who said the total payment will be about $US3.25 million ($A3.6 million).

Lenovo posted revenue of $US34 billion ($A37.8 billion) and PC shipments of 52.4 million units in the 12 months until March 31, as the company gained market share and expanded sales of smartphones and tablets. The 48-year-old Yang, who gave $US3 million from his bonus a year earlier, led the company past Hewlett-Packard in the June quarter.

"This is quite rare, especially for a chairman of a Chinese company, to use his personal money as a bonus to reward employees," said Kirk Yang, a managing director at Barclays in Hong Kong who rates the shares overweight.

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Payments will be made to Lenovo staff in 20 countries, while about 85 per cent of the recipients are in China, Shafer said. The company has headquarters in Beijing and Morrisville, North Carolina.

Month's pay

"This payment is personally funded by Yuanqing," Qiao said in the memo. "He believes that he has the responsibility as an owner of the company, and the opportunity as our leader, to ensure all of our employees understand the impact they have on building Lenovo."

The average payment of about $US325 ($A361) is almost equal to a month's pay for a typical city worker in China. The average annual wage of urban workers at private companies last year was 28,752 yuan ($A5223), the National Bureau of Statistics said in May. That's equal to about $A436 a month.

Yang was paid $US14.6 million ($A16.3 million) last year, including a bonus of $US4.2 million ($A4.7 million) and long-term incentive awards of $US8.9 million ($A10 million), according to the company's annual report. Yang holds about 744 million shares of Lenovo, or 7.1 per cent of the company's outstanding stock, as of the end of March, the report said.

Dell, HP

Meg Whitman, CEO of Hewlett-Packard, received nearly $US15.4 million ($A17.1 million) in fiscal 2012 after the company posted a net loss for the year. Dell CEO Michael Dell was paid $13.9 million ($A15.5 million) in the year ended February 1 after the company posted lower sales and earnings and its share price declined.

Lenovo had more than 35,000 employees globally at the end of March. Employees who received the bonus from Yang were mostly those in manufacturing paid on an hourly basis, who are not eligible for other bonus programs or sales commission, Shafer said.

Other executives to share their bonus include Oleg Deripaska of the world's largest aluminium producer Rusal, who gave his $US3 million ($A3.3 million) bonus for 2012 to 120 employees, UPI reported in July. Simon Wolfson of UK clothing retailer Next awarded his bonus of about $US3.7 million ($A4.1 million) to 19,400 staff, the Telegraph reported in April.

Bloomberg

Linux at 22: Another Year, Another Step Closer to World Domination

Our favorite operating system is now 22 years old, and that means we're that much closer to a freedom-enabled future. "The sky is the limit!" blogger Mike Stone suggested. "Well, I guess Linux already is used on the International Space Station, so I guess the sky isn't the limit. With desktop computers fading in relevance, expect the last barriers to Linux to drop."

It seems like only yesterday that we here in the Linux blogosphere were celebrating Linux's 20th birthday, but now here we are, two years later.

Our favorite operating system has reached the ripe old age of 22, and its creator -- Linus Torvalds -- marked the occasion in characteristically understated fashion.

Specifically, echoing his original message from August 26, 1991, inviting feature requests for his then-nascent OS, Torvalds published a similarly worded note late last month announcing the arrival of the Linux 3.11-rc7 kernel release.

"I'm doing a (free) operating system (just a hobby, even if it's big and professional) for 486+ AT clones and just about anything else out there under the sun," Torvalds wrote on Google+. "This has been brewing since april 1991, and is still not ready. I'd like any feedback on things people like/dislike in Linux 3.11-rc7."

More than 1,500 plus-ones and nearly 900 reshares later, there no doubt Torvalds got the word out about Linux's latest milestone. Down at the Linux blogosphere's Broken Windows Lounge, drinks were on the house to celebrate the occasion. 

'The Sky Isn't the Limit'

"Twenty-two years? Where has the time gone?" began Linux Rants blogger Mike Stone, for example.

"Looking back over everything that Linux has accomplished in that time, it becomes a lot easier to quantify what Linux hasn't achieved than what it has," Stone added. "Linux has yet to conquer the desktop PC. Yea, that's pretty much it.

"Everywhere else Linux goes it's at the minimum a major player," he pointed out. "It's pretty amazing that this little project of Linus's (you know, nothing big and professional) has come so far and it does so much."

Speaking of desktops, "we users were misguided by computer vendors to think another OS was the only or better option," Google+ blogger Gonzalo Velasco C. suggested. "But this has also being changing, slowly."

In any case, "where can it go in the future? Who knows? The sky is the limit!" Stone concluded. "Well, I guess Linux already is used on the International Space Station, so I guess the sky isn't the limit. With desktop computers fading in relevance, expect the last barriers to Linux to drop allowing it to become a truly dominant force."

'The Right Way to Do IT'

Indeed, "*/Linux has come a long way in 22 years, from a challenging project for some restless programmers to becoming the backbone of the Internet and the OS of choice for hundreds of millions of consumers and an awful lot of OEMs," blogger Robert Pogson agreed. "Linux is no longer the private project of a few but a foundation of IT for many millions.

"Thousands of contributors and hundreds of organizations large and small have shared in the responsibility of providing a good operating system kernel complete with drivers for just about everything," Pogson told Linux Girl. "It seems that what started as small and fragile is now huge and robust. It's too important and valuable for anyone to neglect."

In short, "the Linux play has gone through several big acts but there does not seem to be any conclusion in sight," he concluded. "It's just the right way to do IT by cooperating instead of fighting."

'No End in Sight'

Robin Lim, a lawyer and blogger on Mobile Raptor, took a similar view.

"Linux is stronger than ever on its 22nd year, with no end in sight to its phenomenal growth," Lim observed.

Of course, "Android is where the game is these days, he added. "With Android you have the likes of Samsung cashing in big time on the Linux gravy train.

"Where next? Well, it is obvious isn't it? Android takes over the desktop," Lim suggested. "You have more people than ever whose first computer is an Android or iOS phone or tablet. One of these days someone will figure out forking Android to work on better on a hybrid, laptop or desktop could become a very profitable business."

Indeed, "I hope everyone likewise acknowledges and celebrates the day Android was released, because without Google choosing to use the Linux kernel in their new OS, Linux would have stayed in the dank basement of the server room," Slashdot blogger hairyfeet opined. "Torvalds may have made it but Brin and Page made it great."

'Global Domination'

Linux "has been good to me," consultant and Slashdot blogger Gerhard Mack offered. "It provided a good hobby in my late teens followed by a solid decade-long career. Hopefully it continues on its path of success."

Twenty-two may not be a particularly notable number, but it's significant in this case "because we are in the middle of a profound transformation in computing," Google+ blogger Kevin O'Brien opined. "Microsoft looks increasingly like a rudderless company, and at the same time a platform shift to mobile devices is over-shadowing the traditional desktop.

"Linux is at the heart of the new mobile platform," O'Brien concluded, "and it is running the data centers that serve up the Internet. We are witnessing global domination."

'Many Things to Celebrate'

The milestone is "a wonderful feat," Google+ blogger Alessandro Ebersol agreed.

"We have many things to celebrate," Ebersol added, "but sadly, Linux did not change the uses and abuses of the IT industry. Even now, Microsoft, which battled it so much, is earning millions, piggybacking Linux and abusing its patent portfolio."

So, "yes, Linux changed the scene for users, but it did not change the greedy corporate mindset of the IT companies," he asserted. "Pity. They could have learned a lot, and became better, as whole."

'Like a Friend Who Is Always There'

In any case, "my personal prediction is that Linux-based operating systems in one form or another will become 'Humanity's Operating System,'" Google+ blogger Brett Legree suggested. "It seems well on the way to being just that, running everything from embedded systems, watches, smartphones, routers, laptops, workstations, supercomputers... we all know it is everywhere."

So, "while I can say that I didn't jump up and down when Linux hit the big 22, perhaps that's just because it has done so well that it is a given, like a friend who is always there for you and will never let you down," he concluded. "Happy Birthday, Linux."

Yahoo China's Days May Be Numbered

Today in international tech news: Yahoo appears to be punting on China; Taiwan is investigating HTC employees accused of peddling secrets to China; Microsoft buys Nokia's mobile phone business; a filmmaker pranks the NSA; and UK Internet providers are being asked to create a database of illegal downloaders.

Yahoo China ceased providing news and community services Sunday, a move experts say signals that Yahoo is pulling the plug on its Chinese service.

People attempting to access Yahoo China are now automatically redirected to now.taobao.com, a public welfare site run by China-based Alibaba Group, which operated Yahoo China and used to own a large stake in Yahoo. A message to users says that the company is "adjusting its operations," but speculation is that Yahoo's China operations will be folded into Alibaba.

Yahoo China announced in April that it would shutter its email services, which it did on Aug. 19, and it kissed its music service goodbye last winter. However, nixing the entire Yahoo China brand comes as something of a surprise.

The company's news and email services were once big hits in China, although business had declined over the past few years. Yahoo China reportedly had about 2,000 employees in 2006, the peak of its run in China.

Yahoo stopped operating in South Korea late last year.

[Sources: The Global Times; The Next Web]

Taiwan Investigating HTC Trade Secret Theft

Prosecutors in Taiwan are investigating three employees at smartphone maker HTC who supposedly stole company trade secrets to dish to Chinese companies.

The investigators on Friday searched HTC's research and development center and the suspects\u2019 homes and offices. HTC alleges that the trio thieved key interface technology.

HTC has been struggling to keep pace in the increasingly competitive smartphone market. HTC's global smartphone share dropped from 8.8 percent in 2011 to 4.6 percent in 2012, according to IDC. Samsung and Apple, for comparison, are at 30.3 percent and 19.1 percent, respectively.

[Source: AFP]

Microsoft Buys Nokia's Mobile Phone Biz

Microsoft and Nokia have agreed on a deal that will allow the U.S. computer giant to buy Nokia's mobile phone business for US$7.2 billion.

Nokia will also license its mapping services and patents to Microsoft as part of the deal, which is expected to be finalized early next year. The transaction must be approved by stakeholders and regulators.

Nokia's Lumia model accounts for more than three-quarters of all Windows Phone sales. Lumia sales have been strong despite an overall dip for Nokia devices.

More than 30,000 Nokia employees are expected to transfer to Microsoft, which has agreed to a 10-year licensing agreement to use the Nokia brand on current mobile phone products.

[Source: BBC]

Filmmaker Pranks the NSA With Request for Lost Email

Bahram Sadeghi, a Dutch-Iranian filmmaker, called the National Security Agency to ask for an email he claims was accidentally deleted.

Sadeghi recorded the video last Wednesday and, after editing it down from about eight minutes to three-and-a-half minutes, sent it to Dutch media buddies. From there, it gained steam in the Netherlands and eventually went viral.

In the video, he tells the NSA operator that he is from Iran -- you know, to thicken the plot.

Sadeghi says he is not worried about the NSA keeping closer tabs on him now.

UK Music, Film Companies Ask Net Providers to Track Downloaders

In the UK, music and film companies are asking broadband providers to create a database of customers who illegally download music, films and books.

The logic goes that the database could be used to disconnect or prosecute repeat offenders.

Communications regulator Ofcom claims that from November 2012 to January 2013, 280 million music tracks, 52 million television shows, 29 million films, 28 million ebooks and 7 million files of computers games and software were digitally pirated.

[Source: The Guardian]

IPhone 5C: Cheaper for Apple, not for you

Apple has a China problem and it has a profit problem. The eagerly anticipated "iPhone 5C" will address the latter issue.

Many analysts and investors have called for Apple (AAPL, Fortune 500) to enter into the low-end smartphone market to lure in customers in China and other emerging markets. But the rumored iPhone 5C likely won't be any cheaper for consumers than the discounted iPhones Apple offers today; it will, however, be cheaper to manufacture. 

According to the latest images leaked to tech blog Sonny Dickson, the iPhone 5C is a plastic-shelled, colorful version of today's iPhone 5. Why plastic? The casing of the iPhone 5C could reduce manufacturing costs by $17 dollars per phone, according to Morgan Stanley analyst Jasmine Lu -- no small amount when Apple is selling tens of millions of iPhones each quarter.

When Apple releases a new iPhone, the company's current strategy is to knock $100 off the price of its year-old iPhone and continue selling it as a "mid-tier" option. The two-year old iPhone remains on store shelves too with a $200 price cut.

That strategy has become a problem for Apple: Older iPhones are an incredibly popular option among consumers, but the bill of materials on those devices is still exceedingly high. The two-year old iPhone 4S and three-year old iPhone 4 comprised just less than half of iPhone sales in the United States in 2013, according to Consumer Intelligence Research Partners. Gross margins have tumbled over the past year as a result. 

The iPhone has never been a particularly cheap device to manufacture, but last year's iPhone 5 was the most expensive, resource-intensive device to produce yet. That's why it makes sense for Apple to take the iPhone 5 completely off store shelves when it unveils the new flagship iPhone 5S (or whatever it will be called). The iPhone 5C can slip in as the No. 2 phone in Apple's product hierarchy. 

It's the best way to maximize profit margins without cutting into Apple's core, high-end market -- it would be foolish for Apple to cut corners on its best-selling, premium iPhone.

Apple declined to comment for this story. 

But plastic doesn't have to mean "low-end." Plastic can actually add functionality and even fun. Plastic backs can endure more drops and hide more scratches than their glass and metal-clad peers. Colors can represent a form of personal expression for smartphone users who view their phones as extensions of themselves. It's why people loved the early iMacs, and colorful iPods.

The iPhone 5C can have an appeal that goes beyond value. If the iPhone 5C is a way to get consumers excited about a cheaper-to-manufacture device at the same price point, that sounds like a goldmine for Apple.

Apple doesn't need to copy Samsung

Some believe Apple needs to cater to niche markets by offering a variety of iPhones. That would be a mistake.

This is unfamiliar territory for Apple.

The smartphone market Apple (AAPL, Fortune 500) spent the past seven years dominating has matured, and there's increasingly less to differentiate an iPhone from the competition. Apple is now looking up at the competition that passed it by. It has ceded the software market share crown to Google's (GOOG, Fortune 500) Android platform, and hardware market share to Samsung.

As a result, Apple has spent much of 2013 taking a hit in the stock market, with its biggest detractors citing a lack of innovation in the past few years. 

This has led for some to suggest that Apple needs to rethink its smartphone a year strategy, lest it wants to suffer the same fate as BlackBerry (BBRY). They say Apple needs to take a page from Samsung's playbook and offer more; big phones, small phones, cheap phones, and rugged phones.

That would be a mistake.

Virtually every strategic decision that Samsung has made in the past three years lies in opposition to what has made the iPhone so popular. 

Design: When it comes to design, Apple has without question set the standard that every other company has chased for the last 10 years. You won't find another smartphone that combines thinness, lightness and attractiveness as well as the iPhone.

Samsung is openly ambivalent about design. It doesn't care much about form or materials, at least not enough to invest the time and money into solving same sorts of design problems Apple does. Plastic is cheap and durable, and for Samsung, that's good enough. 

Developers: One of Apple's biggest strengths has been its app ecosystem and developer community. But to follow Samsung's product strategy and offer dozens of phones with considerably different hardware and screen sizes would be to give up a key reason why developers flock to iOS -- it's easy to develop for. 

To date, there have been a total of six iPhones. Their processors have largely remained the same, and Apple changed the iPhone screen resolution just twice. That makes the development and testing process on iOS extremely simple for app makers. Ask any developer about their experience on Android, and they'll tell you its a nightmare. 

If Apple were to chase Samsung, it would risk losing out on getting the best and most innovative apps first. Apple absolutely cannot afford that.

Consumers: Apple's strategy has made the iPhone purchasing experience idiot-proof. It's available on just about every U.S. carrier, and Apple sells three versions: good (iPhone 4), better (iPhone 4S) and best (iPhone 5). 

At this point, there are those who like the iPhone, and those who don't. Unlike Samsung, which has dozens of other Android competitiors, Apple doesn't have any other rivals who make iOS smartphones. That means Apple doesn't have to pander to consumers in quite the same way. As long as a certain level of quality is met, a significant consumer base will always be there.

Sure, we're going to see a lower cost iPhone appear later in September. We might eventually see a larger iPhone appear as a response to a natural shift in consumer demand.

What we won't see is an entire family of iPhones attempting to cater to every niche consumer out there.

Microsoft buys Nokia for $7.2billion in latest attempt to edge out Apple in phone and tablet market

IT WAS once the phone in everyone’s pocket, but now Nokia has been bought out by computer corporation Microsoft.

The US firm is paying £4.6billion for the Nokia conglomerate’s phone-manufacturing division as it attempts to wrest the mobile  market from Apple, Samsung and Google.

Nokia, which was the world leader in mobile phones for 14 years, selling one billion handsets since 1982, has fallen behind in the era of the smartphone.

Acquired: Nokia CEO Stephen Elop, left, with Microsoft CEO Steve Ballmer in February 2011. Mr Ballmer announced Monday that Microsoft would buy the Finnish cellphone company for $7.2billion

The Finnish company’s handsets, such as the Lumia series, already use Microsoft’s Windows system.

The firm has been outstripped by both Samsung, which uses Google’s Android software, and Apple’s iPhone, which runs on Apple’s own system. Only 7million phones running on Windows were sold in the second three months of 2013, compared with 31million iPhones and 187million on the Android software.

 

In Nokia’s heyday, its unmistakeable ringtone, an excerpt from a 1902 composition called Gran Vals, became the signature sound of the first mobile-phone generation.

Microsoft rose to international ubiquity with its Windows operating system for personal computers and is now trying to follow Apple’s lead by combining production of software and gadgets. As well as developing Windows for smartphones, it has launched the Surface tablet to compete with the iPad.
Microsoft chief executive Steve Ballmer described the Nokia purchase as ‘a signature event’.

He said: ‘It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies.’

Some 32,000 Nokia employees will be transferred to Microsoft, which currently has about 99,000 workers.

Mr Ballmer said: ‘Finland will become the hub and centre for our phone R&D and we are counting very much on the incredible talent of Nokia employees to be a key part of propelling Microsoft forward.’

The price consists of around £3.2billion to purchase Nokia’s mobile-phone manufacturing business and another £1.4billion to pay for a ten-year licence covering the use of Nokia’s patents, with the option of an indefinite extension.

Investors in Nokia, which is based in Espoo, near Helsinki, welcomed the deal, sending shares in the company up some 40 per cent.

Industry expert Chris Millington, the managing director of mobile phone company Doro, said: ‘My first reaction is: ‘Wow! The mobile industry is capable of such incredible change.

‘This means Microsoft will now have the platform to deliver its mobile strategy. For business users specifically, this really does signal a significant opportunity – especially for Nokia’s smartphone offering.’

Read more: http://www.dailymail.co.uk/sciencetech/article-2409585/Microsoft-buys-Nokia-7-2billion-deal-attempt-edge-Apple-phone-tablet-market.html#ixzz2dvUjCfDq
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Ikea's 3D furniture app: first look

Maria Fitzpatrick gets an exclusive first try of an augmented reality app that's set to revolutionise the way we shop for furniture. 

Try before you buy: the new app allows you to place 3D virtual images of furniture in your own home using a tablet or mobile

There is a bright green chair in my living room. I didn't buy it, nor did my husband – and no one else has a key to our house. It just appeared. This morning there was a new chest of drawers upstairs, and an industrial-style, folding chair in the kitchen. Now they've disappeared.

I haven't taken leave of my senses, but I am seeing things. The 'chair' isn't real; it has been projected into the room using exciting digital technology, called 'augmented reality', which allows you to look at things that aren't there. This is interiors shopping for the smartphone generation, and I'm simply trying before I buy.

I'm using a new, free app, developed by Ikea (available from from the Apple Appstore/Google Play from Monday), on my phone, to virtually 'place' items from its catalogue around the room, and to figure out if they're the right size, fit, colour and style, before committing to purchase.


So what jiggery-pokery are we dealing with here? The term augmented reality (AR) essentially means combining the 'real' and the 'virtual'. It can superimpose computer-generated 3D images on top of a real image (the room in your house), using the camera on your mobile phone or tablet – meaning that the real and the digital objects 'interact' on the screen.

"The technology has been around for a long time, but it has lacked a commercial direction," explains James Dearsley, an independent AR consultant. It's now breaking through to the real world, with "all sorts of practical functions", from virtual fitting rooms on clothing websites to interactive travel maps. Estate agents, including Hamptons International and Fine & Country, and luxury developers such as St James, use it for interactive brochures that allow potential buyers to explore virtual properties. "It's not just technology for technology's sake, " Dearsley says.

Ikea started using AR last year, allowing customers to 'scan' items in the catalogue with their phone, to bring up more information (other colours available, matching items) or features that enhance the experience. You like this bench? Here's an arty video of its designer buying coffee in a Stockholm café, and talking about what inspired it.

But they've taken it to a new level this year, to address a common problem. Research has shown that many of us choose furniture in a hasty fashion, and it costs us dear when we buy the wrong-sized items for our rooms. Over 70 per cent don't really know how big their homes are. "Not only are we in the dark about the size of our properties, we get in a muddle about measuring up," says Howard Carter at Ikea, who commissioned the study.

It's a frustration I know well, having moved house this spring and gone through the palaver of returning things that weren't right – the "we need something to put clothes in urgently, the car park is closing, it'll be fine", approach. Storage 'solutions' become ongoing nuisances: a bedroom door that won't close, a chest of drawers that goes into an alcove only with a level of persuasion that scrapes paint off the skirting board. Then there are those pieces that looked great in the shop, or in the heavily styled online picture, but just don't work with the décor in your own room. It's all time and money.

This new app allows you to see the items in your own space, in 3D, at their true scale, with no measuring tape. It is by no means the first of its kind: other high-end AR shopping apps include Decolabs (decolabs.com), which allows you to design and walk around your 'new room', and Sayduck (sayduck.com), with which you can place furniture from a range of brands in your space and share the images on social networks. But, according to James Dearsley, the fact that it's now coming from a household name like Ikea means the technology is going mainstream, and everyone's going to be using it.

It takes patience to get going, but then, if you're prepared to do the whole alan key thing – and have the dexterity – chances are you'll stick at it, and find it an interesting tool.
So, how does it work? You flip through the printed catalogue to find a room set that you like which has a little plus symbol on the page; you hold your phone or tablet over that page, then tap the screen, allowing your camera to scan it. This wasn't working for me at first: you have to hold your mobile device incredibly steady for it to recognise the page, so until I got used to it, I found it easier to use my mobile than my iPad.

An icon pops up that tells you whether the digital "extras" include 3D furniture (other features might be videos, alternative views of the room, the option to mix and match table legs and tops). Then, place your closed catalogue on the spot where you'd like the item to 'appear' in the camera view of your room, and select the piece you like (say, a green chair) from a menu of items that were on the page. The chair springs up, as if in mid-air (it uses the catalogue as a scale indicator) and you lower it, scrolling with two fingers, into place, move it around, or turn it to face a different direction using your thumb and forefingers. (The scale function is compatible with dual-core devices like iPhone 4S, iPhone 5, Samsung S3 and HTC One.)

It's surreal, good fun, and completely hypnotic. I, with my bad back, was carrying wardrobes with one hand. I whisked an armchair around, floating it through the air, like something from Harry Potter, and putting it down wherever I fancied. The colour works in the dining room, check; you could put it in the kitchen if you had a friend chatting to you while you cook, without obstructing the doorway, check. I saved the images on my phone, emailed them to my husband to see what he thought, and casually mentioned that we can fit a daybed in our conservatory. As for the coffee table, the proportions were right, but it was too shiny; I sent it back, without a receipt (click).

But is it an exact science? For instance, how 'true' are the colours of the 3D furniture? I asked Ikea's augmented reality specialists in Sweden. At the moment, it's "as accurate as possible using the technology", but they admit there will be slight variation between the colour of the 'generated' 3D sofa and how the real piece would look with your home lighting. The technology is advancing so fast, though, that limits will fall away in time. Currently, 90 products can be seen in 3D, but this could expand to whole roomsets. And inevitably, other brands will follow.

"Augmented reality addresses the 'unknown' between seeing furniture you like and paying for it," says Mattias Jöngard at Ikea. "It gives you a sense of whether that bed will actually look good next to your grandmother's old chest of drawers, and so it helps you make better decisions."
It certainly gives you more information, narrowing the leap of imagination – and without having to go near the M25. Now, if they can just find a way to sit George Clooney on that green chair in my front room (preferably reading aloud the assembly instructions) I'll be really impressed.

The app is available for iOS and Android.

 

 

LinkedIn to sell $1bn-worth of shares

LinkedIn is to sell an $1bn-worth of shares as the internet company moves to bolster product development and perhaps make more acquisitions. 

 LinkedIn shares, which have more than doubled this year, were down 2.3pc at $240.49 in after-hours trading on Tuesday following its announcement about the secondary share offering.

LinkedIn, a social network for professionals, had roughly $900m in cash and short-term securities at the end of June. The company did not specify when the secondary offering would take place.

The company said it planned to use the proceeds for general corporate purposes, including further expansion of its product development and international expansion.

"We may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement our business, although we have no present commitments or agreements to enter into any acquisitions or investments," LinkedIn said.

The offering would sell roughly 4.2m shares, giving LinkedIn a total of roughly 116m shares outstanding of Class A and Class B stock, according to a prospectus the company filed with the Securities and Exchange Commission.

 

Microsoft to buy Nokia mobile phone unit for £3.2b

Microsoft has acquired Nokia’s mobile division (known as the Devices and Services Business) as well as licensing the company’s patents and committed to license and use Nokia’s mapping services in its own.

Microsoft will pay a mere £3.2 billion for the mobile business with an additional £1.4 billion to cover the cost of licensing Nokia’s patents for ten years with an option to extend the agreement in perpetuity. 32,000 Nokia employees are to join Microsoft as well and power a division that netted Nokia around £13 bn in revenue in 2012.

The NYSE was closed on the 2 September for Labor Day and it will be interesting to see how the market reacts to this acquisition. The transaction is expected to be completed early next year subject to approval by regulatory bodies and Nokia shareholders.

Steve Ballmer, who recently announced that he will be departing in 2014, said in a statement “It’s a bold step into the future – a win-win for employees, shareholders and consumers of both companies”.

We have been mulling the idea of such a deal since May 2011, at a time when Nokia was still a potent force. In early 2012, rumours of a potential acquisition emerged again courtesy of Russian blogger, Eldar Murtazin.

Since then, Nokia has been increasingly reliant on Microsoft after having committed its future and its fortune to Windows Phone; its Lumia range sold 7.4 million unit in the second quarter of 2013.

The finer details of the deal include Stephen Elop returning to its former employee, Microsoft now owning a Symbian platform and being able to use the Nokia brand.

UK IT veteran pledges £1m to The National Museum of Computing

A technology entrepreneur has pledged the largest ever contribution to The National Museum of Computing [TNMOC] in Bletchley Park.

Matt Crotty, a veteran on the UK IT industry, will hand over £1 million to the project with the money being used to refurbish the museum in order for capacity to be increased for both visitors and exhibits.

“My decision to donate has also been motivated by the increasing public awareness of the significance of digital heritage and the role and understanding it can play in inspiring current and future generations to become engineers and computer scientists,” said Crotty, who is also a trustee of the museum.

Crotty’s donation has been pledged on a “matched funding” basis meaning that the museum must find the same amount as Crotty has pledged in order to see the money. With that in mind TNMOC has started a fund-raising campaign and will get a donation from Crotty for everything they raise up to £1 million.

TNMOC is home to the biggest collection of functioning historic computers anywhere on the planet with visitors able to discover the development of computers from the 1940s to the present day. More will be able to be exhibited as a result of the funding and it’s something that will let the museum continue its path as a unique destination.

"Already the Museum is recognised as one of the top computing museums in the world, but we have only just started. This new funding -- the largest single private donation to any organisation on Bletchley Park -- will enable us to unleash amazing potential,” said Tim Reynolds, chairman of trustees at TNMOC.

The museum is situated in the grounds of Bletchley Park, a wartime code-cracking centre, and has, in the past, been saved from extinction by donations from the likes of IBM and PGP.

Today's Tech: IFA 2013 live blog, best Samsung Galaxy Note 3 and Gear smartwatch rumours and Verizon's $130bn Vodafone deal

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American telecoms giant Verizon is set to take full control of its wireless business by reaching an agreement to buy Vodafone's 45 per cent stake. In a short statement, Vodafone said today that talks to sell the company's stake in Verizon Wireless are at an "advanced" stage. The deal will be worth $130 billion (£83 billion) in common stock and cash, the company added. The huge sum will be the third biggest business deal of all time. Despite Vodafone being a British company, controversially, not a penny of tax on the historic sum will be paid in the UK, as the holding company for the firm's US group is registered in the Netherlands. 

BT has today switched off its dial-up Internet service, stating that it is a "legacy product" that is used by a "tiny number of customers". The vast majority of those affected will be able to switch over to broadband which will also be cheaper, the firm said. Around 1,000 of BT's current customers living in the most rural areas will not be able to switch over to broadband, however. These will be given the option of switching over to Plusnet's dial-up service, which is also cheaper than what BT currently offers. "No one is being left without the option of an alternative service," BT said in a statement. Plusnet currently offers a 'narrowband' dial-up connection for remote areas that the UK's broadband network does not reach. According to Ofcom's figures, around 800,000 people still used dial-up to get online in 2010.

BlackBerry could survive as a niche smartphone maker, Bert Nordberg, a member of the BlackBerry board has told the Wall Street Journal. Nordberg also said he believed the company should sell off at least some of its parts and reiterated that the board is still open to an outright sale, as well as any partnership opportunities. He did not give a suggestion as to which parts should be sold off though. Nordberg joined the ailing smartphone maker's board in February and is currently a member of the firm's special committee tasked with exploring "strategic alternatives" that could result in an outright sale. The committee was formed at the start of August, but no word on potential buyers or partners has yet been made public by the firm.

Finally, just before we catch our flights to Germany, we have launched our comprehensive live coverage of IFA 2013. Make sure you follow this page like a hawk, as we'll be updating it with everything that happens as soon as it happens. We promise that what happens in Berlin will not stay in Berlin. On that front, check out our roundup of the best rumours about Samsung's new Galaxy Note 3 phablet and Galaxy Gear smartwatch before they launch this week. 

Read more: http://www.itproportal.com/2013/09/02/todays-tech-ifa-2013-live-blog-best-samsung-galaxy-note-3-and-gear-smartwatch-rumours-and-verizons-130bn-vodafone-deal/#ixzz2dqDAOFX5

ET deals: $600 off Dell XPS One 27 2560×1440 all-in-one with $100 gift card

Most all-in-one PCs could never compete with a full-fledged desktop for us power users. Due to space and cost constraints, they — by necessity — used mid-range parts and maxed out at a 1080p display. Dell’s XPS One 27, launched late last year, changed all of that and now it’s back with the new Haswell chips and a fat discount.
The XPS One 27 is packed with the best gear in just about every hardware category. As its name implies, it sports a 27-inch display that serves up 2560×1440 resolution. This change we can probably just thank Apple for, as its 27-inch iMac pushed AIO PCs to a new level.

There are no low-voltage processors here either; a quad-core Core i7-4770S powers this model with the latest Haswell chip. A massive 16GB of RAM keeps multi-tasking smooth, while a 2TB hard drive with 32GB mSATA SSD cache ensure a responsive system with plenty of storage. Gamers will be left a little wanting with the Nvidia GeForce GT 750M 2GB graphics, but the mid-range GPU will ensure solid performance on the high-res display.

Of course, the XPS wouldn’t be a modern all-in-one PC without multi-touch capability and a unique dual-hinge articulating stand allows you to adjust the monitor for perfect touch orientation.

All the other usual goodies you expect from a modern PC are stuffed into the less than 3-inch thick chassis, including a plethora of USB 3.0 ports, ethernet, webcam, media card reader, and the like. You even have an HDMI input so this gorgeous screen can be used for another device and a Thunderbolt port for next-gen ultra-fast peripherals. You’ll especially love how movies played on the built-in Blu-ray drive will look on the WQHD IPS LCD.

We’ve only seen a handful of discounts on the XPS One 27 in any iteration and this is the first offer we’ve seen on the refreshed Haswell model. With a list price of $2599.99, there’s no doubt this top-tier model is the cream of the premium PC crop. But after a $600 coupon and bonus $100 e-gift card, you’ll find yourself getting a lot of tech for your buck. The final price ends up at $1999.99 and that $100 e-gift card is good for anything sold by Dell.com.

Wal-Mart slashes iPhone 5 and iPad prices

It looks like a regular iPhone 5, but it's half-off at Wal-Mart.

IPhone discounts are typical this time of year, but Wal-Mart's will be tough to beat.

The retail giant said it has slashed the price of the 16 gigabyte iPhone 5 to $98. Wal-Mart (WMT, Fortune 500) had previously offered it for $129 -- still far cheaper than the usual $200 price tag of the iPhone 5. To get the discount, customers will need to sign a new two-year contract with AT&T (T, Fortune 500), Verizon (VZ, Fortune 500) or Sprint (S, Fortune 500). 

Wal-Mart also cut $50 off the price of its 10-inch iPads. The latest iPad with Retina Display now costs $449 and the price of the iPad 2 is $349. The $330 iPad mini did not get a discount.

The price cuts come as Apple (AAPL, Fortune 500) is widely expected to be unveiling a new iPhone and possibly a new iPad on Sept. 10. Retailers often slash prices to clear out inventory ahead of a new product launch. 

RadioShack (RSH) is currently offering a $50 discount on all iPhones, including the iPhone 4S and iPhone 4, and customers don't need to sign a new contract to get the price-cut. T-Mobile (TMUS) is offering the iPhone 5 for $149 with a new two-year payment plan.

And like Wal-Mart, Best Buy (BBY, Fortune 500) is offering $100 off the iPhone 5, but customers need to trade in their old iPhone to get the deal -- not such a bargain when you consider older iPhones are fetching as much as $300 in some channels. 

But Wal-Mart's deal undercuts all of them. 

The retailer also cut the price of the iPhone 4S to $39, down from $89. Most iPhone 4S smartphones sell for $100 with a new contract.

At the same time, Wal-Mart slashed the price of the Samsung Galaxy S4 to $138, a $10 price cut on the Verizon version and a $30 discount on the AT&T edition.

Vodafone nears $130 billion deal with Verizon

British telecom giant Vodafone said Monday that it is in advanced discussions to sell its stake in Verizon Wireless back to America's largest wireless provider.

The deal, valued at $130 billion, would give Verizon 100% control of Verizon Wireless if completed. Vodafone (VOD) currently owns 45% of the venture.

Vodafone cautioned that there is no guarantee that an agreement will be reached, but said that the deal would consist of a mixture of Verizon common stock and cash.

"A further announcement will be made as soon as practicable," the company said in a statement. Verizon declined to comment.

If completed, it will be one of the largest deals in corporate history. Vodafone paid a record $180 billion for Germany's Mannesmann in 2000.

Verizon (VZ, Fortune 500) has expressed desire in controlling all of Verizon Wireless for years, but rumors that such a deal was about to get done have increased over the past few months. 

Verizon Wireless is the most profitable U.S. wireless carrier, and Verizon wants total access to that firehose -- not just 55% of it.

The wireless business is the only reason the company is growing: Landlines are dying, and Verizon has stopped building out its FiOS Internet and television infrastructure.

The British company could use the proceeds to pay down debt. It may also return a substantial portion to shareholders.

Vodafone's possible exit from the U.S. comes as the telecoms group deepens its presence in Europe. In June, Vodafone outbid Liberty Global and paid $10.1 billion to buy German cable operator Kabel Deutschland. That purchase should allow it to continue growing in the German market by cross-selling TV and broadband services to its existing customers.

The deal comes at a time of consolidation for the wireless industry. MetroPCS and T-Mobile (TMUS) recently completed their complex merger, and Softbank bought Sprint (S, Fortune 500) in July.