Verizon May be Getting Ready to Host the Apple Tablet
The rumors just keep coming. We’ve heard Apple is negotiating with Verizon, perhaps to make AT&T a little nervous about maintaining its iPhone monopoly, or perhaps to actually expand service options. Or, perhaps, Apple is angling to cut a deal with another carrier in regard to a different product.
Here’s another clue: TechCruch is reporting Verizon Wireless is to expedite the roll-out of its LTE network (also dubbed 4G), possibly in conjunction with the release of a new Apple device. iTablet anyone?
In February Verizon announced it is aiming to have two test markets this year, and have 25 to 30 markets ready for LTE by the end of 2010. Verizon’s new plan (according to TechCrunch’s unnamed, but reliable source) is “putting just about everything it has in to moving many of these markets up to Q1 2010.”
Rumors of an Apple tablet have been circulating for some time, most have predicted a 2010 release. TechCrunch’s source speculates that a tablet makes sense for Verizon. No microphone means no calls. No calls means the device would play nice with AT&T’s exclusive iPhone contract, which is set to expire sometime in 2010.
Then again, let’s not forget other rumors that Verizon has been in negotiations to get its own iPhone in 2010.
Personally, I wouldn’t mind seeing a Verizon LTE iPhone with speeds of up to 80Mbps coming sometime down the road.
Microsoft Tweaks Ad after Apple Complains
Remember last week when Microsoft was so ecstatic about Apple’s complaints over the laptop hunter ads? Well, the software maker may have been overjoyed that it finally agitated its rival, but Redmond has quietly complied with Apple’s complaints, according to AdvertisingAge. The Mac maker’s beef was the fact that Microsoft’s laptop hunter campaign kept saying Macbooks carried a price tag of $2000 or more, even though Apple recently improved the specs and lowered costs across its laptop line.
Microsoft’s laptop hunter ads feature people on their personal quest to find the best computer for their needs. The commercials focus on the decision to buy a PC instead of a Mac, but have received some criticism over the fact the ads never mention Windows or Microsoft by name.
Last week at Microsoft’s Worldwide Partner Conference in New Orleans, Redmond’s chief operating office, Kevin Turner said he did “cartwheels down the hallway” after receiving a phone call from Apple’s legal department complaining about the campaign. “We’re just going to keep running them [the laptop hunter ads] and running them and running them,” Turner said.
And who can blame them? Since 2006, Apple’s Get A Mac campaign has successfully capitalized on the variety of stigmas about Windows machines, including buggy software, a virus-prone operating system, and incompatibility issues. For many consumers, the Get A Mac ads have also equated Windows with comedian John Hodgman’s character as a lovable yet inept PC. Microsoft has tried to counter Apple’s ads with several rather unfortunate experiments, but the laptop hunters campaign is where Redmond really gained ground.
But Microsoft did recognize the laptop hunter ads needed some tweaks, and so the company has quietly revised at least one of its commercials. A recent ad features Lauren (not the original laptop hunter) and her mother Sue on the hunt for a portable computer. In the original version of this ad, Lauren’s quip about Apple was, “This Mac is $2000, and that’s before adding anything,” according to AdvertisingAge. But in the version of the ad currently available online, Lauren has altered her words and only says, “it seems like you’re paying a lot for the brand.”
Microsoft told AdvertisingAge it had adjusted its advert to reflect the new pricing for Macbooks, but the laptop hunter campaign’s core message is still the same, which Microsoft says is “the value and choice of the PC.”
Connect with Ian Paul on Twitter (@ianpaul) or on FriendFeed.
<br/><a href=”http://video.msn.com/video.aspx?vid=6c7197c6-e6ac-4070-8aa0-e76ec5634ebe” mce_href=”http://video.msn.com/video.aspx?vid=6c7197c6-e6ac-4070-8aa0-e76ec5634ebe” target=”_new” title=”Laptop Hunters $1700 – Lauren and Sue get a Dell XPS 13″>Video: Laptop Hunters $1700 – Lauren and Sue get a Dell XPS 13</a>
Apple iPod Sales Slow but iPhone Makes up for It
Apple beat analyst expectations and appears nearly untouched by the economic downturn, reporting its best non-holiday quarterly revenue and earnings in the company’s history on Tuesday.
For its third quarter ending June 27, Apple posted net profit of US$1.23 billion and $1.35 per share, up from $1.07 billion and $1.19 per share in the same quarter last year. Revenue reached $8.34 billion.
Analysts polled by Thomson Reuters were expecting $8.20 billion in revenue and $1.17 per share.
One low point in Apple’s report is the declining iPod business, with unit sales dropping 7 percent compared to last year to 10.2 million iPods. But iPhone sales more than make up for that. In the quarter, Apple sold 5.2 million iPhones, 626 percent more than the same period last year.
Apple had projected the decline in iPod sales, which was “one of the original reasons we developed the iPhone and Touch,” said Peter Oppenheimer, Apple’s chief financial officer, during a conference call to discuss the results. “We suspected the traditional MP3 category to decline over time as we cannibalized ourselves with the Touch and the iPhone.”
Unit sales of the iPod Touch grew 130 percent in the quarter compared to last year, he said.
Revenue from iPhones, iPhone accessories and mobile carriers was $1.69 billion, an increase of more than 300 percent over the same quarter last year.
iPhone Audience Expands
While the iPhone initially targeted the consumer mass market, it’s making headway among business users, said Tim Cook, chief operating officer. Almost 20 percent of Fortune 100 companies have purchased 10,000 units or more, and multiple government agencies and other organizations have bought more than 25,000 iPhones each, he said.
“The iPhone is particularly doing well with small businesses and larger organizations that allow (employees) to purchase phones for individual use, both in corporate and government settings,” he said.
Analysts have wondered what effect the introduction of the new iPhone 3GS and the price drop for the original iPhone 3G would have on the mix of sales of the devices. But Apple executives didn’t shed much light on the issue. They declined to reveal how many of the 5.2 million iPhones that sold in the quarter were 3GSes and 3Gs.
“I think it’s too early to tell what the ultimate mix of those products will be,” Cook said. That’s because currently Apple isn’t able to keep up with demand for the 3GS, and it’s only available in 18 of the more than 80 countries where the iPhone is on sale. In addition, many iPhone 3GS buyers probably are upgrading from the iPhone 3G, he said.
AppStore, Yes; Netbook, No
Apple expects to maintain the lead among mobile application stores, even as new stores go live. The App Store is now available in 77 countries, has 65,000 applications and serves an installed base of 45 million iPhone users, Cook noted. His research shows that Research In Motion and Nokia each have between 1,000 and 2,000 applications in their stores and Android has fewer than 5,000, he said.
“We feel extremely good about our competitive position and believe we’re years ahead of other people,” he said.
Apple sold 2.6 million Macs during the quarter, a 4 percent increase from last year. Portable Mac shipments were up 13 percent over that same period. That means Apple is beating the industry, which was expected to contract by 3 percent during the quarter, according to IDC research.
Cook echoed comments he’s made in the past about a lack of interest at Apple in the netbook category, despite the growth in sales of the devices from other vendors. “At this point, we don’t see a way to build a great product for $399, $499, this kind of price point,” he said. He predicted that people who are buying netbooks may become disappointed and disenchanted.
Apple CEO Steve Jobs, who has only just returned to work after taking a sick leave, was quoted in the earnings report saying he’s thrilled at the number of iPhones sold. He also confirmed that users have downloaded more than 1.5 billion applications from the iPhone App Store in its first year.
There were no questions about or mention of Jobs or his health on the phone call.
For its fourth quarter, Apple projects revenue in the range of $8.7 billion to $8.9 billion, with earnings per share of $1.18 to $1.23.
Apple iPod Sales Slow but iPhone Makes up for It
Apple beat analyst expectations and appears nearly untouched by the economic downturn, reporting its best non-holiday quarterly revenue and earnings in the company’s history on Tuesday.
For its third quarter ending June 27, Apple posted net profit of US$1.23 billion and $1.35 per share, up from $1.07 billion and $1.19 per share in the same quarter last year. Revenue reached $8.34 billion.
Analysts polled by Thomson Reuters were expecting $8.20 billion in revenue and $1.17 per share.
One low point in Apple’s report is the declining iPod business, with unit sales dropping 7 percent compared to last year to 10.2 million iPods. But iPhone sales more than make up for that. In the quarter, Apple sold 5.2 million iPhones, 626 percent more than the same period last year.
Apple had projected the decline in iPod sales, which was “one of the original reasons we developed the iPhone and Touch,” said Peter Oppenheimer, Apple’s chief financial officer, during a conference call to discuss the results. “We suspected the traditional MP3 category to decline over time as we cannibalized ourselves with the Touch and the iPhone.”
Unit sales of the iPod Touch grew 130 percent in the quarter compared to last year, he said.
Revenue from iPhones, iPhone accessories and mobile carriers was $1.69 billion, an increase of more than 300 percent over the same quarter last year.
iPhone Audience Expands
While the iPhone initially targeted the consumer mass market, it’s making headway among business users, said Tim Cook, chief operating officer. Almost 20 percent of Fortune 100 companies have purchased 10,000 units or more, and multiple government agencies and other organizations have bought more than 25,000 iPhones each, he said.
“The iPhone is particularly doing well with small businesses and larger organizations that allow (employees) to purchase phones for individual use, both in corporate and government settings,” he said.
Analysts have wondered what effect the introduction of the new iPhone 3GS and the price drop for the original iPhone 3G would have on the mix of sales of the devices. But Apple executives didn’t shed much light on the issue. They declined to reveal how many of the 5.2 million iPhones that sold in the quarter were 3GSes and 3Gs.
“I think it’s too early to tell what the ultimate mix of those products will be,” Cook said. That’s because currently Apple isn’t able to keep up with demand for the 3GS, and it’s only available in 18 of the more than 80 countries where the iPhone is on sale. In addition, many iPhone 3GS buyers probably are upgrading from the iPhone 3G, he said.
AppStore, Yes; Netbook, No
Apple expects to maintain the lead among mobile application stores, even as new stores go live. The App Store is now available in 77 countries, has 65,000 applications and serves an installed base of 45 million iPhone users, Cook noted. His research shows that Research In Motion and Nokia each have between 1,000 and 2,000 applications in their stores and Android has fewer than 5,000, he said.
“We feel extremely good about our competitive position and believe we’re years ahead of other people,” he said.
Apple sold 2.6 million Macs during the quarter, a 4 percent increase from last year. Portable Mac shipments were up 13 percent over that same period. That means Apple is beating the industry, which was expected to contract by 3 percent during the quarter, according to IDC research.
Cook echoed comments he’s made in the past about a lack of interest at Apple in the netbook category, despite the growth in sales of the devices from other vendors. “At this point, we don’t see a way to build a great product for $399, $499, this kind of price point,” he said. He predicted that people who are buying netbooks may become disappointed and disenchanted.
Apple CEO Steve Jobs, who has only just returned to work after taking a sick leave, was quoted in the earnings report saying he’s thrilled at the number of iPhones sold. He also confirmed that users have downloaded more than 1.5 billion applications from the iPhone App Store in its first year.
There were no questions about or mention of Jobs or his health on the phone call.
For its fourth quarter, Apple projects revenue in the range of $8.7 billion to $8.9 billion, with earnings per share of $1.18 to $1.23.
Dell Struggles as Asia’s PC Market Starts Growing Again
The worst effects of the economic slowdown may be over for Asia’s PC market, but Dell is struggling to keep up.
Second-quarter PC shipments in the Asia Pacific, excluding Japan, rose 8 percent over the same period last year, driven higher by stronger demand from consumers, IDC reported, citing preliminary estimates. The latest numbers end a two-quarter slump that saw shipments contract amid the tough economic environment.
On a consecutive basis, shipments rose 19 percent over the previous quarter, it said.
The increase in overall PC shipments during the second-quarter was good news for top PC vendors, with one noticeable exception: Dell’s PC shipments remained flat, growing just 0.3 percent compared to the second quarter of 2008.
Corporate sales are a major component of Dell’s business in Asia, and demand for PCs from Asian businesses remains weak. “Weak corporate sales are part of what’s hurting them,” said Bryan Ma, director of personal systems research at IDC Asia-Pacific, noting that the PC maker is in the midst of a reorganization that aims to improve its competitiveness.
While Dell is unlikely to see a sharp increase in Asian PC shipments before a recovery in demand for PCs from business, the company is trying to appeal more to consumers and has seen some success in this regard. “Dell’s consumer team has made progress,” Ma said.
However, the consumer team’s progress wasn’t enough to keep pace with rivals. Dell’s biggest competitors, which all have a stronger presence in the consumer PC market, saw healthy increases in the number of units they shipped during the second quarter.
IDC’s preliminary data showed top-ranked Lenovo’s shipments rose 7.3 percent, while HP, which is the second-largest PC vendor in Asia, saw an increase of 25.1 percent. Dell managed to hold onto its spot as the third-largest PC maker, but Acer and China’s Founder Group closed the gap, with unit growth of 12 percent and 12.3 percent, respectively.
The jump in Acer’s shipments bring the Taiwanese PC vendor closer to overtaking Dell as Asia’s third-largest PC maker.
“They are definitely within striking distance,” Ma said.
PC Shipments Stronger Than Expected in Q2, IDC Says
PC shipments were slightly stronger than expected in the second quarter, propped up by consumer spending and lower prices, according to IDC research released on Wednesday.
Strong interest in portable computers, including netbooks and laptops, helped mitigate the effects of the recession, though worldwide PC shipments still fell by 3.1 percent from the same quarter a year earlier, to 66 million units, according to IDC. IDC had originally projected a drop of 6.3 percent.
It was the second straight quarter that shipments declined less than had been forecast.
The decline resulted largely from continued slow spending by businesses, IDC said. Frozen IT budgets have restricted purchases of new equipment as companies remain focused on preserving cash. “As a result, the segment has not been as motivated by falling prices and new portable designs as the consumer segment,” IDC said.
China was a bright spot, and Asia-Pacific as a whole (excluding Japan) returned to growth after several quarters of decline. Shipments in all other parts of the world contracted, with the U.S. market slipping 3 percent.
IDC’s numbers came a day after Intel and Dell both said that the PC market was showing signs of recovery. Intel reported a strong second quarter, driven mainly by consumer spending on chips. Michael Dell said that the PC industry had bottomed out and was showing signs of recovery. However, both cautioned that enterprise spending was weak and said it may pick up next year when companies look to upgrade to newer hardware and software.
Hit hardest by the slowdown in enterprise spending, Dell was the only major vendor whose worldwide shipments fell year-over-year.
Hewlett-Packard was the top PC vendor worldwide, shipping 13.1 million units, a 3.6 percent increase from last year, giving it almost 20 percent of the market. Dell came second with 9.1 million units, a 17.1 percent decline that left it with 13.7 percent market share.
Acer came in a close third, IDC said. Its shipments increased 23.7 percent to give it 12.7 percent of the market. Lenovo’s shipments increased a modest 2.9 percent for fourth place, while Toshiba’s shipments increased 10.6 percent to put it in the fifth spot.
In the U.S., Dell took the top spot with 4.17 million units shipped, narrowly beating HP’s 4.13 million. Acer made the biggest U.S. gains, thanks to strong sales of its popular netbooks. Its shipments jumped 51 percent to reach 2 million.
By contrast, fifth-placed Apple, which has criticized netbooks for having poor hardware and a lack of software, saw its shipments tumble 12.4 percent year-over-year to 1.2 million units, giving it 7.6 percent of the market.
Massive Computer Upgrade Underway for Singapore’s Gov’t
A massive upgrade to computers and networks used by government agencies in Singapore is underway and on schedule, according to the agency that oversees the program.
The S$1.3 billion (US$888.6 million) Standard ICT Operating Environment (SOEasy) project is the largest IT project yet undertaken by the tech-savvy Singapore government and is intended improve efficiency and cut costs by standardizing the computers, messaging infrastructure, and networking equipment used by government bodies in the Southeast Asian city-state.
“Key milestones of the SOEasy Programme are on track. The first batch of agencies will start enjoying the new SOEasy services from July 2009,” a spokeswoman for the Infocomm Development Agency of Singapore (IDA), which is supervising the project, wrote in an e-mail.
IDA expects the SOEasy project to save S$500 million in IT-related costs for the government, according to a previously announced estimate.
Implementation of the SOEasy project is being handled by oneMeridian, an industry consortium led by Hewlett-Packard’s EDS division that also includes Microsoft, Alcatel-Lucent, Cisco Systems, and operator Singapore Telecommunications (SingTel), among others. The group was awarded the SOEasy contract earlier this year.
The first government agencies to get the SOEasy upgrade are the Ministry of Finance, the Ministry of Information, Communications and the Arts, IDA, and National Heritage Board. These agencies will move to the SOEasy platform this month, with other government agencies to follow in the months ahead. The project rollout is scheduled to be completed by 2010.
In total, 74 government agencies with around 60,000 employees will be using the SOEasy platform when the rollout is complete. Singapore’s Ministry of Defence and the Ministry of Education are not included in the SOEasy project, as they have developed separate systems for their respective needs.
Massive Computer Upgrade Underway for Singapore’s Gov’t
A massive upgrade to computers and networks used by government agencies in Singapore is underway and on schedule, according to the agency that oversees the program.
The S$1.3 billion (US$888.6 million) Standard ICT Operating Environment (SOEasy) project is the largest IT project yet undertaken by the tech-savvy Singapore government and is intended improve efficiency and cut costs by standardizing the computers, messaging infrastructure, and networking equipment used by government bodies in the Southeast Asian city-state.
“Key milestones of the SOEasy Programme are on track. The first batch of agencies will start enjoying the new SOEasy services from July 2009,” a spokeswoman for the Infocomm Development Agency of Singapore (IDA), which is supervising the project, wrote in an e-mail.
IDA expects the SOEasy project to save S$500 million in IT-related costs for the government, according to a previously announced estimate.
Implementation of the SOEasy project is being handled by oneMeridian, an industry consortium led by Hewlett-Packard’s EDS division that also includes Microsoft, Alcatel-Lucent, Cisco Systems, and operator Singapore Telecommunications (SingTel), among others. The group was awarded the SOEasy contract earlier this year.
The first government agencies to get the SOEasy upgrade are the Ministry of Finance, the Ministry of Information, Communications and the Arts, IDA, and National Heritage Board. These agencies will move to the SOEasy platform this month, with other government agencies to follow in the months ahead. The project rollout is scheduled to be completed by 2010.
In total, 74 government agencies with around 60,000 employees will be using the SOEasy platform when the rollout is complete. Singapore’s Ministry of Defence and the Ministry of Education are not included in the SOEasy project, as they have developed separate systems for their respective needs.
Apple’s MacBook Strategy: Optical is Over
Last month, most of Apple’s MacBooks were upgraded with SD card slots. The most popular 13- and 15-inch MacBook Pros both now have card readers. Apple even explains how to build a bootable SD card. Why on earth would Apple go through the trouble of explaining how to create a boot disk from an SD card? That seems way out in left field. They never did that for USB key drives.
I think there is more to it than that. Apple doesn’t just do things like SD cards. “You can just throw in a USB SD card reader” had been the mantra up until this point. Apple didn’t need to bother itself with these little things.
Now, I think things have changed. The SD card has become part of Apple’s MacBook strategy. It should be arriving on the MacBook Air and the regular MacBook at the next updates…and it might even take the place of the DVD drive on the next MacBook.
That’s right, I think the SD card is going to replace the DVD drive on most of Apple’s laptops going forward. If you really need a DVD, you’ll be able to buy an external USB Superdrive – but that option will mostly be a safety net.
Remember when Apple killed the floppy with the iMac? This will be the same thing. You could buy external floppy but how many of you really did?
Think about it. What would you rather have on your laptop? An easily rewritable 32GB SD card the size of a postage stamp that can hold about the same amount of data as 8 DVDs or a big spinning disk that can scratch easily and takes up about 1/4th of the internal usable area in your laptop?
It is a no-brainer; optical is over.
With compression much better than antiquated DVDs, a full-length, DVD-quality movie can fit on a 1GB SD card, with much room to spare. SD cards cost about $2/GB. DVDs are cheaper, but cost really isn’t an issue.
Backing up to an SD card is much better than trying to deal with DVDs. You can even use Time Machine with SD. 8GB DVDs won’t hold most people’s photo albums. However, a 32GB SD card should be able to knock out the casual user’s home directory.
Even BluRay movies can largely fit on today’s SD cards. Tomorrow’s will be much bigger (though Apple hasn’t announced support for those yet – the max is 32GB).
And that’s before you consider that Apple wants you downloading your HD movies from iTunes rather than buying physical media. Apple is also pushing packaging to ever smaller sizes. SD cards are much more durable than DVDs and are so small they can be swallowed.
So, if we are no longer burdened with big optical drives in our laptops, what are we going to do with all of that space?
I think a 15-inch MacBook Air would certainly be an entertaining idea. If you look at the space in a 15-inch laptop, a huge chunk is taken up by the DVD.
I also like the idea of having more than one SSD/HDD slot in the laptop. Perhaps a small, speedy 1.8 inch SSD drive for the OS/settings/applications and a huge 500GB HDD for media? That sounds about right to me.
There will always be those who cling to their old technology. How will you install software? (Heard of this thing called the App Store?) How will you install the OS? Remember, above, Apple showed us how to build a boot disk from the SD card. That probably comes from experience.
People will complain that they can’t watch their DVD collection. What are they going to do with all of their old DVDs? (Get HandBrake).
Remember how indispensable the floppy was?
Dell May Test Google’s Chrome OS
Dell on Friday said it would consider testing Google’s upcoming Chrome operating system, but didn’t commit to offering the Linux-based OS in future products.
“Dell constantly assesses new technologies as part of managing our product development process and for consideration in future products,” company spokesman David Frink said in an e-mail.
Dell’s absence was noticed in a list of PC makers that Google is working with to support the OS. The list included PC makers Hewlett-Packard, Acer, Lenovo and Asustek Computer. HP and Lenovo haven’t yet committed to offering the product with future PCs.
Chrome is a thin version of a Linux-based operating system that is designed for people who mostly rely on the Web for computing. It is designed for devices like netbooks, which are low-cost computers designed to run basic computer applications like the Web browser.
Dell is also rumored to be testing Google’s Android operating system, which is mostly designed for smartphones and mobile Internet devices.
There has been a lot of confusion regarding Google’s hardware partners on the Chrome OS. Google’s list of partners included chip makers like Freescale Semiconductor, Qualcomm and Texas Instruments, but Intel was missing, although it actually has been working with Google and had prior knowledge about the OS.
“Yes, we’ve been privy to the project for some time and obviously work with Google on a variety of projects, including elements of this one,” Intel spokesman Bill Kircos said Wednesday.
Dell currently offers Canonical’s Ubuntu operating system with its desktops and laptops. Canonical’s Web-centric Ubuntu version is Ubuntu Netbook Remix, which is designed for quick access to applications and the Web.
