Data from the popular photo-sharing service shows the number of mobile photo app users who use the apps at least once a day doubled to 42 percent, up from 20 percent midyear in 2011.

Meanwhile, only 64 percent reported using digital cameras to capture the majority of their images throughout the season, down from 82 percent a year ago.

Anecdotally, this means more bad news for camera makers, as they become increasingly threatened by smartphones with decent image-taking capabilities.

The Photobucket report also points out that pets were, shall we say, very present in this year’s holiday cards. Some 41 percent of respondents used an image for their holiday cards; among pet owners, 58 percent included Fido/Rudolph in the photo.

The surge in smartphone use didn’t apply to just pictures: Capturing videos on mobile devices also saw a jump during the holidays. A full 80 percent of survey respondents took video using a mobile device at least once throughout the season, up from 59 percent in Photobucket’s summer sampling, while 50 percent of respondents used a mobile device to record video daily or multiple times a day.

While already-avid users of mobile photo apps increased their usage this past holiday season, a substantial 43 percent of respondents indicated they have yet to try a mobile app for taking photos.

Photobucket says it gathered responses from more than 2,200 survey participants, and culled data from Photobucket’s more than nine billion image uploads for the report.

(Photo courtesy of HollyLovesArt/Flickr)

According to NPD data released today, about $6.7 billion, or 40 percent of consumer retail spending, was spent on the Xbox, breaking down into two categories: $2.1 billion on consoles and $4.6 billion on games.

The figures take into account U.S. retail sales of new physical videogame content, including portable and console hardware, games and accessories.

In all, those sectors generated revenue of $17.02 billion in 2011, an 8 percent decline over the $18.6 billion generated last year. (Yes, I repeat, Microsoft got 40 percent of that in 2011.)

The initial report does not take into account sales from digital formats such as downloadable content on the console, social and mobile games, or other categories, including used and rentals.

Those so-called “newer” categories generated $7.24 billion in revenues last year, an increase of 7 percent over the prior year.

The increase in spending on alternative formats, however, wasn’t enough to offset declines in physical retail. All told, consumer spending across both categories totaled between $16.3 billion and $16.6 billion, falling 2 percent over last year.

Separating physical and digital sales is quickly becoming an outdated concept, since the two are so intertwined. Consumers have the choice of purchasing many of the games over the Internet via a digital download versus buying them at Wal-Mart or Target.

NPD acknowledged today that it needs “deeper visibility” into digital distribution to get a complete picture of the industry, which will be its focus in 2012.

Still, the report can still be used as a litmus test to see what is performing well.

Overall, a surprisingly disappointing December is what dragged down results for the whole year, NPD discovered.

“Because of the great slate of content that came to market during the fourth quarter, I had expected December sales to represent a larger portion of total year sales than what occurred,” said NPD Group analyst Anita Frazier, in a release.

Frazier added that December sales accounted for just 23 percent of the annual total, compared to the past 10 years, when December, on average, represented 28 percent of the total.

In addition to Microsoft’s Xbox, Sony’s PlayStation also performed well, with both witnessing a 5 percent increase across all game categories for 2011. Meanwhile, the Nintendo Wii, which cannot display HD content, saw a decline year over year.

In a separate statement, Microsoft said that it outsold the PlayStation, the second-place console, by 2.7 million units, and that in all, it has now sold 66 million Xboxes and 18 million Kinect accessories. On a global basis, Sony said in a statement that it sold more than 6.5 million units worldwide this holiday season.

Here are the Top 10 best-selling games in December, according to NPD:

1. Call of Duty: Modern Warfare 3 by Activision Blizzard
2. Just Dance 3 by Ubisoft
3. Elder Scrolls V: Skyrim by Bethesda Softworks
4. Mario Kart 7 for 3DS by Nintendo
5. Battlefield 3 by Electronic Arts
6. Madden NFL by Electronic Arts
7. Assassin’s Creed: Revelations by Ubisoft
8. NBA 2k12 by Take Two Interactive
9. Super Mario 3D Land for 3DS by Nintendo
10. Batman: Arkham City by Warner Bros. Interactive

The company’s stock dipped below $9 a share, and by midday, shares had fallen 29 cents to $8.90, nearing its all-time low of $8.75 a share.

Just last month, the largest social games company successfully sold 100 million shares at $10 apiece to raise $1 billion. On its second day of trading, the company’s stock  sank to what for now is its low before settling at $9.02 a share.

Since then, it has been trading fairly consistently, and there was no obvious explanation for today’s sell-off.

If anything the stock should be pushing higher on the release of its latest games. Typically, more games translates to more revenue for the company, which is focused on selling virtual goods in the free-to-play model.

This morning, Zynga announced its newest mobile game, a spinoff from its ultra-popular Words With Friends franchise. The game, called Scramble With Friends, challenges players to connect letters to spell as many words as possible before the clock runs out.

The game closely follows yesterday’s launch of Hidden Chronicles, which is the company’s first Facebook game in the popular “hidden objects” category, where players are challenged to find a number of items within a scattered and cluttered scene.

Still, Wall Street apparently isn’t impressed.

Based on intraday trading, the company’s market valuation dropped to $6.2 billion, about two-thirds of its IPO valuation of $10 billion.

Zynga isn’t the only stock market newbie trading lower today.

Groupon, the other hot Internet IPO of 2011, also sank. The company’s shares were down 90 cents, or almost 5 percent, to trade at $17.89.

Confidence in the stock was still reeling from two reports released this week. One surveyed merchants to find out how satisfied they were after running a deal. The other reported that revenues in November were weaker than expected across the entire daily deals industry.

The drop-off in players affected almost all developers, but did not hit all titles equally.

For example, Electronic Arts saw 1.2 million fewer monthly users over the past week for its top title The Sims Social; Zynga’s Empire & Allies game lost one million monthly users, and its newest game, CastleVille, lost 900,000, according to AppData, which publishes such information.

On the flip side, many of the games that performed well were old favorites; these logically would have longer-term, more-committed players, who would make a point of returning during the holidays to take advantage of seasonal promotions.

The games that benefited from the holidays include Zynga’s Words With Friends and FarmVille, which gained 1.3 million and 800,000 monthly active users, respectively, according to Inside Social Games. Other gainers rounding out the Top 5 were Tetris Online’s Tetris Battle; Wooga’s kingdom-building game, Magic Land; and Men vs. Women, a role-playing game by Social Point.

Still, the general direction for the week was heading down.

That contrasts with other game platforms, such as consoles, PCs and mobile, which largely benefit from the holidays and from more free time in general.

Console games often skyrocket in popularity as kids and adults unwrap new titles for Nintendo, Xbox or PlayStation on Christmas morning.

PC gaming also typically surges during the season. EA timed the launch of Star Wars: The Old Republic ahead of the holidays, in hopes of drawing new players who would be sold on sticking around for months, after spending time on the game during their time off.

But perhaps the biggest competitor came from mobile, which benefited from breaking records for the number of new Android and iOS devices that were gifted during the holidays. Flurry reported that more than one billion apps were downloaded worldwide during the last seven days of 2011, breaking the all-time weekly record. Games are often one of the most-downloaded categories of apps.

So the more important question to ask is, why would Facebook be an exception, if other platforms performed well?

Clearly, all of the platforms are competing for a limited number of minutes in the day, and so are other forms of media, like the Internet, TV and the movies. But when it comes to Facebook, a larger driver may be the environment — after all, it’s no big secret that a lot of social networking and social gaming is done in the workplace.

In a study conducted last summer, advertising agency Saatchi & Saatchi found that 47 percent of respondents said they play social games at work during a typical day, and that 28 percent play for at least 30 minutes. Without that dedicated time in front of the computer every day, people may have had the opportunity to be more obsessed with other screens, such as phones or TVs.

Another potential reason that Facebook and social games did not see a lift from the holidays is because they have not yet figured out how to capitalize on the Christmas economy.

For years, console games have been timed with the end of the year, so they could be wrapped up and placed under the tree. More recently, smartphones and gift cards for music and apps have helped mobile prosper. Perhaps there wasn’t enough hype and promotion for social games to compete for people’s dollars.

Regardless of the reasons, the drop may ultimately be a small a blip on the radar screen for most game developers, who also see several spikes in activity during the year.

The bigger impact may be felt at Facebook, which takes a 30 percent cut of all virtual goods sold inside social games, and would feel the cumulative impact across all of the games.

The list is based on my own taste, and in no particular order, so feel free to share the ones that made you snicker the most.

Admittedly, they are much more bearable to watch now that the holidays are over and they no longer serve as a reminder for all of the things you have left to do.

So, sit back and enjoy!

Wal-Mart makes fun of the ugly Christmas sweater:

Target gets you into shape for fighting the crowds in its Black Friday commercial:

Apple, which was one of the biggest retail winners this holiday, demonstrated how Santa would use Siri:

EBay showed how its mobile application could avoid awkward gifting:

Best Buy fueled people’s competitive spirit in a game of Mom versus Santa:

And, finally, Amazon says it’s better to receive than give:

The application, called Shopycat, makes product recommendations based on the items people have liked or talked about in their news feed.

It is not particularly flashy. The logo is a picture of a cat sticking its head out of a shopping bag. The tagline reads “the right gift every time.” But the app’s rudimentary design fits nicely with the experimental nature of social commerce. Retailers are just starting to figure out ways to leverage social networks. Wal-Mart is no exception.

Wal-Mart promises that while it looks simple, the technology running behind the scenes is more complex than you might imagine.

The product was built by @WalmartLabs, which was created after Wal-Mart acquired Kosmix, a Bay Area start-up that was tracking social networks to determine people’s interests.

Venky Harinarayan, founder of Kosmix and co-founder of @WalmartLabs, said developing the application was surprisingly difficult. First, they had to find the relevant information on a person’s Facebook page. Then, they had to find products that best matched those interests.

For example, if someone likes Lady Gaga, the most obvious product to recommend is her albums. But a fan would likely already own those. A better gift is something more special — a collector’s item or a limited edition. That’s a more complex problem.

Since gifting is a practice humans naturally struggle with, maybe algorithms can do a better job.

After using Shopycat, Harinarayan learned his wife was a fan of “Game of Thrones,” the TV series on HBO. She has posted several times on Facebook about the show, but he hadn’t noticed. “Facebook is so transient and things flow by. Here’s a way to aggregate it all and put it in one place,” he said.

The technology also sometimes fails. When Harinarayan viewed gift ideas for me, it recommended a number of Sony products. Months earlier, I liked Sony’s fan page in order to gather information for a story — not because of any deep admiration I had for the company’s products. An algorithm would have a hard time knowing that.

“I think it’s a good first pass,” Harinarayan admits. “But there’s areas we should get better at. Right now, it is our goal to give one good gift idea per person. If we do that, then we are successful.”

The application is available to Wal-Mart’s 10 million fans on Facebook if they give permission to install it.

Harinarayan said Shopycat is the mega-retailer’s first foray into using social and promises that more is coming soon, including social experiences in the store and on its Web site.

The capital represents the company’s first round, led by Comcast Ventures. Participants in the company’s seed round, totaling $1.3 million, also chipped in, including BlackBerry Partners Fund and El Dorado Ventures.

Padopolis’ co-founder and CEO, Joaquín Ruiz, said the latest version of the application will come out next week, right in time for the holidays.

Improvements include realistic page turns and the ability to mark up content. ”People wanted it to feel like paper while retaining the vivid imagery,” he said. “The little things add up to a lot.”

The new release is not only timed with Black Friday — which is the day after Thanksgiving and is counted as one of the busiest shopping days of the year — but also with something he’s calling “Sofa Sunday.”

“I know when people shop. I know when they are looking. … After you are exhausted with your Black Friday experience, you’ll relax and regroup on Sofa Sunday,” he said.

Padopolis is currently registering millions of page views on the weekends, when the average consumer spends 30 minutes flipping through catalogs. The amount of time increases the farther the users are from stores. If they are more than 100 miles outside of a major city, for example, he says the average kicks up to an hour and 20 minutes per session.

For women between the ages of 25 and 55, he calls it entertainment and relaxation.

“This is not a search, find and buy experience. It’s more about shopping, engaging and discovering,” he said.

Since raising the seed round earlier this year, the company has grown from seven retailers to more than 100, and from three employees to more than a dozen. It has also leased official offices in Los Altos, Calif.

One downside is that it’s also attracted fierce competitors, all angling for a piece of the $100 billion annual business in the U.S. Last year, roughly 20 billion catalogs were mailed, jumping from 18 billion two years ago, and now they are all betting those will go digital.

The biggest name to throw its hat in the ring is Google. It entered the arena in August, leveraging partnerships it had with retailers from its search engine to build an iPad app. TheFind, a six-year-old online shopping comparison site, launched the Catalogue app in May, and Coffee Table updated its app this week with more than 30 catalogs.

“I’m flattered that there’s three to four or five that are mimicking us,” Ruiz said. “It would be more daunting if we were the only ones out there. By this time next year, there will be at most three of us in the space and most likely only two because we’ll have had so much content and aggregation.”

The new funding will be used for growing the marketing and engineering teams at the company. Recently, the company added Claudia Carpenter, VP of user experience, who was a founder of Writely (which was acquired by Google), and Lee Bieber, VP of engineering and operations, who previously was at Rackspace, Intuit and Sun Microsystems.

A year later, Microsoft is hoping a large lineup of games — 75 in all – will fuel a repeat performance.

And, if more sports and dance games won’t work, then it’s also integrating the speech- and motion-controlled Kinect capabilities into all aspects of the Xbox to seal the deal.

“It’s not just something for videogames. It’s something that will have a fundamental change in how people interact with technology,” said David Dennis, group product manager of Microsoft’s Interactive Entertainment Business.

Dennis declined to provide an update on how many Kinect sensors the company has sold since last season. To be sure, it has a long way to go to a majority of owners having it.

More than 55 million of the latest Xboxes have been sold to date, compared to the 10 million sensors sold, based on last year’s sales figures.

But he said the 75 new Kinect games available for the Xbox coming out this holiday are four times the number of games that came out for the launch last year.

Sony’s PlayStation Move, which it says has sold eight million devices, expects to launch a third of the titles, or 26, between September and December this year.

Tony Key, SVP of Sales & Marketing at Ubisoft, says its company has a dozen games, especially made for the Kinect, coming out this holiday.

“We are big believers and we’ve had a lot of success on it. We are going to continue to invest in the space, and it’s a great way to broaden the market,” he said. “Motion-controlled this year will sell more than last year. Kinect has a bright future. We have more Kinect games and a higher forecast on Kinect games.”

The range of games has expanded vastly beyond the dance, fitness and sports genres that launched last year. However, in general, the games still tend to still be more family-friendly and casual and aren’t meant for the hardcore demographic.

“It was about breaking down the barriers and making it easier to play. The games we launched with fundamentally and absolutely exploited the magic of Kinect,” Dennis said.

But that’s slowly changing. For example, some of Ubisoft’s titles — such as Just Dance 3, Just Dance Kids 2 and Your Shape Fitness Evolved — follow the status quo, but the publisher is bringing Kinect aspects to all future Tom Clancy games, including Ghost Recon Future Soldier, which comes out early next year.

In the game, players use hand gestures to customize weapons and voice controls to choose different attachments.

Dennis said there are many more examples of games that have Kinect features that aren’t necessarily Kinect-only games.

For instance, in Forza Motorsport 4, a racing game, players can look to their left to see a competitor’s car out the driver’s side window. Electronic Art’s Mass Effect 3, coming out next year, will allow players during battle to use voice controls to talk to their squad mates, including something like, “take cover on the left!”

More broadly, Kinect is also being integrated into all aspects of entertainment on the Xbox, including the ability to use Bing to search the music, games and video catalog on Xbox Live, or control Netflix.

In Xbox’s latest Kinect commercial it illustrates how Kinect has everything to do with it being a replacement for a remote control, and never even shows anyone playing a game.

Here’s a video showing off Ubisoft’s Tom Clancy’s Ghost Recon’s GunSmith feature:

Both applications will enable consumers to shop online or see what’s available locally. Orders can be shipped or picked up.

The apps are being released ahead of the end-of-the-year shopping frenzy, which many retailers are hoping will be one of the busiest mobile commerce events ever.

“As customers use more smartphones and tablets, the Wal-Mart customer is doing the same thing,” said Gibu Thomas, the company’s SVP of mobile and digital.

That’s true, and it’s scary for big retailers. Increasingly, consumers are scanning barcodes to get reviews and compare prices before deciding whether to make a purchase or go somewhere else.

Thomas said the apps are not a defensive move against this trend, but rather a way to give consumers what they want. ”We want to know how we can help our customers shop better with us, which will make them shop more with us,” he argued.

Wal-Mart’s first iPad app launched about a week ago.

It lets people browse inventory in their local store, while also seeing what else is available online. Instead of duplicating the online experience, they’ve created categories. For instance, in the home section, shoppers will browse a catalog-like experience, where they’ll see pots and pans, stereo speakers and outdoor fireplaces without any additional information.

To see prices or more details, a user will have to choose an item.

The major new feature of the iPhone application, which originally launched more than a year ago, will be a shopping list with integrated voice dictation using Nuance’s speech recognition, and discounts through a partnership with Coupons.com.

The app will be available as soon as it receives Apple’s approval.

This app gets pretty close to what many companies have been describing as mobile commerce — minus near field communication that would allow users to tap and pay. And, at Wal-Mart’s scale, this is truly something for the mass market.

Thomas said 90 percent of consumers who come to a Wal-Mart store on a weekly basis come with a shopping list.

The iPhone shopping list feature will allow people to enter items manually using predictive text. Type “cheddar,” and you’ll see a number of cheese brands and the price of each item.

Consumers will also be able to enter items using their voice. When Thomas demonstrated it to me, the app was fairly accurate. It recognized orange juice and sour cream as one item each, but Campbell’s soup came up as two.

Because the real price is listed, budget-conscious shoppers can decide how much to pay for groceries before even getting to the store. Coupons from Coupons.com will also be integrated into the shopping experience. You might type in “yogurt,” but decide on Yoplait for the discount.

For some stores, Wal-Mart has given consumers the ability to find out what aisle the items are in from the phone. That capability will roll out to more stores as it comes out of beta. Eventually, the information could be overlaid on a map to show the most efficient route for getting all of your items.

Thomas also said the company anticipates being able to store shoppers’ receipts electronically, so that items purchased will be uploaded to an individual’s device, making it easier to create shopping lists in the future.

“We think of your mobile phone as your loyalty card. We don’t have cards but we think of it in the sense that you can use your phone to surface real-time discounts,” he said.

The applications were built by @WalMartLabs in Silicon Valley, which serves as the technology hub for the Bentonville, Ark.-based retailer.

EBay has already seen a ton of traffic from mobile phone usage, and is expecting even more this holiday season.

During the company’s third-quarter conference call today, eBay said its mobile applications have been downloaded more than 50 million times and that three purchases are being made every second.

“I think you’ll see a mobile commerce Christmas, which is on the way to a completely blended commerce world,” said eBay’s CEO John Donahoe in an interview following the call. “You’ll see more change in the next three years than you’ve seen in the past 15.”

[More details on the company's Q3 results here.]

The mobile shopping trend is being driven in part by adoption.

Smartphones continue to pour into the mainstream, and last Christmas, the dominant tablet, the iPad, was only eight months old. This year, millions more consumers will be using them to shop while sitting on the couch in front of the TV.

Last quarter, eBay started airing TV commercials — its first in the past couple of years — to promote its mobile applications.

Donahoe said the amount of tablet usage that’s happening in front of the TV is not trivial. “It gets to your multi-screen world. The laptop, the smartphone, the tablet or your TV, or even the store. Consumers are accessing all of those as they shop.”

Almost every quarter this year, eBay has upped its estimates for how well its mobile businesses will do.

Last year, eBay reported $2 million in commerce and expected to double that this year. PayPal’s mobile revenues totaled $700 million in 2010 and were intially expected to triple. Now, eBay is on pace to hit $5 billion in mobile commerce merchandise volume this year, and PayPal mobile is expected to exceed $3.5 billion.

Additionally, PayPal will conduct its first mobile payments pilot with a retailer by the end of the year, and any revenue from that is not being taken into account in terms of the company’s long-term projections.

Experian CheetahMail client data indicates that as part of the retail push, marketers will be sending coupons and offering deep discounts, such as 10 percent off or free shipping, as the shopping frenzy ramps up.

Email has proven to be a very effective channel, especially for new local commerce providers, such as Groupon and LivingSocial, and flash sales sites, such as Gilt Groupe, Rue La La or ideeli. But already some critics are using the words “deal fatigue” to signal that consumers are growing tired of seeing offers in their inbox.

While the study didn’t mention those sectors specifically, it found that one of the big contributors that has ramped up e-marketing since last year was the travel sector, growing by 126 percent, followed by media and entertainment at 77 percent.

In addition to pushing offers, Experian said, it was also trendy for the emails to link to social media, including Twitter and Facebook, and carry mobile-specific features, such as QR codes.

[Image via eyeidea/Shutterstock]

With strong global demand for its products and few retail stock-outs over the holidays, Deutsche Bank analyst Chris Whitmore believes the company racked up sales above already lofty expectations. And he raised his estimate on Apple today, following channel checks that revealed better-than-anticipated iPad and Mac demand and unwavering demand for the iPhone–even ahead of an expected Verizon announcement.

Over the holidays, Whitmore’s team checked up on 50-plus Apple Stores and retail partners, and found long lines, heavy store traffic and limited stock-outs at the majority of them.

“Apple continues to benefit from the strongest product offering in its history and the strong double-barreled product cycle is driving massive global demand for iPads and iPhones,” Whitmore said. “Both categories are benefiting from additional carriers, international expansion and limited competition. In addition, while we expect an onslaught of new tablet announcements at CES this year, we do not expect material competition to arrive until the second half of 2011. We have not seen anything that matches Apple’s iOS product suite in terms of form factor, usability, integrated hardware/software and the breadth and depth of the App store.”

Whitmore now expects Apple to sell 60 million iPhones in calendar 2011, up from 55 million. And that’s without a Verizon iPhone. With it, he says, iPhone sales should rise by another five million to seven million units. “We expect a CDMA based iPhone to be a significant positive for AAPL with limited cannibalization at AT&T,” he said. “Our DB colleague Brett Feldman, who covers Telecom Services, estimates that Verizon will add roughly 15M iPhones in 2011 with 6M cannibalized from AT&T.”

“Even with a handful of tablet competitors hitting the market, the iPad remained the only game in town in our holiday checks largely because many of the tablets hitting the market are junk for lack of a better word,” he wrote. “They are underpowered, poorly constructed and largely not ready for prime time.”

Evidently, Blair wasn’t too impressed by Samsung’s Galaxy Tab.

Anyway…

The holiday season is always particularly kind to Apple, but this year it may have been even kinder than usual. In addition to the iPad’s continued momentum at market, Blair observed stronger than expected holiday sales of iMacs, MacBook Pros and the new 11-inch MacBook Air.

Sounds like Apple’s December quarter is shaping up to be another blowout.

Head on over to teachparentstech.org and you’ll find a little Web form, shrouded in faux brown paper, where you can assemble your virtual tech-support care package.

After selecting to whom it should be addressed, you can pick from about 50 very short videos to attach to the message that the form creates. The videos feature fresh-faced Googlers in brightly colored shirts using plain English and screen-capture video to explain how to do things like resize a photo, use Google chat, get driving directions or find the nearest pizza place.

And the tech subjects seem to be pretty expertly selected as well (we’ve been asked to help our parents on more than a few of these specific problems).

After selecting a salutation, the videos you want to send and an appropriate closing remark, the form spits out a page that can be forwarded to the email of the desired tech noob.

We spoke with Jason Toff, a product marketing manager at Google and the informal leader of teachparentstech. He said that the project was built on the 20 percent time Google gives some staff members to work on separate projects outside of their assignments, and that it was really born out of a need found among his youngish Googley colleagues.

“The idea of parents needing tech support around the holidays really resonated with our core group of about six people. We just sent some emails out to some internal list serves expecting to get a lukewarm response, and over 50 people responded wanting to be in videos explaining some simple tech,” Toff said during our phone call.

Toff said there weren’t any other plans to build out additional products on the teachparentstech domain right now, but he’s hoping to see how this first thing goes and learn from it.

The site went live as of about 9:30 PT this morning and by noon had sent out over 3,000 virtual care packages.

The one pro tip we got from Toff was that if you care to see all the videos available, maybe to do a power-training session, you can head to teachparentstech.org/watch where all the available videos are displayed together.

Now, if only Google would buy up santagr.am and santatracker.com, our very Google holiday would be complete.

In the first 40 days of the holiday shopping season, comScore estimates that more than $21.95 billion has been spent online, increasing 12 percent vs. last year.

The most recent week saw a spike in sales with $5.15 billion in spending, an increase of 11 percent over last year, as two days each pushed passed $900 million.

But still, it’s likely that the biggest shopping day online has yet to occur. The industry would like you to believe that its “Cyber Monday,” the Monday following Thanksgiving, is the busiest, and while spending hit an all-time record of $1.03 billion on that day this year, procrastinators typically spend more as we get closer to Christmas.

This Monday, Dec. 13, has been coined “Green Monday,” presumably after the color of money. EBay came up with the term after the second Monday in December 2007 kicked off one of the busiest shopping weeks online.

This year seems particularly robust, as shoppers become even more comfortable seeking discounts online. ComScore chairman Gian Fulgoni, surmised: “This coming week, beginning with Green Monday, should see some of the heaviest online shopping activity of the season and we expect at least one more day to surpass the billion dollar spending threshold.”

But the holiday shopping season will naturally slow down starting on Friday, Dec. 17, as free delivery offers expire and it becomes more difficult to get guaranteed delivery by Christmas Eve. Until then, the post office can assume its sleighs will be packed full of cardboard boxes.

Amazon.com is offering free shipping on purchases of $25 or more until Friday, unless you have an Amazon prime subscription. Wal-Mart is offering free shipping–with no minimum–on 60,000 items until Dec. 20. And, Dec. 17 has been coined Free Shipping Day with lots of merchants trying to get shoppers to do last-minute spending online without the penalty of shipping costs.

As it did with the initial Nexus One, the company said the phone is designed “to highlight the latest advancements of the Android platform.” However, the company’s goal appears to have shifted from turning the economics of the cellphone business on its ear to just showing the potential of Android.

“As part of the Nexus brand, Nexus S delivers what we call a ‘pure Google’ experience’: unlocked, unfiltered access to the best Google mobile services and the latest and greatest Android releases and updates,” Google’s Andy Rubin said in the blog.

You can hear much more from Rubin when he speaks at D: Dive Into Mobile tonight. In the meantime, here are the highlights.

Key features include a 4-inch “contour display” designed to fit more easily in the hand, a 1Ghz processor, front and rear cameras and 16GB of internal memory, as well as a Near Field Communications technology that allows the device to read information from tags placed in nearby objects. (If you haven’t heard much about NFC yet, you will soon.)

The device will go on sale Dec. 16 online and at Best Buy and Best Buy Mobile stores in the U.S and at Best Buy Carphone Warehouse in the U.K. The phone can be purchased either unlocked or with a T-Mobile service plan. In the U.S. it will sell for $199 with a T-Mobile service plan and $529 without.

As for Gingerbread (a.k.a. Android 2.3), a software development kit is now available for developers. Gingerbread features support for the aforementioned NFC as well as a new keyboard and text selection tool, improved copy and paste, and gyroscope support. All the nerdy details are on Google’s developer site.

Google put up a pair of videos, reposted below.

ComScore said in the past week alone, four days exceeded $800 million in spending, including Cyber Monday, which became the heaviest online spending day on record at $1.028 billion.

On Tuesday, spending hit $911 million, making it the third-heaviest day on record, and Wednesday and Thursday came in at $868 million and $850 million, respectively. These figures include both physical merchandise, and relatively new categories, like virtual goods.

The big winners in the past week have been the Amazon.coms of the world and other large retailers, comScore noted.

The top 25 online retailers generated 20 percent more sales for the month of November, compared to last year, and their share increased to nearly 68 percent of the market. Meanwhile, the marketshare of small-to-mid-size retailers shrunk to 32.2 percent.

These increases aren’t expected to last as some retailers became less aggressive with promotions and discounts toward the end of the week, when year-over-year growth rates fell to single digits. “We may see another week of this effect before late season discounts and buying by procrastinators gives the season a final spending surge,” said comScore chairman Gian Fulgoni.

“We believe the iPhone should see continued solid growth into the December quarter with support from improved inventory in the US,” Barclay’s analyst Ben Reitzes said in a note to clients today. “Apple has now expanded distribution to Target (Target also sells the iPad) to join others including Apple stores, AT&T, Best Buy, Radio Shack and Wal-Mart. Perhaps more importantly, we believe availability is improving overseas, with the iPhone 4 set to ship for its first full quarter in China. International demand seems strong into calendar year-end.”

For the quarter ending in December, Reitzes figures Apple will sell 14.8 million iPhones, with sales ramping up after that, assuming the company moves to a multicarrier model in the states. Says Reitzes, “As we move into C1Q we continue to believe it is quite likely that we will see the iPhone introduced on Verizon in the US which should continue sales momentum. By CY-end 2011, we believe Apple will have more than 2 carriers in the US, which could help its market share vs. Android significantly.”

Cue the desert music, mix in some swirling dust and a mirage, use a Middle Eastern font and a mysterioso tagline of “The Revolution Is Coming,” and show it at a movie screening of “Lawrence of Arabia.”

At least Microsoft (MSFT) will not be spending its badillions of advertising dollars on the launch of its Windows Phone 7–playing catch-up in the smartphone race–without some style.

While the trailer below seems to be a one-off for an event in London, it’s still very different from the basic marketing around the Apple (AAPL) iPhone (“It’s magical!”) and the Google (GOOG) Android mobile operating system (“It’s for manly men!”).

In any case, coming for the holidays, Windows Phone 7 should prove to be a welcome respite from enduring the tiresome bickering of those two behemoths.

Here’s the video of Microsoft’s sheikh effort, followed by a recent, more-hipster video of Xbox Live on the Windows Phone 7:

Just like other parts of the world, Silicon Valley has its own special magic during the holidays. We gather together around the old-timey glow of a CRT monitor and drag out our old CDs–especially the ones that say things like “Sign up for AOL now and receive 500 hours free.” With the familiar tone of a dial-up modem log-in on the stereo, we can almost smell the sweet aroma of irrational exuberance of holidays past. It’s this seasonal magic of limitless possibility that captured the tech word this week, featuring the miracle of rebirth, new jobs, and the greatest miracle of all, a possible Verizon (VZ) iPhone.

Kara soothed some furrowed brows with her NPR voice early in the week, before heading out to New York to attend the Diddy-studded relaunch party of Aol (AOL). She said that the real miracle of Aol seems to be its incredible resilience. Weekend Update thinks the 25-year-old online player was bitten by a radioactive roach sometime in the late 80s—it’s the only explanation. In any case, at the event, Kara caught former CBS (CBS) interactive head Quincy Smith on camera briefly and followed with a post about his part in a new niche banking venture. She rounded out BoomTown this week with a wrap-up of the party, featuring a little video chat with good ol’ Woz. Apple (APPL) co-founder Steve Wozniak was his usual jolly self, which got Weekend Update to thinking: He’s friendly, loves gadgets more than any human should and always seems to be sequestered in some workshop, toiling away before emerging for special occasions. We might be getting a little “Glenn Beck” paranoid here, but Woz and Claus do rhyme.

Digital Daily was in the holiday spirit too and brought us some prognostications a la the ghost of Christmas future. AT&T (T) is foretelling a grave future if it can’t get its coverage in order. No “incentive” programs are in place yet, but the company did release an app that allows users to geo-tag locations where service is bad, though we’re not sure yet what they’ll do with the data. More iPhones on the network plus lack of action may slow down connection speeds so much that even Jacob Marley could beat AT&T in a bandwidth race, and we’re pretty sure he’s wrapped in chains. While AT&T grapples with correcting its own network transgressions, John posted about a prognostication from an industry analyst who says that as time progresses we’re increasingly likely to see a Verizon iPhone. While the analysis is complex, the math is simple. Over time, Apple will see fewer and fewer iPhone converts at AT&T as the carrier slowly slurps up those remaining in the bottom of the cup. Moral of the story: We may start hearing that sucking sound between 2010 and 2012. John finished out the week with a snapshot of Aol. There were fewer sugarplums and candy canes and more about the long, wintery walk ahead of the oddly new Internet player. The reality is that shares in the post-spinoff Aol were down a few points, even as management was doing its best to put on a brave face. Sometimes a fruitcake is still a fruitcake, even if you gift-wrap it.

MediaMemo was in the holiday spirit too, even if the world of media is a little more somber this holiday season. Peter started things off with coverage of a new Nielsen report that puts TV viewing down somewhat, even as Internet video viewership rises. While one explanation might be that the screentime balance is finally beginning to shift, Weekend Update has another hypothesis: There are not nearly so many hilarious cat-dressed-as-Santa videos on TV as on the Internet, and that’s just want the holiday viewers want. Arguably, the biggest shakeup this week was over at Facebook, where the elves have been working feverishly on yet another privacy agreement. Peter reported that king elf Zuckerberg thinks sharing is the best default and sort of puts his profile where his mouth is (even if he keeps certain data, like his cellphone number, just for his friends). Finally, not to be left out of the Aol party, Peter also delivered some insight about the shape of things to come with a post about New York Times veteran Saul Hansell heading over to do some kind of work in Aol’s new content factory. No word yet on what sort of gift this particular wise man will be delivering.

Walt and Katie were in full swing this week, working hard to make sense of some of those last-minute gift items. Personal Technology was devoted to the Nook, a much anticipated e-reader from Barnes and Noble (BKS). Similar to the Amazon (AMZN) Kindle in its display capabilities, the Nook sets itself apart, in theory, by augmenting its text display with a small color screen to aid navigation. Walt said this one needed a little more time in the workshop and that future iterations may take better advantage of the interesting dual-screen idea. Mossberg’s Mailbox wasn’t full of tins of cookies yet, but Walt did answer some mail about the end of Microsoft (MSFT) Money for the Mac and recording all your favorite shows onto a computer. He also helped one wayward would-be smartphone owner examine options less costly than the Motorola (MOT) Droid. Katie came to every mom’s rescue with a great post breaking down the Wii, Xbox and Playstation 3 field. If that weren’t enough, she includes a cheat sheet of features and options that will take the confusion out of the impending trip through your favorite electronics superstore gauntlet.

While we’re not yet roasting chestnuts (Kara hates it when we start fires in the office), AllThingsD most certainly is getting its stockings hung with care. Is it weird that we are noshing on a potato latke while we do that? Either way, stay tuned to the AllThingsD crew, and please feel free to leave comments–no one likes an empty mailbox during the holidays. Weekend Update will catch you again next week.

What we’re seeing is just a seasonal sell-off that’s occurring a bit earlier than usual. Apple’s stock typically outperforms during the last four months of the year and underperforms in the first four months of the year that follows (see tables below; click to enlarge). With Apple (AAPL) a no-show at Macworld this year, that timeline has been accelerated a bit.

“We believe investors are leveraging the late ’09 outperformance and getting ahead of the early ’10 sell-off this year, which may be causing the recent share weakness,” Munster explains. “We note that in the past shares have gone up in anticipation of the Macworld conference; however, this is the first year Apple will not participate in the tradeshow….We remain confident that the Dec. quarter will provide enough upside, driven by Mac, to give investors confidence that the fundamentals are intact.”

That seems a reasonable assessment, particularly given Apple’s reportedly quite strong Black Friday sales. As Thomas Weisel Partners noted a few weeks back, the company’s stores experienced “robust sales driven by sustained brand strength, rising demand for app-ready iPod touches and a positive-mix in Macs.” Presumably, that will continue through the holidays.

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• Apple Investors Are Wusses

According to new data released this week by Gartner, Apple shipped some 7.04 million iPhones in the third quarter–up from just 4.72 million phones in the same period a year ago–for a 17.1 percent share of the market (see table below; click to enlarge).

That’s a 49.2 percent year-over-year increase in sales and it puts Apple (AAPL) in spitting distance of Research in Motion (RIMM), which also posted close to a 50 percent year-over-year gain to claim 21 percent of smartphone sales during the period.

With 39 percent of smartphone sales, Nokia (NOK) was the top seller during the period, and it’s clearly not ceding its spot any time soon. But RIM might, given the small gap between its market share and Apple’s.

In any case, RIM clearly has a fight on its hands as we head in the holidays, especially if Apple brings an 8GB iPhone 3GS to market in the next few weeks.

UPDATE: According to Apple’s last earnings announcement, the company said it shipped 7.4 million iPhones during the quarter. Why there’s a discrepancy between the company’s numbers and Gartner’s isn’t clear.

“The company is taking this action in a careful manner to ensure that there is no impact on the improved customer experience that has been reflected in much higher levels of satisfaction in customer surveys and in independent performance tests,” Sprint said in a statement. “Sprint has pledged to not waver on the company’s commitment to quality service and products….The impact on geographic locations will vary, and many impacted positions will be eliminated by Dec. 31, 2009.”

Nice. Just in time for the holidays, too.