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.

First Firefox OS smartphones launch today

zte-open-firefox-osThe first Firefox OS phones could be just days away from hitting retail. Mozilla has announced that the regional rollout of the first foxy phones will begin soon.

There are just a couple of devices so far, the Alcatel One Touch Fire and the ZTE Open, and the latter launches in Spain on Tuesday for just €69.

Needless to say, it doesn’t feature headline grabbing specs. It’s a 3.5-inch HVGA device powered by a 1GHz processor and 512MB of memory. That’s the sort of spec one would expect from a mid-range Android handset launched in 2011, but that sort of seems to be the point.

Mozilla doesn’t want to compete in the high-end, it thinks it has a very lean operating system that could bring most smartphone features to first-time smartphone buyers. Smartphones are overtaking feature phones in terms of worldwide sales as we speak and cheap smartphones are expected to fill the gap.

It seems like a sound approach, but the smartphone market is already overcrowded and it’s dominated by two or four operating systems, depending on whom you ask. There doesn’t appear to be much room for another competing platform, but Mozilla is going after a small niche. Apple, BlackBerry and to some extent Microsoft, don’t really matter in this price segment.

Android, however, remains a force to be reckoned with. There are dozens if not hundreds of cheap Android phones on store shelves, with a tried and tested OS and a huge app ecosystem. What’s more, last year’s models often end up in the bargain bin, hence it is possible to get something even better than an entry-level phone for peanuts.

Mozilla thinks it can do better, with an OS specifically designed to run well on a meagre serving of silicon and this might be what differentiates its products in the long term. The hope is that consumers will choose a frugal phone with a lean OS instead of an outdated Android device that doesn’t really support all the nice features offered by Google in its latest Android builds.

The approach might work, especially in emerging markets, but for the time being the platform is rather limited and untested, although initial reviews were positive.

EU slashes roaming charges

dubrovnikThe EU just got a bit bigger. Croatia entered the fold at midnight, just in time for the summer holiday season – which is economically vital for the new EU member. Good thing, then, travelling in the EU just got cheaper with roaming caps in place cost cutting on all networks and services, effective Monday.

Mobile wallet market worth billions by 2018

google-walletThe mobile wallet market is about to get big, huge even. According to a new report published by Transparency Market Research, the global mobile wallet market will reach $1,602.4 billion by 2018. In EMEA it will grow at a CAGR of 30.7 percent from 2012 to 2018 and EMEA will be the largest mobile wallet market in the world by 2018.

EMEA accounted for about 40 percent of the global mobile wallet share in 2011, but the Asia Pacific region is expected to see the fastest growth over the next five years.

The staggering figures sound optimistic to say the least, but Transparency Market Research is basing them on a few emerging trends that hold a lot of promise. The outfit found that affordable NFC enabled phones and POS (point of sale) systems will be the main drivers of growth over the next few years.

Retail is currently the biggest application for mobile wallet services and the trend is set to continue, due to ease of payment using smartphones and initiatives to introduce new POS terminals in convenience stores. Vending machines are also a potent market. Mobile network operators are expected to play a pivotal role in future mobile wallet adoption.

Unsurprisingly, the key players in the market will be Visa, MasterCard, American Express, PayPal, Google and others from the list of usual suspects.

However, it won’t be just smooth sailing. Quite a few consumers still don’t know how mobile wallets actually work and we’re pretty sure that many aren’t even aware of their existence. Security and privacy remain sources of concern, too.

HP thinks about smartphones again

HPHewlett Packard is apparently seriously considering re-entering the smartphone market. In related news, we did some research and found out that HP did indeed make phones at one point.

Joking aside, HP was a force to be reckoned with in the days of Windows Mobile. It viewed smartphones as a natural extension of its once massive iPaq business, but smartphones of the day were just too big, too slow and unattractive.

In 2010 HP acquired Palm and started making WebOS devices, but they flopped. HP launched its last WebOS phone in 2011, but now it might give smartphones another go, although the new generation will probably feature a different operating system and rumour has it that Android tops the list at the moment.

In a recent interview with Indian news agency PTI, carried by The Indian Express, HP Senior Director Consumer PC and Media Tablets Asia Pacific Yam Su Yin said the company is focusing on all market segments. When asked whether smartphones are one of them, she answered yes, but noted that she couldn’t give an exact timetable.

“It would be silly if we say no. HP has to be in the game,” she said.

However, HP might have a lot of catching up to do, but Su Yin believes the company can pull it off.

“Being late you have to create a different set of proposition. There are still things that can be done. It’s not late. When HP has a smartphone, it will give a differentiated experience,” she said.

At this point there is very little to go on, but HP probably won’t be another also-ran Android peddler. It will probably need to integrate a few of its business services into the upcoming phones, and recently the company has been making quite a bit of noise about its cloud services, which should end up on the feature list.

Despite that, we’re not sure we share HP’s optimism. The market is already overcrowded and overheating. It is about to get even tougher as Chinese manufacturers start to look beyond the local market and as some PC component makers enter the space. On the other hand HP has a nice brand to play around with and a top notch sales force.

Chip sales rebound in May

nand-chipsChip sales in May are expected to amount to $23.9 billion, up from 23.5 billion in April, according to a note from the Carnegie Investment Bank.

Although PC sales remain weak, the launch of several new smartphones such as the Samsung Galaxy S4 and HTC One, helped chip sales bounce back. Prices for memory chips have also gone up, contributing to the overall figures.

However, looking at the whole year, Carnegie expects semicon sales to fall one percent. May seems to have been an exception, as sales were boosted by external factors and seasonal trends. Korean and Taiwanese chip exports jumped in May, but much of the rise in Korea was attributed to rising prices for memory chips.

Smartphone exports were also up, although Apple’s numbers did not improve as the iPhone 5 is ageing and it’s due to be replaced soon. The Chinese handset market was up as well, and the Q2 guidance is looking strong as well.

However, US imports were weak in March and April, indicating that the PC market will remain volatile. There were some exceptions. Imports of US telecom equipment were up, while imports of computer accessories were down.

As a result, US retail sales in tech categories did not show much growth and they appear to have been hit by internet sales. The same pattern is visible in parts of Europe.

Notebook shipments hit new low

ancient-laptopContract manufacturers of notebooks had one of their worst quarters on record in Q1. According to IHS, they suffered a worse than expected quarter, with shipments to Apple and HP tumbling to the lowest level in three years.

Global shipments from ODMs in the first quarter totalled 33.2 million units, down 17 percent from 40.1 million in the fourth quarter of 2012.

The downturn was four to five percentage points than what IHS had originally forecast, prompting more concerns about the beleaguered industry. Taiwan based ODMs build notebooks for Apple, HP, Dell, Samsung, Lenovo, Acer, Asus and Toshiba.

The knock on effect hit ODMs hard. Quanta got the worst of it, with a 27 percent plunge in shipments. It lost its spot as the world’s top ODM to Compal as a result. Furthermore, Quanta apparently received “conservative” orders from Acer, Asus, HP and Apple during the quarter. Compal saw a quarterly decline of 5 to 7 percent and it weathered the storm a bit better than other ODMs, thanks to stable shipments to Dell and Lenovo.

Wistron’s drop in shipments was 16 percent, but it still managed to rank third. Inventec saw a 9-percent drop and it ended in fourth spot, while Pegatron wasn’t as lucky. It saw its shipments plummet 21 percent, finishing the quarter in fifth spot.

There’s light at the end of the tunnel, though. ODM shipments are expected to improve in the second half of the year. The key drivers of growth will be cheap ultrathin PCs with touchscreens, along with new models based on Intel Haswell parts. In addition, Microsoft will lower the licencee fee for Windows for notebooks with a screen size of up to 11.6 inches, as we reported from Computex a few weeks back. Better late than never.

Android consoles stumble

nvidia-shieldSony, Microsoft and Nintendo have rolled out their latest generation consoles and although they feature very impressive hardware, some analysts are already saying that they could be the last generation of big consoles on proprietary operating systems.

Sales of mobile consoles have also taken a hit, as more and more consumers traded them in for smartphones and tablets. It’s nothing new, we saw the same trend with personal media players and compact cameras.

However, if mobiles are indeed cannibalising consoles, isn’t it time for smartphone makers to capitalize on the trend? Google seems to think so. Late Thursday several reputable outlets reported that Google is indeed working on some sort of Android console. It is apparently loosely based on the Nexus Q, a streaming device which flopped before it hit the market. Google is starting to take hardware quite seriously. A couple of years ago it only sold a single product, the developer friendly Nexus smartphone series. However, over the past 12 months Google also introduced two Nexus tablets and Google Glass. Let’s not forget about the company’s acquisition of Motorola Mobility, either.

On the other hand, it must be said that Google’s idea is anything but original. Kickstarter sensation Ouya is about to hit the market, after a couple of delays. Based on Nvidia’s old Tegra 3 chip, the Ouya was envisioned as a homebrew Android console with a $99 price tag. The first reviews weren’t impressive, but then again this is hardly surprising given the nature of the project.

Nvidia also entered the fray with Project Shield, a handheld console based on the much more powerful Tegra 4 SoC. It’s a bit bigger than Sony’s or Nintendo’s handhelds, but it also has a unique trick up its sleeve. It can be used to stream PC games, but the feature is still not ready for prime time. It has a 720p screen and a $299 price tag, but yesterday Nvidia announced that Shield would be delayed by a few weeks due to a mechanical fault.

The delays illustrate that Android consoles are bound to face a number of teething problems. Android still lacks truly compelling games designed to attract hardcore gamers. Most Android games are made with the casual gamer in mind, and with relatively poor hardware. However, hardware shouldn’t be an issue in the long run. Mobile chips are evolving at a much faster pace than their PC counterparts. New SoC designs like the Snapdragon 800 and Tegra 4 feature vastly improved GPUs and they are capable of delivering a pleasant gaming experience at 720p and even 1080p, with some caveats. The level of detail still can’t come close to PC or console games, regardless of what spinners would have us believe. Although a 1080p game could look lovely on a 4.8-inch smartphone, it wouldn’t be much to look at on a 40- to 50-inch television.

Software might be a tougher nut to crack. Piracy is rampant on Android and even if that wasn’t a problem most users prefer casual games on the go, rather than big budget games that can generate plenty of revenue to pay for the eye candy needed for 1080p televisions. Attracting big developers won’t be easy, but someone has to make the first step and in this case it seems as if Nvidia has the best chance of getting some devs on board, as it is trying to get the best of both worlds, with PC streaming on a portable Android console with pretty good hardware. To make Android consoles truly attractive, developers must start coming up with titles specifically designed to make good use of physical controllers and fast chips used in such devices. The one size fits all approach, used to develop tablet and smartphone games, just won’t work. With next to no Android consoles on the market, this won’t happen anytime soon.

If Android consoles do take off, and we believe they will, sooner or later, the gaming market could be in for a frugal surprise. An average high-budget Xbox game costs about $60, yet the Ouya is priced at $99 and the Shield should sell for $299. This is a massive difference that won’t go unnoticed in emerging markets, or in the West for that matter. The Play Store could also democratize the market, allowing small outfits with good ideas to publish their games with ease, ending up with a runaway hit. Such success stories are not uncommon in the iOS and Android universe, as the market is not dominated by huge developers with endless budgets. The openness also means other software can be developed and put to good use, transforming Android consoles into proper home entertainment centres, capable of handling rudimentary computing, thus putting even more pressure on the embattled PC market.

All this leaves us with a very interesting emerging market, with plenty of pitfalls and opportunities for all involved. As tablets and smartphones mature, hardware makers will start exploring smaller niches. Samsung already has Android cameras and a strange phone-camera hybrid with a zoom lens. Smaller outfits are building dirt cheap Android sticks and some are experimenting with other form factors, like gaming tablets.

Although the first generation of Android consoles doesn’t seem too impressive, the market will be anything but boring over the next few years.

Mobile shipments in Europe fall again

nexus4-ceThe smartphone market seems to be cooling off at last. After years of double-digit growth, sales of mobile handsets in Western Europe were down 4.2 percent in the first quarter compared to a year ago, according to IDC’s latest numbers.

Smartphone sales were up 12 percent annually, but this was the slowest growth rate since 2004. Feature phones are dying a quiet death, with shipments down 31 percent to just 12 million units.

Samsung solidified its lead in the market. Its market share rose six percent to 46 percent. The Korean giant shipped 19.9 million phones in the first quarter, up 1.8 million compared to Q1 2012. Apple ranked second with 6.2 million iPhones shipped in Q1, but overall its shipments were down 800,000 units from a year ago. Nokia is in a close third, with 6.1 million units, but its shipments fell 2.6 million units. 

These figures include feature phone sales and the smartphone standing is a bit different.

Samsung still reigns supreme with a 45 percent share and 14.3 million units shipped. Apple is second, but its market share dropped from 25 percent to 20 percent. Sony came in third with 10 percent and LG had a very good quarter, quadrupling its shipments and seizing 8 percent of the market. Nokia ranked fifth with just five percent of the smartphone market and 1.6 Lumias shipped. HTC is conspicuously absent from the top five ranking.

In terms of platforms, Android is still on top, with 21.9 million units and a market share of 69 percent, up from 55 percent last year. Apple’s iOS dipped from 25 to 20 percent, while Windows Phone came in third, with a share of six percent.

“We are now entering the second wave of smartphone adoption in the region. The first wave was driven by those users looking for devices that would meet their mobility needs.” IDC European mobile devices research director Francisco Jeronimo said. “They did look for the best devices in terms of performance and user experience, and more importantly, they were able to afford and pay a premium to get a premium experience. We are now entering the second wave of smartphone adoption, which will be driven by those users with no need for a smartphone.”

In other words, the market is maturing. People who felt the need for a smartphone already have one and the upgrade cycles are bound to start slowing down, in spite of generous telco subsidies and 2-year plans. On the other hand, feature phones are going extinct and they will be replaced by cheap smartphones rather than high-end devices like iPhones or Galaxy S-series phones.

Ingram Micro appoints new DACHH boss

ingram-mico-hqEarlier this month Ingram Micro announced plans to reshuffle its global management team. The changes are set to go into effect in August and they will see Gerhard Schulz promoted to senior executive vice president and president, Europe.

Schulz currently serves as senior vice president, central and eastern Europe and on Wednesday the company announced that he will be succeeded by Marcus Adae, the current sales chief of Ingram Germany.

Adae will head Ingram Micro’s DACHH region, which includes Germany, Austria, Switzerland and Hungary. He will report directly to Shulz.

Security concerns hamper BYOD adoption

Keep taking the tabletsAlthough BYOD is one of the hottest trends in the industry, it seems that the adoption of BYOD policies and gear is still being hampered by security concerns.

According to Insight UK’s latest survey, security, or more specifically data loss, is still the biggest problem concerning IT departments, at 72 percent.

However, although security is the top concerns, 55 percent of respondents said they have no plans for the introduction of BYOD policies designed to inform employees of how they should protect themselves. Three quarters of businesses questioned issuing mobile devices themselves, while one quarter allow employees to bring their own devices and access corporate networks and documents, allowing the data to leave the company every single day.

“It’s interesting to note that a year down the line almost three quarters of those businesses surveyed have seemingly moved to tackle this trend by issuing their own devices to employees and you’d think that means those allowing BYOD would now have their ducks in a line when it comes to policies surrounding this,” Ashley Gatehouse, VP EMEA Marketing, Insight, said. “To hear almost half have no plans to create a policy is clearly at odds with the raft of measures we know businesses already have in place to protect the flow of data within the corporate network. Failure to implement a policy or define rules regarding the use of personal devices at this stage of proceedings is tantamount to leaving the backdoor wide open and hoping you don’t get robbed.”

The survey also found that support for iOS and Windows is increasing, while Android and BlackBerry devices are becoming second tier. A total of 26 percent of IT departments support just iOS and Windows and going forward the divide will become even more apparent, as 38 percent plan to support Apple products and 29 percent are betting on Microsoft. Android and BlackBerry are in a different league, with 17 and 16 percent respectively.

In terms of actual support and implementation of BYOD policies, 82 percent of IT departments view security as the top concern, while device integration into existing infrastructure ranks second at 60 percent. Providing support to BYOD users is the third biggest concern, at 52 percent.

Unsurprisingly, the survey concluded that sales teams and new business teams are most likely to adopt personal devices. This probably has something to do with age, or the fact that they are on the go more often, or both.

Although not every staff member is keen to take the BYOD route, 60 percent of companies say they are implementing BYOD strategies that cover all staff, regardless of job function or status. However, 22 percent believe BYOD should be a privilege available only to senior executives.

UK retail flat as a pancake

highRetail sales volumes in recent weeks were practically unchanged from the same period last year, according to the latest figures from the British Consortium of Industry. Although the industry was hoping for a better start of the summer season, there was little change, although the start of June looks a bit more promising than May.

Orders were broadly flat on a year ago, although they surpassed expectations of a third consecutive fall. Sales volumes were below average for the time of year in June, despite more optimistic expectations and good weather. However, the outlook for July is a bit brighter, as retailers expect sales volumes to rise.

The survey, conducted between 29th May and 13th June, found that 25 percent of firms reported sales were up on a year earlier, while 24 percent said they were down. One in ten reported good sales volumes in line with seasonal trends, while 26 percent said their sales were poor.

Looking at July, 32 percent of firms expect an increase in volumes, while 19 percent are gearing up for another decrease. Interestingly, 63% of wholesalers reported sales volumes were up on a year earlier, and 18% said they were down. These numbers saw faster growth than expected, while most other indicators fell below expectations.

Sales in non-specialised stores, foot and leather store and non store sales all saw double-digit growth, but sales in durable household goods, cultural goods including papers and DVDs, were down.

Samsung may be about to ditch desktops

samsung-aioSamsung might not be the first name that comes to mind when you think of desktop PCs, but the Korean giant had a handful of interesting products, including some stylish all-in-ones. Sadly though, it might be getting out of the market just as it was starting to look like it was about to make its mark.

According to the Korea Times, Samsung has decided to ditch its desktop business, which was deemed unprofitable. Instead, Samsung wants to devote itself to tablets and laptops.

“Demand for conventional desktop PCs is going down,” a Samsung Electronics official told the Korea Times. “We will allocate our resources to popular connected and portable devices.”

Another Samsung official said the company is restructuring its PC business through product realignment toward profitable products – and desktops don’t appear to be very profitable at the moment.

Oddly enough, Samsung launched its latest all-in-one PC last week and the Atic One 5 Style is quite a looker. Sadly though, while AIOs might be pretty, they don’t seem to be generating plenty of cash .

On the other hand, Samsung’s decision to throw in the towel should be welcomed by competing vendors. After all, Samsung spent billions developing and marketing its Galaxy smartphone range and now it’s certain that it won’t to the same in the PC space.

Billion LTE subscribers expected by 2017

LTE-logoThe number of LTE subscribers worldwide is expected to hit 915 million by the end of 2016 and it should pass the one billion mark sometime in 2017.

According to European thinktank IDATE, demand for LTE services will remain strong for years to come.

Out of 915 million subscribers in 2016, Asia-Pacific is expected to represent a sizeable 41.6 percent of the total, North America 21.6 percent, Africa/Middle East 7.5 percent, Eastern Europe 4.9 percent and Western Europe 15.8 percent.

IDATE found that LTE is now mainstream, with major deployments in every region. However, China has yet to decide on the future of TD-LTE and the first LTE Advanced networks should start appearing later this year.

IDATE also warned that increased mobile broadband traffic is putting more pressure on networks and driving demand for more spectrum in sub-1GHz bands for LTE and LTE Advanced networks. It believes 700MHz is the most promising option for a harmonized frequency band across all major regions.

Europe’s decision to auction off the 800MHz band without proper coordination is negatively affecting compatibility, IDATE found. However, harmonisation could prove tricky, as 700MHz LTE services are not expected to launch in Europe before 2020, although Germany and France are expected to organise auctions as soon as 2015.

Big G sees more gloom for PC churners

pc-sales-slumpThe PC slump is set to continue, while tablet sales will remain strong well into the future, according to fresh data from Gartner.

Sales of traditional PCs are expected to hit just 305 million units this year, down 10.6 percent from last year. Things might be a bit better in 2014, but Gartner is still forecasting a 5 percent decline.

Even if non-traditional form factors, such as Chromebooks, hybrids and skinny clamshells are added to the PC figures, we’re still looking at a 7.3 percent decline this year.

Meanwhile tablets are still going strong. Tablet shipments are expected to reach 202 million units this year, up from 120 million in 2012. In 2014 tablet shipments should hit 276 million units. Mobiles are growing as well, but not at the same insane pace. Smartphone shipments are expected to grow by about 4.3 percent, with a volume of more than 1.8 billion units in 2012.

As far as non-traditional ultramobiles go, Gartner believes shipments will double this year, hitting 20 million units. Next year they should double again, to 40 million units, but even that won’t be enough to offset the slump across the rest of the PC market.

Demand for tablets and ultramobiles could be propped up by BYOD. Gartner believes that 72 percent of personal computing devices will used in the workplace by 2017 thanks to the new trend, which is already causing plenty of headaches in IT departments across the globe.

However, tablets might be about to run out of steam, as they are maturing fast and demand for high-end gear is evaporating.

“The increased availability of lower priced basic tablets, plus the value add shifting to software rather than hardware will result in the lifetimes of premium tablets extending as they remain active in the household for longer. We will also see consumer preferences split between basic tablets and ultramobile devices,” said Gartner research director Ranjit Atwal.

Interestingly, the combined share of Apple OS devices might overtake Microsoft’s OS share by 2015. Around 296 million Apple devices will ship this year compared to 339 million Windows devices. However, Android will outpace Apple and Microsoft combined, with shipments hitting 866 million units this year and passing the one billion mark next year.