AllThingsD » operating systems

Where Does Googorola Leave HP's webOS?

Ina Fried — Wed, 17 Aug 2011 10:30:17 +0000

In the wake of Google’s megadeal to acquire Motorola Mobility, it’s only natural to evaluate what this means for the other key players in the wireless space. One of the trickiest to figure out is what the deal could mean for Hewlett-Packard and its nascent webOS business.

Given the fears that some have over what Google’s control of Motorola could mean for other Android makers, some have suggested the deal might leave the door open for HP to get more aggressive about licensing its webOS to other device makers.

On one hand, HP has said it is open to some licensing of webOS. That said, the company explained at the time that it was mainly talking about those interested in taking the operating system into new areas, as opposed to those that would compete in the tablet and phone space.

Indeed, licensing webOS would put phone makers in the same position they may find themselves in with Google — that is, competing against the same company whose software they are using. This, tech historians note, is not something that has tended to work well in the tech industry.

Apple briefly licensed the Mac operating system, but ultimately pulled the plug on that effort. Palm tried to be both hardware maker and licensee, sharing its software with Sony and Handspring, among others. Eventually, though, it found that relationship too complicated, and tried to split off its operating system and hardware businesses.

Another option for HP would be to use webOS for tablets, printers and other hardware, but license out the software for use on phones. The appeal of this would be that HP has never been a big player in phones, and it has little revenue today in that area. On the downside, it’s not clear how much interest there is, nor how much money it could make competing against Android, which Google does not charge directly for. Plus, HP has always been more of a hardware company than a software concern.

“It’s hard to imagine licensing would be enough for them without being in the hardware business,” says Gartner analyst Michael Gartenberg.

An HP representative declined to comment on the company’s reaction to the Google-Motorola deal, though it may have more to say when it reports earnings on Thursday.

One thing is clear: HP needs to do something if it wants webOS to be a serious player in the mobile space.

So far, HP’s sales of webOS devices have been poor, and that is probably putting it mildly. The Pre phone business essentially disappeared from the radar screen as HP integrated Palm. HP’s only phone to go on sale is the tiny Veer. Though cute, its diminutive size makes it a niche product, and it is available so far from only one U.S. carrier, AT&T. A promised Pre 3 phone has yet to start shipping.

On the tablet side, HP has come out with the TouchPad. Like the original Palm Pre, the first webOS tablet shows a nice combination of ease of use and innovation, but criticism of the hardware and a lack of apps dominated early reviews.

HP hasn’t officially commented on sales, but all indications are that they have been bad. HP has been trying all manner of price cuts, and sources say sales at Best Buy have been especially bad — and that’s from a retailer that said it was pleased with early sales of RIM’s PlayBook.

Got Apps? Appia Raises $10 Million for Even More App Stores

Tricia Duryee — Wed, 30 Mar 2011 19:00:46 +0000

Appia, formerly known as PocketGear, has raised $10 million in venture capital from Venrock.

With the close of the round, the Durham, N.C.-based company now has investments from each of the major wireless OS-makers — well, sort of.

Here’s how it could argue the case: Venrock is venture capital arm of the Rockefeller family, which was one of the early investors in Apple. Appia’s other investors include Tomorrow Ventures, the investment arm of Google’s outgoing CEO Eric Schmidt, and BlackBerry Partners Fund is associated with Research In Motion.

To date, the company has raised $28.5 million.

The company is aspiring to build the largest independent marketplace of applications and to become a white-label solution for third parties, such as recent customers, like Opera Software and Mexico’s largest operator Telcel.

Appia said it will use the new capital to fund product development and the launch of additional app stores around the world.

In June 2008, PocketGear was spun off from Bellevue-based Motricity, which at the time was also based in North Carolina. It raised $3.2 million from Noro-Moseley Partners and Wakefield Group, which were the original backers of Motricity, and then later acquired long-standing app publisher, Handango.

Competitors include native app stores, such as Apple’s App Store and Google’s Android Market. But it also competes against independent stores, like GetJar and Amazon’s AppStore, which launched last week.

Of course, all of these players are trying to piggy back on the rise of the smartphone.

A research report by Frost & Sullivan predicts that total downloads from smartphone app stores are expected to increase from 9.6 billion in 2010 to more than 120 billion by 2015 around the world.

Intel Doesn't Want to MeeGo It Alone

John Paczkowski — Thu, 17 Feb 2011 20:15:05 +0000

Intel says it’s “not blinking” on MeeGo, following Nokia’s decision to refocus its mobile efforts on Microsoft’s Windows Phone platform, and, indeed, CEO Paul Otellini told analysts this morning that the company is seeking out new allies for the OS. “We will find another partner,” he said. “The carriers still want a third ecosystem and the carriers want an open ecosystem, and that’s the thing that drives our motivation.” Given the further entrenchment of the iPhone and Android operating systems, the debut of Windows Phone 7 and the slowly renewing momentum behind webOS, a new Meego partner may prove difficult to find.

Intel: MeeGo-ing Forward Even Without Nokia

John Paczkowski — Fri, 11 Feb 2011 22:05:01 +0000

Nokia’s commitment to MeeGo may be tenuous after today’s big announcement, but Intel’s is unwavering. The chip giant says it’s sticking with the Linux-based mobile platform regardless of where its partner’s head is at these days.

In a statement released today, Intel said that while it’s disappointed by Nokia’s decision to refocus its mobile efforts around Microsoft’s Windows Phone platform, it’s “not blinking” on MeeGo.

“We remain committed and welcome Nokia’s continued contribution to MeeGo open source,” the company said. “Our strategy has always been to provide choice when it comes to operating systems, a strategy that includes Windows, Android, and MeeGo. This is not changing.”

Perhaps. Intel claims its silicon will be in a phone that ships this year. But it didn’t say what OS it will run or who’s manufacturing it. After today’s news I can’t imagine it’s Nokia.

COMPLETE COVERAGE:

Former Microsoft Exec Pursuing New Opportunities at Nokia; Former Nokia President Just Pursuing New Opportunities

Nokia’s Stephen Elop Talks to Mobilized About the Big Microsoft Deal (Video)

Massive Layoffs Expected at Nokia

Nokia’s Microsoft Partnership: Does the New Strategy Add Up?

Live From the Nokia-Microsoft Press Conference: It’s a Windows Phone World After All

More From Nokia: Forecast Gets Cloudy, Plus Expected Executive Changes

Nokia-Microsoft: What Steve Ballmer and Stephen Elop Have to Say in Their Joint Letter

Nokia Confirms Microsoft Partnership With YouTube Video

R&D Spending: Nokia Vs. Apple Shows Size Doesn’t Matter

Not Seeing Much Return on That Massive R&D Spend, Are You, Nokia?

Nokia: Big and Slow

Could Nokia’s Miracle Be Microsoft?

Nokia's Microsoft Partnership: Does the New Strategy Add Up?

Ina Fried — Fri, 11 Feb 2011 12:02:08 +0000

Nokia has already announced the key piece of its strategy–a shift to Windows Phone for future smartphones. Now the company is set to talk about the financial implications of that and go through the rest of its strategy, which includes a mix of Symbian and even a dash of MeeGo.

The investor event is scheduled to start shortly and due to run until about 2 pm London time. Mobilized will have live coverage, providing our battery holds out. I’ll try to mention only the high points, however. Mobilized loves numbers, but it is awfully early for a whole lot of financial speak, especially for the U.S. insomniacs tuning in.

12:02 pm: Still waiting for things to get going. But if you really want something to do, we have plenty of earlier coverage, including the press conference and the YouTube video of Microsoft CEO Steve Ballmer and Nokia CEO Stephen Elop, as well as a chat with Elop on how he made his big decision.

12:05 pm: Okay, things are getting going as Elop takes the stage (the same one as the earlier press conference.

12:06 pm: Elop is reviewing things. Lots of talk of both challenges and gems. If you read his memo, or anything else he’s said recently, you have heard this.

Battle of devices to war of ecosystems, etc. Mobilized has this part memorized.

12:09 pm: Smartphone strategy is just one piece.

Reviewing the three alternatives that Elop considered–MeeGo, Android or some partnership with Microsoft.

As for Google, Elop says it is the case there are some advantages for that approach.

“There’s something happening there. There’s no denying that.”

However, Elop says the company was worried it would be late and be just one of many, and was not sure how it could leverage assets like its Navteq location-based services.

“Our sense was differentiation could be a pretty big challenge,” Elop says. “The risk for commoditization would increase dramatically.”

Feels profit would have eventually moved to Google, with handsets becoming a commodity.

“It felt a little bit like giving up and not enough like fighting back,” Elop says.

12:12 pm: As for Microsoft, Elop says both companies are bringing something to the table.

As expected, Elop is characterizing this as more strategic than just taking a license to Windows Phone. Talking about Nokia services like mapping, local advertising and other things that Nokia can bring to the table.

“It’s far more interesting than a simple licensing deal,” Elop says. This was the only strategy that makes it a three horse race with Google and Apple.

Elop says he is convinced that Nokia will be able to differentiate within the Windows Phone ecosystem on a sustainable basis.

12:15 pm: There were some challenges and potential disadvantages, he acknowledges.

Top among these is the fact that Windows Phone 7 is new on the market.

“It’s early,” he says. “Will it succeed?”

12:17 pm: Also, there is the issue of being locked in or a lack of control. Elop does not disclose terms but says the company has flexibility and “substantial control” over the future of the ecosystem.

“This is not your mother’s OEM deal with Microsoft,” Elop says.

12:17 pm: Elop says the deal is at the “term sheet” stage, noting that the companies have yet to sign the “definitive agreement.”

12:18 pm: Already the engineers are working through, and Elop says this deal will allow Nokia to move far faster than it has in recent years.

12:18 pm: He’s also making the cost-saving argument, saying Nokia can focus its investment, which he acknowledges hasn’t been getting the return it should.

Elop earlier acknowledged that the company expects significant cost savings from the move as well as substantial workforce reductions.

“Bottom line: Products that are more competitive,” he says.

12:22 pm: Operators are excited by a third viable option, Elop says.

“A two-horse race is not a satisfactory [situation] for operators,” Elop says.

Elop says that Microsoft-Nokia will be operator-friendly, as compared with Google and Apple.

12:24 pm: Elop talking about differentiation–a key concern of analysts and investors.

Elop talks about Windows Phone as offering differentiation form Apple and Google, but also insisting that Nokia has the assets and business terms it needs to stand out from other Windows Phones. He focuses on camera technologies and “unique relationship.”

Stresses again that this is not a standard handset maker agreement. But he also says that just because Nokia can change lots of things within Windows Phone, doesn’t mean it should.

Nokia, he says, must “resist the temptation to customize just for the sake of customization.”

12:27 pm: Now talking about Symbian. For those that missed it, Elop reiterates this is a transition strategy, but adds that the company still expects to sell 150 million more Symbian devices before that transition is complete.

12:29 pm: Strategy is more than just smartphones. He wants the company to be a leading force in connecting the next billion people to the Internet via phones in emerging markets. “The market for feature phones is pushing down the price curve and that is an opportunity for Nokia.”

Nokia will do incremental work in that area–things like Nokia Money for people that don’t have a bank account or telephone. Another, Nokia Life Tools, helps connect, say, farmers to market information.

This area is still a target for innovation, he says, but it also faces competition from Chinese-made phones based on MediaTek chipsets.

Elop says that the company must also plan for the future so that it can be disruptive down the road. “As they say in Finland, it is time to shoot ahead of the duck,” he says.

That’s where MeeGo comes in–the mobile version of Linux that until recently was seen as Nokia’s future. Nokia said that team will ship a phone later this year and then see where the future is headed.

12:35 pm: Want to point out this New York Times article that said both Google and Microsoft were offering hundreds of millions of dollars in engineering and marketing support in order to woo Nokia.

12:36 pm: Elop now talking about cost cuts, including significant job reductions.

“We are not announcing how many and in what country,” Elop says, but adds that the company wants to move quickly on that front.

He says that he has made changes to the business to ensure speed, including leadership structure changes aimed at ensuring accountability. “If things go well today, I’ll be the CEO.”

Of note, the two of the three business unit leaders are women–Mary McDowell, who will lead lower-end phones, and Jo Harlow, who will head the smartphone business.

12:40 pm: Nokia looking for a new leader for its services and developer division. The acting head is Tero Ojanpera, but he will soon be looking for other opportunities within Nokia, Elop says.

Also of note, Louise Pentland, who is head of the legal and intellectual property unit, is being elevated to the top leadership team.

“We have one of the strongest patent portfolios out there” he says, adding that he would encourage all players to take a license to said patents. (hear that, Apple?)

New leader of North American sales unit to be named in coming days.

“We are creating a different industry,” Elop says in closing his introductory remarks.

12:44 pm: Elop Brings on CFO Timo Ihamuotila to go through the numbers.

12:46 pm: Ihamuotila acknowledged Nokia didn’t meet the targets it had set out to achieve at its last financial analyst day.

“Our execution did not cut it.” he says.

12:49 pm: Ah, Now on to the good stuff. CFO talking financial impact from Microsoft deal. Says should be good over the long term.

Slide shows royalty payments to Microsoft causing lower gross margins, but says sales and marketing support from Microsoft should lower operating expenses.

“We will receive substantial go-to market support from Microsoft,” he says, without giving numbers.

12:52 pm: Ihamuotila talking now about the company’s long-term targets for devices and services period “after the transition period.”

Device sales to grow faster than the market, with operating margins of 10 percent or more–but this is only after the transition period, which the company has said could last this year and next.

Significant uncertainties in this period.

Ihamuotila shows a slide showing Symbian sales slowly giving way to Windows Phone with lower-end mobile phones remaining about half of sales.

12:57 pm: Ihamuotila shows chart of how it expects to cut R&D with the company investing less in services, more in entry-level phones and far less on MeeGo, though still some. The investment in Symbian will be replaced by a far lower investment in Windows Phone R&D. Overall, R&D should be a fraction of what it was.

1:02 pm: Over long term, Ihamuotila says that the Microsoft deal should help significantly boost the company’s Navteq navigation business.

“We think this new strategy is the best way to maximize long-term value, both to our shareholders and to other stakeholders,” Ihamuotila says.

On to Q&A for financial analysts.

1:03 pm: Question on how Nokia will keep employees motivated, something else and when to expect the first Windows Phone.

“Thanks for the one question” Elop quips, before addressing them in turn.

Elop says that the key is on focused innovation so they see the fresh opportunities (at least for the ones who don’t get cut by the large workforce reductions also promised).

He also pointed to his sharply worded memo, which he said was designed to convey the message that “Here is the truth, we’re making decisions and we’re moving forward.”

Won’t give date on first Windows Phone, but says again that the move will allow a substantially faster pace than the company was on with Symbian.

1:07 pm: Elop is asked about some of the challenges with Microsoft and Nokia each responsible for different pieces of software and services, as opposed to Google and Apple, where things are more integrated.

“We wanted to drive operational simplicity,” Elop says, adding that the companies talked about other arrangements, though not a full-on acquisition. The companies, Elop says, decided not to go with the operational complexity of a joint venture.

1:10 pm: Elop says Nokia has opportunities to differentiate from other Windows Phone devices, but adds it is in Nokia’s interest for there to be other strong handset players supporting Windows Phone.

“We’ve got to make Windows Phone successful,” he says.

Nokia’s mapping technology, he says, will benefit rivals like Samsung and HTC. “We’re willing to make those trades,” Elop says.

1:11 pm: Elop is asked why he feels comfortable with a “bet the farm” strategy on Microsoft, a company he clearly knows well.

Elop points out that it was harder to see how Microsoft would rapidly be successful without someone like Nokia.

“But this is now different,” he says, adding that this is now an ecosystem that Microsoft and Nokia are jointly helping to build.

Mapping and local advertising were not part of the ecosystem before the Nokia-Microsoft partnership.

As for impact of the transition, it’s hard to say, Elop says. Symbian is strong in some places where Apple and Google are present today.

1:14 pm: Asked whether Nokia will remain profitable during the transition. “It’s hard to say financially, and I am not going to provide any further specific guidance.”

1:17 pm: Elop won’t say when the first Windows Phone will ship, but lots and lots by next year at various price points.

“We’ll be shipping in volume in 2012,” he says.

1:20 pm: Another two-parter! 1) Why will Symbian be supported if it is transitioning away? 2) Why does Nokia think it will be able to have double-digit operating margins using someone else’s platform?

Elop: They recognize Symbian is key to Nokia being able to transition, but he agrees that consumers will have to want the Symbian phones Nokia builds. CFO also notes that less than half of Symbian phones are sold through carriers.

As for question on margins, CFO says the company has opportunities for higher margins around services and advertising.

1:23 pm: Asked about how the company is confident Windows Phone can get to lower prices, Elop says that was a key consideration, down to which chipsets will be supported, etc.

Between the two companies there was a lot of work to get a high degree of confidence.

“That was a critical evaluation,” he says.

That said, Elop agrees there is a smartphone market below Windows Phone that Nokia will manage with an evolution of today’s Series 30 and Series 40 operating systems.

1:31 pm: Elop: Some of the hardware designs that would have run MeeGo or Symbian will be repurposed for Windows Phone. Some devices may come out with similar models for both Windows Phone and Symbian.

1:32 pm: Question again on who pays whom in Microsoft-Nokia. Is there a lump payment from Microsoft?

Elop doesn’t answer and instead refers to slide that shows opportunities on both sides. Saying value going both ways. As for Microsoft’s payments, “That is a significant part of the conversation,” Elop says.

1:35 pm: Two good questions: Can Windows Phone be put on any current devices? What happens to QT development layer that Nokia bought and had sought to unify developer approach?

Elop: It’s not as simple as plugging in and downloading on to current phones, though some technologies can be repurposed.

QT continues to be the development for Symbian and lone MeeGo device. Also could have a role on low-end devices.

However, Elop says, “We are not proposing a QT on Windows Phone” approach. Adding another development environment could fork the ecosystem, which is not good for Nokia or Windows Phone, he says. Development environment for Windows Phone will be Silverlight and XNA–Microsoft’s current tools.

1:38 pm: Asked about branding, he says in some cases you will see both Microsoft and Nokia brands. Examples could include Nokia Search powered by Bing or Bing maps powered by Nokia, though he says those are examples and not final choices.

1:39 pm: Asking about tablets, questioner points out that Nokia had an early lead in tablets, but Apple “stole the show.”

“We are not announcing today a specific tablet strategy,” he reiterates, saying that Microsoft creates opportunities.

Elop notes that there are rumors of Windows Phone and Windows that could power tablets.

“We could do that,” he says. “We might do that.”

Also an opportunity for Nokia to step back into the game using its own software.

1:41 pm: Elop wrapping up.

“We have set a new course for Nokia,” he says, adding that despite what has been written, Nokia is still an incredibly powerful company, though perhaps not in North America. “Today we are diving forward” he says. “We have a strong partner in Microsoft who is incented as are we in making this successful.”

Investor guy closes by reminding there were forward-looking statements. He’s still going as people leave the room.

COMPLETE COVERAGE:

Nokia’s Stephen Elop Talks to Mobilized About the Big Microsoft Deal (Video)

Massive Layoffs Expected at Nokia

Nokia’s Microsoft Partnership: Does the New Strategy Add Up?

Live From the Nokia-Microsoft Press Conference: It’s a Windows Phone World After All

More From Nokia: Forecast Gets Cloudy, Plus Expected Executive Changes

Nokia-Microsoft: What Steve Ballmer and Stephen Elop Have to Say in Their Joint Letter

Nokia Confirms Microsoft Partnership With YouTube Video

R&D Spending: Nokia Vs. Apple Shows Size Doesn’t Matter

Not Seeing Much Return on That Massive R&D Spend, Are You, Nokia?

Nokia: Big and Slow

Nokia CEO Elop Lays Groundwork for New Strategy, Hints May Be Open to OS Switch

Ina Fried — Thu, 27 Jan 2011 13:30:28 +0000

Although Stephen Elop is waiting until a Feb. 11 investor meeting to fully outline the company’s new strategy, he offered a few tantalizing hints during Thursday’s earnings conference call.

Specifically, Elop talked about his perceptions of the company’s strengths and weaknesses and what that new strategy must accomplish for the company to turn around its fortunes, particularly at the high end of the market.

“There are clearly some gems upon we will build Nokia’s strategy,” Elop said. At the same time, he said the company must move faster than it has if it hopes to regain lost ground. In particular, Elop said the company must have a better strategy around operating systems.

“The game has changed from battle of devices to war of ecosystems,” Elop said, adding later that “Our industry has changed and we have to change faster.”

Elop hinted at a change in the company’s strategy for the high end, which has focused on the Symbian operating system with a planned shift to the mobile Linux-based MeeGo operating system. He didn’t give specifics, but did draw a distinction between the low and high ends of the markets, suggesting a dual-OS strategy may still be the plan.

At the high end, he talked about the importance of developers and services, while at the low end, he said, the key characteristics are brand, scale, price, distribution and speed. Elop also noted that because of different chipsets, it doesn’t always make sense to serve the lower end of the market with the same operating system as is used for top-end smartphones.

Although Elop didn’t name any names, he did talk about the need for the company to “build or join a competitive ecosystem,” suggesting that it might be open to shifting to a competing platform. And while he wouldn’t confirm such a move, he said that the company could pull off such a switch because of its strong brand and relationship with operators.

Among the possibilities that have been suggested are Android and Windows Phone 7. The company has also canceled or delayed plans for two U.S. smartphones, suggesting that a change may be afoot.

“We made a decision to not proceed as people thought we would proceed,” Elop said.

It has also suffered delays of its E7 smartphone, which was to ship last quarter and now isn’t expected to contribute meaningfully to the bottom line until the second quarter.

The new strategy, Elop said, must be one that can “re-open doors” in markets such as the United States, where the company is weak.

“Clearly there is a pattern of disappointments in the United States,” Elop said.

Earlier in the day, Nokia reported that December quarter profits fell 20 percent as the company “faced significant challenges” and lower margins.

AT&T and Friends Talk Up 4G Network, New Devices

Ina Fried — Wed, 05 Jan 2011 17:35:33 +0000

AT&T said on Wednesday that it plans to speed up development of its next-generation cellular network, completing the LTE network by the end of 2013.

Speaking at the Consumer Electronics Show, AT&T executive Ralph de la Vega said that the company plans to release 20 4G devices this year both for the LTE network and for its current HSPA+ network.

De La Vega said just after that that the company will have devices on the Apple, Android, BlackBerry and Windows Phone 7 operating systems. (Update: 12:12 p.m.: While some in the audience, including Mobilized, heard an implication that there would be a 4G iPhone, an AT&T representative said De La Vega was only saying that the iPhone would be part of AT&T’s smartphone lineup and not suggesting a 4G version.)

Among the devices that will be on AT&T’s HSPA+ network is the Motorola Atrix 4G, a dual-core-powered Android phone from Motorola. The phone, which also packs 1GB of RAM, was launched by Sanjay Jha, CEO of newly split-off Motorola Mobility. one of the more interesting features is the phone’s optional “lap dock,” which allows the phone to power a small laptop capable of running a desktop version of the Firefox browser, among other programs.

AT&T will also have a new phone from HTC that will include a new version of the company’s Sense user interface and also connect to a new HTCSense.com Web portal.

“HTCSense.com makes your smartphone even smarter,” HTC CEO Peter Chou said, demonstrating a feature that lets you ring your phone when it is lost in the house or send a lost-and-found message to appear on a phone you left in a cab.

By building both HSPA+ and LTE networks, De la Vega said that the company will offer more speed and flexibility.

“More importantly, we will deliver an experience our competitors will not be able to match,” De la Vega said.

Multitouch Pioneer Jeff Han Starts to Think Small (Devices)

Ina Fried — Mon, 13 Dec 2010 14:00:35 +0000

For years now, Jeff Han has been working on large-screen multitouch displays.

Han and his company, Perceptive Pixel, are best known for creating the giant touch wall that John King and others at CNN use to break down elections.

While Apple, Microsoft and others have targeted consumers, Perceptive Pixel has focused on niche professional markets, especially the defense and government sector.

But, after years of watching the small touchscreen device market from the sidelines, Han said he thinks he is pretty close to creating his first products that will run on those devices.

“Mobile is interesting,” he said in an interview last month at his New York offices (in the Manhattan building that Google is buying, with the amazing roof view seen below). “How can you ignore a billion devices being sold every year?”

Han said there is a reason he has stayed focused on the high end of the market.

“I have a personal bias,” he told Mobilized. “I want computers to be functional, not just playful.”

The modern tablet, he said, is the first consumer device that has enough pixels and the precision sensors to potentially be of interest to Perceptive Pixel. In particular, Han said he is intrigued by the idea of using tablets to allow meeting participants to interact with a nearby larger touchscreen that might be in use by someone leading a meeting.

“We’re looking at mobile and slate devices as a way to tie into this family of collaboration [products],” he said, noting that’s where Perceptive Pixel is spending its energy when it comes to mobile, as opposed to coming up with some killer app that works only on smaller screens. “There are a lot of smart people creating mobile apps.”

Han said his first mobile efforts should come out early next year–in the first quarter or early in the second quarter, though he wouldn’t give more specifics.

Whatever Perceptive Pixel ends up doing in the tablet space, Han said his plan is to eventually have it support multiple operating systems, though Han said the company will probably only qualify certain devices. So far, he said, Apple’s iOS and the iPad seem best suited to the applications he has in mind, while the real-time touch performance on Android has certain issues.

“We’re not going to just let it run on anything out there,” he said. “Some of them just can’t guarantee a good user interface.”

Here is the video interview Mobilized did with Han:

[ See post to watch video ]

Google's Rubin: 300,000 Androids Activated Each Day

Ina Fried — Thu, 09 Dec 2010 05:17:25 +0000

The fast-growing Android operating system has hit a new milestone, according to a Tweet from the Google executive that heads the effort.

In only his second public post to Twitter, Andy Rubin said on Wednesday night that there are now 300,000 Android phones being activated each day. As a point of reference, there were about 60,000 Android activations per day as of last February.

Android shipments have been rising fast as phone makers Motorola and Samsung have hitched their smartphone wagons to the operating system while other brands, including HTC and LG, also ship significant numbers of the phones, while also using rival operating systems.

On Monday, Google debuted Gingerbread, the next version of Android and announced that the Samsung-built Nexus S would be the first phone to run the operating system. That evening, speaking at the D: Dive Into Mobile conference, Rubin showed off a prototype Motorola tablet running Honeycomb, a new version of Android built specifically for tablets.

Interestingly, Rubin said during his onstage appearance that he considers Android today as still geared primarily to early adopters.

Palm, Qualcomm Chiefs Weigh Wireless Future

Ina Fried — Wed, 01 Dec 2010 02:32:02 +0000

Palm-CEO-turned-HP-exec Jon Rubinstein and Qualcomm CEO Paul Jacobs faced off with Kara Swisher of All Things Digital at a Churchill Club event last night in an entertaining discussion on the future of mobile tech.

If you missed the live video feed of the event, check back with us–we’re working to repost the video. For those who want to read text, here is my liveblog of the event.

6:48 pm PT: We’re just finishing dinner. It was a chicken in some sort of puff pastry. Nothing is happening onstage, as if that wasn’t clear by the fact I am describing the meal. I think they will get started around 7:15 or so.

7:10 pm: Just about ready to go, with intros going on now. (And I just stole Kara’s seat at the head table.)

Kara: They’re both guys. Paul is taller and they work in tech.

7:14 pm: The plan is to talk about the future, but the event begins with a trip down memory lane as Jacobs holds up the Qualcomm PDQ–arguably the first smartphone combining a cellphone and Palm Pilot. For those who don’t remember, it it was bigger than a Palm Pilot and a huge phone strapped together.

7:20 pm: Digital device history continues. We’ve traced the last decade in digital devices, from the iPod through the Treo and iPhone. Don’t forget ringtones and cellphone bowling, Jacobs reminds us, referring to the Brew operating environment that Qualcomm developed.

The iPhone changed everything, Jacobs says, because it showed that the phone makers just weren’t putting enough work into the phone’s user interface.

7:28 pm: Talk is shifting to where we are today. What are the key things that are shifting? User interfaces, touch, etc. “The other things we are seeing is all of our lives are moving into the cloud,” Rubinstein says. On the limitation side, Jacobs points to the limitations of bandwidth: “We don’t have enough spectrum right now,” Jacobs says, adding that the industry and government are working on it. ‘We are just going to have to be more creative about how we get content to the devices.”

The other big limitation, Jacobs says, is battery life. You can do all this cool stuff on your phone, but then the battery dies three-quarters of the way through the day. He puts in a plug for Mirasol–Qualcomm’s low-power display technology.

Rubinstein concurs that battery and bandwidth are the two biggest issues. “Battery technology has not progressed at the same rate as all of the other things we are trying to do,” Rubinstein says.

7:38 pm: What about all the operating systems out there, Kara asks. Rubinstein: “There’s plenty of room in the market for multiple systems,” he says, adding it won’t be like PCs, where one operating system dominates. “It’s just different today.”

Rubinstein says it’s still the infancy of the major transition. Put on the spot to rank the operating systems, Rubinstein says that clearly Apple and Android are going gangbusters. The battle, he says, is for who is going to be No. 3. “We’d sure like to be that.”

Jacobs: “I agree. It’s very early days to be calling winners and losers.” He sees pretty wide diversity of operating systems, at least for the next five years, unless the operators really clamp down. Even then, there are some alternate distribution channels emerging. Either way, Qualcomm’s in good shape as an arms dealer, he points out.

7:45 pm: Discussion of carriers. While they are immensely powerful, Rubinstein says they won’t be the only distribution channel for every wireless device. “They are not all going to go through the carriers,” Rubinstein says.

More and more screens will emerge, Rubinstein says. If I fast-forward enough years, he says, the walls are going to be big displays capable of talking to other devices.

Jacobs notes that people will be able to use their device with any tool they have access to, from a big screen to a headset to a wireless keyboard. He says Qualcomm is working on a technology that would allow wireless headsets that could work in-ear like a hearing aid.

7:50 pm: Talk about some outlandish things. Rubinstein has already thrown out the idea of a headset in your pillow. Rubinstein points out that there will be a lot of sensors, pointing to the Nike+iPod as a really early example of what we can expect a lot more of.

7:55 pm: Augmented reality is also going to be big, the panelists agree. “The (StarTrek) tricorder is going to happen,” Jacobs says. Health care will also tap mobile technology, particularly in emerging countries where there is less regulation, carriers are trusted and there are fewer skilled health care providers available. “It’s a very efficient way to manage health,” he says. “Over the next few years we will see this happen,” he says. Eventually it will come back to developed markets, but today there is too much legacy and too much regulation in places like the U.S.

8:10 pm: Sorry for the delay–we were fixing some issues with the video coding, which hopefully should be solved now. Anyway, Rubinstein and Jacobs have been throwing out things that they expect in the next five years.

Jacobs’s list includes digital networked textbooks, cellphones as gateways for health care, as well as using augmented reality to translate all the signs and menus in a foreign country.

Rubinstein and Jacobs both see a digital wallet becoming a reality, with Jacobs throwing out the idea of an end to checkout lines as the phone could pay and the store could electronically disable the security on goods, allowing the whole transaction to take place without interaction with store personnel.

“Legal shoplifting, that’s interesting.” Kara says.

The technical hurdles aren’t that big, Rubinstein says. “Clearly NFC (near-field communications) is coming.” It’s more of a social problem than a technical one, Rubinstein says.

8:21 pm: Some good audience questions. One, on what does it take to deliver an Apple-like experience. Rubinstein, who has experience as part of Apple and trying to “out-Apple” Apple, says he thinks that the key is delivering an intergrated experience.

“I don’t think Apple is the only one that can do it, but I do think it is important to have all the elements,” he says.

Another question is on the future of mobile TV–a question that prompts Jacobs to cover his face (Qualcomm spent a bundle on its MediaFlo mobile TV service that saw very limited consumer uptake and Qualcomm is now evaluating what to do with it).

Too few people liked what the service had to offer, Jacobs says, referring to limits on content, screen size, etc. Jacobs said it appears that probably broadcast makes sense for live events, while streaming with TiVo-like controls makes sense for everything else.

“I actually believe strongly in mobile TV, still,” he says.

8:30 pm: Okay. That’s a wrap from me. Thanks for tuning in. If you want to hear more from Rubinstein, he will be speaking at next week’s D: Dive Into Mobile conference.

Ballmer Says Microsoft Breakup Not in Cards

Jeanette Borzo — Wed, 17 Nov 2010 08:00:36 +0000

Microsoft Corp. weathered government pressure a decade ago to break up its business. Now the software giant faces similar questions from a new quarter: its stockholders.

At the company’s annual shareholder meeting Tuesday, Chief Executive Steve Ballmer and Chairman Bill Gates sought to calm investors, some of whom asked if the maker of Windows operating systems and Xbox game consoles would be more valuable as individual companies.

“Is it time to consider breaking this company up?” one investor, grousing over Microsoft’s share price, asked Mr. Ballmer.
Mr. Ballmer, who has run Microsoft for the past 10 years, dismissed the idea, saying it would reduce Microsoft’s value by making it more difficult for the company to compete.

“I obviously don’t think it is time” for a break up, Mr. Ballmer responded, noting that many of Microsoft’s products, including Windows and the Office suite, are sold to consumers and corporations alike.

Read the rest of this post on the original site

Intel Finds Tablets Easy to Swallow

John Paczkowski — Wed, 13 Oct 2010 18:45:56 +0000

Tablets and how to respond to them. That, according to Intel CEO Paul Otellini, was “the big question on everyone’s mind” yesterday during the company’s earnings call. And he did come prepared with an answer: Tablets are just another growth opportunity for Intel, one that the company plans to take good advantage of. And while they might present something of a challenge to PC sales in the short term, in the long term, they’re just another revenue stream.

“We believe that like netbooks, tablets will expand the term for computing overall with a new form factor and new uses that bring computing to even more aspects of our lives,” Otellini said during the call. “Will they impact PC sales? Sure. At the margin, they probably will. Consumers will have a limited amount of discretionary income and some will choose to purchase a tablet instead of upgrading an existing PC or purchasing a netbook in any given period. We saw the same thing happen when netbooks were introduced, but three years later, both the PC and the netbook market segments have grown substantially and we believe that will happen again with tablets.”

Given that, what does Intel (INTC) plan to do to gain a little more presence in the category?

“We are deeply engaged with a number of partners to bring to market innovative tablet solutions,” he explained. “Our design win momentum is very strong, and in the coming months and quarters, you will see Intel solutions that run on Windows, Android and MeeGo operating systems across a variety of form factors and price points. We fully expect to participate broadly and profitably in this category, and that in the end, the tablet category will be additive to our bottom line and not take away from it.”

“We are the only architecture that runs all of the major–all but one of the major tablet operating systems, we don’t yet run on Apple,” he added. “So I think we’re in a pretty good space.”

We don’t yet run on Apple? Is that just wishful thinking or…eh, never mind.

PREVIOUSLY:

• Intel: Tablet Market Will Grow Between 73 Percent and 88 Percent by 2014

Exclusive: HP's Android Tablet Tabled

John Paczkowski — Thu, 15 Jul 2010 10:00:30 +0000

Hewlett Packard is working on a variety of tablet PCs, running a variety of operating systems. Among them, an Android device that was supposed to arrive at market in the fourth quarter of 2010. But no longer. Sources in position to know tell me that HP’s Android slate has been delayed and won’t ship before the end of the year as planned.

Why? That’s not entirely clear, but evidently the tablet has been tabled–at least for the time being.

Perhaps, HP (HPQ) has decided to focus its resources on the future webOS slate PC that its new Palm unit is developing. That device has a rumored fall launch date, and we’re already halfway through summer.

Or perhaps the company is reconsidering its multi-OS tablet strategy in light of the Palm acquisition. After all, HP has said repeatedly it is “doubling down” on webOS. “We’re going to increase [R&D spending on webOS],” HP’s Jim Burns said during a conference call announcing the deal. “And we’re going to increase sales and marketing as well. We’re going to take this platform, which today exists for smartphones only, and make it much broader than that.”

Seems that would be a lot easier to pull off if the company wasn’t simultaneously developing slates for three different operating systems–webOS, Microsoft’s (MSFT) Windows 7 and Google’s (GOOG) Android.

Perhaps, HP has concluded the same thing.

Did Apple Just Kick Adobe (And Wired Magazine) in the Teeth?

Peter Kafka — Thu, 08 Apr 2010 21:29:19 +0000

It looks like Apple just stepped up its attacks against Adobe and its Flash standard–used throughout the Web and apparently hated with much passion by Steve Jobs.

If Daring Fireball’s John Gruber is correct in parsing Apple’s new developer agreement, then Apple (AAPL) is preventing Adobe (ADBE) from using a tool that will port applications created in Flash to Apple’s iPhone and iPad operating systems.

Adobe has been pointing to that workaround as its answer to Apple’s anti-Flash campaign, arguing that developers could create programs that work on most of the Web as well as Apple’s platforms. Now it appears that Steve Jobs and company are forcing developers to choose: Our way or no way.

If true, it’s yet another blow to publisher Condé Nast’s efforts to build tablet magazines with Adobe’s help. Last year, the publisher seemed confident that its effort with Adobe would allow it to create a single digital format that worked on all kinds of iPad-style tablets. But by the end of February, it was rethinking that and began pulling back on plans to work with Adobe.

Caught in the crossfire: Condé’s Wired Magazine, which is supposed to be the first title produced by Adobe that works on the iPad. On the flip side, the other path that Condé has been pursuing–creating less ambitious versions of its titles directly for the iPad, like the GQ app it started selling last weekend–now looks very smart.

I’ve asked Apple and Condé Nast for comment. Here’s Adobe’s response, via spokesman Russell Brady: “Can’t say that much at the moment other than that we are aware of the new SDK language and are looking into it. We continue to develop our Packager for iPhone OS technology, which we plan to debut in Flash CS5.”

An Apple App Star Explains Why He Won't Work With Android

Peter Kafka — Fri, 05 Mar 2010 17:35:39 +0000

Smule’s Jeff Smith is one of the app revolution’s success stories. His start-up has generated some of the biggest hits at Apple’s iTunes app store, from novelty items like Sonic Lighter to more ambitious stuff like Leaf trombone.

The biggest hit so far: An ambitious novelty called “I Am T-Pain,” which allows users to record songs using the rapper’s sort-of-trademark “autotune” voice processor. If you don’t know what that means, best to check it out here. (Or check out the demo clips of T-Pain and other Smule apps at the bottom of this post.)

All this success has translated into real money–more than four million paid downloads, at something like $2.50 a pop. And this has allowed Smule to quickly raise $13.5 million in venture money from the likes of Shasta Ventures and Bessemer Venture Partners.

I assumed that some of that money would be earmarked for moving apps to other mobile operating systems, particularly Google’s (GOOG) Android OS. Nope, says Smith–he’s working exclusively through Apple (AAPL).

Smith is part of a small but vocal chorus of app developers who say they don’t want to move to Android, even though it is growing quickly. His complaints: He doesn’t like the way the store merchandises its wares, and he doesn’t want to have to create different apps for each handset Android supports.

In fairness, Apple has its share of vocal app developer critics as well, and that group got louder this month during the iPorn imbroglio.

And if you wanted to be overly cynical, you could point out that Smule has been a featured Apple partner for some time. Smule’s products have gotten stage time during Apple product announcements and have been highlighted in the company’s press releases.

But Smith isn’t betting the future on Apple, either. His business plan involves generating revenue from other places besides the iTunes app store. I’ll let him explain in this interview, which we taped during Billboard’s Music & Money event yesterday.

[ See post to watch video ]

Acer to Apple: Don’t Mind Us. We'll Just Keep Making These "Cheap Laptops."

John Paczkowski — Mon, 01 Feb 2010 19:01:41 +0000

“Netbooks aren’t better than anything. They’re just cheap laptops.”

— Apple CEO Steve Jobs announcing the iPad

Come summer, Acer will enter the arena for e-book readers, releasing a device with a six-inch monochrome screen. The company will also debut an online applications store from which it will peddle apps for Microsoft’s (MSFT) Windows and Windows Mobile operating systems and for Google’s (GOOG) Android platform.

But Acer has no plans to launch a touchscreen tablet to compete with Apple’s (AAPL) new iPad, despite the fact that Chairman J.T. Wang recently told Bloomberg his company was “developing something” along those lines.

Why the sudden change of tack? Acer President Scott Lin says that while the company is entirely capable of building a tablet device, it wouldn’t be worthwhile because it lacks a software ecosystem like Apple’s iTunes App Store. A tablet, Lin, told DigiTimes, does not fit into Acer’s business model.

“Historically, closed platforms are typically limited in terms of scale and are confined to niche markets,” Lin said. “Apple has built its business out of carving its own niche, which means that while Apple could see success with devices like the iPad, other players are unlikely to be able to replicate its result simply by copying.”

An interesting admission, particularly since it seems to openly contradict what Wang said just about a week ago. Of course, at this point, with the iPad not yet released and the tablet market as nascent as it is, Acer’s tentative view of things is understandable. Why mess around with an unestablished, unproven market when the company is doing just fine peddling netbooks and other portables? Better to throw its full weight behind the broad spectrum of notebooks–traditional, ultrathin and netbook–where it’s already quite strong (Lin notes that Acer shipped about 31 million notebooks in 2009).

That said, Acer would do well to keep an eye trained on Apple. Because according to Deutsche Bank (DB), the iPad will give it claim to about seven percent of the low-end computer market by 2011. Said Deutsche Bank’s Chris Whitmore: “We expect the iPad to compete very well against existing low-end notebooks and netbooks, particularly in the segment of the market where surfing, reading, game playing and emailing dominate the usage model.”

Condé Nast's Offering for Apple's Mystery Tablet: Wired Magazine

Peter Kafka — Wed, 18 Nov 2009 21:19:42 +0000

Here’s yet another content creator convinced that Apple has a tablet device in the works: Condé Nast says it will have a digital version of Wired magazine ready for the rumored gadget by the middle of next year and will eventually create similar versions for all of its 18 titles.

But Condé, like other publishers, says Apple (AAPL) won’t actually talk to the company about its plans for the device, or even acknowledge that it has plans.*

Condé’s plan, meanwhile, is to create digital versions of its magazines that will work on all the upcoming tablets, using new software from Adobe (ADBE). Those tablets aren’t actually on the market yet, but the publisher says it’s confident that we’ll soon see multiple versions of machines featuring large color touchscreens and wireless connections.

So who’s going to make those gadgets? Condé Nast CEO Chuck Townsend says his company is working closely with Hewlett-Packard (HPQ) and that it has also been communicating its plans to Apple. But Townsend made a point of saying that Apple executives themselves refuse to acknowledge that they’re actually planning a tablet: “They’re not talking to anybody openly,” he says.

Adobe is creating a publishing tool for the new format, as well as magazine-reader software that may come pre-installed on the devices or may require a download. The software company says it is working exclusively with Condé now, but will offer its tools to other publishers next year.

[Important technical point several readers have brought up: Adobe says its new reader software will run using its AIR platform, which works on multiple operating systems, including Apple's desktop system. But neither AIR nor Adobe's flash software works on Apple's iPhone, so if the new mystery device runs on that operating system, there's a problem. I'm following up with Adobe to see what it has to say. UPDATE: Here's Adobe's response.]

Condé says its work with Adobe won’t preclude the company from joining the “Hulu for magazines” storefront/distribution joint venture it has been discussing with Time Warner’s (TWX) Time Inc. and other publishers. “Those discussions are ongoing and important and imminent,” Townsend says.

Okay. So what will Condé’s magazines look like once the tablets appear? The publisher has been showing a demo video to advertisers, industry executives and employees, and I’m trying to convince the company to show it to the rest of the world. (UPDATE: Here’s a partial, low-quality version of the video).

But until then, you can get a sense of it by checking out the publisher’s first attempt to port a magazine to the iPhone, which was released today at the iTunes App Store.

Like the iPhone version of GQ’s December issue, Condé says its tablet magazines will feature the same content found in the print versions, including original advertising, with the ability to view pages in their original form or in formats designed specifically for the device. They will also import multimedia content, like videos, and offer the ability to synch up with social networks and other Web sites.

Condé also thinks the business model for its tablet mags will mirror that of its iPhone app. The company intends to charge readers for each title, and it plans to convince the Audit Bureau of Circulations, the magazine industry’s standards board, that its online sales are equivalent to newsstand sales. That will allow Condé to charge advertisers the same rate as for print ads.

If all of this works, it’s a dream scenario for Condé and other publishers. The magazine industry gets to keep the revenue streams its print publications generate without having to make the “analog dollars for digital pennies” discount that the Web requires. Meanwhile, Condé gets to bask in the benefits of digital–lower distribution costs, more engagement with readers.

Or put another way: Publishers hope the new devices will repair all the value destruction the Web has wrought.

But all of this assumes that consumers, who’ve shown no inclination to pay for this stuff on the Web, will be willing to pay for it once it appears on devices no one owns yet. We’ll find out soon enough.

*One possible exception is the New York Times (NYT), where editor Bill Keller refuses to talk about possible talks with Steve Jobs and company.

Sales of Windows Through China’s, Ahem, "Local Distribution Network" Will, of Course, Continue…

John Paczkowski — Wed, 18 Nov 2009 13:45:42 +0000

Well, this is ironic: Microsoft has been found guilty of violating intellectual property rights in a nation where 82 percent of all software is pirated, a nation that is home to a counterfeiting syndicate that in 2007 was busted for manufacturing and distributing more than $2 billion worth of counterfeit Microsoft software.

A Chinese court has ordered the software giant to stop producing and selling versions of its Windows OS that include Chinese fonts developed by a local software company. Microsoft’s (MSFT) use of two Chinese fonts developed by Zhongyi Electronic, a Beijing-based software company, was not covered by the licensing agreement between the two, the court found, and therefore infringed on Zhongyi’s rights. And so Microsoft must pull from the shelves Chinese language editions of Windows 98, Windows 2000, Windows XP and Windows Server 2003.

“By winning this case against an internationally well-known company like Microsoft, it shows that China, although still a developing country, is taking positive steps to protect intellectual property rights,” an attorney for Zhongyi Electronic told Reuters.

Microsoft, for its part, insists its agreement with Zhongyi covered its use of the fonts at issue and plans to appeal the decision. “Microsoft respects intellectual property rights,” the company said in a statement. “We use third party IPs only when we have a legitimate right to do so.”

And if Microsoft should fail in its appeal? Well, piracy is so rampant in China, a court order preventing the company from selling certain versions of Windows isn’t exactly going to hamstring Microsoft’s business. “The majority of operating systems in the market today are illegal copies, and the ones that are Zhongyi-related have an even smaller share of the market,” Analysys International analyst Edward Yu explains. “So I don’t think it will have much impact on Microsoft’s business.”

Windows 7 Usage Outpaces Vista, Closes In on Mac

Nick Wingfield — Wed, 11 Nov 2009 17:18:26 +0000

There’s a new sign Windows 7 is off to a strong start: Web surfers have started moving to the operating system much more quickly than they did its troubled predecessor, Windows Vista.

A new research report says Windows 7 on Saturday surpassed 4 percent of all devices visiting Web sites that day, a little over two weeks after the commercial launch of the product. It took Windows Vista, in contrast, about seven months to pass 4 percent after it was introduced to businesses in November 2006, according to the report from Net Applications, a firm that tracks online usage.

The report doesn’t measure traditional sales market share for computers, counting instead the types of operating systems and other software used by people visiting a network of more than 40,000 Web sites around the globe.

Read the rest of this post on the original site

Windows 7 Upgrades and Screen Readability

Walter S. Mossberg — Wed, 21 Oct 2009 21:42:02 +0000

(See Corrections & Amplifications item below.)

I have a vision problem and can barely read low-contrast print, even the light colors on your Web site. Any ideas for how I and others can solve this problem? I use a Mac and the Firefox Web browser.

A: If your Mac is running the Leopard or Snow Leopard operating systems, you can use an onscreen slider control or keyboard commands to enhance the contrast. You can even switch the display to white-on-black, which really boosts the effect. This works system-wide. These settings are found in System Preferences, under the Universal Access preference, in the tab called “Seeing,” in the section called “Display.”

The new Windows 7 also has a similar feature that applies a “high contrast theme” when you press a certain key combination. It can be enabled or disabled in the Control Panel, under Ease of Access. You click on “Ease of Access Center,” and then “Make the computer easier to see.”

Where can I download the Windows 7 Home Premium upgrade edition for my Vista Home Premium computer?

A: Windows 7 can be downloaded at http://store.microsoft.com/home.aspx. And, after you’ve installed it, you can upgrade to higher versions anytime, if you like, for a fee. This is called the Windows Anytime Upgrade, and is explained at this site: http://bit.ly/VrV58.

Do you know if the new Windows 7 Home Premium will be offered at less than the retail price of $120 to current Vista PC owners who wish to upgrade?

A: That $120 price is the upgrade price for Vista owners moving to Windows 7 Home Premium, though of course some retailers might discount it. The “full,” or non-upgrade, edition of Home Premium lists for $200. Microsoft did run a sale on Windows 7 pre-orders earlier this year, but that’s over.

You can also get a Windows 7 upgrade from participating PC makers free, or for a nominal fee, if you buy a new PC equipped with Vista before the end of January, 2010, or bought one after June 26, 2009. For the latter offer, consult: http://bit.ly/rjAz4.

You can find Mossberg’s Mailbox, and my other columns, online, free, at the All Things Digital web site, http://walt.allthingsd.com.

Corrections & Amplifications

An earlier version of this column erroneously stated that Windows 7 had to be purchased on a disk.

Art Levinson Bails on Google Board Amid FTC Probe [UPDATED]

John Paczkowski — Mon, 12 Oct 2009 13:30:49 +0000

Former Genentech chairman and CEO Art Levinson has resigned from Google’s board, where he has been a director since April 2004. No reason was given for his departure, though his presence on both the Google (GOOG) and Apple (AAPL) boards, and the Federal Trade Commission inquiry into possible implications of such dual memberships, surely played a role.

This past July, Google CEO Eric Schmidt left Apple’s board presumably for the same reason. The cozy relationship between the companies, which increasingly compete in the cellphone and operating systems markets, had led the FTC to question whether close ties between their boards of directors violate antitrust laws. With Schmidt gone from Apple’s board room and Levinson gone from Google’s, it would seem there’s no longer reason for the FTC to do so.

“Art has been a key part of Google’s success these past five years, offering unvarnished advice and vital counsel on every big issue and opportunity Google has faced,” Schmidt said in a statement. “Though he leaves as a member of our Board, Art will always have a special place at Google.”

Though not nearly as special as his place at Apple, where his remaining board seat and true allegiances clearly lie.

UPDATE:Levinson’s resignation from Apple’s board appears to have appeased the FTC. “Google, Apple, and Mr. Levinson should be commended for recognizing that overlapping board members between competing companies raise serious antitrust issues and for their willingness to resolve our concerns without the need for litigation,” FTC chairman Jon Leibowitz said in a statement. “Beyond this matter, we will continue to monitor companies that share board members and take enforcement actions where appropriate.”

Facebook to Grow Staff by as Much as 50 Percent This Year

Eric Savitz — Mon, 24 Aug 2009 17:15:24 +0000

Facebook plans to grow headcount by as much as 50 percent amid a surplus of engineering talent, CEO Mark Zuckerberg told Bloomberg. “No one else has been hiring,” he said. “”It’s been a great environment for us because the economy has helped out.”

Facebook currently has 1,000 employees.

Zuckerberg said the company aims to eventually have 1 billion users, though he declined to give a time frame. He said he expects social networks to become as essential as Web browsers and operating systems.

Read the rest of this post on the original site

Google CEO Bails on Apple Board

John Paczkowski — Mon, 03 Aug 2009 19:00:29 +0000

[ See post to watch video ]

Google CEO Rejected From App Store

John Paczkowski — Mon, 03 Aug 2009 12:42:31 +0000

“Eric is obviously doing a terrific job as CEO of Google, and we look forward to his contributions as a member of Apple’s board of directors. Like Apple, Google is very focused on innovation and we think Eric’s insights and experience will be very valuable in helping to guide Apple in the years ahead.”

–Apple CEO Steve Jobs, August 2006

“Apple is one of the companies in the world that I most admire. I’m really looking forward to working with Steve and Apple’s board to help with all of the amazing things Apple is doing.”

–Google CEO Eric Schmidt, August 2006

Asked earlier this year if he would resign from Apple’s board in the face of Federal Trade Commission scrutiny of the close ties between the two companies’ boards of directors, Google CEO Eric Schmidt replied simply, “It hasn’t crossed my mind.”

Well, apparently it has now.

Citing the growing overlap of the two companies’ businesses, Schmidt is giving up his seat on Apple’s board, which he has held since August 2006.

“Eric has been an excellent Board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful,” said Steve Jobs, Apple’s CEO. “Unfortunately, as Google enters more of Apple’s core businesses, with Android and now Chrome OS, Eric’s effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest. Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple’s Board.”

“I have very much enjoyed my time on the Apple board,” Schmidt said in a statement of his own. “It’s a fantastic company. But as Apple explained today we’ve agreed it makes sense for me to step down now.”

A wise move. Schmidt’s boardroom role was already reduced because of competitive issues between the iPhone and Android and between Safari and Chrome. Given the obvious competitive issues between the Mac and Google operating systems, it is inevitable that his board involvement would shrink again. Had he retained his seat, Schmidt would have likely spent more time standing outside Apple’s boardroom than in it.

So why bother? Better to step down and avoid the appearance of impropriety, especially when regulators seem to be singling Google (GOOG) out for all manner of scrutiny. Certainly, Apple (AAPL) must be relieved to have the guy with the FTC target on his back out of the boardroom.

And relations between the two companies must have been a bit strained by this Google Voice for iPhone debacle.

Improving PC Performance

Walter S. Mossberg — Thu, 30 Apr 2009 00:28:01 +0000

Here are a few questions I’ve received recently from people like you, and my answers. I have edited and restated the questions a bit, for readability.

In your spring buyer’s guide, you wrote that adequate graphics chips will be more important than ever, but in the past you’ve advised that memory, or RAM, was key to speed and performance. Can you now get the same gains by buying or adding a better graphics chip? Or is RAM just as important as ever?

There are lots of things that can improve the performance of a PC or Mac. But adding memory still gives you more bang for the buck than any other, in my view. What I was saying last week is that the forthcoming Microsoft and Apple operating systems will be relying more on graphics chips to help take some of the load off the main processor and speed up certain tasks. Even so, a better graphics chip isn’t a substitute for more main memory. In fact, most moderately priced computers use so-called integrated graphics chips, which lack dedicated memory and share some of the computer’s main RAM. So having plenty of main memory is directly related to getting the most out of such graphics chips.

Can the iPhone be connected to desktop peripherals? I want to be able to plug my iPhone into a large monitor and printer.

There are already several apps, including one from Hewlett-Packard, that allow you to print photos wirelessly from an iPhone to a printer that’s connected to a Wi-Fi network. But, as far as I know, there is nothing on the market today that can connect an iPhone to an external monitor or keyboard, or to a printer for nonphoto printing. However, Apple has announced that the new 3.0 version of the iPhone operating system, due this summer, will enhance the ability of the iPhone to work with add-on hardware, either via cables or wirelessly. The company showed this off with medical devices, but it’s possible that some third party could make it work with monitors or printers or keyboards.

A recent article in the Journal reported that a person had installed the Mac operating system on a Windows laptop. Is this really possible and is it legal?

Apple doesn’t sell or license its Mac OS X operating system for use on non-Apple hardware. In fact, the company considers it illegal to install OS X on other brands of computers. Nor does it produce OS X drivers for non-Apple hardware features that are built into competitors’ computers. Nevertheless, some computer hobbyists have installed OS X on non-Apple hardware, and posted photos and videos online to prove it.

Even if you are willing to ignore the legal issues, this process, while not brain surgery, takes more skill than the average user possesses. And, in the end, some features of the computer may wind up disabled or require workarounds to function. For instance, on one such machine I saw, the speaker port didn’t work with the Mac OS.

You can find Mossberg’s Mailbox, and my other columns, online free of charge at the new All Things Digital Web site, http://walt.allthingsd.com.