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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated -- Ignore unavailable to you. Want to Upgrade?


To: Uncle Frank who wrote (2785)1/17/2011 6:29:32 PM
From: stockman_scott  Respond to of 2955
 
2011: The Year when Google and Apple Find Themselves with Real Competition?

aonetwork.com



To: Uncle Frank who wrote (2785)1/17/2011 11:07:46 PM
From: stockman_scott  Respond to of 2955
 
Apple Needs a Stronger Transfer of Power
______________________________________________________________

By ROBERT CYRAN and JOHN FOLEY
The New York Times
January 17, 2011

Apple needs to delegate Steve Jobs’s power more formally to someone else. Mr. Jobs, Apple’s chief executive, is handing day-to-day control to the company’s chief operating officer, Tim Cook, because of health issues. Yet he retains his chief executive title. This is the third such move, and this time the handover is indefinite. However painful, a more formal transfer to an acting chief executive would have been better.

Both Apple and its shareholders can take comfort in the fact that the last two transfers, also to Mr. Cook, took place smoothly. Apple’s operations showed no signs whatsoever of impairment under caretaker management.

Mr. Cook has worked at Apple for more than a decade and has been chief operating officer for several years. He’s clearly a safe pair of hands and more — in total, he was paid $59 million last year. Moreover, Mr. Jobs has promised to retain control over big strategic choices.

But Mr. Jobs’s fitness is, sadly, an increasing concern. The company hasn’t said exactly what the current matter is, but this latest setback follows previous treatment for pancreatic cancer and an organ transplant. Furthermore, the open-ended nature of Mr. Jobs’s current respite will add to the worry for employees and investors alike.

In these circumstances, Apple would have been better served by explicitly naming Mr. Cook acting chief. That would leave Mr. Jobs as chairman, where he could retain say over the Apple’s strategic direction without the grueling daily chores of running the company.

That is where he is most valuable anyhow. Such a division would provide clarity and give Mr. Cook a proper mandate, given the responsibility of overseeing a company with a $300 billion market capitalization.

Mr. Jobs plays an outsize role at Apple. He is arguably the best executive in technology. But his reputation also depends on keeping the company on the soundest footing possible, even if that means formally loosening his grip.



To: Uncle Frank who wrote (2785)2/3/2011 3:44:03 PM
From: stockman_scott  Respond to of 2955
 
TechCrunch Review: The Name’s iPhone. Verizon iPhone.

tcrn.ch

Verizon To Throttle Heavy Users To Maintain Network Quality

tcrn.ch



To: Uncle Frank who wrote (2785)2/3/2011 11:21:25 PM
From: stockman_scott  Respond to of 2955
 
For iPhone, Almost Heaven
______________________________________________________________

By DAVID POGUE
The New York Times
February 2, 2011

It’s here. After almost four years of speculation, the iPhone will finally come to Verizon’s network on Feb. 10.

And to answer everyone’s question, the Verizon iPhone is nearly the same as AT&T’s iPhone 4 — but it doesn’t drop calls. For several million Americans, that makes it the holy grail.

I took the Verizon iPhone to five cities, including the two Bermuda Triangles of AT&T reception: San Francisco and New York. Holding AT&T and Verizon iPhones side by side in the passenger seat of a car, I dialed 777-FILM simultaneously, and then rode around until a call dropped. (Why that number? Because I wanted to call a landline, eliminating the other person’s cell reception from the equation. Also, Mr. Moviefone can carry the entire conversation by himself, so I could concentrate on the testing.)

In San Francisco, the AT&T phone dropped the call four times in 30 minutes of driving; the Verizon phone never did. The Verizon iPhone also held its line in several Manhattan intersections where the AT&T call died. At a Kennedy airport gate, the AT&T phone couldn’t even find a signal; the Verizon dialed with a smug yawn.

Most impressively, the Verizon iPhone effortlessly made calls in the Cellphone Signal Torture Chamber of Doom: my house.

The Verizon iPhone did drop one call — in baggage claim at the Los Angeles airport. And, of course, there are regions where AT&T coverage is better than Verizon’s. But in general, my testing matches the conclusions of Consumer Reports and RootMetrics.com: the Verizon iPhone has more bars in more places. (Hey, that might make a good slogan! Oh, wait...)

In general, the Verizon and AT&T iPhones are identical. Same sleek, thin, satisfying, plastic-free body — all glass and metal. Same gorgeous, high-resolution screen — 960 by 640 pixels. Same battery life — you’ll need a recharge every night. Same camera on the back, which can take 5-megapixel stills or excellent hi-def video — the flash doubles as a video light. Same low-resolution camera on the front, suitable for Wi-Fi videochats, using Apple’s FaceTime software for iPhone or Mac.

Even the prices are about the same. The 16-gigabyte phone costs $200 with two-year contract. The monthly service costs, for example, $70 for unlimited voice calls, plus $20 for 5,000 text messages, plus $30 a month for unlimited Internet use. (Verizon says that it will soon eliminate that unlimited plan, just as AT&T recently did. Instead, you’ll pay something like $25 a month for 2 gigabytes of Internet data. Good luck figuring out how much that is.)

The single new feature in Verizon’s iPhone is Personal Hotspot, where the iPhone becomes a Wi-Fi base station. Up to five laptops, iPod Touches or other gadgets can get online, using the phone as a glorified Internet antenna.

That’s incredibly convenient. Many other app phones have it — AT&T says its iPhone will get it soon — but Apple’s execution is especially nice. For example, the hot spot shuts itself off 90 seconds after the last laptop disconnects. That’s hugely important, because these personal hot spot features are merciless battery drains.

The hot spot feature costs $20 a month extra, and buys only 2 gigabytes of data for all of those laptops. Think e-mail, not YouTube. (AT&T will charge $45 a month for 4 gigabytes of data.)

Now, there are two kinds of cellphone networks in this country. They’re known as C.D.M.A. (Verizon and Sprint use this technology) and G.S.M. (the system for AT&T and T-Mobile). Making an iPhone that works on a C.D.M.A. network entailed four adjustments, some of which you won’t like.

First, Apple moved the volume and Ringer Off switches a fraction of an inch to accommodate the C.D.M.A. antenna inside. It’s not a big deal, but those buttons no longer fit existing AT&T iPhone cases. (Contrary to blogger belief, the redesign doesn’t help with the famous Death Grip issue, in which holding the phone in a certain way makes your signal bars drop. Then again, the problem emerges only when you’re in a very weak signal area, so you’ll see it less often on Verizon. I couldn’t reproduce it at all.)

A second C.D.M.A. difference: When you exchange long text messages with non-Verizon phones, they get split up into 160-character chunks. G.S.M. phones are smart enough to reconstitute those chunks into one more readable, consolidated message.

Third: You can’t talk on an C.D.M.A. phone while you’re online. That is, if you’re on a call, you can’t simultaneously check a Web site or send e-mail over the cellular network — and, annoyingly, the Personal Hotspot feature cuts off. (It reconnects when you hang up.)

If the top of your screen says “3G,” an indication that you’re in a high-speed Internet area of Verizon’s network, incoming calls take priority and interrupt your online connection. If you’re online in an older, 2G area, you stay online and the call goes directly to voice mail.

It’s not such a big deal. Continuing processes like downloads, Personal Hotspot and GPS navigation resume automatically when you end your call. You can still send text and get messages when you’re on a call. And none of this applies when you’re in a Wi-Fi hot spot; in that case, you can call and surf simultaneously, no problem.

For business travelers, the fourth C.D.M.A. difference is the most disappointing: not many other countries use C.D.M.A. The Verizon iPhone works in about 40 countries, including Mexico, Canada and China; AT&T phones, on the other hand, work in 220 countries. (In both cases, you pay through the nose if you use them overseas.)

Still interested? Here are a few final points to ponder before you plunge.

Even if Verizon’s network is the best in America, its policies and prices are still among the worst. This is the company, after all, that admitted to billing $2 every time you accidentally hit the up-arrow button. (Verizon refunded $52 million and paid the Federal Communications Commission a record $25 million fine.) This is the company that just eliminated its “new phone every two years” discount policy, that just cut its new-phone return policy to 14 days from 30, that doubled its early-termination fee (to $350 if you cancel your two-year contract before it’s up).

Consider, too, that if surveys are any indication, Verizon can expect an enormous stampede of new iPhone customers. Last time this happened — to AT&T — the weight of all those bandwidth-sucking iPhones swamped the network, causing interruptions that persist to this day. The same thing might happen to Verizon.

Verizon swears that it’s prepared for the onslaught. Then again, that’s what AT&T said, too.

Remember, too, that so far, Apple has released a new iPhone model every July. Apple won’t say if there will be an iPhone 5 for Verizon this summer. (“Let’s put it this way: We’re not stupid,” is all an Apple rep would say.) But if it does, and you buy an iPhone 4 now, you’ll be stuck with an outdated phone in only five months.

Finally, a lot has changed in the years it’s taken the iPhone to come to Verizon. Phones that run Google’s Android software have eaten a lot of the iPhone’s lunch. A huge part of that, of course, was the AT&T factor; people bought Android phones so they could be on Verizon’s network.

Even now, though, Android phones are superior in some ways. For example, they offer amazingly good spoken GPS navigation, you can dictate text into any text box, and you can get one with a bigger screen. Of course, the iPhone still wins on battery life, simplicity and both the quality and quantity of the app store. (Google doesn’t screen or supervise what’s on the Android store, as Apple does. Some call that a blessing, others a curse.)

Yes, that’s a lot of footnotes and “yes, buts.” Even so, most people don’t care about overseas compatibility or simultaneous calling and surfing or Verizon’s tactics. They want an iPhone — an iconic, beautiful, fast, elegant iPhone — that doesn’t drop calls.

Now, after years of pining, they have it at last.

E-mail: pogue@nytimes.com



To: Uncle Frank who wrote (2785)2/10/2011 2:57:03 PM
From: stockman_scott  Respond to of 2955
 
PayPal’s Revenue Will Double by 2013, Thompson Says (Update1)

By Joseph Galante

Feb. 10 (Bloomberg) -- PayPal, the online-payment service owned by EBay Inc., will double its revenue to $6 billion to $7 billion by 2013, PayPal President Scott Thompson said today during a meeting with analysts.

PayPal is on its way to become EBay’s biggest business in three to five years, EBay Chief Executive Officer John Donahoe said at the event.

PayPal, which estimates its control of global online payments has grown to 18 percent now from 14 percent in 2008, says its early lead, fraud management, and relationships with more than 15,000 banking partners and networks globally put it ahead of challengers.

“No one comes close -- not the banks, not the telecos and not the startups,” Thompson said. “These competitors can claim any one of the capabilities we have, but no one comes close to the breadth we have.”

EBay, owner of the largest e-commerce marketplace, jumped the most in more than three months, climbing $2.42, or 7.6 percent, to $34.37 at 12:51 p.m. New York time in trading on the Nasdaq Stock Market. EBay is based in San Jose, California.

To contact the reporter on this story: Joseph Galante in San Francisco at Jgalante3@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Last Updated: February 10, 2011 12:53 EST



To: Uncle Frank who wrote (2785)2/10/2011 3:01:18 PM
From: stockman_scott  Respond to of 2955
 
Verizon May Sell 2 Million IPhones, Challenging AT&T (Update2)

By Amy Thomson and Adam Satariano

Feb. 10 (Bloomberg) -- Verizon Wireless, the wireless carrier whose stores began offering the iPhone today, may sell 2 million or more of the devices this quarter and draw subscribers from AT&T Inc., analysts said.

Verizon, which is ending Dallas-based AT&T’s monopoly on the Apple Inc. phone in the U.S., started sales at 7 a.m. New York time. While online sales to existing Verizon users Feb. 3 ended within hours as the company exhausted its stock, there were few lines at stores that began selling the device today.

The carrier gaining the iPhone will intensify competition in the U.S. smartphone market and curb customer growth at AT&T, said Craig Moffett, an analyst at Sanford C. Bernstein & Co. The threat of losing users may encourage AT&T to increase subsidies on its devices, which would force other carriers to match the lower prices, benefiting consumers, he said.

“It’s unrealistic to think that AT&T is simply going to watch as their subscriber growth falls off the table,” said New York-based Moffett, who rates Verizon “underperform.” “They will obviously try to present a more compelling lineup of Android phones and Windows 7 phones of their own, but the main event will be what they do with pricing.”

Verizon may sell 2 million iPhones this quarter, according to Rick Franklin, an analyst at Edward Jones & Co., Jennifer Fritzsche at Wells Fargo Securities LLC and Ashok Kumar at Rodman & Renshaw LLC. Sales in the first week may top 1 million units, said Mike Abramsky of RBC Capital Markets LLC. The device went on sale online on Feb. 9.

Empty Stores

Verizon will sell 9 million iPhones or more this year, Abramsky predicts. Verizon said last month 2011 sales and profit may jump as much as 8 percent if it sells 11 million iPhones. AT&T, which had exclusive rights for the device since its 2007 release, activated more than 15 million iPhones last year.

Still, stores with the new iPhone opened today without the crowds that in some cases camped out all night for the release of previous models. Shortly after Apple’s flagship New York store on Fifth Avenue in Manhattan opened, there were about four times as many employees as customers in the store.

“I’m not sure you’ll get the same type of frenetic, crazy reaction. It’s not like it’s a brand new device being offered,” said Michael Nelson, a New York-based analyst at Mizuho Securities USA Inc. who rates Verizon shares “outperform” and doesn’t own any. “I think that the largest appeal is to existing customers.”

Brisk Online Sales

Kimberly Ramsey lined up at a Verizon store in Oakland, California, this morning with about 10 others. She had owned a BlackBerry Storm from Research In Motion Ltd. and said she hadn’t bought an iPhone through AT&T because of poor reception in San Francisco, where she works as a security supervisor.

“I’ve been waiting years,” said Ramsey, 27. “First I’m going to set up my e-mail and then set up social-networking apps to advertise I got the iPhone.”

Verizon sold more than 500,000 iPhones to current customers through online preorders, estimates Philip Cusick, an analyst at JPMorgan Chase & Co. On Feb. 3, the carrier said it sold more iPhone 4s in two hours than any other Verizon product had sold in its first day. Verizon stopped accepting orders because of the demand.

A 16-gigabyte iPhone 4 costs $199.99 at Verizon and a 32- gigabyte version $299.99, matching the prices at AT&T.

‘New Front’

Verizon Communications Inc., the New York-based company that co-owns Verizon Wireless with Vodafone Group Plc, fell 10 cents to $36.58 in New York Stock Exchange composite trading at 11:30 a.m. AT&T dropped 3 cents at $27.94. Apple, based in Cupertino, California, rose $1.57 to $359.73 in Nasdaq Stock Market trading.

The iPhone 4 is the fourth generation of the device. The iPhone is Apple’s top-selling product, accounting for 39 percent of its revenue in the first quarter, more than Macintosh computers and iPads combined.

Adding Verizon allows Apple to roughly double the number of customers it can reach in the U.S. Apple is facing increased competition from Samsung Electronics Co., HTC Corp. and Motorola Mobility Holdings Inc., whose smartphones run Google Inc.’s Android operating system.

Android phones accounted for 28.7 percent of U.S. smartphones in the U.S. in the quarter ended in December, compared with 25 percent for Apple, according to ComScore Inc.

“They are opening up a new front in the cellular phone wars,” said Michael Yoshikami, chief investment strategist at YCMNet Advisors in Walnut Creek, California, which owns Apple shares.

International Expansion?

The new iPhone, based on CDMA technology, may let Apple expand in international markets where that standard is used, said Brian Marshall, an analyst at Gleacher & Co. in San Francisco. CDMA carriers include Japan’s KDDI Corp. and Beijing- based China Telecom Corp., he said.

The Verizon iPhone is different than the original iPhone 4 released in July, according to an analysis of its components by IFixit. One change is to the antenna design, according to IFixit. The design of the antenna was criticized last year because calls were dropped if the phone was held a certain way.

“Apple is really focused on being a wireless mobile company more than a computer company,” Yoshikami said. “The Verizon iPhone is just one step towards that.”

To contact the reporters on this story: Amy Thomson in New York at athomson6@bloomberg.net; Adam Satariano in San Francisco at asatariano1@bloomberg.net

To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net

Last Updated: February 10, 2011 11:32 EST



To: Uncle Frank who wrote (2785)2/10/2011 5:56:26 PM
From: stockman_scott  Respond to of 2955
 
Nokia CEO says "we're getting killed & need to get our shit together" (paraphrased) in a compelling memo to employees

engadget.com



To: Uncle Frank who wrote (2785)2/11/2011 12:08:16 PM
From: stockman_scott  Respond to of 2955
 
RIM Said to Plan PlayBook Software to Run Google Apps (Update1)

By Hugo Miller and Olga Kharif

Feb. 11 (Bloomberg) -- Research In Motion Ltd., preparing to start sales of its BlackBerry PlayBook tablet, is working on software to allow the device to run applications for Google Inc.’s Android, three people familiar with the matter said.

RIM plans to integrate the technology with the PlayBook operating system, giving customers access to Android’s more than 130,000 apps, said the people, who asked not to be identified because the effort isn’t public. RIM, after looking outside the company, is developing the software internally and may have it ready in the second half, two people said.

The Waterloo, Ontario-based company aims to make the PlayBook stand out against Apple Inc.’s iPad and a rising number of competing devices. By offering a tablet with the security and messaging of BlackBerry smartphones and the wide choice of Android apps, RIM may be able to woo customers who would otherwise opt for alternative devices, said Tero Kuittinen, an analyst with MKM Partners LLC.

“This is very exciting,” said Greenwich, Connecticut- based Kuittinen, who has a “buy” rating on RIM and doesn’t own the shares. “This gives an extra boost to the PlayBook.”

The feature could push up sales of the PlayBook by 30 percent to 50 percent, said Kuittinen. He said he is considering raising his estimates for PlayBooks to be sold this year to more than 4 million units from 3 million.

Marisa Conway, a spokeswoman for RIM, declined to comment. RIM has said it plans to introduce its tablet in the U.S. in the first quarter and then overseas.

RIM rose 10 cents to $66.98 at 10:00 a.m. New York time in Nasdaq Stock Market trading. RIM fell 14 percent last year as Apple climbed 53 percent and Google declined 4.2 percent.

Android Rising

Android tablets captured 22 percent of global shipments in the three months to Dec. 31, a tenfold jump from a year earlier, according to Boston-based Strategy Analytics. That narrowed Apple’s share of the tablet market to 75 percent from about 95 percent three months earlier.

There are about six times as many apps available from Google’s Android Market as the 20,000 in RIM’s App World. The selection has helped companies that make Android devices, including Motorola Mobility Holdings Inc. and Samsung Electronics Co. Android became the world’s top smartphone platform, researcher Canalys said last month.

“It will be a shrewd move to let Android apps run RIM without any performance or user interface hiccups,” Chetan Sharma, an independent wireless analyst in Issaquah, Washington, said in an interview. “It will make the RIM platform attractive to consumers as it lacks the strength of the rivals from an apps perspective.”

No Dalvik

PlayBook sales may reach $1.1 billion, or 4.8 percent of the $22.8 billion in revenue analysts predict for RIM in its next fiscal year that begins in March. The calculation is based on the median of 17 estimates in a December Bloomberg survey for RIM to sell 2.55 million tablets at an average price of $430.

RIM had considered using Google’s Dalvik, the Java software used in running Android apps, and decided against it for reasons including an ongoing patent dispute between Oracle Corp. and Google over the software, two people said.

Oracle gained the Java programming language as part of its $7.3 billion purchase of Sun Microsystems Inc. last year. Developed by Sun in the mid-1990s, Java lets developers write programs that work across different operating systems and on a variety of computers.

Katie Barron, an Oracle spokeswoman, and Shari Doherty, a Google spokeswoman, didn’t immediately return calls seeking comment.

Looking for Sales

RIM is looking to the PlayBook to boost revenue as its share of the global smartphone market drops. BlackBerry represented 14.4 percent of the market in the fourth quarter, down from 20 percent a year ago, according to Canalys.

RIM is building its tablet on QNX, software bought as part of a $200 million acquisition from Harman International Industries Inc. in April. QNX will give the PlayBook more reliability than rival operating systems built for smartphones and adapted for tablet devices, RIM co-Chief Executive Officer Jim Balsillie has said.

Opting for QNX also put the PlayBook a step closer to Android as they share the common Posix standard, said Peter Misek, an analyst with Jefferies & Co. in New York.

Wade Beavers, who runs mobile application developer DoApps Inc. in Minneapolis, said he would welcome an easier way to sell software to RIM customers. He used to make apps for BlackBerry smartphone users and now focuses on Apple and Android devices.

“It was too much headache for too little return,” he said in an interview.

To contact the reporters on this story: Hugo Miller in Toronto at hugomiller@bloomberg.net

To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net

Last Updated: February 11, 2011 10:05 EST



To: Uncle Frank who wrote (2785)2/11/2011 3:11:27 PM
From: stockman_scott  Respond to of 2955
 
Nokia Joins Forces With Microsoft; Shares Tumble (Update5)

By Diana ben-Aaron

Feb. 11 (Bloomberg) -- Nokia Oyj, the world’s biggest maker of mobile phones, said it’s forming a software partnership with Microsoft Corp., betting that together the two companies can challenge Google Inc. and Apple Inc.

Nokia fell 14 percent, the biggest drop in seven months, after its plan to make Microsoft’s Windows its primary software was seen as a sign of the extent of its troubles in taking on Apple’s iOS and Google’s Android platforms.

“It’s a clear admission that Nokia’s own platform strategy has faltered,” said Ben Wood, a London-based analyst with CCS Insight. “Microsoft is the big winner in this deal, but there are no silver bullets for either company given strength of iPhone and Android.”

The move may be the biggest strategy shift by Nokia since the one-time wood pulp company began making mobile phones in the 1980s. Stephen Elop, the new chief executive officer of the Espoo, Finland-based company, is struggling to revive Nokia after its piece of the fast-growing smartphone market plunged to 27.1 percent in the last quarter from 50.8 percent when Apple shipped its iPhone in June 2007, according to Gartner Inc. Nokia has lost more than 60 percent of its market value in that time.

Nokia’s shares today had their steepest slide since July 16, closing in Helsinki at 7.00 euros. Microsoft slipped 31 cents, or 1.1 percent, to $27.19 as of 1:19 p.m. in New York.

“My first thought is to sell Nokia stock because Nokia has just given themselves away for free and Google and Apple are laughing all the way to a duopoly,” said Neil Campling, an analyst at Aviate Global LLP in London.

Partnership Plan

Microsoft, whose Windows Mobile software licenses were doubling annually before the iPhone hit the market, has likewise struggled to win acceptance for its revamped Windows Phone 7 software. The Redmond, Washington-based software maker said it shipped more than 2 million licenses for the new smartphone system in its first quarter on the market. Nokia shipped 28.3 million smartphones in that period.

The deal gives Microsoft access to one of the world’s largest mobile-phone distribution networks. Microsoft CEO Steve Ballmer said at a press conference in London that companies are already working on making the first Nokia Windows phone.

Under the plan unveiled today, Nokia and Microsoft will combine assets and jointly develop and market mobile products. Nokia’s Maps product will become a core part of Microsoft’s services, while Microsoft’s development tools will create applications for Nokia Windows phones.

Question Mark

“Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale,” Elop said at the press conference. “It’s now a three-horse race.” Nokia has no plans to merge with Microsoft, Elop said in an interview.

The Finnish company said that after the “transition years” of 2011 and 2012, it targets Devices & Services non- IFRS operating margin of 10 percent or more. Elop declined to provide a timeline for the first products from the alliance.

“The biggest question mark here is the timetable,” said Michael Schroeder, an analyst at FIM Bank in Helsinki. “Nokia says 2011 and 2012 are transition years, and no one knows how far along Nokia’s competitors are by then. Nokia can’t do anything to slow its competitors from innovating.”

Nokia plans to ship another 150 million phones based on its current smartphone operating system called Symbian. It will ship Windows phones in large volumes in 2012, Elop said.

Job Cuts

Nokia plans to “substantially reduce” it research and development budget, Elop said. At 5.9 billion euros ($8.1 billion), Nokia’s corporate R&D spending is more than four times that of Apple’s. Elop said there will be “significant reductions” in Nokia jobs. He didn’t elaborate.

Hundreds of Nokia workers walked out in Tampere, Finland, where about half the about 3,000 employees are Symbian developers -- the platform Nokia is phasing out.

“A lot of workers decided to use flexible working hours and go home to think about what these changes bring,” said Kalle Kiili, a union representative at the unit.

Elop, 47, was hired away from Microsoft in September to put Nokia on a comeback plan, especially for software, the biggest point of difference in smartphones. He made only small adjustments in his first months as he reviewed the business. He announced 1,800 job cuts in the workforce of more than 120,000, changed the development process for the Symbian smartphone code, and appointed a new marketing chief, Jerri DeVard.

Nokia today said it will have two units: Smart Devices and Mobile Phones. It named Jo Harlow to head the Smart Devices unit, while the other will be led by Mary McDowell. In North America, a weak spot for Nokia, it appointed Chris Weber, a 16- year Microsoft veteran, as president of its U.S. unit.

‘Burning Platform’

Since Elop became the first non-Finn to head Nokia on Sept. 21, Google’s Android software has become the biggest smartphone operating system, passing Nokia’s Symbian, according to Canalys and IDC analysis of shipments. The company’s N8 smartphone with the revamped Symbian 3 operating system was greeted by analysts as an improvement, although not enough to reverse the slide.

A memo written by Elop to employees recently said Nokia was “standing on a burning platform” and needed to make significant changes. With the plan unveiled today, Elop is terminating the company’s main Symbian platform, a move that make torpedo sales of existing devices, analysts said.

“Elop has decided to run the risk of really triggering a collapse of Symbian phone sales over the next three quarters,” said Tero Kuittinen, an analyst with MKM Partners LLC in Greenwich, Connecticut. “This is what jumping into the icy sea looks like; embracing a mobile OS with 3 percent smartphone market share. I expected a move to Windows, but not one with this level of religious fervor.”

Android Option

Nokia will bring out a device this year on MeeGo, a high- end operating system it’s developing with Intel Corp., to gauge market reaction, Elop said. MeeGo Engineers will then be shifted to work on innovations that can help Nokia leapfrog rivals.

Both Moody’s Investors Service and Standard & Poor’s put the company’s debt on review for a downgrade after fourth- quarter net income fell 21 percent and it signaled margin pressure. The ratings companies said the results showed a loss of competitiveness in the crowded smartphone marketplace.

Android, which is supported by mobile manufacturers including Samsung Electronics Co., HTC Corp. and Sony Ericsson Mobile Communications AB, offers users a slick interface similar to the iPhone for a lower cost of ownership.

Elop said while he did explore the Android option, differentiation would have been difficult.

‘May Kill Nokia’

Android phones typically have more flexibility in data plans than the iPhone, and make it easy to use virtual calling programs like Skype that reduce monthly bills. The system has proven popular with app developers who have built its Android Market up to more than 100,000 download items.

Google Chief Executive Officer Eric Schmidt said last month that his company is activating more than 300,000 phones a day.

Nokia started as a wood pulp mill in 1865 and expanded in papermaking, rubber, cables, and telephone equipment before helping develop the world’s current cellular phone systems in the 1980s. It passed Motorola Corp. to become the world’s largest maker of mobile phones in 1999, and was Europe’s most valuable company at 203 billion euros in December 1999.

“When you are facing a fire, you need to move quickly because it expands fast,” said Pierre Ferragu, an analyst with Sanford C. Bernstein in London. “This partnership will take time to implement and deliver phones. This is what may kill Nokia.”

To contact the reporter on this story: Diana ben-Aaron in Helsinki at dbenaaron1@bloomberg.net

To contact the editor responsible for this story: Vidya Root in Paris at vroot@bloomberg.net

Last Updated: February 11, 2011 13:23 EST



To: Uncle Frank who wrote (2785)2/16/2011 8:21:45 PM
From: stockman_scott  Respond to of 2955
 
Apple's Subscription Rules Raise Possible Antitrust Issues

online.wsj.com

By NATHAN KOPPEL
Wall Street Journal
FEBRUARY 16, 2011

Apple Inc.'s new subscription service could draw antitrust scrutiny, according to law professors.

Apple will allow magazines, newspapers and other publishers to sell subscriptions of varying lengths to users of Apple's popular iPad, iTouch and iPhone products. But there are several catches.

For starters, subscriptions must be sold through Apple's App Store. For instance, a magazine that wants to publish its content on an iPad cannot include a link in an iPad app that would direct readers to buy subscriptions through the magazine's website. Apple earns a 30% share of any subscription sold through its App Store.

One more potential string attached: If publishers sell digital subscriptions outside the Apple orbit they must allow Apple to offer the subscriptions at the same price or less.

"My inclination is to be suspect" about Apple's new service, said Shubha Ghosh, an antitrust professor at the University of Wisconsin Law School. Two key questions in Mr. Ghosh's mind: Whether Apple owns enough of a dominant position in the market to keep competitors out, and whether it is exerting "anticompetitive pressures on price."

An Apple spokeswoman declined to comment on any possible antitrust implications of the company's announcement Tuesday.

A U.S. Justice Department spokeswoman declined to comment.

Experts said that the first step in an antitrust analysis is to determine whether Apple is a dominant player in the market, which, in turn, requires an an assessment of the relevant market at issue.

Publishers, for example, might claim that Apple dominates the market for consumer tablet computers and that it has allegedly used that commanding position to restrict competition. Apple, in turn, might define the market to include all digital and print media, and counter that any publisher not happy with Apple's terms is free to still reach its customers through many other print and digital outlets.

" Millions will be spent litigating how broad the market is," said Herbert Hovenkamp, an antitrust professor at the University of Iowa College of Law.

Mr. Hovenkamp said digital media is the most plausible market. He said he doubted that Apple, currently, has a sufficiently dominant position in that market to warrant antitrust scrutiny.

But, he said, if Apple gets to a point where it is selling 60% or more of all digital subscriptions through its App Store, "then you might move into territory where an antitrust challenge would seem feasible."

Mr. Ghosh said courts in antitrust inquiries may look favorably when a company can articulate a legitimate business justification for behavior alleged to be anticompetitive. For this reason, Apple may "come up with a business justification" for some of its restrictive subscription terms, he said. "They have invested in a platform so they need to create incentives to use the platform."

Write to Nathan Koppel at nathan.koppel@wsj.com

Copyright 2011 Dow Jones & Company, Inc.



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Juniper: Cisco’s Loss Their Gain, Says Auriga

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To: Uncle Frank who wrote (2785)3/1/2011 9:22:01 PM
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Amazon.com Plans to Open Online App Store to Rival Google’s

By Joseph Galante

March 1 (Bloomberg) -- Amazon.com Inc., the largest online retailer, is opening a store to sell software for the Android mobile-operating system, stepping up rivalry with Google Inc.

Amazon will keep 30 percent of the revenue generated by applications sales, while developers will get 70 percent, the Seattle-based company said. Amazon didn’t say when the store will open.

The retailer is aiming to tap rising demand for games and entertainment that can be downloaded on mobile phones. That market, which is being pursued by more than 30 app stores, may rise to $40 billion by 2014 from $14.3 billion last year, according to Booz & Co. Competitors are trying to grab business from Google’s own Android Market, which has rankled some users for being cumbersome.

“There is a huge volume of apps out there,” said Aaron Rubenson, who oversees Amazon’s app store. “The challenge that creates for the Android ecosystem is it can be hard to find the products that are relevant to you. We’ve spent years developing an e-commerce platform that helps customers find relevant products amidst a massive selection.”

One-Click Option

The Amazon app store can be downloaded to a phone or tablet computer. Customers can also buy apps on Amazon.com using a one- click option that links back to their Amazon account, rather than entering a credit-card number manually for each purchase. The service will start off in the U.S., Rubenson said.

Google, owner of the biggest Internet search engine and creator of the Android operating system, also gives developers 70 percent of app sales, while splitting the rest with carriers and payment processors.

Amazon dropped $3.85 to $169.44 at 4 p.m. New York time on the Nasdaq Stock Market. The stock has slipped 5.9 percent this year. Google, which has gained 1.1 percent this year, fell $12.64 to $600.76.

Applications for Apple Inc.’s iPhone and iPad, which compete with Android-based devices, are available only through Apple’s own app store.

To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Last Updated: March 1, 2011 16:19 EST