Sony Xperia S

All three phones are “unlocked” — meaning, they’re available without carrier contract and are unsubsidized.

The 5-inch Xperia S retails for $600, has a 4.3-inch HD display and boasts a 12-megapixel camera. It’s running a 1.5GHz Qualcomm dual core processor, while the other NXT phones run on 1GHz dual-core processors.

The slightly smaller Xperia P has a 4-inch HD display, an eight-megapixel camera and includes a new screen technology Sony calls WhiteMagic, which is supposed to automatically adjust the brightness of the screen, depending on the environment the user is in, to conserve battery life. That phone costs $480.

The $300 Xperia U has a 3.5-inch display and a five-megapixel camera. Unlike its more expensive cousins, which capture 1080p HD video, the Xperia U records in 720p HD. Also, the Xperia U doesn’t have built-in near field communication capabilities.

A couple things to keep in mind: All three phones are running Android 2.3, an older flavor of the Android operating system. While they are upgradable to Ice Cream Sandwich, Android fanatics will likely turn their focus toward even-newer devices that run Google’s Jelly Bean 4.1. Also, none of these smartphones are 4G/LTE compatible.

The Sony Xperia Ion smartphone, which my AllThingsD colleague Bonnie Cha reviewed here, was Sony’s first smartphone entrant into the market following the electronic giant’s buyout of Ericsson, after a decade of making cellphones as a joint venture.

It was also Sony’s company’s first 4G smartphone for the U.S. market. Unlike the unlocked Xperia NXT phones, the Xperia Ion launched through AT&T for $100 with a two-year contract. For users in AT&T’s 41 4G markets, that means zippy data speeds with the phone, although Bonnie found the Xperia Ion to have low call volume and an anemic battery.

But while the company has no plans to replace those devices, it says more mobile devices will come to market in the near future.

Some of Dell’s current smartphones will still be available in other countries, a Dell spokeswoman said. The Venue Pro is sold in India, and the Venue is available in Korea. The Streak Pro smartphone is still available in China and Japan.

A Dell spokeswoman told AllThingsD that the company is planning to introduce other mobile devices, inclusive of tablets and smartphones, in the U.S. and other countries, in the near future; details surrounding the products are still unclear. Dell CEO Michael Dell has said previously that he believes the Windows 8 operating system will give tablet makers the best chance of competing in an iPad-dominant market, and that “the Android stuff has not done fantastically well.”

It’s been a tough stretch for Dell. In December of last year, the company halted sales of its 7-inch Dell Streak tablet. Prior to that, it discontinued the 5-inch tablet/phone hybrid version of the same device. And it also stopped making netbooks, as computer makers shift more toward lightweight, powerful Ultrabooks.

News that Dell would be killing off its U.S. smartphone offerings was reported earlier by PC World and other outlets.

iStockphoto | aluxum

The latest figures from International Data Corporation indicate China’s share of the global smartphone market will rise to 20.7 percent, up from 18.2 percent in 2011. And that’s enough to surpass the U.S., though admittedly by a very slim margin. In 2012, the United States’s share of the world’s smartphone market is expected to decline to 20.6 percent, down from 21.3 percent in 2011.

Not a big slip, but enough to allow China to claim the title of top smartphone market.

Not that this wasn’t already an inevitability. After all, China is the world’s most populous country. And it recently became the first to reach one billion mobile phone subscribers. Really, it’s surprising that the country hasn’t snatched this title from the U.S. already.

But it will soon enough. Smartphone adoption in China has been spiking recently, driven by low-cost Android handsets. And with those devices increasing in number and mobile broadband becoming more accessible, it will only spike higher.

Said IDC analyst Wong Teck Zhung, “The gap [between China and the U.S.] will widen in the coming years. There will be no turning back this leadership changeover.”

Image: iStockphoto | aluxum

Travelers have used Airbnb to book a total of five million guest nights in the past four years, staying in spare bedrooms and empty homes around the world.

Even more impressive is that a majority of those bookings — four million — occurred in 2011 alone, according to the San Francisco vacation-rentals company.

Today, the start-up provided a number of metrics for how the company performed last year, and in the months since it raised $112 million, which valued the company at more than $1 billion.

The one figure Airbnb neglected to provide, however, was the number of renters who have applied to receive a $50,000 Host Guarantee, which would reimburse them for the cost of property damage, theft or vandalism.

In August, the company initiated a number of security features, including the guarantee, after a host had a particularly horrible experience with guests who ransacked her apartment and stole her identity.

A spokesperson said Airbnb doesn’t disclose the number of claims that have been submitted, but said that the overall number is much lower than it originally anticipated. “We think this is a testament to the quality and caliber of our community,” she added.

In today’s release, Brian Chesky, CEO and co-founder of Airbnb, said that reaching five million bookings demonstrates the demand for people all over the world to monetize extra space in their homes.

The closest comparison to Airbnb is likely Austin, Texas-based HomeAway, which reports results because it is a public company, even though it focuses more on renting people’s vacation homes, not their primary residences.

HomeAway did not have a comparable figure for homes rented, but it did say the vacation property market is growing quickly. In a 2010 survey it commissioned from Radius Global Market Research, it found that there were more than six million vacation properties in the U.S. and Europe that are rented for a fee to travelers for at least two weeks of every year.

According to the same survey, these vacation rentals generated more than $85 billion of annual rental income in 2010, or nearly $14,000 per property.

HomeAway’s marketplace includes more than 500,000 paid listings of vacation rentals in more than 145 countries worldwide.

In comparison, Airbnb says it lists more than 100,000 properties in 192 countries. Instead of charging for listings, it collects 3 percent of each reservation, and guests are charged 6 to 12 percent of the booking fee.

Here are some of Airbnb’s other numbers:

• More than 75 percent of all reservations in 2011 were international, with either the guest, host, or both located outside the U.S.
• The number of available listings increased 166 percent in 2011, and 70 percent of all listings are now located outside the U.S.
• In 2011, Airbnb added 24-hour customer support in 16 languages through email, live chat, and seven global toll-free phone numbers.
• The company launched 40 features in 2011 to bulk up trust and safety.
• Airbnb has offices in San Francisco, Hamburg, Berlin, and London, with new offices opening in Barcelona, Copenhagen, Milan, Moscow, Paris and São Paulo, Brazil.

And if you’re more of a visual learner, here’s the story in a graphic almost big enough to rent out:

After the departure of top Yahoo advertising sales exec Seth Dallaire, who decamped to Amazon this week, Yahoo did a little reorganization of its U.S. sales team.

(I promise to stop with the LOLcat images after this one for a while, but it is purrfect.)

Rather than go into the deets, you can just read the internal memo on it from Wayne Powers, SVP of advertising sales for North America:

Team:

These first few weeks of the year have been a phenomenal showing of Yahoo! pride and a clear display of the opportunities we’re poised to capitalize on this year.

In discussions with executives from our 100+ meetings with some of our largest advertisers, agencies, and holding companies at CES, it’s clear we’re changing the dialogue by having a consistent go-to-market strategy: Premium Content Experiences, at Scale, Across Screens; by listening to and engaging with our clients in meaningful ways; and by focusing on digital media and innovation. We were given the top performance rating by one of our Global Agency partners — out of the five media publishers they met with, we were ranked number one based on our continued commitment to providing clarity and consistency in strategy and to strengthening our partnership. Great work everyone!

With that context, there are some changes that I want to announce effective today. Seth Dallaire is leaving Yahoo! to run North American Sales at Amazon. While it’s never easy losing great people, we’re fortunate that he has a very talented team that will carry on the focus and momentum. Please join me in wishing him continued success!

As part of this transition, Mark Ellis will expand his role to take on leadership of the Global Agency and Client Partnership teams. He will continue to lead North American Field Sales.

I’m excited to announce that Peter Foster will to take on leadership duties and will serve as the lead for our partnership with AOL and Microsoft, Interclick, mid-market display, mid-market acquisition sales, and the Channel Reseller team, reporting to me. Peter joined us as part of the acquisition of 5:1 where he served as Chief Revenue Officer, and has a long career in the industry. He previously was SVP sales at ValueClick/Fastclick, one of the biggest ad networks in the world, oversaw revenue at Photobucket after it was acquired by News Corporation, was an early pioneer in the monetization space at L90, and held senior revenue posts at Kosmix and Hi5.

I’m also excited to announce that Marc Grabowski will take on an expanded role and now will head the combined Interclick and mid market sales teams. As part of this new team, Michael Katz, the CEO of Interclick, will lead all sales operations and data and performance optimization for the combined teams. Both Marc and Michael will report to Peter.

We are fortunate to have such a talented team here at Yahoo!. Ross and I are confident that Peter, Mark, and Michael will lead our efforts to change the conversation in this space and industry.

I want to thank everyone for their continued hard work and dedication. We have a great team and a lot to be excited about. We continue to hear feedback from the agencies and clients about our progress, so let’s keep up the focus and energy and deliver on our goals! Please let me or your managers know if you have any questions.

–Wayne

In the second quarter of 2011, PC sales in China reached $11.9 billion; PC shipments rose 14.3 percent year over year to 18.5 million units. Meanwhile, PC sales in the States slipped to $11.7 billion, and shipments dropped 4.9 percent to 17.7 million units.

This is the first time China has overtaken the U.S. to become the world’s largest market for personal computers, and while it’s not likely to hold that title on a full-year basis in 2011, thanks to the holiday buying season in the States, it will probably claim it in 2012.

“China’s lead in the PC market is a huge shift that reflects the rising fortunes of emerging markets as well as the relative stagnation of more mature regions,” IDC VP Loren Loverde said in a statement. “While the immediate economic circumstances in the U.S. and other markets had a significant impact on the timing of China’s move to the lead, they have not changed the trend, but accelerated it.”

Here are the slides Yahoo released about its second quarter earnings, in which revenue was down due to an unexpected drop in growth in its display advertising business, especially in the critical U.S. market.

As you can see on Page 8 of the deck, year-over-year display sales rose only five percent in the quarter, compared to much more significant increases in previous quarters. With declines in all other revenue sectors, this was not a good thing.

The 10 percent decline in the Americas region, which you can see on Page 9, is the culprit, as Yahoo CEO Carol Bartz underlined in the conference call with Wall Street analysts today.

Paging Ross Levinsohn — leader of Yahoo’s Americas region and its ad efforts — stat!

YHOO_Q2_11EarningsPresentation_Final

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.

The cellphone maker is hoping that its PlayStation phone, combined with several other new smartphones, will help lift the company to the top of the Android race as opposed to being just one of the pack.

In an interview at the Mobile World Congress in Barcelona, Sony Ericsson CTO Jan Uddenfeldt told Mobilized that the company intends to capitalize on Sony technologies beyond gaming, particularly in the areas of screens and cameras.

“We think we have a really competitive edge,” said Uddenfeldt. The Xperia Arc, for example, uses the Bravia Engine that comes from Sony’s television heritage. “We will introduce 3-D technology and that will come from Sony, of course.

Uddenfeldt said that the company is now leading on Android as well, being the first company outside of Google itself to release a Gingerbread-based phone, with its Arc that was announced at CES. At Mobile World Congress, it announced the Xperia Play and two other phones.

“From being a little bit of a laggard when it comes to Android releases, we are now the leader,” he said. “We intend to really stay that way. Our intention is to be the number one player in this Android world.”

First and foremost, Uddenfeldt said the company has to be a leader when it comes to using both the latest version of Android and the newest chips and other hardware. “It is a technology race, so it is very important to be on the latest technology,” he said.

With Xperia Play, Uddenfeldt said, the company has something that takes advantage of the latest and greatest version of Android but also does something unique.

“We don’t see anyone else doing this in the near future,” he said. In addition to being PlayStation certified, it will also work with a lot of Android games, including many customized just for the Play.

“Most of the games that we will launch are actually non-Sony-based games, Android games,” he said, referring to deals with Gameloft and EA Sports to create Xperia Play-optimized titles. “There’s going to be like 50 games when we launch the product in March or April.”

Though most Americans wouldn’t know it, Sony Ericsson is a top-three global player in Android phones, with about 20 percent market share, he said. Until recently, Uddenfeldt said, the company would tend to introduce phones first in Europe and Asia, bringing them to the U.S. several months later–and that, he said, “was absolutely not the right strategy.”

“The U.S. is now the leading market,” he said. “The U.S. is the country where the most advanced products are being launched first. That was not the case two or three years ago.”

Sony Ericsson is realizing this and is changing, he said, noting that Verizon will be among the first carriers to offer the Play. “We will work very closely with AT&T in launching different products as well,” he added.

The company is also shifting more of its design and engineering to the U.S., Uddenfeldt said, noting that the Redwood Shores, Calif., office where he works, established just two years ago, now has about 300 workers doing everything from product design and engineering to business development.

“It’s the right place to be,” he said. “We have Android there. We have Facebook.”

Uddenfeldt has a unique perspective, having been with Sony Ericsson for only six months but at the same time being a 30-year Ericsson veteran and being based in Silicon Valley for the past several years. He’s also not afraid to admit that the company has made mistakes, including in the past year as it tried to move from proprietary Walkman and Cybershot phones to a fully Android-based lineup.

“I don’t think Sony Ericsson fully understood the importance of being on the latest Android release,” he said. “That kind of hindered a little bit the growth of the company during last year.”

However, he said, with the move to Android, the company has stemmed its losses and has now had four profitable quarters. This year, he said, it is time for growth.

Whether he is walking the halls of Nokia’s headquarters in Espoo, Finland, or even just buying groceries at the market, Nokia’s chief executive is constantly flooded with suggestions for how the company should regain lost ground.

Elop recalled being at dinner just over a week ago and being approached by three young people who wanted to share their suggestions.

“The three of them couldn’t quite agree on what the right strategy was, but they clearly each had an opinion,” Elop said.

For his part, Elop has deeply considered three possibilities for its high-end smartphone business–sticking with plans to develop around MeeGo (a mobile version of Linux), shifting to Android or adopting Microsoft’s Windows Phone.

Without tipping his hand, Elop spoke with Mobilized last week about the pros and cons of the various options. The interview came before releasing his big “burning platform” memo and literally as the final decision was being made.

For Elop, it came down to which approach would offer enough differentiation and yet would also be part of an ecosystem that would be large enough to attract developers, advertisers, carriers and all the other partners.

“It’s not just differentiation but sustainable differentiation,” Elop said. He also said that as big as Nokia is, it can’t afford to go it alone.

It is also critically important to Elop that the company be more competitive in the United States. Although the company ships more phones worldwide than any other company, its presence in North America is basically nonexistent. And yet, he said, the U.S. is where the pace is set for the high end of the market.

“We need to be in the United States in one way, shape or form,” Elop said. “We have to have a viable way to reopen doors.”

So where did that leave the various options?

Although MeeGo left plenty of room for differentiation, that option would also mean trying to be unique at the same time, as the company would have to convince others to build on the platform.

“For it to be a valid ecosystem, that also implies other [phone makers]–our competitors–would be attracted to it as well,” Elop said. “That’s one of the things that give it critical mass and credibility.”

Although Elop didn’t say so in our interview, his comments in this week’s memo suggest that his confidence there was low.

“We thought MeeGo would be a platform for winning high-end smartphones,” Elop said in his memo to staff. “However, at this rate, by the end of 2011, we might have only one MeeGo product in the market.”

As for Android and Windows Phone, Elop said Nokia could offer a significant boost to either ecosystem.

“Android is growing very nicely; it has significant market share,” he said. “The combination of Android’s existing market share plus the market share that Nokia could bring to the Android ecosystem is a very large number and would signal a very substantial shift in the dynamics of the mobile operating system market.”

As for Redmond’s operating system, Elop said it is early days.

“Windows Phone is in its early formative stages in terms of getting customer traction and so forth. It’s a beautiful product and I say that as someone who is competing with it.”

However, that may not be the case much longer. While Elop was still leaving all doors open when he spoke with Mobilized a week ago, the options appear to have narrowed significantly in recent days. His memo on Tuesday appeared to rule out MeeGo as the best option, while a tweet from Google’s Vic Gundotra suggests Android is out and a tie-up with WIndows Phone is Elop’s final choice.

But, no matter what decision gets made at the high end, Elop said that the company probably needs a separate strategy at the low end of the market, where there is intense competition from Chinese phone makers building phones around low-cost chips from MediaTek.

Friday’s investor meeting will also address other aspects of the company, including its services strategy, its plans for its Navteq navigation unit and its plans to leverage its huge patent portfolio. The announcement also comes just ahead of the cell phone industry’s big trade show, Mobile World Congress, which gets going on Sunday in Barcelona.

Mobilized is here in London and will have live coverage of the meeting, which kicks off at 11 am local time. That’s 3 am PT, so set those alarm clocks early.

But its statement contained a new characterization from CEO John Chambers about the circumstances Cisco finds itself in. Gone was talk of temporary air pockets that emerged in November when Cisco’s outlook turned suddenly, and unexpectedly, sour. Now it’s in a “period of transition.”

One that’s far from over, apparently. Having reported the hard numbers, it saved the bad news, in particular its outlook, for the conference call. And it wasn’t pretty. It fell to CFO Frank Calderoni to deliver the bad news. While Cisco forecast revenue to grow at a rate of 4 to 6 percent in the third quarter over the same period in 2010, profits were forecast at 35 to 38 cents a share, well below the consensus of 39 cents. Gross margins for the full year will be in the 62 to 63 percent range, down from 64 percent in 2010.

Chambers noted weaknesses both in Cisco’s switching business, where sales declined by 7 percent, and in sales to government customers, saying he expected that segment to be problematic during the next several quarters. Sales of set-top boxes were also weak. Summing it up, Chambers said: “I think we will look back on this period of time and wish we could have avoided it and yet it will make us stronger in the long run.”

There was good news. Cisco will pay its first dividend this year, somewhere in the range of 1 to 2 percent.

And then there’s Cisco’s cash position, which stands at $40.2 billion, though only $3 billion or so of it is inside the U.S.

Chambers used the subject to once again complain about U.S. tax policy regarding cash held overseas. “We have a tax policy that is just broken,” he said.

“One of the most frequent requests we hear from people who use (or want to use) Google Voice is that they’d like to get all of Google Voice’s features without having to give up their long-time phone numbers,” the company said. “This means you can make the mobile number you’ve always used your Google Voice number, so it can ring any phone you want–or even your computer.”

Like email addresses, phone numbers tend to be a point of stickiness with consumers, tying them to a particular provider. That changed in the mobile world some years back, though, once carriers started allowing customers to move their numbers from one provider to another.

For them, though, that was sort of a zero sum game. They’d get some new customers and lose some old ones. This, on the other hand, makes it easy to leave the traditional system entirely.

Number porting is initially available only in the U.S. to existing Google Voice users. New customers in the States should be able to start bringing over their numbers in the next couple of weeks, Google said.

Once available only by invitation, Google Voice has been available for all since last June.

That’s why this new one from AVG is especially close to our heart. As part of the company’s Digital Diaries research on children and technology, the security firm polled a couple of thousand mothers with kids from 2 years old to 5 years old in the U.S., Europe, Japan, Australia and New Zealand.

Among the findings was that more of the young kids could play with a smartphone app (19 percent) than could tie their shoes (9 percent). See, Mom, I’m not alone! Of course, Mobilized is no longer a kid and is still bad at shoe-tying.

Tech skills are outpacing life skills in other areas as well. For example, more of the kids can open a Web browser than swim on their own, and more can play computer games than ride a bike.

My favorite part, though, is the quote from AVG CEO J.R. Smith.

“Technology has changed what it means to be a parent raising children today-–these children are growing up in an environment that would be unrecognizable to their parents,” Smith said. “As our research shows, parents need to start educating kids about navigating the online world safely at an earlier age than they might otherwise have thought.”

I would have gone with “Holy crap! We need to get our kids outside more and make sure they can do more than play Angry Birds.” But that’s me.

“T-Mobile is ideally positioned to grow in the expanding U.S. market with the mobile Internet, if possible to a disproportionately large extent,” T-Mobile Group CEO Rene Obermann said in a statement issued by parent company Deutsche Telekom. “Philipp Humm and his team have a broad-based strategy to put T-Mobile USA back on course for growth.”

Among its plans are to offer the most competitive data rates while also introducing a faster version of its HSPA+ network, the one T-Mobile bills as America’s largest 4G network. Lacking an iPhone to offer, T-Mobile has been running a pointed ad campaign poking fun at AT&T and, more recently, also at Verizon.

T-Mobile also hopes to boost its fortunes by increasing sales efforts to businesses and allowing other carriers–so-called MVNOs–to sell services on its network.

The company reiterated its plans to eventually move to a Long-Term Evolution network (the same technology being adopted by Verizon and AT&T). However T-Mobile said this will “probably not be for a few years.”

While T-Mobile spoke to the business and technical hurdles associated with moving too quickly to LTE, it also acknowledged the other big stumbling block–it lacks enough spectrum to do so.

“Deutsche Telekom is exploring various options to acquire additional spectrum and reduce the gap regarding economies of scale compared with its larger competitors, including partnering with other companies,” T-Mobile said.

T-Mobile also announced the Samsung Galaxy S 4G and said it would bring back the Sidekick brand with a 4G, Android-based device to be introduced in the spring.

All the security attention paid in recent years to securing the Windows desktop and the applications running on it have paid off a little, Cisco found, making it harder for computer scammers to successfully carry off their intended crimes on that platform. The trouble is they’re now starting to focus more attention on mobile devices, including Apple’s iPhone and iPad, and devices running Google’s Android operating system, Cisco said.

Meanwhile, the overall global volume of spam, which often contains troublemaking links that are used to deliver attacks, decreased for the first time ever in 2010. Even so, spam still increased in some developed countries where broadband connections are multiplying. In the United Kingdom, spam volume nearly doubled, while the volume in France went up 115 percent. The U.S. saw a slight decline–11.1 trillion messages down from 11.3 trillion in 2009. Spam in Brazil, China and Turkey also declined. Some of the decline can be attributed to last year’s arrest by FBI agents in Milwaukee of a Russian accused of being the “king of spam,” and to the shutdown of a few botnets used by scammers to send spam.

One thing about Cisco’s report that’s likely to draw some attention is its finding that the raw number of vulnerabilities on Apple products appear to be growing. Apple users are usually pretty sensitive about this topic, and any comparison of the Mac to Windows on the security front tends to make them grind their teeth and pound out annoyed comments on tech blogs. I know because I’ve done the same teeth-grinding and have in the past criticized other reports for similar findings.

Here Cisco is addressing vulnerabilities that Apple has itself documented and patched in software updates. One thing that’s not clear to me–though it sure looks like it–is whether Cisco is combining vulnerabilities found on both iOS (iPhone and iPad) and OS X (the Mac). The data it’s using is from its IntelliShield service, which tracks vulnerabilities and security incidents, and shows that over five years Apple’s vulnerabilities rose, from less than 200 in 2006 to more than 350 in 2010. That rate was higher than Microsoft and Hewlett-Packard and Cisco itself, the report found, though it goes on to say that Apple has worked harder than most other vendors to protect its users. Security is one of the reasons Apple imposes such strict rules on what’s available in the App store, though people still jailbreak their phones.

Another trend Cisco found is something called “money muling.” Tom Gillis, VP and general manager of Cisco’s Security business unit, describes money muling as using unsuspecting people who are attracted by “work at home” spam messages and Web ads to participate in money laundering by moving small amounts of money into bank accounts, just a few thousand dollars at a time. He says the operations around this are becoming increasingly elaborate, and criminals will devote a lot of effort to developing it this year.

I talked with Gillis about the report and other security trends that Cisco found. Here are a few highlights from our conversation:

NewEnterprise: So you’re seeing fewer attacks on Windows and more on mobile devices. Is that simply because there are more of them?

Tom Gillis: It’s the simple fact that there’s this new class of mobile device coming into the enterprise that used to be a phone and now it’s a computer, and it can access enterprise information. So what we’re seeing is that the raw number, but not the severity, is down on Windows. Part of this is that Windows 7 was a very good release on Microsoft’s part from a security standpoint. And we’ve got these new devices coming into the enterprise, and so we’re seeing a shift in focus of attacks on these mobile devices. They’re vulnerable to attack and they’re relevant in the enterprise. Two years ago this would have been too small a population to be meaningful.

What kind of attacks are you seeing?

It varies. In some cases there’s a little “phone home” code in a free gaming app. Pretty gentle stuff so far. But as people start using smartphones to access sensitive information we need to start thinking about security considerations on these devices. There’s a larger theme here that the whole nature of attacks is changing dramatically. The fact that spam volumes dropped at all is a big tell. For 10 years this has only gone up. We’re not forecasting a steady decline in spam, but the fact that it slowed down at all is an indicator of the shift in the way that attackers are using email. The attacks are more targeted and personal, for one thing.

Can’t some of this decrease be attributed to some of the arrests that happened last year?

It can. There’s been a handful of arrests. And they went after not only the botnet operators but other parts of the spam value chain. There are firms and entities that build botnets of compromised machines that relay the spam, and then there are other firms and entities that rent time on those botnets that do the merchandising. The biggest category is selling fake pharmaceuticals. Some of these fake pharma operations were shut down and the people associated with them arrested. It’s not an easy thing to do, because they’re global, they move around, and so to make an arrest in this space is a huge accomplishment.

So what is the thinking now about securing the mobile device?

We think there are two ways to make mobile devices work in the enterprise. The flood of devices into the enterprise is huge, and everyone wants to use them to check their email and access corporate directories and other fundamental things. There needs to be some kind of software on the end point–the phone or device. It will have to be light. You can’t have some kind of antivirus suite running on the phone. It would be a little piece of software that’s on all the time that knows when you’re behind the corporate firewall and when you’re not, and manages your connection accordingly. We bought a company called ScanSafe that has 40 data centers around the world. When you’re outside the firewall it connects to you the nearest data center and enforces your corporate policies, but all you as the user know is that it just works. This notion of being on or off the corporate network goes away. And we can do all kinds of scanning for security, independent of the device that’s being used.

This year we also saw the Stuxnet attacks, which we now know for certain were carried out against the Iranian nuclear program. Clearly this is a new kind of attack that can be mounted against industrial control systems via computer networks. Is Cisco researching this?

Massively. Often these types of attacks are targeted against Cisco’s biggest enterprise customers. Who buys Cisco’s infrastructure? The biggest banks in the world, the defense contractors. If the goal of an attacker is to disrupt an economy, their targets will be our customers, and they’re demanding a response from us. I like to call it global threat correlation, but it comes down to taking huge samples of network traffic and picking out good traffic from the bad. Cisco has a good advantage here because our equipment is so widely deployed around the world. As we start measuring traffic we can develop reputation data on every publicly routable IP address on the Internet. As we start putting telemetry info into that equipment–and the customer can choose to enable it or not, and it’s turned off by default. But people turn it on because it helps them against the unknown kind of attacks that are popping up. If a Web server says its a Web server, but you just saw it sending spam three minutes ago, there’s a pretty good chance it’s part of a botnet. Once you know that you know that, you can start to mount a pretty good defense. We’re putting a lot of energy into developing that, and it’s proven to be pretty robust.

In a statement provided to The Wall Street Journal, Goldman said the move came after officials at the New York securities firm “concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law.”

Read the rest of this post on the original site.

A year ago, when Wolf first made that statement, he was right. An iPhone on Verizon would have been a severe blow to Research In Motion. That it will only amount to a sting this year says a lot about how RIM’s business has improved and how its revenue base has become more diverse in the year or so since.

RIM doesn’t disclose the identities of its biggest carrier partners, but it does disclose how much the top three contribute to overall sales, though it’s not hard to figure out that Verizon has traditionally been its biggest customer. A year ago, Verizon’s sales of BlackBerry devices contributed 25 percent of RIM’s overall sales, while the next two largest customers contributed 13 percent and 10 percent, respectively. At least one of those was AT&T.

Today the picture’s different. RIM’s biggest customer–and it may still be Verizon–accounted for only 12 percent of sales in the quarter ended November, while number two and number three each accounted for 9 percent.

RIM’s growth outside its top three countries–the U.S., the U.K. and Canada–has also picked up. According to figures from IDC, in 2007 RIM relied on North America for more than three quarters of its sales. As of the third quarter of 2010, that figure was down to less than 48 percent. And in a lot of these markets carriers don’t subsidize the phone as aggressively as U.S. carriers do, and so RIM ends up having an advantage on price: $250 or so versus $500 or $600 for an iPhone. RIM is also seeing strong growth in its prepaid business outside North America. During its Dec. 16 earnings call, CEO Jim Balsillie said prepaid sales in the U.K. had grown by 245 percent year-over-year.

Then there’s Android. Verizon threw a lot of weight behind Google’s Android platform last year and has been marketing it heavily all year. The results have been mixed. A study by ITG Investment Research last year suggested that Android didn’t give Verizon the competitive bump it had hoped for versus AT&T. Meanwhile, RIM has in the last year moved closer to AT&T and in August launched the BlackBerry Torch with that carrier, though it didn’t go as well as had been hoped.

It’s not like RIM isn’t going to take some damage from the iPhone. RIM shares are down this morning more than 1 percent. But for RIM it could have been much worse. In June, when Bloomberg News reported that Verizon planned to bring the iPhone to its network, I covered the story of how investors freaked out and lopped more than 6 percent off RIM’s valuation. Now investors seem to understand that it’s likely to hurt RIM’s overall share of the smartphone market, but it won’t be the disaster that it would have been a year ago.

Meanwhile, if you haven’t seen it already, make sure you watch the interview Walt Mossberg and Kara Swisher did with RIM Co-CEO Mike Lazaridis at D: Dive Into Mobile in December.