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.

Industry thinks digi-wallets and NFC are overhyped

google-walletThe payments industry is slowly starting to adopt new mobile payments technologies, but industry leaders believe that the digital wallet concept is overhyped, along with NFC.

The Payments Innovation Jury, an anonymous group of 25 industry leaders gathered in a hollowed out volcano, reckons the next wave of e-payment innovation will come from Asia rather than Europe.

The secretive Payment Innovation Jury features members from 14 different countries whose names are kept private, so they can speak freely. Most members are or have been high level execs in companies such as MasterCard, PayPal and Visa, reports Venture Beat

In their latest report, the jury concluded that NFC and digital wallets are overhyped, and we tend to agree. Most members don’t believe NFC will live up to its hype and many reckon there is no demonstrable need for contactless payments from consumers. However, it is worth noting that NFC has plenty of applications other than mobile payments. More than half of the group believe digital wallets will replace credit and debit card payments, but a sizable number don’t agree.

“The Jury offered their views on which payments innovation has the greatest hype rating and therefore the biggest risk that the business case will not be achieved,” the report said. “Hype is particularly prevalent in payments, with many organizations trying very hard to talk up their chosen innovation in order to achieve the necessary critical mass.”

In other words it is beast to tread carefully, just in case. Many outfits are indeed trying to talk up their solutions, but we are still a long way from widespread adoption and standardization. One jury member argued that progress in Europe is hampered by standardization initiatives such as SEPA, but a lot of innovation is expected from Asia and Africa.

Interestingly, the group found that cross-border remittance services have a lot of potential. Sending money abroad via mobile payment solutions could be the most profitable niche over the next five years. It is a rather big market. Plenty of countries in Eastern Europe, North Africa and practically the entire third world have sizable expat communities who send money back home on a regular basis.

Tech execs still dislike Windows 8

msWindows 8 has failed to rejuvenate the PC market and even hopes of a Win 8 tablet push are slowly evaporating. Jun Dong-Soo, the head of Samsung’s memory division, recently said Windows 8 is no better than Vista, which is pretty much the worst insult one can bestow on a Microsoft product.

Dong-Soo pointed out that the PC industry is still shrinking despite the Windows 8 launch and he also said Redmond’s Surface tablets aren’t doing well, which is hardly a secret. What’s more, Dong-Soo is not alone. Computerworld reports that an HP exec recently said that the Surface RT is too pricey, slow and not very nice to use.

Acer president Jim Wong also believes Windows 8 is not successful. However, Wong told the Wall Street Journal that he expects sales of Windows 8 touch enabled devices to pick up in the second half of the year. This does not mean that we will see tons of tablets, as it is more than likely that the bulk of Windows 8 touch devices will be Ultrabooks and hybrids.

Many are now looking to Redmond for some action, any action will do. IDC analyst Bob O’Donnell told CNET that it might be time for Microsoft to start thinking about some changes.

“There were certain decisions that Microsoft made that were in retrospect flawed. Notably not allowing people to boot into desktop mode and taking away the start button. Those two things have come up consistently. We’ve done some research and people miss that,” he said.

In retrospect, the decision to ditch the start button was probably a wrong call on Microsoft’s part, as many Windows users tend to be rather conservative and fear change. O’Donnell says it is time for Microsoft to rethink its design, relying on input from PC makers. He argued that Microsoft should change the OS, allowing it to boot to desktop mode, as many users simply dislike the new Metro UI.

However, Microsoft is is still not saying anything on design changes or possible price cuts. O’Donnell believes Windows 8 sales are “horribly stalled,” so it might not be too long before the company is forced to take action. In doing so, it will tell the world that its Windows 8 strategy was flawed, on top of its flawed tablet strategy. And smartphone strategy, search strategy, social strategy, consumer electronics strategy and just about every other botched idea that came out of Redmond since Vista.

PayPal launches iOS SDK

paypal-logoPayPal has released a new SDK for Apple’s iOS platform and the new kit is expected to speed up development, open up a host of new possibilities and make life easier for developers.

At the moment, iOS apps using PayPal have to redirect traffic to web based gateway systems, making the whole process more complicated, time consuming and slower. However, the new SDK should help integrate services in apps themselves, greatly reducing developers’ workloads.

PayPal CTO James Barrese hopes the new SDK will give developers more freedom to focus on innovating rather than handling the complex task of sorting out mobile payments.

“We listened when our developers said they wanted better capabilities from us, and now we’re doubling down on our developer programs to deliver the best tools in the industry,” he said.

Since the PayPal payment service will not be integrated into apps, consumer will be able to complete their transactions without leaving the app, greatly streamlining the process. PayPal also released a new API that should enable developers to integrate a clever card digitization feature. The new approach will let users simply take a picture of their cards, letting the app scoop up all the details from the photo, which is much easier than typing them in.

Best of all, PayPal claims its new Java Script PayPal button can be integrated into apps with just five lines of code, which is roughly a fortnight in developer parlance.

Vietnamese outfit uses sex to sell flowers

vn-flower-shopA Vietnamese e-commerce startup has come up with an innovative, yet rather tasteless way to sell flowers. It sounds surprisingly liberal for a socialist state, but HappyEndings.vn is using sex appeal to sell flowers, with a ridiculous intro. Sex sells, even though the approach seems a bit upside down. Flowers shouldn’t be sold using sex – it should be the other way around.

Mind you, despite the cheeky name and tacky approach, HappyEndings.vn is a legitimate and serious e-commerce outfit. “Happy ending” doesn’t really have a lot to do with sex, it is a term used to describe a pleasurable ending to a massage in some parts of Asia. However, the site intro has a lot to do with sex.

The site takes a provocative angle when it comes to product categories as well. They are named cheap bastard collection, playboy collection and sugar daddy collection. The last is aimed at big spenders, while the “cheap bastard” one is clearly not.

Better yet, the consumers seem to be loving the in-your-face approach, with plenty of humorous and dirty comments, reports InsideRetail.Asia.

Heavy drinkers get a jolt of brain juice from booze

boozebeltA study could comfort quite a few alcoholics in denial. It found that long term alcohol use boosts brain levels of acetate, an energy rich by-product of alcohol metabolism and it gives drinkers a nice jolt of energy for the few grey cells they did not manage to kill off yet.

The study was published in the Journal of Clinical Investigation and it found that people who drank at least eight drinks per week stood to gain more brain energy from acetate than light drinkers, although eight drinks a week hardly qualifies as heavy drinking, but eight drinks at lunch does.

However, there is a downside, too. Study co-author Graeme Mason of Yale University believes the jolt could be responsible for giving drinkers more incentive to drink and that it might also explain why dropping booze is so hard, reports sciencenews.org.  Duke University biochemical geneticist Ting-Kai Li believes Mason’s hypothesis is good and that it proves previous assumptions that heavy drinkers absorb more acetate.

Acetate is usually associated with vinegar, which is often used as an excuse to justify the existence of salads. However, simply pouring more vinegar on salads won’t help. When people drink alcohol the brain breaks it down and pumps out plenty of acetate as a by-product. Although the brain prefers sugar, it can also burn acetate. Researchers proved their point by injecting sober volunteers with acetate tagged with a traceable atom. Then they measured how much acetate was used up in the brain and learned that heavy drinkers burn acetate at twice the rate of light drinkers. Mason likened the process to a bi-fuel car, which can run on ethanol once it runs out of petrol.

Mason said he was very surprised by the results, which proved his suspicions that people with high acetate levels would be tapping energy from it.

“The effect was way bigger than I thought,” he said.

Mason now wants to see whether administering some acetate could help addicts get over their alcohol withdrawal symptoms. However, he warns that people should not go out and start drinking vinegar to wane themselves off booze. People would have to ingest too much vinegar to get as much acetate as they would from drinking alcohol. Salads aren’t a very good delivery platform and simply chugging vinegar doesn’t work, either.

External storage up despite PC downturn

hdd-hugeAlthough PC sales fell off a cliff last year, makers of external disk storage seem to have had a rather good year. According to IDC’s latest disk storage report, revenue increased 4.7 percent in 2012, with a 2.3 percent year-on-year increase in Q4.

Worldwide sales totalled $24.7 billion last year, and total disk capacity shipped during the year surpassed 20 exabytes, up 27 per cent over 2011.

“FICON attached array sales and network attached storage (NAS) both helped drive the factory revenue increase during the quarter as companies invested in storage required to support mainframe environments and to deal with the continued growth in unstructured data,” said Eric Sheppard, IDC storage research director.

The open networked disk storage market grew 2.6 percent year-on-year in Q4 to hi $5.7 billion in revenues. EMC maintained its lead with a 30.7 percent revenue share in Q4, trailed by IBM and NetApp with 15 per cent and 11.6 percent respectively. HP and Hitachi tied in fourth position with market shares of 9.3 and 8.8 percent respectively. However, HP and Hitachi were the only players in the top five to lose share in Q4 2012.

In the total worldwide disk storage systems market EMC reigned supreme with a 24 percent share, followed by IBM and HP, in a statistical tie for second spot with 16.2 and 16 percent respectively. Dell and Netapp ranked fourth and fifth.

Argos to take on Asda, Tesco in contract phone space

argos-logoArgos is planning to launch a contract phone offer and go toe to toe with Tesco Mobile and Asda Mobile. The retail giant will trial its service by offering online contract deals and phones in more than 200 stores across the UK starting in April. If all goes well, a second trial of SIM-only phones will also launch, reports Mobile Today.

The move comes as sales of pre-paid phones continue to tumble and Argos faces more competition from Tesco Mobile, Asda Mobile, Carphone Warehouse and Phones 4u. If all goes well and contract sales prove sufficient, Argos plans to enter talks with carriers to set up its own MVNO later this year.

Argos is reportedly already hiring account managers for ‘Argos Mobile’, as that’s apparently the working name for its MVNO. Former Vodafone UK manager Ben Murr is apparently playing a major role the effort.

Analysts believe Argos could pull it off, as it already has a sizable customer base and might make inroads in the entry level and mid range market. In all likelihood, Argos will try to focus on value driven contract deals. There is room for high end gear, but Argos will probably go for the penny pinching crowd.

UK retailers to net £10 billion on cross-border sales

berlin-borderOnline sales are booming and taking their toll on brick and mortar shops, but another interesting trend is starting to emerge. Cross-border sales in Europe are expected to hit £36 billion this year. As much as 10.6 per cent of all online purchases will be cross-border affairs.

It might be a worrying trend for some, but not for British retailers, as they are the most successful in doing business across borders.

According to IMRG data, international consumers dropped as much as £7.4 billion on British online retail sites and the figure is expected to hit £10 billion in 2013. The UK online retail market is second only to the US in terms of overall value. IMRG concluded that cross-border markets are becoming increasingly attractive for UK retailers, as they offer multiple opportunities for sustained growth.

Andrew McClelland, Chief Operations & Policy Officer at IMRG, commented: “Cross-border is the future of e-commerce, and the opportunity is particularly strong for UK retailers due to the advanced state and sophistication of the market here.”

However McClelland warns that expanding internationally is a complex business and retailers need to carefully identify markets that are appropriate to them rather than just attractive in terms of value and growth. Basically, they have to do their homework.

“Research is everything when it comes to cross-border; there have been several instances of retail brands finding success by selling product ranges that they are not well-known for by consumers in the UK,” he said.

In order to facilitate cross-border growth across Europe, Trusted Shops and IMRG came up with ‘Internet Shopping is Safe (ISIS)’ schemes in 2012. Their goal is to create a standard European trustmark that supports UK retailers in their international expansion strategies.

HTC struggles to stay afloat despite top notch products

htc-quietly-going-underHTC was one of the first smartphone makers to cash in on the Android craze a couple of years ago, but the good times are long gone and if its fortunes don’t turn around soon, it might be up for sale, or worse.

Back in 2010 and the first half of 2011, HTC was the darling of tech hacks and investors alike. It was posting strong sales, with triple digit revenue growth for four consecutive quarters. However, it has been downhill ever since.

On Wednesday HTC announced that its sales in February dropped a whopping 44 per cent year-on-year and 27 per cent compared to January. At the moment, HTC’s market cap is roughly one fifth of what it was in mid-2011.

So what on earth went wrong, and what led to HTC’s annus horribilis last year?

It wasn’t the products. Last year HTC decided to focus on fewer phones, which seemed like a logical step for a small outfit, as it could allocate its resources more efficiently and turn itself into an upmarket brand. The resulting One series phones got stellar reviews, but the positive vibe did not result in strong sales. HTC’s flagship One X featured a better screen than its arch nemesis, the Samsung Galaxy S3. It also looked a bit nicer and its build quality was vastly superior. In terms of hardware and software, it was on a par with Samsung’s S3 juggernaut. The same is true of other HTC phones.

For years HTC was viewed as a geeky smartphone brand with excellent but somewhat dull products. It tried to shake off this perception by introducing a bit more flare to its smartphone designs and then there was the ill-conceived Beats Audio deal. Clearly, it didn’t help. Worse, Samsung’s approach of flooding the market with countless Galaxy models worked like a charm. Instead of diluting the Galaxy brand with cheap, plasticky phones, Samsung managed to get more brand recognition than Google’s Android OS. Galaxy has become synonymous with Android, and then some.

HTC’s new flagship, dubbed One sans suffix, is already getting great reviews. It features a 4.7-inch 1080p display, Qualcomm’s Snapdragon 600 processor, which is the fastest currently available mobile chipset, along with an innovative Ultrapixel camera and a new dual-membrane microphone. It ticks all the right boxes and should be able to take on anything Samsung, LG or Sony could throw at it.

Sadly though, that is not enough. HTC simply can’t sell its gear or get its message across. It lacks the resources of consumer electronics giants, so it can’t market its products as effectively and it can’t get sweetheart carrier deals like big players. What’s more, smartphones have already gone mainstream and HTC simply lacks the brand recognition of more consumerish brands. Geeks might love HTC phones, they can get very positive reviews, but mainstream consumers just don’t care. They don’t read tech sites and they buy Samsungs instead.

So although HTC pioneered Android phones and although it still has excellent products, it could get the unflattering distinction of being the first Android smartphone maker to go out of business, in the middle of a mobile boom and with very little fault of its own.

Towns look to NFC to attract high street shoppers

google-walletHigh street shops are under a lot of pressure from tech savvier e-commerce outfits, but a group of town and city managers believes they can help reverse the trend by enlisting the help of NFC technology.

It is not a case of fighting fire with fire, though.

The Association of Town and City Management (ATCM), which represents close to seven hundred shopping locations, has teamed up with NFC loyalty programme supplier MoLo Rewards. They aim to enhance the town centre offer by integrating NFC support in a more traditional setting.

The goal is to provide local, independent shops some of the same capabilities used by major retail players, allowing them to compete with internet based competitors. The programme offers establishments in town centres to better integrate their services, combine reward programmes with free parking , access to leisure centres or events.

ATCM manager Guy Douglas told NFC World that the association decided to use MoLo’s approach after the outfit made the case for NFC and elaborated its ideas.

“It just made sense to us,” he said. “A town and city centre is only vibrant and thriving if people find a reason to go there. NFC is a way of delivering an enhanced town centre offer, which can only be a good thing especially when the high street is hugely challenged by e-commerce.”

ATCM chief exec Martin Blackwell said the association will use its two decades worth of experience to enhance the high street shopping experience, with support from MoLo Rewards. He added that the association is organising meeting with mobile network operators, card issuers and retail groups in an effort to shape the adoption of NFC technology.

ATCM and MoLo believe they could bring their integrated NFC system to town and city centres later this year.

Google Play gift cards available at Tesco and Morrisons

googleplaycardsGoogle has officially introduced its Google Play gift cards in the UK and they are already on sale. That was quick, but still a bit too late for baby Jesus’ birthday. 

The cards are available at Tesco and Morrisons branches across Britain.

Although the cards should be available in three denominations of £10, £25 and £50, early reports indicate that some denominations are not available in all shops, but it is probably a minor glitch that will be worked out.

Obviously, the cards can be can be used to buy content from Google’s Play store, ranging from Android games to books and films. Sadly though, the gift cards cannot be used to buy Nexus hardware, digital subscriptions or accessories.

The cards can be redeemed by simply entering the code on the back of the card in the Google Play app, during the purchase or by entering the redemption code through your browser.

Seagate revamps SSHD line-up

seagate-hddSeagate recently announced that it will phase out 7200rpm laptop drives by the end of the year and now we know what it will use to replace them. The company announced its third generation solid state hybrid drives, or SSHDs, and for the first time it is bringing NAND cache to desktop drives as well.

Seagate’s venerable 7200rpm laptop drives will be replaced by two new SSHDs, in 500GB and 1TB capacities. Both feature 8GB of NAND, double the 4GB used in first and second generation Seagate Momentus XT hybrid drives. They are 7mm thick and Seagate claims the new drives are up to 40 percent faster than its previous SSHD generations. Better yet, they are up to five times as fast as 5400rpm mechanical drives.

Seagate’s vice president of marketing Scott Horn likened the new drives to adding a turbo charger to a PC and he added that the drives will come cheap, much cheaper than proper SSDs. The 500GB is priced at $79, while the 1TB variant costs $99.

However, Seagate’s decision to bring SSDH technology to mid-range desktop drives is perhaps the most interesting part of the announcement. Seagate will sell 1TB and 2TB desktop hybrid drives for $99 and $149 respectively. Although the prices sound a tad too high, 3.5-inch hybrids should have no trouble attracting plenty of takers.

They will allow OEMs to come stick them into very cheap desktops, greatly improving performance and reducing the storage bottleneck which plagues most PCs. The speed of solid state drives increases with each new generation, which is not the case with HDDs. However, SSDs are still too expensive to be used in most desktops. Decent hybrid drives with a reasonable price tag can bring the best of both worlds to boring entry level desktops and they can easily become a big selling point for vendors.

LTE smartphone shipments surge 1100% in Q4 2012

LTE-logoThe smartphone market is slowly maturing and overall handset sales, including feature phones, remained flat in the fourth quarter of 2012. However, sales of LTE enabled devices skyrocketed in developed markets.

According to Strategy Analytics, shipments of 4G smartphones grew by 1100 per cent in Q4 2012.

The surge was led by Apple and Samsung, while at the same time shipments of 3G phones slowed. The trend coincides with an aggressive carrier push in Europe, including the UK.

Just a year ago, LTE connectivity was reserved for high end smartphones, but the mobile landscape is changing and even cheaper SoCs now offer integrated LTE. Qualcomm leads the way with last year’s Krait-based Snapdragon S4 chips, along with new “century series” Snapdragons coming on line right now. Apple already has LTE in current generation products, although older 4-series iPhones lack LTE support. By the end of the year Nvidia will introduce the Tegra 4i, its first SoC with integrated LTE, and Intel also plans to deliver LTE in its next generation mobile chips, coming in early 2014.

In terms of volume, smartphones are expected to overtake feature phones this year, which means plenty of mid-range LTE smartphones will find their way to consumers’ pockets. Although LTE is expected to be the fastest growing WWAN technology in history, it is still off to a slow start in many markets, including Britain. According to its last earnings report, Everything Everywhere didn’t add many 4G users since it launched its 4GEE network. However, things are picking up and other carriers will enter the market later this year, although Ofcom failed to raise plenty of cash on its 4G spectrum auction.

Smartphones will outpace feature phones in 2013

nexus4-ceSmartphones have become so affordable and readily available in all markets that they are finally expected to outsell feature phones this year. It is not a “nobody expects the Spanish Inquisition” sort of thing, since smartphone shipments have gone from strength to strength for years.

IDC’s latest report forecasts that 918.6 million smartphones will be shipped this year, accounting for 50.1 percent of all mobile phone shipments.

The research outfit says it based its predictions on falling prices of smartphones and increased consumer interest, which probably has something to do with the fact that smartphones are getting dirt cheap. With 4G services being rolled out in major markets, IDC expects smartphone shipments to hit 1.5 billion units by 2017.

China is expected to be the biggest market in 2013, as IDC estimates it will gobble up 301.2 million smartphones. The US ranks second with 137.5 million, way ahead of the UK and Japan, tied in third place with 35 million, reports The Next Web

The BRIC march continues in fifth and sixth spot, which will go to Brazil and India respectively. However, by 2017 India will rank third and consume 155.6 million smartphones. Brazil will see plenty of growth as well, going from 28.9 million to 66.3 million units by 2017.

In other words, smartphone makers will have to start designing more devices with emerging markets in mind, which means we might see a bit more emphasis on value moving forward.

Bitcoin hopes to take on big players

bitcoinBitcoin is slowly gaining more support from mainstream businesses, but it is still largely relegated to transactions involving virtual goods, gambling or some even shadier activities. Bitcoin Store hopes to change all that.

The outfit focuses on consumer electronics and gadgets and according to The Verge,   it has a pretty good variety of products to offer. Since it’s not the first Bitcoin retailer out there, the company hopes to make a name for itself by undercutting the competition, including the likes of Amazon and NewEgg.

Bitcoin Store head of marketing Jon Holmquist said the whole point of the site is to demonstrate that both consumers and businesses can save a bit of cash simply by using Bitcoin. He said that Ingram Micro is the site’s supplier and that all large electronics sites use the same supplier.

However, the Bitcoin Store somehow managed to get into the highest pricing tier for Ingram Micro, which means it is the first time that a Bitcoin company is getting products at the same price as conventional retailers.

“It really showcases how much cheaper it is to pay with Bitcoin,” he said. Holmquist went on to point out that pricing on the site changes automatically as Bitcoin exchange rates fluctuate.

He also pointed out that the site’s owner, Bitcoin guru Roger Ver, decided to keep all Bitcoins amassed from sales, as he believes Bitcoin will continue to rise in value.