A person familiar with the matter said Google removed content from its search service, YouTube video site and Blogger after receiving an order to do so from Judge Mukesh Kumar of a New Delhi district court.

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When pressed for an assessment, Cook pointed to the company’s just-reported monster earnings.

“You can see our results,” Cook said during a conference call with analysts. “I think the team is doing a fantastic job. We feel really good about where we are.”

And it’s tough to argue otherwise. Apple’s profits for last quarter, at more than $13 billion, were more than what most tech giants report in revenue. Apple also posted twice as much revenue and profit as Microsoft did in its holiday quarter.

Apple’s quarterly iPhone sales, at more than 37 million smartphones, were numbers that its rivals would kill to have for a year, let alone a quarter. And recent data for the U.S. shows Apple alone nearly even with the entire Android world in market share.

Cook said he is focused on remaining the lead horse in the race, but said he doesn’t see Android as the only competitor.

“I wouldn’t say it is a two-horse race,” he said. “There’s a horse in Redmond that always suits up and always runs.”

On the tablet side, Cook said that Apple continues to dominate the market despite the flood of would-be rivals. And that market, Cook notes, is huge and growing, recently surpassing the market for desktop PCs. Eventually, Cook said, many people expect it to be larger than the PC market as a whole.

“In terms of competitiveness, the ecosystem for iPads is in class by itself,” Cook said, noting that there are 170,000 apps customized for Apple’s tablet as compared with what he said appears to be only a few hundred designed specifically for rival tablets.

Last year, Cook said, was supposed to be “the year of the tablet.”

“I think most people will agree it was the year of the iPad for the second year in a row.”

As for where Apple is headed, Cook stuck to the company’s standard secretiveness, though he did offer a few insights, at least geographically. China, he reiterated, remains the company’s big bet with regards to emerging markets, with Brazil a distant second in terms of focus and investment. India, he noted, saw its sales go threefold from a year earlier, but from a very small base.

While not mentioning any rumored plans for an Apple-badged television, Cook said the company sold 1.4 million Apple TV units in the December quarter, as compared to 2.8 million devices for the entire prior fiscal year.

“We still classify this as a hobby,” he said. “However, we continue to add things to it.”

The New York Times published something of an exit interview with Palmisano over the weekend. It read a bit like a victory lap, and that’s not undeserved. The record books will show that IBM shares during the Palmisano era (2003-2011) rose by 125 percent; sales grew from $81 billion in 2002 to an expected $107 billion; and annual profits on a per-share basis went from $3.07 to a consensus forecast of $13.38.

But it got me to thinking about one of the highlights of the Palmisano era; one that generated a great deal of attention at the time: IBM’s decision to sell its personal computer division to Lenovo, the Chinese PC maker. It was a relatively small deal, worth less than $2 billion at the time, but it was a controversial move. Despite the fact that IBM wasn’t making much money on the business, IBM PCs, especially its ThinkPad line of notebooks, were generally considered to be pretty good.

Nearly seven years later, it’s worth noting that Lenovo is now the world’s second-largest PC vendor, behind Hewlett-Packard, having vaulted past Dell earlier this year, according to the market research firm IDC. It’s also worth noting that Lenovo is in fifth place in the U.S., behind HP, Dell, Apple and Toshiba, in that order.

IBM initially owned 15 percent of Lenovo and maintained a stake in that company until February of this year, when it sold its remaining 4.3 percent shares at a profit of more than a quarter-billion dollars.

Lenovo’s biggest shareholder is Legend Holdings, of which 36 percent is owned by the Chinese Academy of Sciences, a.k.a. CAS Holdings, a state-controlled entity. The state has pared back its stake, though: When the IBM-Lenovo deal was announced in 2005, Lenovo was 57 percent state-owned.

There was a lot of natural controversy, and even national security concerns in 2005, about selling so red-blooded an American product as the IBM PC to China. But there was also a solid business case to consider. The PC business was a drag on earnings because of downward price pressure exerted by Dell and all the others, and it wasn’t even leading the market, as was the case with Hewlett-Packard, which engaged in some very public contemplation about spinning off its own PC division.

But there was also a potential strategic benefit, which Michael Useem, a professor a the University of Pennsylvania’s Wharton School of Management, pointed out at the time: Making friends with China.

By selling an underperforming asset to a buyer willing to take it and run with it, IBM got solid access to the exploding Chinese market. In paraphrased remarks to the Times, Palmisano concedes the point:

Palmisano says he deflected overtures from Dell and private equity firms, preferring the sale to a company in China for strategic reasons: the Chinese government wants its corporations to expand globally, and by aiding that national goal, IBM enhanced its stature in the lucrative Chinese market, where the government still steers business.

So how has that worked out? It’s a little hard to tell from reading Big Blue’s Byzantine financial statements. In fiscal 2005, the year the deal closed, IBM reported $18.6 billion, or about 20 percent of revenue, came from the Asia-Pacific region, including China.

And though it declined to provide specific dollar amounts, it said that year that sales in China had dropped by 19 percent, but after after stripping out the PC division, would have grown by 8 percent.

For the first nine months of fiscal 2011, IBM reported that the Asia-Pacific region accounted for exactly the same dollar figure — $18.6 billion — amounting to 24 percent of its overall sales of $77.4 billion, and there’s still a quarter to go. That would put Asia on track to account for a little less than a quarter of IBM’s revenue.

In its earnings statement, IBM also makes a point of calling attention to what it calls “growth markets,” which are generally the BRIC countries — Brazil, Russia, India and China. These markets combined for 23 percent of sales in IBM’s most recent quarter.

This is about as close to understanding the size of IBM’s business in China as we’re going to get. On balance, it looks to have been a positive move, especially when you consider that if IBM had kept its PC division, it would have likely only gotten smaller and become more of a profit drag on a company that’s increasingly focused on high-margin businesses like services and consulting.

Nor can we judge by IBM’s headcount. Globally, as of the publication of its last annual report, IBM employed 426,751 people. But it has stopped providing a geographical breakdown. A report in the Times of India in 2010, mentioned by The Wall Street Journal, suggested that Big Blue’s headcount in India might be as high as 130,000; which, if true, would make it one of that country’s top 10 employers.

There is no question that IBM’s presence in China has grown. You can tell by the press releases. There was for example, a new IBM Research lab in Shanghai in 2008, and another in 2010. Just last month, IBM announced that it had closed a significant IT deal for a major health-care provider in Hong Kong, and another with a Chinese province to improve the safety of pork (which included a food-safety video I embedded below).

For better or worse, Palmisano will be remembered as the man who traded PCs for access to China. On balance, it seems to have been a good trade, but the jury is still out.

Tomorrow is the first business day of IBM’s Rometty era. Assuming she retires at age 60, a well-established IBM tradition, she’ll have about six years to make her mark. One wonders what she’ll be remembered for most.

Until Bawa’s replacement is named, RIM’s Indian operations will be overseen by Urpo Karjalainen, senior vice president for Greater China, India, Australia and New Zealand, the company said in a statement.

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As The Wall Street Journal reported today, Lenovo’s profits rose by 88 percent, and it eclipsed Dell as the world’s No. 2 manufacturer, behind Hewlett-Packard. The company has been growing in part through acquisitions — it recently paid 465 million euros (about $640 million) for the German PC outfit Medion — but also by playing well in markets where people are still buying their first PCs, says Peter Hortensius, the president of Lenovo’s Global Product Group.

Lenovo’s results did good things for shares of rival HP, which last week announced that it will keep the PC unit it had previously considered spinning off. Its shares rose 1.8 percent to $26.06. Shares in Dell rose more than 1 percent to $15.29, while Intel fell 17 cents, or less than 1 percent.

Hortensius told me that much of Lenovo’s strength comes from being the top vendor in the world’s leading market, China, and also in its No. 3 market, Japan. In the world’s No. 2 market, the U.S. — not so much. Lenovo is fifth there, but that’s an improvement from prior periods, he says.

Another strength he noted is in emerging markets like Brazil, where lots of people are still buying their first device and just getting their first Internet connection and not ready to think about buying tablets or smartphones just yet. But Lenovo’s a big player there, too, and sells Android based smartphones and tablets in China. It also plans to sell tablets running Windows 8 when it’s released. And as part of a four-screen strategy, he said, the company will have more to say on the subject of smart TVs soon.

What it doesn’t have, at least in the U.S. yet, is a strong brand presence. And so it has crafted a marketing campaign around “people who do.” So what do you do when you need to get attention for a less-well known PC brand? You drop a laptop out of a plane, naturally. Of course there was a technical reason for doing it: Proving that the machine could boot up in time to deploy a parachute and land safely, though I have to wonder just how soft that landing was in reality. I embedded the spot below just because it looks cool.

And these aren’t the kind of cyber attacks carried out by bumbling troublemakers like the LulzSec gang, which make headlines but really only cause a nuisance for companies like Sony. In these cases, networks were compromised by remote access tools — or RATs, as they’re known in the industry. These tools — and they are tools, because they have legitimate uses for system administrators — give someone the ability to access a computer from across the country or around the world. In this case, however, they were secretly placed on the target systems, hidden from the eyes of day-to-day users and administrators, and were used to rifle through confidential files for useful information. It’s not for nothing that McAfee is calling this Operation Shady RAT.

McAfee says the attacker was a “state actor,” though it declined to name it. I’ll give you three guesses who the leading candidate is, though you’ll probably need only one: China.

Dmitri Alperovitch, McAfee’s Vice President, Threat Research, makes a statement in his blog entry on the discovery that should give everyone minding a corporate or government network pause: “I am convinced that every company in every conceivable industry with significant size and valuable intellectual property and trade secrets has been compromised (or will be shortly), with the great majority of the victims rarely discovering the intrusion or its impact.” He further divides the worldwide corporate landscape into two camps: Those who have been compromised and know it, and those who simply don’t know it yet.

This has been a particularly nasty year on the cyber security front. (I hate to say it, but I told you so.) Prior to this, the big attack whose full impact has not yet been fully sized up was the one against the RSA SecureID system, which uses popular keychain devices that create a constantly changing series of numbers that in turn create a second password for access to system resources. They’re widely used in government and military circles and among defense contractors. Google has been a regular target in recent years.

The RSA attack and Operation Shady RAT are examples, Alperovitch says, of an “Advanced Persistent Threat.” The phrase has come to be a buzzword that, loosely translated into English, means the worst kind of cyber attack you can imagine. Unlike the denial-of-service attacks and network intrusions carried out by LulzSec and its ilk, which require only minimal skill and marginal understanding of how networks and servers work, an APT is carried out by someone of very high skill who picks his targets carefully and sneaks inside them in a way that is difficult to detect, which allows access to the target system on an ongoing basis that may persist for years.

How did these attacks happen? Its very simple: Someone at the target organization received an email that looked legitimate, but which contained an attachment that wasn’t. This is called “spear phishing,” and it has become the weapon of choice for sophisticated cyber attackers. The attachments are not what they appear to be — Word documents or spreadsheets or other routine things — and contain programs that piggyback on the targeted user’s level of access to the network. These programs then download malware which gives the attackers further access. This all happens in an automated way, but soon after, live attackers log in to the system to dig through what they can find, copy what they can, and make a getaway — though they often leave the doors unlocked so they can come back for repeat visits.

Alperovitch notes — correctly, to my mind — that the phrase has been picked up and overused by the marketing departments of numerous security companies. His larger point is that too often those attacked in this way refuse to come forward and disclose what they’ve learned, thereby allowing the danger to continue for everyone else.

Alperovitch says that the data taken in Operation Shady RAT adds up to several petabytes worth of information. It’s not clear how it has been used. But, as he says, “If even a fraction of it is used to build better competing products or beat a competitor at a key negotiation (due to having stolen the other team’s playbook), the loss represents a massive economic threat not just to individual companies and industries but to entire countries that face the prospect of decreased economic growth.” It’s also bad for a target’s national security, because defense contractors dealing in sensitive military matters are often the targets. The best thing that can happen is that victims start talking about their attacks and sharing information with each other so that everyone can be ready for the next one, which is surely coming.

What gives? The research firms don’t have access to the same kinds of sales-channel data that Intel does, especially when it comes to emerging markets. Namely Brazil, Turkey, Russia and other rapidly developing revenue streams.

Intel CEO Paul Otellini called this “channel revenue” during the conference call with analysts. Channel is industry lingo for the business Intel does that’s not with major PC manufacturers like Apple or Hewlett-Packard or Dell, but instead goes through indirect sales channels to smaller companies that make PCs with lesser-known brands geared toward specific markets.

This channel revenue grew 17 percent during the quarter, Otellini said, because demand for PCs remains healthy in these countries. Turkey and Indonesia were both up 70 percent over last year. India was up 17 percent. Russia, 15 percent. China, 14 percent. Latin America as a whole was up 12 percent.

But then there’s Brazil. Otellini said it’s growing like crazy and is on track to become the world’s third-largest PC market next year, after the U.S. and China.

This channel business in emerging markets helps explain at least part of the dichotomy between the results that Gartner and IDC report in their quarterly market surveys — both of which show a market that grew by less than three percent — and Intel, which saw sales in its PC division grow 11 percent.

Later, Otellini and Chief Financial Officer Stacy Smith addressed this issue in response to a question from Evercore analyst Patrick Wang. You can hear their exchange, which runs less than three minutes, below.

Intel-q2-2011-call by ahess247

With its annual meeting this coming Thursday, you’d think Yahoo CEO Carol Bartz would be taking a rest.

Not so!

She has been a regular Carmen Sandiego, in fact, jetting to Yahoo hotspots around the globe from Dubai to Milan to New York and then back to Yahoo’s Sunnyvale, Calif., HQ.

As do Yahoos, I get most of the Friday emails she sends out, but I usually don’t bother to post them.

That said, I liked the can-do tone of this one, shades of Bartz early in her term, even in the face of a stock price that’s dropped almost eight percent this month to close at $14.69 on Friday.

(To be fair, the shares of Google are down by a little more in the same time, although its CEO Larry Page seems to prefer to remain holed up in his digital cave in Mountain View and lick his stock wounds.)

No matter, as Bartz writes, it’s nothing a little retail therapy can’t fix!

I myself am off on an international biking vacation in Ireland next week, so while I am gone, please enjoy Carol’s letter to Yahoos:

Last week was a crazy one -– Dubai and Milan in five days! You may not know it, but the Middle East and Italy are two of our hottest markets in the EMEA region (and I do mean hot — it was 114 Fahrenheit and very humid in Dubai — I thought I was going to melt!).

First on the itinerary was Dubai, where I met with government officials, advertisers, the media, and our awesome Yahoos there.

I kicked things off Monday with the Deputy Ruler of Dubai, Shaikh Maktoum Bin Mohammed Bin Rashid Al-Maktoum. Turns out he is a BIG Yahoo! fan. He told me that he’s on our sites every day to check the latest news and sports headlines. It makes sense — we’re huge in the Middle East and North Africa. Since we acquired Maktoob a year and a half ago, we’ve grown from 30 million to 53 million users. That’s impressive in a region with more than 70 million people online today.

We’re tops in entertainment with omg! Arabic, and with our women’s lifestyle site, Helwa. And we’re a strong #2 in News, thanks in part to our new Arabic homepage that launched six months ago. Already, it’s our fourth most popular homepage in the world — right behind the U.S., India and Taiwan. Meanwhile, Yahoo! is #1 in the Middle East and North Africa for display advertising with 40% market share.

Then on Wednesday it was off to Milan, where I visited with advertisers and our passionate Yahoos there. (I love that our Italian headquarters also happens to be located in one of the fashion capitals of the world — so convenient! An hour of retail therapy goes a long way).

We are winning it Italy. In a business review, our folks called themselves the Yahoo! “Italian Racing Team,” and I believe it. They’re firing on all cylinders. The country boasts some of the highest engagement numbers for us in the EU. We reach 66% of the online population in Italy. We’re top three in seven content categories, and #1 in four of them: Mail, News, Answers and Flickr. Plus, these #1 sites are growing faster than the market. And on the ad side, May was a record month for our display advertising in Italy — we’re taking share while growing revenue.

Throughout my trip to Italy and the Middle East, one thing came through loud and clear: Our local teams are able to execute and grow user engagement more quickly than ever before. This is thanks, in large part, to the great work of our Products org.

Take, for instance, our new Yahoo! Publishing Platform (aka LEGO). Our editors have put it to good use on our Italian Movies site. We’ve seen a 90% increase in page views, and a 60% increase in users. And that’s just in the first three weeks! This is exactly what we’ve been working so hard on for the past two years. We’ve completely re-architected our infrastructure, and it’s incredibly satisfying to see it pay off in so many parts of the world.

After all that fun, I headed back across the Atlantic and spent two good, solid days covering a lot of business in the Big Apple — press, investors, agencies and Yahoo! Sales leaders. Then it was back here to Sunnyvale for CEO staff meetings and a great “Coffee with Carol” with 30+ Yahoos.

I’m off to have a good weekend, hope you do too — especially you Dads on Father’s Day!

Carol

So far, the company has been focused on selling Indian-inspired attire, such as saris, tunics, jewelry and very traditional wedding gowns, to Indians living in the U.S.

Today, the company is announcing it is expanding into the U.K. Other countries will follow, including India by the end of the summer, where it will be able to provide the latest fashions to Indians living in their home country.

The execs have identified 50 countries they’d ultimately like to be serving.

To support its rapid growth, the New York-based company, which has substantial offices in New Delhi, has raised $16 million in a second round of funding. Investors in the round include Tiger Global Management, Accel Partners India and Helion Venture Partners.

In many ways, the company is aspiring to be the Gilt Groupe of Indian fashions.

“That’s the simplest way to summarize it, but there will be some evolution that’s different from Gilt over time,” said Exclusively.In’s CEO and co-founder Sunjay Guleria. “The way our brand and merchandising mix is, is similar to Gilt, but it will evolve into a unique reality.”

(However, Exclusively.In’s $16 million round hardly compares to Gilt’s recent round totaling $138 million.)

Another difference between the two is that shipping clothing and apparel from India creates a whole new set of challenges that other flash sales sites do not have to contend with.

Just like Gilt, Rue La La and others, Exclusively.In sends out a daily email containing the several styles it has for sale. Members who subscribe to the email are able to purchase the items at a discount until the inventory is gone. However, unlike other sites, the company must ship the clothing from India to the U.S. and now the U.K.

Launching in 30-plus markets this year will mean a complicated set of rules and customs requirements to meet in each country.

Additionally, Exclusively.In establishes a distribution center in each country, to make returns convenient. Guleria calls it “shop globally, return locally.”

To ramp up, Guleria said they’ll more than double their 70 employees to 150 by the end of the year.

In addition to market expansions, Exclusively.In has also experimented with new categories. Last month, it launched a travel site focused on Asian vacations, and weddings is also a major category.

Guleria, who grew up in a small Ohio town where Indian fashions were difficult to find, said out of all the expansion plans, he was a little skeptical about launching in India, where the Internet penetration is only at 8 percent. But “the amazing thing is, that still yields an audience of more than 100 million people, which makes it the third-largest Internet country in the world and it’s growing at a rapid pace.”

Along with Internet adoption, he said, e-commerce companies in India, such as Flipkart, are helping to build a broader ecosystem, which includes better shipping systems and expectations around customer service. Both Tiger Global Management and Accel Partners, two of his new partners, have invested in Flipkart, making them ideal partners for the adventure.

J.P. Morgan analyst Mark Moskowitz figures Apple could rake in as much as $6 billion from CDMA iPhone sales through Verizon, and half that through carrier partners overseas, particularly in the Asia-Pacific region.

“We expect the iPhone’s relative growth to moderate over time, but in the next 18-24 months, we see incremental growth opportunities in both Asia- Pacific and the U.S., specifically in CDMA-based networks,” he writes. “Apple just began to penetrate this opportunity with its Verizon iPhone launch in February, and we think that the incremental CDMA market penetration can be a multi-year phenomenon for the company.”

I’d say so, considering there are some 564 million CDMA subscribers worldwide, of which Verizon’s 95 million comprise just 17 percent. So where will Apple bring the CDMA iPhone next? Moskowitz thinks the company will focus its efforts where CDMA adoption rates are highest: China, India, Japan, and South Korea. And, in all likelihood, it’s probably close to hammering at least a few of these deals out.

Apple is widely rumored to be negotiating a CDMA iPhone deal with China Telecom. It’s also said to be in talks with Reliance and rival CDMA carrier Tata Teleservices in India. Assuming Apple finalizes some, if not all, of them in the next year, what kind of sales and revenue can we expect from them? Moskowitz expects Apple to sell 10 million CDMA iPhones through Verizon in calendar 2012 for $6 billion in revenues. Overseas, he expects the company to capture about 10 percent of the CDMA market in 2012, which would generate approximately $3 billion in revenue.

That’s a nice boost to Apple’s bottom line and to the iPhone’s growth trajectory, which may well continue to outpace that of the broader smartphone market–if Moskowitz’s numbers pan out.

[Image credits: iFixit and JP Morgan]

Now, that’s beginning to change.

A host of Indian Internet companies are emerging to offer their take on services that proved big hits in the U.S. and elsewhere. There are firms vying to become India’s version of Amazon.com, Groupon or Expedia, all with the goal of capitalizing on Indians’ growing interest in buying things online.

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Exclusively.In, which launched in June and raised $2.8 million from investors such as Accel Partners, has launched Palaces to Paradise, a companion site to its retail site that will offer discounts on travel packages to Asia.

Travel has been an obvious niche vertical that other flash sales and daily deal sites have readily expanded into.

Gilt Groupe launched Jetsetter in September 2009, and already has two million people signed up to receive its deals by email. About two-thirds of the membership overlaps with the other Gilt sites. Other daily deals sites have expanded into travel, including LivingSocial’s Escapes and Overstock.com.

Just like its apparel site, Exclusively.In is focused on offering travel experiences from Asia. The four travel deals that are live on the site starting today are: A boutique hotel in Udaipur, Rajasthan; a jungle lodge located in Kanha National Park in India; a beachside resort in India; and a villa located in Koh Samui, Thailand.

As an example, the five-bedroom villa in Thailand, which sleeps 10 and includes a full-time Thai chef, normally costs $1,290 a night but has been marked down to $1,095. The deal will be available until May 31.

The deal isn’t likely to come as a major surprise to investors because Vodafone had a pact with the partner, Essar Group, that allowed the Indian company to sell its 33 percent stake to Vodafone for $5 billion before a May 8 deadline.

The alternative was that Essar could have sold shares in the venture worth between $1 billion and $5 billion to Vodafone at a market-determined price, to be evaluated by two investment bankers, with one each appointed by the two parties.

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To commemorate the occasion, the company made a fancy infographic (click to expand, or view the full-page version here) depicting some stats and trivia, such as 44 million of its users are based in the U.S., and its fastest-growing countries in 2010 were Brazil, Mexico, India and France.

NetworkEffect was planning to interview CEO Jeff Weiner for a keynote interview at the Web 2.0 Expo in San Francisco next week, but he had to pull out over concern about public disclosures in the lead-up to the IPO. (LinkedIn co-founder and Executive Chairman Reid Hoffman, who’s also a very active investor at Greylock Partners, is graciously stepping in.)

But LinkedIn hasn’t been entirely quiet lately; earlier this month the company launched a personalized news site called LinkedIn Today based on content shared by its members on its own site and through an extended integration with Twitter.

It is definitely a bummer of a day at AOL today, for those employees getting the boot.

Last night, BoomTown broke the news that the layoffs were coming today in both the U.S. and India.

Sources said those being laid off on the AOL staff in the U.S. will be getting four weeks of severance plus one week for each year of service.

It will be paid out every two weeks, instead of a lump sum.

In a memo, AOL said “impacted employees will be notified by 3 PM EST today and we will be scheduling an all-employee call at 5pm EST to answer any questions you may have.”

After all the bad news today, sources at AOL said there will be a series of more forward-leaning announcements about changes to AOL’s editorial offerings, now run by the Huffington Post’s Arianna Huffington.

AOL is making a lot of these drastic changes as its CEO Tim Armstrong seeks to turnaround the long-suffering Internet giant.

Finally, here the actual layoff memo, although I am not sure exactly what a “hyper-local, national and global media company” is:

From: Armstrong, Tim
Sent: Thursday, March 10, 2011 07:16 AM
To: Armstrong, Tim
Subject: AOL’s Next Step

AOLers -

Today is the next critical step on the comeback trail for AOL. We are creating a next generation hyper-local, national and global media company, and every action we’ve taken since AOL became an independent company has taken us further down that path. Our strategy remains clear: create high quality content experiences for consumers, at scale. As the digital landscape quickly evolves, so must our business, and we must continue to transform our organizational structure to one that works for today’s Internet.

Today, we are announcing an organizational structure that will significantly improve AOL’s ability to focus on growth. The structure will also impact areas of our team–making the decision to reduce staff levels is a necessary part of rebalancing our workforce to be competitive in our industry. Affected employees will be notified today and AOL will offer assistance programs–including workspace, counseling, and technology. We ask all of our employees to help impacted employees find career opportunities within our industry.

The structural changes at AOL are possible because of the progress we have made as a team in the last 12 months. The majority of our sites have materially improved their consumer experiences, our advertising business continues to get healthier and more innovative, our video position is strengthening everyday, our local footprint is quickly expanding, we are attracting some of the most talented people in the world to work at AOL, and our technology infrastructure is simpler and more robust. AOL is a global brand and a global opportunity and we are doing the hard work that will once again make the company an industry leader.

There are three important aspects to the structural changes we are making today. The first is the architecture of our brand portfolio. The second is the organizational design of The Huffington Post Media Group. The third is our shift from India being a business process center to India being a consumer products group focused on the APAC market.

New Structure: Investing in our Brand Portfolio

AOL’s brand portfolio has become more focused and stronger over the last year and we will continue to invest in our brands. We are committed to an AOL brand architecture that empowers us to build best-in-class brands that serve valuable audiences with incredible content and great experiences. As you have seen and have access to, AOL’s brands are measured with a consistent set of criteria that will allow us to transparently judge the health of each brand. As we considered adding The Huffington Post, we looked at the combined assets of the two companies and have found creative ways to strengthen our portfolio and will continue the brand refinement process over time. AOL will have four areas of significant brands: Media (Media & Ads–including Local), Publisher Networks (Media & Ads for Publishers), Applications (Communications, Mobile, Commerce), and Subscriptions (Paid Subscribers).

We have a clear path to brand success–which is only turbo-charged with the addition of the Huffington Post to our brand portfolio. We have an AOL brand that enjoys 99% brand awareness and our commitment to reinvigorating the AOL Brand has enabled us to begin to shift brand perception of AOL–including being named as one of the top 50 brands “loved” by consumers at the end of 2010. We will continue to invest in the AOL Brand as well as support best-in-class brands that will allow us to grow our overall audience and reflect our focus on the most valuable audiences–our 80, 80, 80 strategy.

New Structure: Huffington Post Media Group

The addition of the Huffington Post will be a core foundational element in our drive to be a leading digital media and brand advertising company. HuffPost attracts over 27 million people a month–its unique visitors have increased 588% over the last three years, and revenue has increased 400%. The company is leading the way in connecting content with social communities. AOL will be replacing approximately $20 million of loss in our news and finance operation with a high growth company and a team that is pioneering the way the world gets information.

The newly formed Huffington Post Media Group (HPMG) is a vehicle to house and grow our investments in journalism and content in general. The goal of HPMG will be to create compelling, content-driven experiences for users. Consumers, world-class brands, relevant audiences, and innovative brand advertising opportunities are a winning formula for the future of the web and HPMG will have significant resources and distribution to be a leader in our space.

With Arianna’s leadership and vision, HPMG will be fueled by high-quality editorial content, and will give AOL the enhanced ability to deliver a scaled and differentiated array of premium news, analysis, entertainment, information, and community – all integrating our local, national and global content initiatives. As President and Editor-in-Chief, Arianna will lead the content vision. Jon Brod, as HPMG Chief Operating Officer, will be Arianna’s business partner and lead the business strategy for HPMG. We will replicate this model through the vertical content areas and become an editorial-led media organization that allows us to create higher quality content in real time, while better aligning the editorial and business sides of our company.

We are creating Department Editor positions for each of the editorial departments and their partners will be the General Managers (formerly our Mayors), who will continue to serve as CEOs, driving revenue, distribution and overall growth strategy for the departments they support. We will be expanding the advertising programs (like Project Devil) and the distribution opportunities (like mobile and video) through the work of the GMs. GMs will also work to connect the content brands with our central sales force.

The editorial-driven model of The Huffington Post Media Group will also change the way we create our content. Going forward, AOL will invest more heavily in our in-house editorial team and transition away from a reliance on freelance journalists. Journalists are the heart and soul of a media company, and our reporters and editors will be working closely with the tech group to produce compelling and engaging editorial content–including lots of video.

As part of this enhanced focus on quality journalism, we will be making new editorial hires in the HPMG as well as continuing to expand and grow Patch. With the acquisition of The Huffington Post and this renewed focus on editorial creation, we have increased the number of staff dedicated to content creation to over 1200 people and remain a net importer of journalists.

As a result of this new structure, close to 200 people will be leaving the AOL Media and tech groups in the US. These changes, among others, will be necessary as we execute our Media Group’s vision of creating real-time engagement and continuing to build a comprehensive source of compelling news, entertainment, information, opinion, and community. Specific elements of this integration are still being finalized, and we will communicate them to you as soon as we know more.

New Structure: Refocus in India

India is an important consumer and business market for AOL and we have a talented workforce covering many aspects of our business. As Kumar has announced to AOL India, as part of the new organizational structure, we have decided to focus our efforts on the India consumer market and move the business processing functions to scaled partners. India is gaining importance as a consumer market and we are actively working on products for that market and will be ramping up research and product engineering after the restructuring. A small number of project engineering functions will transition to Dulles and Dublin, while India starts to focus on Asia and India related consumer products and revenue.

Back office and support functions will transition to 3rd party partners and many current AOL India employees will transition along with those roles to continue to support core AOL functions with new partner companies. For our business and our scale, it makes business and financial sense to partner with other providers.

Overall, the structural changes in India will impact close to 700 jobs, with approximately 400 transitioning out of the company, and 300 transitioning to outsourcing partners to continue to work on the AOL business. AOL India has been a significant part of AOL, starting with call center outsourcing in 2002 and morphing into a business operations center. The employees of AOL India are talented, energetic, and hard-working – and we will be offering impacted people transition services. I would hope that India becomes a great future consumer market for AOL based on India-first product development.

Today is a day that represents a step toward the future, but also a day where change will cause an impact across our team. AOL remains in the middle of the disruption that the Internet is causing and we are starting to move from being a disrupted brand to a brand that is leading the disruption. The changes we are making are not easy, but they are the right changes for the long-term health of the company, the brand, and for our employees.

Impacted employees will be notified by 3 PM EST today and we will be scheduling an all-employee call at 5pm EST to answer any questions you may have. Please do not hesitate to reach out to me directly -TA

Along with several hundred layoffs taking place in the U.S. tomorrow, which BoomTown reported earlier, AOL is also drastically cutting staff at its Indian unit right now, sources said.

According to sources, AOL India will lay off 400 employees in Bangalore, as well as transition 300 more to contractors working for partners.

That leaves about 200 staffers there, who will work on consumer-facing products for the Indian and Asian markets.

The New York-based Internet giant is also laying off several hundred people starting tomorrow in very targeted areas of the company’s U.S. operations, in a move that its CEO Tim Armstrong signaled last week was coming.

Sources said there will be no employees let go in its network group or advertising sales unit, but editorial and other media product groups will be impacted.

Despite the pain for AOL employees, the long-rumored layoffs are much smaller in number than the last one AOL did, in which 2,300 people lost their jobs. Before the layoffs this week, the company had a little more than 5,000 employees now.

The drastic cost-cutting comes right after the purchase of the Huffington Post, which AOL bought for $315 million. The acquisition of the news and opinion site closed on Monday.

The AOL layoffs are finally here, and they are smaller than some had been expecting.

According to several people close to the situation, the New York-based Internet giant will lay off up to several hundred staffers starting tomorrow in very targeted areas of the company’s U.S. operations, in a move that its CEO Tim Armstrong signaled last week was coming.

Sources said there will be no staffers let go in its network group or advertising sales unit, but editorial and other media product groups will be impacted. Also on the chopping block are jobs in India, which will mean many more hundreds of job cuts in addition.

The layoffs are much smaller in number than the last one AOL did, in which 2,300 people lost their jobs. The company has a little more than 5,000 employees now.

Among those leaving are Jonathan Dube, AOL’s SVP of News, sources said, who only arrived at AOL in November from his previous position as VP of ABCNews.com.

The entire content side of AOL is taking the brunt of the layoffs, due to overlap with the Huffington Post, which AOL bought for $315 million. The acquisition of the news and opinion site closed on Monday.

As part of the deal, Co-founder Arianna Huffington will be leading content efforts for the entire company.

Sources said she is likely to be making some dramatic changes, likely to be announced soon, to the way editorial products are created and presented to consumers.

It’s a fundamental question that’s not often answered in western countries like the U.S. where most people can read and write, but a more common one in developing countries like India, where the literacy rate tends to be lower. In 2006 UNESCO pegged the average rate of literacy for people in India over the age of 15 at less than 63 percent. Meanwhile, only 7 percent of the population has access to the Web according to McKinsey & Co.

In certain areas of India there are construction jobs that go unfilled because the people who would normally qualify for them can’t find them, because they can’t read job ads. But they can speak and probably have a wireless phone. It’s a different kind of digital divide — the gap between information “haves” and “have-nots” — than what we usually talk about in the US, and researchers at IBM are trying to bridge it using a network of what it calls the Spoken Web.

IBM Researchers in India teamed up with the Karnataka Vocational Training and Skill Development Corporation, branch of India’s Department of Labor on a real-world trial of the Spoken Web. Using a combination of cloud computing, mobile phones and voice recognition technology, people looking for jobs will be able to call into so called “voice sites” — think Web sites that you navigate by voice over the phone — to search for jobs that match their skills.

“The whole idea is to apply some advanced technology to a problem that the government of India has been trying to solve: Help people get trained as well as get them matched up with job opportunities,” says Paul Bloom, IBM’s CTO of Telecom Research.

IBM created a new technology called HyperSpeech Transfer Protocol (HSTP) for navigating by voice. which is described in excruciating detail in this academic paper from 2007. (PDF). Initially the project will run in two districts, Mandya and Bijapur, and will be expanded further.

For now there’s no direct link between the voice sites in the project and conventional Web sites, but eventually there will be, Bloom told me. He also said there are lots of other possible applications for the Spoken Web technology including access to the Web for the disable, or people who are injured, or when driving a car.

The video below explains the project in more detail.

Piper Jaffray analyst Gene Munster figures that if the iPhone continues to grow apace with the broader smartphone market at a rate of roughly 35 percent in calendar 2011, Apple could conceivably sell over 200 million iPhones in 2015.

Today, Apple’s addressable market is about 1.7 billion subscribers thanks to distribution deals with a multitude of carriers worldwide. And according to Munster, there’s further upside still. “We believe Apple still has meaningful opportunity remaining to add to its addressable subscriber base,” he wrote in a note to clients. “The recently added Verizon has over 90 million subs, and with the launch of the CDMA iPhone, Apple could add China Telecom (also 90 million subs) and Indian carrier Reliance (110 million subs). We believe Apple could add China Telecom and/or Reliance to its list of carrier partners in CY11.”

In other words, though Apple’s current carrier agreements give it access to 1.7 billion subscribers, it’s still just beginning to tap into a number of critical markets. For evidence of this, one need only look back to Apple’s last earnings report. iPhone sales in Asia more than doubled in Q1. Revenue from China was a staggering $2.6 billion, and according to COO Tim Cook, Apple stores in the country were among the company’s highest traffic and revenue stores in the world.

Now, it is targeting people many have never heard of on its home turf.

The company, part of India’s flagship conglomerate, the Tata Group, has launched a new business unit called iON—for information technology services that are available all the time. It offers services aimed at India’s small and medium-sized businesses, a sector traditionally overlooked by outsourcers that have focused on winning large accounts from major companies in the West.

The new campaign is based on cloud computing–meaning that small companies can download software that allows them to effectively manage their data and other computing needs from a remote server run by Tata Consultancy. Most clients will pay Tata Consultancy on a per-user basis, and, in some cases, with a portion of their revenues.

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Bubble Motion, which is funded by Sequoia Capital and others, is now launching Bubbly in the Philippines, after releases in India, Indonesia and Japan (chosen because of their deep mobile phone penetration). Its launch partner in the Philippines is Globe Telecom.

By the midway point of this year, Bubbly will be rolled out to all major carriers in those four countries, for a total potential audience of 800 million.

Bubbly allows users to send each other voice-based status updates. People who follow a user receive an SMS each time a new status message is posted, and pay to listen to the status message with a fee added to their regular phone bill. This can be used both for communicating with friends and family and for subscribing to updates from celebrities.

Users pay either a monthly subscription fee for celebrities in India and Indonesia, or per message in the Philippines and Japan, following the carrier billing styles in each country. The average user gets one to two messages per day.

Celebrities on Bubbly often have two to three times as many followers as they have on Twitter, bragged Bubble Motion CEO Tom Clayton on a phone interview on Wednesday. And that’s despite the fact that Bubbly costs money and Twitter is free.

Part of the reason is Bubbly has more reach than Twitter in the four countries it has launched in, Clayton said, given it is a mobile service and Twitter is often accessed over the Internet.

But grooming a stable of stars might not be defensible in the long term, given Twitter is ramping up its mobile efforts and celebrities may want to have a broader reach than they can achieve with local phone carriers and voice updates. Clayton said another edge his company has is the infrastructure it has built to deliver voice files–250 million of them since Bubbly was first launched–without overloading carrier networks.

Clayton said Bubble Motion, which has raised about $30 million in funding, is not profitable yet but is growing revenue with a direct correlation to its traffic, which is to say, doubling every quarter.

“They have given us a solution to the Messenger service,” India’s home affairs minister, Palaniappan Chidambaram, said today. “We will insist that they give us the solution for the enterprise service too.”

And RIM will likely insist it can’t. Unless the situation has suddenly changed from last week, when VP Robert Crow reiterated the company’s claim that it cannot decipher the encrypted corporate emails sent over its network. “We can’t give a solution for enterprise services,” he said. “It’s not possible to do so, because the keys of that service are with the corporate enterprises and corporate entity that owns the server.”

So what, then? That’s not yet clear, but we may know more shortly. Said Chidambaram, “I think a decision [about the future of RIM in India] will be taken today by the Ministry of Home Affairs and the Telecom Ministry.”

How do you say “deadline extension” in Hindi?

The queues are often longer for products like the iPad, where Apple has managed to create a new category of computing devices that fit perfectly between a smartphone and your computer.

On Friday Apple launched the iPad in India but if you were expecting a similar reception for this “magical” device here, you’ll be mostly disappointed. That’s because the India launch is happening some nine months after it became available in the U.S. and therefore a lot of people, who would have bought that device on day one of its launch, may have already got it with the help of their friends in U.S. or even from the gray market.

There’s another reason why most people here aren’t very excited about the first-generation iPad. There are rumors that the next version of the iPad, which is expected to be thinner and lighter, may be announced in the next few months.

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