Author: Eva Glass

Eva Glass first rose to prominence in The INQUIRER. She continues to work behind the scenes to dig out the best stories.

Best Buy to sell European op to Carphone Warehouse

best-buy-carphoneBest Buy has decided to unload its 50 percent share in Best Buy Europe to its joint venture partner Carphone Warehouse in a deal valued at £500 million.

Under the terms of the agreement, Best Buy will receive £420 million in cash and £80 million in Carphone Warehouse stock, subject to a 12-month lock-up restriction. Best Buy also agreed to pay Carphone Warehouse £29 million to settle obligations stemming from existing agreements, some of which will be terminated when the outfits close the deal.

The transaction has already been approved by the boards of both companies and it should be finalized by June 2013.

“After reviewing the business and spending time with our partners, we concluded that the timing and economics were right to enter into this agreement with CPW,” said Hubert Joly, president and chief executive officer of Best Buy.

Joly went on to say that the transaction will allow Best Buy to simplify its business, improve its return on invested capital and strengthen its balance sheet.

“Each international market is different and the sale of our European operations should not suggest any similar action in our other international businesses,” said Joly.

The joint venture was launched in 2008, with Best Buy paying $2.15 billion for its share of Best Buy Europe.

Intel confirms $200 Android notebooks

Intel-logoIntel is working on $200 notebook designs, powered by cheap chips and Google’s free Android operating system.

Dadi Perlmutter, Intel VP and chief product officer told CNET that $200 notebooks will predominantly be Android products based on Atom chips.

Now the ball is in Microsoft’s court, if Redmond wants to gain a toehold in the ultra cheap notebook market it will have to make its operating systems a bit cheaper.

Perlmutter said the price of Windows 8 gear depends on how Microsoft prices the OS, and it could end up slightly pricier. In addition, Perlmutter pointed out prices of notebooks based on Core processors should go down to $399 to $499.

As netbooks are about to die a quiet death, $200 droidbooks might be the best way to replace them. Upcoming Atom chips are roughly on a par with ARM SoCs in terms of power consumption and performance per watt, so from a technical standpoint Intel should have everything covered.

The big question is software. Android is a good operating system for touch enabled devices, but it has yet to prove itself on more traditional form factors, that is,  notebooks.

Cheap smartphones are the next big thing

nexus4-ceAs the smartphone juggernaut rumbles on, vendors are increasingly turning their efforts to emerging markets, with less disposable income and a much lower smartphone penetration rate. As smartphones are projected to outsell feature phones this year, the need for inexpensive smartphone designs is greater than ever and ABI Research reckons it will continue to grow.

ABI Research divides the smartphone market into three price brackets, low-cost smartphones priced at up to $250, mid range models in the sub-$400 price range and high-end devices, priced at $400+. Shipments of low-cost phones are expected to grow from 259 million this year to 788 million in 2018. Sales of high-end and mid-range phones are forecast to grow from 635 million to 925 million.

It is clear that there is a lot more room for growth in the low-end, and to some extent the mid-range. ABI Research estimates that low-cost units will account for 46 percent of all smartphone shipments by 2018, up from 28 percent last year.

Although most growth is expected in emerging markets, it is very likely that western consumers will change their habits as well. As smartphones mature it will become increasingly difficult to come up with very innovative designs and the lukewarm response to the Samsung Galaxy S4 and iPhone 5 might be a sign of things to come.

“As smartphone penetration moves from early adopters to mass-market and laggard consumer segments, the smartphone as a product will be less dependent on technical superiority, and more dependent on reliability and value,” said senior practice director, Jeff Orr.

Low-cost smartphones are expected to do exceptionally well in underdeveloped markets, with plenty of pre-paid users and very little in the way of subsidies. However, they could also play a role in developed markets, helping feature phone consumers convert to smartphones at a fraction of the cost of high-end gear.

AMD to cut reliance on PC chips

AMD, SunnyvaleAMD might be on the verge of its biggest strategic shift in ages, as it starts to embrace ARM processors and more frugal chips. The company hopes to make as much as half of its money from console chips and ultra-low power processors by 2016. That is on top of ARM-based server chips which are already in the works.

At the moment, AMD generates the vast majority of its revenue from x86 processors and GPUs, but this year it is expected to ship millions of custom APUs for gaming consoles. On Tuesday the company launched a range of embedded x86 chips based on the new Jaguar core, but it also hinted at upcoming embedded chips based on ARM designs.

AMD already made it clear that it intends to use upcoming 64-bit ARM cores in its server parts, but the decision to design embedded APUs with ARM cores could have far reaching implications. In technical terms, these chips will have a lot more in common with consumer application processors than server chips. They are also expected to feature the latest generation Radeon graphics. In other words, AMD will develop ARM based SoCs, but it is still unclear whether it will target the consumer market.

Several years ago AMD sold its Imageon mobile graphics division to Qualcomm, and Qualcomm put it to good use, churning out millions of mobile SoCs with Adreno graphics, courtesy of AMD IP. However, AMD insists that it could catch up with relative ease.

Sasa Marinkovic, AMD’s Technology Marketing Lead, told Forbes that chip architecture at the time of the Imageon sale was full of bottlenecks and it has moved along since then.

“We sold some graphics IP, but we didn’t forget how to build it,” he said.

AMD already has some x86 designs capable of hitting sub-5W thermal envelopes required by tablet manufacturers, such as the 4.5W Temash SoC. However, ARM based chips could offer even better power efficiency and end up with sub-3W TDPs.

On the console front things are looking even better. AMD expects sales of custom APUs for the Playstation 4 and next-gen Xbox to account for 20 percent of its revenue by the end of the year. Similar chips based on the Jaguar core are coming to the consumer market as well.

Demand for mobile gear outpaces support

SmartphonesSkyrocketing demand for mobile devices in the workplace seems to be putting too much pressure on IT professionals and support staff. According to a LANDesk Software survey, 83 percent of end-users want to create service desk incidents or requests using their mobile device. However, only 24 percent are able to access self-service systems using mobile gear because their companies don’t have the technology to support it.

BYOD and the consumerization of IT are clearly causing a plethora of issues. The survey found that many employers are simply failing to keep up with demand for effective support for mobile gear. If they fail to do so, the potential benefits of BYOD and mobile tech in general could be limited. Although access by mobile devices remains limited, 86 percent of respondents said they have access to self-service IT support via their PCs.

‘‘Mobile devices have become so integral to how employees work that it’s worrying to see so few businesses enable employees to report IT problems via mobile devices. Businesses will find their employees more willing to embrace services if the way they are requested goes hand in hand with the way they work, ’’ said Ian Aitchison, Director of Product Management, LANDesk. “As employees evolve and adopt new technologies to support them in their work, businesses are well advised to support these technologies to maintain productivity levels and streamline interactions between the employee and the service desk.’’

The research also covered 10,000 IT professionals, who said they have seen some positive results from desktop PC self-service, despite limited availability of mobile support. The majority said self-service helped reduce call volumes and improve user experience. Of those who worked in organizations without a self-service programme, 83 percent said they plan to implement it and 47 percent already have a rollout plan.

Retail search volumes on mobile gear skyrocketing

smartphone-shoppingAccording to the latest BRC figures, total retail search volumes grew 16 percent in the first quarter of 2013 compared to a year ago. However, search volumes on mobile devices are skyrocketing. Growth on smartphone devices is estimated at 66 percent, while the volume of searches coming from tablets grew by a staggering 198 percent.

The numbers should come as no surprise, as the high street had a rather miserable quarter and quite a few consumers chose to do their shopping online. The horrible weather also had a lot to do with it.

Helen Dickinson, Director General, British Retail Consortium, said the figures confirm tablets and smartphones are becoming increasingly integral to the shopping experience for many consumers.

“It’s easier than ever to compare prices and products online, and retailers are continuing to invest in their websites and their ‘omnichannel’ offer so that customers have choice, convenience and flexibility when they shop,” said Dickinson. “The retail search data also closely mirrors the sales performance across different categories in March. It’s clear that the prolonged cold snap held many of us back from both browsing and buying new-season clothing lines until some sunshine arrived.”

Google Retail Director Peter Fitzgerald described the results as a “strong start to the year,” pointing out that retail queries grew by 16 percent year-on-year.

“This growth continues to be fuelled by the multi-device trend we are experiencing. Tablet queries grew nearly three times compared to the same period last year, whilst mobile traffic grew at 66 per cent,” he said.

Fitzgerald said the positive trend is set to continue into 2013, as more and more users embrace multiple smart devices. He also added that British brands did relatively well overseas, with searches up 16 percent across the globe and 75 percent in America.

Supply chain standard aims to eliminate counterfeit gear

server-racksCounterfeit iPhones, sunglasses and handbags have been around for years, but so have counterfeit IT products, and they tend to be a bit more dangerous and costly than a fake Gucci bag crafted from genuine imitation faux leather.

The Open Group has published a new technical security standard with the aim of improving supply chain safety and weeding out counterfeit products, or gear that has been tampered with. The Open Trusted Technology Provider Standard (O-TTPS) is a 32-page document containing a set of guidelines, requirements and recommendations that should mitigate the risk of acquiring counterfeit products, or products that were “maliciously tainted.”

The standard is being backed by the likes of IBM and Cisco. It should address concerns raised by governments and the US Department of Defense, which tends to be rather picky when it comes to networking gear. Junipar, Huawei, EMC, Raytheon, HP, Microsoft, the NSA, Booz-Allen Hamilton, Boeing and NASA are also on board, reports Network World.

It is still unclear when the group will start issuing accreditations, or how it plans to go about it, but the backers feel that the IT industry should get acquainted with the new standards. With such high profile names on board, the industry should listen closely.

Big outfits are expected to embrace the new standard first, but in doing so they will also reduce the risk for smaller businesses. Still, the best way of steering clear from dodgy routers and switches is to simply avoid buying gear from unknown companies altogether.

Economic turmoil wreaks supply chain havoc

supply-chain-managementThe never ending economic crisis was to blame for more supply chain disruptions last year than insolvencies and horrible weather. According to a survey by Dynamic Markets, commissioned by Oracle, more than half of major companies in Europe, the Middle East and Africa (EMEA) suffered supply chain disruptions caused by economic woes.

Drug czar thinks coke loving bankers caused financial crash

scarfaceThe 2008 financial crash was caused by overleveraged banks, the collapse of the US housing market and a range of other factors. One of those factors might have been cocaine, which is rather popular in banking circles, or so we are told.

Professor David Nutt, the former government drugs czar who lost his job after he famously stated that taking an ecstasy tablet was as safe as riding a horse, believes cocaine contributed to the crash and also led to the 1995 collapse of Barings bank.

Nutt believes cocaine helped take bankers over the edge, as cocaine users tend to be overconfident and take more risks. It can also make people quite boring at parties.

“Bankers use cocaine and got us into this terrible mess. It is a “more” drug;” he told the Sunday Times. He added that cocaine is well suited for the culture of excitement and drive, which is prevalent in the banking world.

On the other hand, who would you rather leave in charge of your personal finances? An alcoholic, a pothead, or an overly confident coked-up loudmouth with a Scarface fetish?

Hilco to cut another 400 jobs at HMV

hmv-administrationHilco, the new owner of HMV, is planning to cut 400 jobs at the troubled entertainment retailer. The Times reports that Hilco is looking to save as much as £7.8 million from its annual payroll and the latest round of cuts is just one in a series of cost cutting measures.

An internal memo to HMV staff listed the positions earmarked for layoffs. Although Hilco did not say exactly how many jobs will be cut, the memo states that three positions in most of HMV’s remaining 141 stores will go, which amounts to about 400.

Security guards will be among those dropped in nearly all stores, except those in “high risk” areas. Cashiers in more than 100 stores will also lose their jobs, along with supervisors. It seems that part-time staff will eventually account for about 50 percent of HMV’s total workforce.

Hilco scooped up HMV earlier this year and it apparently plans to focus its revival efforts on 141 stores, employing around 2,500 souls. However, the future of dozens of stores across the country has already been sealed.

Nissan turns over a new Leaf

nissanleaf2gNissan has revamped the Leaf for the UK market, and the updates aren’t just skin deep. The new Leaf boasts more than 100 improvements over the first generation, including spiced up trim levels, new battery warranty programme and perhaps most importantly, the option of leasing a battery.

The battery pack is the single most expensive component in any fully electric car, and concerns about battery life and the cost of a replacement battery have plagued electric cars since their inception. However, by simply leasing the battery for £70 to £109 per month, Nissan is practically eliminating the risk altogether.

Leafs with leased batteries will bear the “Flex” moniker and they will end up cheaper than previous models. The cheapest Flex model with the Visia trim level starts at £15,990, which is pretty competitive for an all-electric car. Then again, buyers will have to spend at least £840 per year on the battery lease.

Consumers who opt for the more traditional approach and buy their own battery stand to benefit from Nissan’s new warranty protection. Nissan is now covering capacity loss under its 5-year warranty. A battery that loses 25 percent of its capacity over the first five years of 60,000 miles will be eligible for repair or replacement, which should put some minds at ease. The cheapest Leaf with a battery starts at £20,990.

In addition to cosmetic improvements, ranging from new alloys to LED headlamps and a Bose audio system, the new Leaf also promises to deliver a bit more range. Nissan claims the car’s range has been extended from 109 miles to 124 miles and the battery is now capable of recharging in about half the time of the first-gen Leaf, provided a 32 amp charger is used.

Marks & Spencer kicks off mobile payments trial

marksandspencerMarks & Spencer has launched a small pilot program to test its new mobile payments service. The M&S Digital Lab app was launched in February and Marks & Spencer says it will help it explore emerging technologies and understand how they might work.

However, the new mobile payments service is not actually a part of the m-commerce app. It is merely an element of Marks & Spencer’s overall marketing and technology campaign, reports QR Press Codes. Marks & Spencer is using a third-party app to try out its new service.

The Paddle app was developed by a London based startup and it is supposed to be leaner and easier to use than competing solutions. The app sorts out transactions by scanning QR codes and developers claim it is very secure.

The information is transmitted in the cloud, the credit card information and delivery address need to be submitted only once. Only the last four digits of the card must be submitted to validate the purchase, which should speed up transactions and improve security.

Notebook shipments in Q2 to remain weak

notebooksIncreasing demand for tablets, coupled with weak demand from China, is expected to hit notebook shipments in the second quarter.

According to Barclays Capital, global shipments will tumble 17 per cent from Q4 2012, traditionally the strongest quarter for notebook shipments. Notebook sales in Q2 usually grow by about 6 per cent, but Barclays believes shipments will grow only 4 per cent this year. Yang attributed the decline in demand from China to the ever increasing demand for tablets.

Barclays analyst Kirk Yang believes the weaker than expected growth also reflects delays in the introduction of new models. Both Intel and AMD are about to introduce new mobile processors and a new generation of touch enabled Ultrabooks is also on the way.

Taipei Times reports that Quanta, the world’s leading notebook ODM, is simply not receiving many orders. International brands are reluctant to place large orders, as better gear is just around the corner.

The really bad news is that things will not pick up anytime soon. Weak demand will plague the market well into the fourth quarter of 2013.

There are some technical challenges as well. Next generation hybrids and convertibles aren’t making much of an impact on the market yet. A shortage of touchscreen panels means that the production of touch enabled notebooks won’t pick up until later this year, which will roughly coincide with the rollout of new Intel mobile chips. SSDs remain prohibitively expensive for some market segments and they are still reserved for quite pricey SKUs. The same goes for high definition 1080p screens in sub 14-inch market.

In other words, consumers who don’t opt for high end devices really don’t have much of an incentive to upgrade.