LG favours Android over Windows (USA, South Korea)
Microsoft’s chief executive, Steve Ballmer has recently announced that the company is planning to focus on smartphones running on Google’s Android mobile operating system. According to a report by KoreaHerald, the executive also said LG is taking a step back from Windows phones powered by Microsoft’s platform, adding that it will continue research and development efforts on Windows Phones.
As per the report, a spokesperson for LG revealed that the total unit of Windows Phone sold in the global market is not a meaningful figure. Further, the company currently has no plans of rolling out another LG-manufactured Windows phone soon.
The report reveals that Ballmer may holding a meeting with the chief of LG Electronics, as the U.S. software giant chief is expected to visit Seoul this month. Microsoft Korea spokesperson Lee Seung-yeon said that Ballmer, who will speak about the ‘new era of technology,’ will be staying for a day in Seoul.
Nokia Windows phone receives support from carriers (USA)
With the increasing dominance of iPhones and Android powered smartphones in the handset arena, wireless carriers AT&T and Verizon Wireless have been looking at phones from Nokia and Microsoft as alternatives, according to a report by BN.
As per the report, both carriers praised Microsoft’s Windows Phone operating system, which powers the new Nokia Lumia phone, when they reported quarterly results this month. AT&T began offering the Lumia 900 for $99.99 on April 8, and Verizon is preparing to add a new Nokia model to its lineup soon.
The operators are hoping that these handsets act as an alternative for users as devices such as iPhone can be more costly to subsidize. The companies also face the risk that an Apple-Google duopoly will erode carriers’ ability to distinguish themselves and will further squeeze their profit margins.
AT&T Chief Financial Officer John Stephens told BN in an interview that they want the Lumia to succeed — they love to have competition in the handset market. It’s always better to have more choices for the customers.
Microsoft, Facebook announce patent agreement worth $550 million (USA)
Microsoft Corp. and Facebook announced today a definitive agreement under which Microsoft will assign to Facebook the right to purchase a portion of the patent portfolio it recently agreed to acquire from AOL Inc. Facebook has agreed to purchase this portion for $550 million in cash.
In the initial AOL auction, Microsoft secured the ability to own or assign approximately 925 U.S. patents and patent applications plus a license to AOL’s remaining patent portfolio, which contains approximately 300 additional patents that were not for sale.
As a result of today’s agreement, Facebook will obtain ownership of approximately 650 AOL patents and patent applications, plus a license to the AOL patents and applications that Microsoft will purchase and own.
Upon closing of this transaction with Facebook, Microsoft will retain ownership of approximately 275 AOL patents and applications; a license to the approximately 650 AOL patents and applications that will now be owned by Facebook; and a license to approximately 300 patents that AOL did not sell in its auction.
Brad Smith, executive vice president and general counsel, Microsoft, said that today’s agreement with Facebook enables them to recoup over half of their costs while achieving their goals from the AOL auction. As said earlier this month, they had submitted the winning AOL bid in order to obtain a durable license to the full AOL portfolio and ownership of certain patents that complement their existing portfolio.
Ted Ullyot, general counsel, Facebook, said that the agreement with Microsoft represents an important acquisition for Facebook. This is another significant step in their ongoing process of building an intellectual property portfolio to protect Facebook’s interests over the long term.
The parties are evaluating the accounting treatment for these transactions. These transactions are also subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Verizon to focus on Windows phones this holiday season (USA)
Verizon Wireless plans to put its marketing weight behind Microsoft Corp’s next mobile phone software to help develop a strong competitor to Apple Inc and Google Inc, according to the chief financial officer of Verizon Communications, as told to Reuters.
Verizon Wireless, a venture of Verizon and Vodafone Group Plc, already sells the Apple iPhone and many devices based on Google’s Android software.
But Verizon’s CFO Fran Shammo said the company wants a third strong software competitor in the mobile market where operators pay hefty subsidies for smartphones like the iPhone.
As per the interview, Shammo said that they are really looking at the Windows Phone 8.0 platform because that’s a differentiator. They are working with Microsoft on it.
Microsoft has not said anything publicly about the next update of its mobile software, but Windows Phone 8 — codenamed ‘Apollo’ — is expected on phones this holiday season.
As per the report, Shammo said that Verizon Wireless expects to have phones based on the next Microsoft software in time for the 2012 end of year holiday shopping season. The executive suggested that Verizon could play a similar role with Microsoft as it did with Google’s Android.
Verizon Wireless marketing played a big part in boosting the popularity of Android phones from manufacturers including Motorola Mobility, Samsung Electronics and HTC Corp. Verizon’s Droid brand even managed to give a struggling Motorola a new lease of life.
Nokia is Microsoft’s closest mobile partner as the Finnish company has bet its smartphone business on the U.S. company’s software. But Nokia’s fortunes have fallen sharply since it took up with Microsoft.
While Samsung and HTC both already sell phones based on Microsoft software, Motorola Mobility’s future plans are uncertain as it is in the process of being bought by Google.
Six Technology firms sign privacy agreement (USA)
California’s attorney general, Kamala D. Harris, has said that six of the world’s top consumer technology firms have agreed to provide greater privacy disclosures before users download applications in order to protect the personal data of millions of consumers.
He added that the agreement binds Amazon, Apple, Google, Microsoft, Research In Motion, and Hewlett-Packard, and developers on their platforms, to disclose how they use private data before an app may be downloaded. Harris said that user’s personal privacy should not be the cost of using mobile apps, but all too often it is.
Further, he said that currently 22 of the 30 most downloaded apps do not have privacy notices.
Harris also said that most mobile apps make no effort to inform users about how personal information is used. He added that the consumer should be informed of what they are giving up.
In response to this, Google said that Android users will have even more ways to make informed decisions when it comes to their privacy.
Ericsson seeks to increase revenues through patents (Sweden)
Sweden based Ericsson, the world’s leading mobile telecommunications equipment vendor, is reportedly planning to increase revenues from its 27,000 patents as devices from toys to energy meters get wireless access, as said by CEO, Hans Vestberg.
According to reports, Vestberg claims that by 2015 two thirds of all consumer electronics devices will have some sort of connectivity and any company or manufacturer that wants to get in there will require an agreement with Ericsson. The firm currently has the industry’s largest portfolio of wireless communication patents and believes that increased revenue from rights would help smooth out fluctuations in network orders.
As per sources, Vestberg has said that the intellectual property covers basically everything in the telecom industry, including the world’s largest collection of WiFi patents. Sources reveal that revenue from patents went up from $ 368 in 2006 to $847 in 2010. Vestberg also said that if they are going to get 50 billion connected devices in 2020 it’s not only going to be handsets. He added that it is not going to be practical for them to make bilateral negotiations with all the manufacturers, and that they need new business models and need to work in groups.
Vestberg claims that the connected devices may include shipping containers that transmit their position and interior temperature, as well as appliances that are hooked into a network. He also revealed Ericsson’s plans to get royalties from intellectual property in areas it hasn’t monetized before, such as Web search and optical transmissions.
As per sources, Ericsson had entered into a transaction along with other companies such as Apple, Microsoft and Sony in July to buy 6,000 patents from Nortel Networks Corp for $ 4.5 billion. Vestberg reportedly said that this transaction was important for Ericsson as it didn’t have a deal covering those patents.
According to reports, industry analysts have valued Ericsson’s patents at $ 15.5 billion, on the basis of Google’s agreement to buy Motorola Mobility Holdings for $ 12.5 billion. Vestberg has said that the company has more than 90 licensing deals for its core technologies with handset companies and infrastructure producers. He added that they are not looking to sell patents but to receive recurrent revenue.
Adobe share price drops with announcement of 750 job cuts (USA)
Adobe Systems Inc., an American based computer software company, has announced 750 job cuts in order to discontinue its flash technology for mobile devices and focus on programs for digital publishing and advertising.
The job cuts taking place largely in North America and Europe, accounting for more than 7 percent of the company’s workforce, are expected to cost $87 million to $94 million before taxes. According to reports, the graphic design software maker has been facing tough competition from Apple and Microsoft, and is planning to shift its focus towards the HTML5 programming language and software for cloud computing, delivered over the Web.
As per sources, Shantanu Narayen, CEO, Adobe has hinted at plans to release a tablet-computer software with aggressive subscription plans in order to attract new customers, claiming that Adobe’s software-as-a- service business may reach $1 billion over time.
Huawei in discussions with Microsoft regarding Android software (China, USA)
Chinese based Huawei, a leading global information and communications technology (ICT) solutions provider, is reportedly talking to Microsoft for use of its Android software. According to reports, Microsoft has claimed that Google’s Android operating system has violated its intellectual property rights and has already convinced mobile phone makers such as Samsung and HTC among others, to pay patent royalty fees.
As per sources, Victor Xu, CMO, Huawei has said that the discussions with Microsoft are in progress. Further, he also hinted that the firm my open up a new design centre in London and has picked UK as the launch site for the launch of its smartphones and tablet computers. Reports suggest that the firm is looking to expand into other markets such as US, Japan and India in the coming year, followed by other regions in 2013. Mr. Xu reportedly said that they have established very aggressive targets in the market, and are aiming to be among the top five smartphones over the next three years.
Nokia plans marketing blitz for the Lumia 800 (Finland)
The Nokia Lumia 800, based on Microsoft’s new Windows Phone 7.5 operating system (Mango), is being considered as the best Windows phone yet. Reports suggest Nokia has taken extra care while designing this handset, offering customers a worthy substitute for an iPhone or an android.
According to reports, Nokia has taken care that the polycarbonate shells for phones have been dyed instead of simply being sprayed over, so as to maintain the colour of the phone even if it is scratched. The phone has been designed in such a way that the sides of the device are curved while the top and bottom of the phone is flat. The phone enables users to experience vibrant colours through its version of the Super AMOLED Plus screen. Also, the camera is the same as in Nokia’s N9 handset, providing users with great results. Further, as per sources, on the software side, Microsoft has offered its users a new feature enabling them to pin certain functions of an application to their handset’s home screen. Priced at $590, the device is expected to be available in Europe by next month.
As per sources, Stephen Elop, CEO, Nokia said that he managed to beat expectations by delivering the first Windows smartphone before Christmas. However, he added that winning over customers will require a marketing blitz. He has reportedly claimed that the amount spent on marketing the Lumia series will be triple as compared to the previous product launches. Sources also suggest that Nokia has tied up with some of the biggest phone companies including Vodafone Group PLC, in an attempt to bring back customers who have shifted their allegiance towards the iPhone and Android based devices. Further, Nokia plans to make use of Windows distinctive interface which comes with big, colourful tiles as compared to the smaller icons offered by Apple and Android.
However, Industry analysts state that even with a technically good phone and enhanced marketing strategies, Nokia may need to wait a while for Apple loyalists and Android users to switch to a Windows phone.
Samsung to pay Microsoft royalties on Android devices (Korea, USA)
Korean handset manufacturer, Samsung has accepted to pay Microsoft royalties for every Android based smartphone and tablet sold. Microsoft had accused Google’s Android of violating its patents. However, Google has responded saying that they remain focused on building new technology and supporting Android partners.
As per reports, Microsoft has said that under the terms of the agreement, Microsoft will receive royalties for Samsung’s mobile phones and tablets running on the Android mobile platform. In addition, the companies agreed to cooperate in the development and marketing of Windows Phone. Andy Lees, President, Microsoft’s Windows Phone division said that Microsoft and Samsung see the opportunity for dramatic growth in Windows Phone and are investing to make that a reality.
According to reports, Dr. Won-Pyo Hong, Executive Vice President of Global product Strategy at Samsung’s mobile communication division has said that through the cross-licensing of their respective patent portfolios, Samsung and Microsoft can continue to bring the latest innovations to the mobile industry. Ha added that they were pleased to build upon their long history of working together to open a new chapter of collaboration beginning with their Windows Phone ‘Mango’ launch this fall.
