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Intel Capital, Condé Nast Owner Invest $30 Million in Kno; Intel to Consult on Student Tablet Hardware

Kara Swisher — Fri, 08 Apr 2011 02:17:57 +0000

According to sources close to the situation, Intel Capital and Advance Publications will lead a $30 million investment round in Kno, the high-profile student tablet start-up.

In addition to the funding from its venture capital arm, Intel itself will consult with Kno on its tablet design. Kno, which is getting out of the hardware business, will now focus on its software to manage the devices that are aimed at the college market.

Intel will not manufacture tablets either. Instead, its engineers will consult with Kno on power management, graphics, display, systems integration, which it does for a variety of its customers.

Along with Intel Capital and Advance, current investors will also participate in the round, said sources. But Intel Capital and Advance, the owner of the Condé Nast publishing empire, make up a big part of the funding.

Sources said Intel Capital’s investment is $20 million and Advance and others make up the rest of it.

BoomTown reported in February that the much-funded and high-profile Silicon Valley start-up–aimed at making tablet computers focused at students–was considering selling off the entire hardware part of the business.

Sources said Kno execs have recently decided that the quicker-than-expected uptake in tablet production by a multitude of powerful device makers had made its efforts to package a seamless offering less critical.

Instead, the company will now focus on its robust software and services to offer students on the Apple iPad, as well as upcoming tablets based on Google’s Android mobile operating system and others.

The move is a dramatic shift for the company, which had not shipped significant numbers of the touchscreen device as it has long touted.

In fact, Kno said in November that it would ship a $599 and $899 version of the tablet by the end of the year.

The lower price was for its single-screen device, while the clamshell double-screen version was more expensive.

And, although it has been reported no pre-orders were fulfilled, Kno did indeed ship several hundred of them, built by China’s Foxconn, before stopping doing so earlier this year.

Many have been dubious about Kno’s ambitious hardware efforts.

That’s because marketing a new and complex product like the Kno takes a lot of effort and cash, especially since it is an increasingly competitive market for mobile and portable computing products that includes Apple, Microsoft, Hewlett-Packard, Google, Amazon, Dell and many others.

Before this $30 million, Kno has raised another $46 million in funding to add to an earlier $10 million round.

Sources in February said that the Santa Clara, Calif.-based company considering going back out to raise even more.

Its current backers include prominent venture players like Andreessen Horowitz and First Round Capital, along with angel investors Mike Maples and Ron Conway.

Sources said the shift to deliver textbook and other student-related delivery system would be a better path for all that investment money, since Kno has established a wide range of partnerships with colleges and universities.

In addition, Kno co-founder Osman Rashid has a lot of experience in digital education market. He was also the co-founder of Chegg, the textbook rental business that is reportedly aiming for an IPO soon.

BusinessWeek was first to report that Intel Capital was making the investment in Kno, but the post did not mention Advance’s involvement or that Intel itself was licensing the hardware design business from Kno.

Qualcomm CEO Explains What Happened to Smartbooks

Ina Fried — Thu, 02 Dec 2010 14:30:22 +0000

A year ago, Qualcomm CEO Paul Jacobs was talking a lot about smartbooks.

Today, well, not so much.

For those who have already forgotten what the smartbook even was, the idea was to have a low-cost device that looked a lot like a netbook, but offered far better battery life and instant-on capabilities.

But once Apple released the iPad, everyone started focusing on tablet devices rather than on little notebooks.

“Obviously, tablets are the flavor of the day,” Jacobs said in an interview on Tuesday, ahead of his panel discussion at the Churchill Club.

The good news for Qualcomm, Jacobs said, is that the tablet requirements are basically the same as those for a smartbook.

“We probably did ourselves a little bit of a disservice by using [the term] smartbooks because people then thought notebooks and therefore it was a clamshell form factor,” he said. “We always thought about them not in terms of form factor but in terms of what they did, meaning always on, instant on, always connected, always downloading–the tablet designs that are out are doing that.”

Jacobs said we will probably see some devices with a physical keyboard, but said that next year we’ll continue to see far more slates than clamshells. The same, he notes, is also holding true for the phone.

“Keyboards on smartphones have become less and less evident for most of them,” he said.

For its part, Qualcomm is working on making its processors faster and more power efficient. A dual-core chip, due in the first half of the year, will offer five times as much performance or provide the same oomph as the current chips while using only a quarter as much power.

Since Jacobs has a good view of all the various devices coming to the market, I asked him whether he thinks that a couple of years from now we will still see five or six competing smartphone operating systems.

“A couple years from now I think we will,” he said. “Five to 10 years from now, I think there will probably be some winners and some losers although it’s pretty hard to say who those are going to be because different companies bring different things to the table.”

The carriers will bring some pressure, he said, given they have to provide support and shelf space to all the different operating systems. However, he also said it’s likely that some alternate channels will emerge beyond just sales from the carriers.

“It’s hard to put a time frame on when more consolidation will happen,” he said. “I think right now we are in a period of expansion. You are going to see more stuff….Everybody is chasing [Google] Android and Apple right now, but I think there’s room for a lot of diversity, at least in the near term.”

Kno Prices Its Student Tablets at $599 and $899 to Ship by End of the Year

Kara Swisher — Tue, 09 Nov 2010 05:00:01 +0000

Kno, the high-profile Silicon Valley start-up trying to jump-start a market for tablets focused on students, announced tonight that it will have a limited number available by the end of the year for sale at prices of $599 and $899.

The lower price is for its single-screen device, while the clamshell double-screen version is more expensive.

Kno would not say exactly how many it has ordered for its first tablet production run–the device is being built by China’s Foxconn–but co-founder and CEO Osman Rashid said in an interview earlier today with BoomTown that units would number “in the thousands.”

Rashid said the Kno tablet will initially be aimed at 10 college campuses across the U.S., although he also declined to name them.

“We are going to do online and offline marketing, in a very focused approach,” he said, noting that Kno would be working with some college bookstores too.

Marketing a new and complex product like the Kno will take a lot of effort and cash, especially since it is an increasingly competitive market for mobile and portable computing products that includes Apple, Microsoft, Hewlett-Packard, Google, Amazon, Dell and many others.

Kno recently raised another $46 million in funding to add to a $10 million round, and sources said that the Santa Clara, Calif., company could be back out raising even more early next year.

Its current backers include prominent venture players like Andreessen Horowitz and First Round Capital, along with investors Mike Maples and Ron Conway.

Kno’s Rashid said his company pushed the go button after getting good feedback from students in a beta test, half of whom used the single-screen device and the other half the two screens, along with its related education platform software.

“We found that 85 percent of those using the single screen wanted the dual-screen version and that those using two screens took three times more notes,” said Rashid. “Students said they love the fact that they can write in the textbook itself and it appears the way it needs to be, even in digital form.”

The first Kno will have an aluminum body, and the company will also offer a set of accessories, such as a cover and a stand.

And Kno will watch initial sales carefully. “As a start-up, we want to make sure we are meeting demand, but also that we roll it out in a careful approach,” said Rashid.

Indeed–and it will be interesting to see how that goes for the ambitious and innovative Kno.

Until the results are in, here is the official press release from Kno:

Kno Announces Pricing and Pre-Order Availability for Tablet Textbook; Pays for Itself in 3 Semesters

Delivers Significant Student Impact for Less than 1% the Cost of a 4-Year College Education

Santa Clara, CA–November 9, 2010–Kno, Inc., a powerful, groundbreaking tablet textbook designed specifically for students and the education market, today revealed the price of its 14.1 inch single and dual-screen tablets at $599 and $899, respectively. The company also announced that it is now accepting a limited number of pre-orders for an initial shipment that is expected to be on customers’ doorsteps by the end of the year.

“Kno’s extraordinary benefits represent only a tiny fraction of the overall cost of college, but its impact on the student’s career–and the energy it adds to the experience, the thrill of learning, and the ultimate grade–is dramatic,” said Osman Rashid, Co-Founder and CEO of Kno, Inc. “Even better, when you do the math, it actually pays for itself and still saves $1,300 in digital textbook costs.”

Kno has been beta-testing the product with students and the response has been overwhelmingly positive for both the single and dual screen devices. Far more than just a digital textbook, Kno is creating a powerfully effective new learning environment that will make students at all levels more successful at processing, grasping and retaining both facts and concepts.

“My experience with Kno has been really incredible. My books have become more interactive and the ability to hand-write electronic notes on the book pages themselves has changed how I retain information,” said Melissa Lin, a sophomore majoring in Biology at UC Berkeley that has been beta-testing the Kno tablet. “I see a ton of difference with the Kno. I can carry everything with me including my books, my notebooks and a browser for research. And, with the lower cost of digital textbooks, it will pay for itself in three semesters which is really great.”

Digital textbooks, which typically cost between 30 and 50 percent less than physical textbooks, will be priced separately and will be sold through the Kno bookstore, which will be accessible on every Kno device. Starting today, students will be able to browse Kno’s bookstore at www.kno.com/store/books, which will include tens of thousands of the most popular textbooks and supplement materials. Kno has previously announced that it is working with major textbook publishers including Cengage, McGraw Hill and Pearson. The company recently added publishers including Macmillan, Bedford, Freeman & Worth and Holtzbrinck as well as BarCharts Publishing, Kaplan, Random House and a large number of the University Presses.

“According to the not-for-profit College Board’s 2010 report, the average college student spends approximately $1,100 a year on book and supplies,” said Babur Habib, CTO and Co-Founder of Kno, Inc. “Kno can reduce that cost while bringing education into the 21st Century, providing students with a far superior learning experience than they have today.”

To learn more about Kno, please visit the Kno blog at http://blog.kno.com or visit us on Facebook www.facebook.com/GoodtoKNO, Twitter www.twitter.com/GoodtoKNO and YouTube www.youtube.com/GoodtoKNO.

Kno to Also Make a Single-Screen Tablet Textbook

Kara Swisher — Mon, 27 Sep 2010 17:40:50 +0000

Kno, the start-up that is creating a digital tablet for students, said it is also planning on releasing a single-screen version.

The company–which was started by the founder of Chegg, the online textbook rental service–had debuted a double-screen tablet (pictured here) at the eighth D: All Things Digital conference in June.

The current clamshell device has a pair of touchscreens that open and shut like a book, and Kno will offer an online store linked to the tablet for the purchase of materials.

Some felt the double-screened device might be too cumbersome, given the plethora of tablets in a variety of sizes that are being planned and released soon, all influenced by the popular Apple (AAPL) iPad.

Kno said its single-screen tablet will be smaller and sold at a lower price point, but will be shipped at the same time as the original double-screen, by the end of the year.

The company will be announcing pricing and ship dates soon.

When it does, Kno will be headed right into a competitive and increasingly innovative tablet market that now also includes Amazon (AMZN), Samsung, Dell (DELL), Hewlett-Packard (HPQ) and Google (GOOG).

Kno is certainly girding for battle in this portable arena. It nabbed an additional $46 million in venture funding from a panoply of Silicon Valley bigs earlier this month.

The Santa Clara, Calif.-based Kno previously raised almost $10 million in funding from prominent venture players like Andreessen Horowitz and First Round Capital, along with investors Mike Maples and Ron Conway.

In addition, well-known techie Marc Andreessen is now on Kno’s board.

Here is the video of a prototype of the double-screen Kno in action at D8:

[ See post to watch video ]

Want to see it bigger? Click here.

And here is the official press release from Kno:

Kno Breaks New Ground with the World’s First
Single Screen Tablet Textbook

Kno Continues the Pace of Innovation in Integrated Learning with a Smaller Version of the Kno

San Francisco, CA–September 27, 2010–Kno, Inc., the groundbreaking tablet textbook and dynamic learning platform, today announced its further commitment to the education market with a single screen version of its tablet textbook. The single screen version extends the breakthroughs and functionality of the dual screen version announced in June.

“Kno fundamentally improves the way students learn,” said Osman Rashid, the CEO and Co-Founder of Kno, Inc. “We are driven to innovate in a category that has been static for too long. Even though the Kno pays for itself in 13 months, the smaller up front investment of the single screen version will allow more students to use our learning platform.”

Kno, short for knowledge, is a transformative learning platform that blends a touch-screen tablet, digital textbooks, course materials, note-taking, web access, educational applications, digital media, sharing and more into a powerful and engaging educational experience that is not available on any other tablet or eReader today.

“From day one, we designed the Kno with flexibility in mind,” said Babur Habib, CTO and Co-Founder of Kno, Inc. “We developed the product to have multiple configurations and meet different student needs. The single screen maintains the elegance of our fluid, intuitive interface while capturing the richness and ‘page fidelity’ of the original textbook.”

The company plans to ship both the single and two-screen tablet textbooks to consumers by the end of 2010. Pricing and pre-order announcements will be made in the coming months.

Here's What VCs Get for $46 Million: The Kno Tablet D8 Demo

Kara Swisher — Wed, 08 Sep 2010 14:55:13 +0000

Today, Kno, a start-up that is taking on the textbook by replacing it with a tablet aimed at students, nabbed another $46 million in venture funding from a panoply of Silicon Valley bigs.

And what are those moneybags getting for their dough?

Well, here’s the demo for Kno, which debuted at the eighth D: All Things Digital conference in June.

The clamshell device has a pair of touchscreens that open and shut like a book, and Kno will offer an online store linked to the tablet for the purchase of materials.

In fact, Kno shares a co-founder with Chegg, the online textbook-rental service.

That would be Osman Rashid–and you can pretty much draw a straight line from Chegg to Kno.

But rather than focusing on making an old business better via the Web, as Chegg does, Kno will be headed right into the competitive tablet market that now includes Amazon (AMZN), Apple (AAPL), Samsung, Dell (DELL), Hewlett-Packard (HPQ) and, reportedly, Google (GOOG).

The Santa Clara, Calif.-based Kno has previously raised almost $10 million in funding from prominent venture players like Andreessen Horowitz and First Round Capital, along with investors Mike Maples and Ron Conway.

In addition, Marc Andreessen is now on Kno’s board.

Andreessen Horowitz is upping the ante this new round too, as you can read in the press release below.

Kno Funding FINAL FINAL Release

And, here is the full demo video for Kno at D8:

[ See post to watch video ]

(Want to see it bigger? Click here.)

Full D8 Demo Video: Kno

Kara Swisher — Mon, 02 Aug 2010 16:59:58 +0000

As promised, All Things Digital is posting the full videos from our eighth D: All Things Digital conference, held in early June.

Here’s the demo for Kno, a start-up that is taking on the textbook by replacing it with a tablet aimed at students.

The clamshell device has a pair of touchscreens that open and shut like a book and Kno will offer an online store linked to Kno for the purchase of materials. Kno shares a co-founder with Chegg, the online textbook rental service.

[ See post to watch video ]

Want to see it bigger? Click here.

Note: We’ll be posting full D8 videos on Mondays and Thursdays. Next up: The demo for Dell Streak.

RIM Product Line More FrankenBerry Than CrackBerry

John Paczkowski — Fri, 26 Jun 2009 18:00:53 +0000

With the Palm Pre and iPhone 3GS in stores and the myTouch 3G, T-Mobile’s second Google (GOOG) Android phone, headed to market, is the Research in Motion (RIMM) product lineup beginning to look a bit dated? Which leads to another question: Has RIM’s success made it too complacent?

GC Research analyst Tero Kuittinen believes it has. In a research note Friday, Kuittinen described the company’s Blackberry product range as “shopworn,” noting that even the new Blackberry Tour is quite close to the aging Curve in look and feel.

“We are concerned about the autumn and winter Blackberry product range–RIM seems to have made a deliberate decision to rely on incremental improvements in mid-range and low-end models instead of bringing advanced features aggressively to cheaper devices,” Kuittinen writes. “Considering how competitive the smartphone market is getting, we believe this cautious approach may begin backfiring in the autumn and particularly during the Christmas season.”

Kuittinen goes on to question the logic of the company’s new flip phone initiative, wondering why the company is rolling out its 8230 clamshell at a time when consumers are so enamored with large display devices like Apple’s (AAPL) iPhone and the new Palm (PALM) Pre. And that’s a great question because, well, the contract phone bestseller lists at most carriers aren’t exactly overrun with clamshells these days, are they?

“Overall, RIMM’s expansion to flip phones is ill-timed, and the Tour line lacks kick and the low-end improvements are minor at best,” Kuittinen concludes. “It is the combination of these three simultaneous factors that leads us to believe RIMM may have become lulled into complacency by the stellar success of the Blackberry devices over the past couple of years. The year 2009 is a tough period to let your product development program spin its wheels.”

Hard to disagree with that assessment given the handset launches we’ve seen so far this year. But perhaps the Storm 2 will prove Kuittinen wrong on that account. Perhaps it will even raise the bar a little. But even if it does, will that be enough to invigorate the entire product line? Kuittinen doubts it. “One major big-display phone launch, in our opinion, may not fully offset the slight malaise afflicting the rest of the Blackberry range in the autumn,” he concludes.

Below, our D7 Interview with RIM CEO Mike Lazaridis.

[ See post to watch video ]

New BlackBerry Offers Versatility in Flip Form

Katherine Boehret — Wed, 15 Oct 2008 00:18:02 +0000

Smartphones are masters of multitasking. They email, browse the Web, instant message, take pictures, run applications or play videos and music. So it’s easy to forget how uncomfortable they are to use as phones. Most are rectangular slabs that are awkward to hold against the ear, causing many smartphone users to also carry a basic cellphone just for calls.

At least one smartphone manufacturer is doing something about this. This week, Research In Motion (RIMM) introduced the BlackBerry Pearl Flip 8220, available for $150 with a two-year contract from T-Mobile (DT). This device is the first BlackBerry in a flip phone, or clamshell, form. Like RIM’s mainstream, candy-bar-shaped BlackBerry Pearl, the Flip uses a SureType keyboard, which has condensed keys and relies on predictive text software.

The Pearl Flip uses a SureType keyboard, which takes up less space.

After using the Pearl Flip for a week, I’ve found it to be a stylish messaging device that works well as a comfortable phone. I really liked its exterior screen, which is designed to show previews of incoming messages, saving people the trouble of flipping open the device. It runs on T-Mobile’s slow EDGE network, but has built-in Wi-Fi and the ability to automatically connect to saved, nearby wireless networks.

First-time smartphone buyers will likely find the Pearl Flip to be a good fit. When it flips open, a special hinge drops the top half of the device slightly behind the bottom half, and a handy trackball makes navigation easy. The Flip’s Web browser enables streaming videos that look sharp on its interior screen, and a microSD card slot supports up to 16 gigabytes of memory.

But current BlackBerry owners who want to switch to a device with a more comfortable phone may have trouble adjusting to the Pearl Flip’s SureType keyboard — especially if they’re used to a device with a full QWERTY keyboard. Though the Pearl Flip’s keyboard is a generous size and its keys are flat and easy to press, its SureType design assigns two letters to almost every key, which can be frustrating to use when predictive text guesses a different word than that which is intended.

The Pearl Flip 8220 is RIM’s first flip phone BlackBerry.

The Pearl Flip supports T-Mobile’s Unlimited HotSpot Calling, a service that doesn’t use any minutes on phone calls begun in Wi-Fi zones. Even if a user leaves the Wi-Fi zone in which he or she started a phone conversation, the call passes over to the T-Mobile cellular network without dropping out. This service costs $10 monthly in addition to regular service charges.

When I made calls on the Pearl Flip, friends on the other line noted how crisp and clear our connection sounded. And best of all, the Pearl Flip’s long, clamshell profile was easy to hold and fit snugly and comfortably between my ear and shoulder when I needed two hands to carry things.

BlackBerry’s signature red light blinks in this device’s top corner to indicate new messages. The 1.6-inch exterior screen displays about 25 words (give or take) from newly received emails, instant messages, SMS, MMS, calendar notifications and task reminders. If a message is received from a contact to whom a photo is assigned, that photo also shows up on the external screen to identify the sender. Side buttons let users scroll up or down through these previews.

This display is designed so that the same message being previewed externally will appear on the internal screen as soon as the Pearl Flip is opened. This makes sense because people will want to reply to some emails or read their entire contents after seeing a short preview. But my device didn’t do this at first; instead, the internal screen seemed completely unrelated to the external screen. I finally got this feature to work after my external screen froze and I rebooted the Pearl Flip. RIM said it hadn’t seen this behavior before, and wasn’t sure what had caused it.

The interior screen measures 2.4 inches diagonally and has a resolution of 240×320 pixels, which is a larger, higher resolution screen than most basic cellphones. While using Wi-Fi, I pulled up YouTube.com and watched a video. It played without skipping or stopping while streaming directly from the Web. A higher-resolution video, which was saved to my device, automatically played in horizontal mode so as to take up the entire screen; YouTube videos play vertically, without using the full screen.

Up to 10 email accounts can be set up on the Pearl Flip; I had no problems using Hotmail, .Mac and Gmail accounts. I also signed into AOL Instant Messenger and Google Talk on the Pearl Flip. Along with these messaging programs, ICQ, Windows Live Messenger, Yahoo Messenger and BlackBerry Messenger also come pre-installed and ready to use.

If my Pearl Flip was closed and I remained signed into an instant-messaging client, notifications appeared on the external screen telling me who was sending an IM and what it said. When I opened the device, I was automatically directed to the screen where I could reply to the instant message.

I tested the T-Mobile Unlimited HotSpot Calling feature by starting calls using a Wi-Fi network and then leaving the network’s range. The calls remained steady without dropping or fading, and if I were a paying customer, I wouldn’t have been charged minutes for those calls. Calls that start out of Wi-Fi zones and end in Wi-Fi zones do deduct minutes. My Pearl Flip had no trouble automatically moving from the cellular network to a Wi-Fi network.

All T-Mobile Wi-Fi hotspots, such as at airports or in Starbucks (SBUX), automatically work with the Pearl Flip if you’re registered for the $10 monthly Unlimited Hotspot Calling.

If you’re considering taking the plunge into the always-connected world of smartphones, or if you want a more comfortable phone in your smartphone and don’t mind the quirks of SureType, the Pearl Flip 8220 may be the BlackBerry for you.

– Edited by Walter S. Mossberg

Email us at mossbergsolution@wsj.com. Find this and other columns and videos online free at the All Things Digital Web site: http://walt.allthingsd.com