Android Trojan Virus Spreads

Story first appeared in CNET.

A new Android Trojan dubbed "NotCompatible" is being spread through compromised Web sites. Though the threat seems to be minimal at this point, security provider Lookout says this is the first time hacked Web sites are being used to target mobile devices.

Further, the new malware could be used to break into private networks via an infected Android device, according to professional Houston Managed IT Service providers.

The Trojan works by automatically downloading an application from a compromised site through the Web browser, a process known as a "drive-by download." The mobile device then prompts the user to install the downloaded app. But for the app to actually install, the "Unknown sources" setting must be enabled on the device; otherwise the installation is blocked.

Samples analyzed by Lookout show that the malware can be used to access private networks, so IT administrators may want to be on the alert.

A device infected with NotCompatible could potentially be used to gain access to normally protected information or systems, such as those maintained by enterprise or government. This is a good reason to make sure that your network Security Solutions are always up to date and monitored for errors.


A number of Web sites have already been compromised, but those sites have seen little traffic so far. And since the malware requires the user to install the package, known as "Update.apk," Lookout doesn't anticipate much of an impact to Android users at this point.


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Don't Sell Your Old Smartphone

Story first appeared in The Detroit Free Press.

Thinking of selling your smartphone or laptop computer? If you have a BlackBerry or an iPhone, go right ahead.

If you were planning to sell an Android phone or a computer running Windows XP, however, you may want to think again, according to a McAfee identify theft expert.

The expert recently purchased 30 electronic devices from Craigslist -- mostly smartphones and laptops -- to see how effective normal people are at removing personal information from their gadgets before selling them.

After he got the devices home he, did some digging around in the phones and computers himself and then sent the machines to a forensics expert to see what personal data he might glean.

Fifteen devices revealed no information about the previous owner's identity, no matter how thoroughly the experts looked. But as for those other 15 devices -- they coughed up plenty of private data.

The expert was able to get bank account information, Social Security numbers, court documents, credit card account log-ins and a host of other personal data off those devices with not much effort.

And the worst part? Most of those devices had already been "wiped" by their previous owner -- meaning all personal files had been deleted and the user had restored the device's factory settings as per the manufacturer's instructions. The data is still there after following manufacturer protocol.

So, what's the difference between the devices that still reveal personal information after being wiped and those that don't?

It came down to the type of device that was sold and what kind of operating system it was running.

BlackBerrys were totally impenetrable. Resetting to factory settings on a Blackberry totally wiped any and all personal data from the machine. Similarly, he was unable to get data off devices running iOS such as the iPad and the iPhone. Devices running Windows 7 that are wiped by their owners also got his vote of confidence.

As for smartphones running the Android system and computers running Windows XP, it is recommended that people don't sell them at all.

You don't want to sell your identity for $50. Either put the device in storage indefinitely, or put holes in the hard drive to make certain that the information cannot be pulled.


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Opera Steps Up Browser Battle On Android

Information Week

As promised, Opera Software has made a beta version of its Opera Mobile 10.1 web browser available for Google's Android platform.

Opera announced its intent to offer Opera Mobile 10.1 to Android in October. On Tuesday, it delivered, making the free application available for download from the Android Market. Opera's full-featured Opera Mobile browser is already available for the Symbian and Windows Mobile platforms.

Opera Mini is already available to Android, but Opera Mobile is an entirely new ballgame. The key difference between Opera Mini and Opera Mobile is that Opera Mini uses server-side proxies to compress and deliver web sites to mobile handsets. The data compression helps to reduce mobile data requirements and saves both customers and mobile network operators money.

Opera Mobile, on the other hand, is a full, device-side browser that does all the heavy lifting on the handset and not on remote servers.

Opera Mobile for Android brings two major features to the browser. First is hardware acceleration. With hardware acceleration baked into Opera Mobile, the browser should see a performance boost. Opera Mobile also includes pinch-to-zoom. Pinch-to-zoom has become a must-have feature for smartphones, as it makes interacting with web-based content easier and more manageable. Pinch-to-zoom is offered in the native Android browser, as well as the iOS and BB6 browsers.

Other features included in the new browser include support for tabbed browsing; Opera Turbo powered by the Opera Presto rendering engine; bookmark syncing with desktop browsers; geolocation support; and scalable vector graphics.

I downloaded and tested the new browser this morning. True to its claims, Opera Mobile performs well, and renders full HTML web sites nicely. It loaded the full NYTimes.com web site, though the text was so small as to be illegible. I was forced to zoom in to read anything beyond the main headlines. I was disappointed to see that Opera Mobile skipped to the mobile version of CNN.com, however. The pinch-to-zoom gesture worked flawlessly, and zooming around web sites was not a problem at all. Everything about the browser's performance was smooth and speedy.

One thing of note, Opera Mobile does not support Flash. Several times I was greeted by "Oops, we're sorry" messages on web sites pointing out the browser's inability to playback Flash content. Opera says that Flash will be included in a future version of Opera Mobile.

Opera has a tough road ahead if it is interested in converting Android users. The stock Android browser is already very good, and there are a number of alternatives available, such as Skyfire, Dolphin HD, and Firefox. What's to convince the common Android users to switch? Perhaps tie-ins with Opera's desktop browser, as well as its desktop-phone syncing services.

Android Revolution May Overwhelm BlackBerry

PC World

The Android army may soon claim Research In Motion's BlackBerry as its first victim in the smartphone war. Between July and September, 44 percent of new smartphone users in the United States bought a Google Android phone, according to market research firm NPD Group. During the same period, 23 percent of the users bought an iOS device and 22 percent purchased a BlackBerry. NPD's report is another sign of Android's growing market power, and RIM's dramatic decline. But the battle for smartphone supremacy is far from over, and it's unclear whether Android can continue its impressive growth.

Android by the Numbers

Android outsold RIM by 2-to-1 and nearly did the same to Apple's iOS during the third quarter. Devices based on Google's smartphone OS increased by 11 percentage points in comparison to the second quarter of 2010, while RIM fell by 6 points and Apple rose by 1, according to NPD.

What is most stunning, however, is NPD's assertion that RIM's market share among new smartphone users in the U.S. fell by 53 percent when compared with the third quarter of 2009. NPD failed to mention how much Android rose or fell compared with those numbers, but the research firm said Apple's iOS also fell by 21 percent in that quarter.

Android Isn't the Top Device

Despite Android's growing strength overall, NPD found that Apple's iPhone 4 was the most popular mobile phone purchased by new users. BlackBerry Curve 8500 series devices came in second, followed by the LG Cosmos (an Internet-capable feature phone). The Android-based Motorola Droid X and HTC Evo 4G came in fourth and fifth.

Android's Long and Winding Road

Android has been the top smartphone OS for several quarters, but it isn't growing fast enough to beat out the iPhone and RIM in terms of overall user adoption. The most recent numbers from the Nielsen Company indicate that Android has 19 percent of all smartphone users in the U.S., while the iPhone has 28 percent and BlackBerry leads the pack with 30 percent adoption overall.

But Android's growth may slow in the next few months as new contenders attempt to take a bite out of the smartphone market. Next Monday, nine Windows Phone 7 devices from Microsoft will go on sale, and new smartphones from HP using an updated version of WebOS are expected to hit the market in early 2011.

If the rumors are to be believed, Apple's iPhone may also extend its reach in 2011 by expanding the popular smartphone to other U.S. carriers.

Smartphone Rising

Nielsen reports that during the most recent quarter 41 percent of new mobile phone buyers in the U.S. opted for a smartphone over a feature phone -- up 6 percentage points from the previous quarter. If that trend continues, expect to see a lot more competition among smartphone manufacturers in the coming months. The big question, however, may not be whether Android can rise to the top spot. But whether RIM can turn around its declining user adoption rates to remain a viable top 5 smartphone manufacturer against a slew of innovative devices from Apple, Google's numerous Android partners, HP and Microsoft.

Android Makers Took Share From Apple, ISuppli Says

Bloomberg

 

Google Inc.’s Android operating system helped smartphone makers who use the software win market share from Apple Inc.’s iPhone in the second quarter, researcher ISuppli said in a report today.

HTC Corp., which makes some of the Droid models for Verizon Wireless, increased shipments 63 percent from the first quarter, boosting its share of the global smartphone market to 8 percent, ISuppli said. Samsung Electronics Co., which released the Galaxy line of Android devices, increased shipments by 56 percent.

Android is gaining popularity as more manufacturers take advantage of the software that Google offers for free. ISuppli has projected that it will be used in more phones worldwide than Apple’s software by 2012. Second-quarter shipments at Apple, the third-largest smartphone maker, declined 4 percent worldwide from the first quarter, ISuppli said.

Google gained $2.55 to $541.39 at 4 p.m. New York time in Nasdaq Stock Market trading. The Mountain View, California-based company has lost 13 percent this year. Apple added $3.18 to $298.54.

Nokia Oyj, the largest smartphone maker globally, increased its market share to 40 percent in the second quarter from 39 percent in the previous period after boosting shipments by 12 percent. Research In Motion Ltd., the No. 2 smartphone maker, maintained its market share as shipments of its BlackBerry device grew 7 percent sequentially.

The Android platform is already the most popular smartphone software in the U.S., according to a separate study from Gartner Inc.

Dell CEO flashes 7-inch Android Tablet Computer

Associated Press

Dell is working on a 7-inch tablet that runs Google's Inc.'s Android operating software.

 

Not much else is publicly known about the computer. Dell Inc. CEO Michael Dell flashed it briefly Wednesday at Oracle's annual conference in San Francisco, but offered no hard details. Dell Inc. spokesman Matthew Parretta declined to say when the prototype would go on sale.

Dell is just one of many consumer electronics companies scrambling to crack the computer industry's most compelling new niche. Apple Inc.'s iPad proved consumers are interested and willing to pay - the company sold 3.3 million in the first quarter iPads were available. Some analysts say iPads have already started eating away at laptop sales.

Just as Apple's iPhone set the bar for the smart phone industry, the iPad, with its 9.7-inch screen, is now the reference point for future tablets, making it harder for companies with a different vision to compete.

Dell's first move in the modern tablet space was a much smaller gadget called the Streak, which went on sale in August. It has a 5-inch screen and runs a version of Android; it can also make phone calls on AT&T's network.

The Streak got a chilly reception, with critics saying the device was too awkward to use as a giant phone and too small to use as a computer. The response highlights another of the industry's biggest challenges: resolving the identity crises that crop up when devices try to do too many things at once.

AT&T, Sprint, Verizon Said to Plan Samsung Tablet to Rival IPad

Bloomberg

 

AT&T Inc., Sprint Nextel Corp. and Verizon Wireless plan to sell a tablet computer from Samsung Electronics Co. to rival the iPad, said three people familiar with the matter.

AT&T and Sprint plan to offer the device, called the Galaxy Tab, for less than Samsung’s wholesale price by bundling it with monthly wireless service contracts, two people said. Samsung, the world’s second-largest maker of mobile phones, is scheduled to announce the carriers’ support at a Sept. 16 event in New York, said the people said, who asked not to be named because the plans aren’t public.

Subsidies may help tablets such as the Galaxy stand out against Apple Inc.’s iPad, which starts at $499. Verizon Wireless hasn’t yet decided on such subsidies, said one person.

“The carrier-subsidized model would be very interesting,” said Ashok Kumar, an analyst at Rodman & Renshaw. “The market is going to be very crowded.”

Several companies including Hewlett-Packard Co. and LG Electronics Inc. are introducing tablet computers following the success of the iPad, a 9.7-inch touch-screen that acts as an e- reader, media player, word processor and calendar. The PCs access the Web through data plan contracts that represent the fastest-growing source of sales for the carriers.

Ashley Zandy, an AT&T spokeswoman; Cristi Allen, a Sprint spokeswoman; Jeffrey Nelson, a Verizon Wireless spokesman, and Ashley Lane, spokeswoman for Suwon, South Korea-based Samsung, declined to comment.

First in Europe

The Galaxy tablet goes on sale in Europe in October, before the U.S., and the company has plans for more of the devices next year, WP Hong, Samsung’s head of global planning, said at a electronics conference in Berlin this month.

The device, based on Google Inc.’s Android operating system, has a 7-inch screen and is able to play high-definition videos. The Galaxy has a global-positioning system, cameras on each side for video calling and acts as a mobile phone.

Research In Motion Ltd., the maker of BlackBerry smartphones, plans to introduce a tablet in November, people familiar with the plans have said. Motorola Inc., which makes Android-based smartphones, is also planning a tablet device for the holiday season, people familiar with the matter had said.

“I don’t think any of them are going to seriously challenge Apple for the lead over the holiday season at this point,” said Rhoda Alexander, an analyst at researcher iSuppli. “From a manufacturing standpoint, it would be a huge hurdle unless they’re going to start out of the gate at the volume that Apple is doing -- which would be risky at best.”

Apple, based in Cupertino, California, sold more than 3 million iPads in the first 80 days after it went on sale. To compete, tablet makers will have to offer something unique that the iPad doesn’t have, or cut their prices, Alexander said in an interview.

Android App Developers Endure Lower Sales in Search of Growth

Bloomberg

 

Pinger Inc., a developer of mobile applications, can get twice as much in sales from programs for Apple devices than for phones powered by Android software. That’s not stopping it from creating its first Android app.

“Even if the revenue generation might be less, we think it’s still going to be significant,” said Joe Sipher, chief product and marketing officer at San Jose, California-based Pinger, which makes text-messaging and other programs. “Our users are saying, ‘Gosh, I switched to an Android phone, can you put your Textfree app on Android?’”

Pinger and other programmers don’t want to miss out on the $40 billion that Booz & Co. estimates will come from sales of apps by 2014, much of it from Google Inc.’s Android platform. Android unseated Research In Motion Ltd.’s software as the top mobile operating system in the U.S. last quarter. That’s making developers more willing to put up with its drawbacks, including higher app-creation costs and an online marketplace some users consider harder to navigate than Apple’s App Store.

PopCap Games Inc., maker of the “Bejeweled” and “Plants vs. Zombies” games, doesn’t yet have any titles in the Android Market. By mid-2011, the Seattle-based company expects to release games simultaneously for iPhone and Android handsets.

‘High Hopes’

“Even though we are not making any money on Android right now, we have pretty high hopes for it,” said Andrew Stein, PopCap’s director of mobile business development. “There’s really no reason why users shouldn’t consume and buy content to the same extent on an Android phone as they are on an iPhone.”

Android phones like Motorola Inc.’s Droid X and HTC Corp.’s Droid Incredible are gaining devotees. Stein said he expects revenue generated from Android games to approach that of its iPhone versions by the end of 2011.

A wide variety of apps -- as well as the availability of the most popular ones for games, location, texting and content -- is critical to luring phone buyers. Apple has more than 250,000 apps available, compared with about 70,000 for Android.

Like Apple, Google takes a 30 percent cut of revenue from apps sold in its marketplace.

“We want to reduce friction and remove the barriers that make it difficult for developers to make great apps available to users -- across as many devices, geographies and carriers as possible,” said Randall Sarafa, a Google spokesman.

Google rose $10.32, or 2.3 percent, to $460.34 yesterday on the Nasdaq Stock Market. The stock has lost 26 percent this year.

Android Remedies

Google may be taking steps to remedy some of the issues that make Android app creation less lucrative to developers.

Apple iTunes users can do one-click shopping because iTunes saves their information. While Android buyers can do the same if they sign up for Google Checkout, that service doesn’t have as many users. Android Market also lacks features for in-app purchases, which some developers of Apple apps use to sell new game levels or virtual products, said Tim Chang, a venture capitalist at Norwest Venture Partners, whose investments includes iPhone-game maker Ngmoco.

Google is in talks with EBay Inc.’s PayPal to add its payment service, three people familiar with the matter said last month. That may ease the process for buyers. Google may also offer tools that let developers sell subscriptions and virtual goods from within apps, Andy Rubin, Google’s vice president of engineering, said in June.

For now, producing programs for Android isn’t as lucrative. Loopt Inc., the maker of an app for locating your friends on a map, and Zecter Inc., which offers the ZumoDrive file storage service, said they derive less in sales from Android apps than iPhone versions. Neither of the Mountain View, California-based companies would specify the difference.

Paid Versus Free

“There’s no question Android has a lot more phones out than six months ago, but that’s very different from saying Android is a more appealing platform for developers,” said Sam Altman, chief executive officer at Loopt.

ZumoDrive makes money by getting people to download the free program and then upgrade to a paid version. Thirty percent more iPhone customers do that, said CEO David Zhao.

Besides attracting fewer paid app downloads, fewer people click on ads in Android programs, according to data from Smaato Inc., a Redwood City, California-based mobile-ad firm. In July, the iPhone had a “click-through” rate of 140 in the U.S., compared with 103 for Android, Smaato said, citing data that measures which operating system had users that clicked on advertisements more often.

Plus, the market share Gartner Inc. measures for Android -- 34 percent in the U.S. last quarter -- doesn’t mean there are that many customers for apps, said Pinger’s Sipher. Some Android phones don’t have the ability to access Google’s app store and the proliferation of different models means some programs won’t work on some phones.

Product Variables

App creators have to contend with various versions of Android and differences in screen resolution and keyboard. That makes it more expensive to test programs and can force developers to design for the lowest common denominator, said Bill Predmore, president of POP, which builds mobile applications and ads for clients including Google, Microsoft Corp. and Target Corp.

Still, the accelerating rate of Android phone sales is luring some developers that keep long-term prospects in mind. While Zumobi, which makes MSNBC’s mobile app, gets less than 3 percent of its mobile SEO traffic from Android, the developer is investing almost as much in Android apps as it does for the iPhone, said co-founder John SanGiovanni. Zumobi’s free, ad-funded programs get about the same revenue, and in some cases, even a bit more, from Android, he said.

‘Senseless’

Google, itself, could help narrow the revenue gap for developers, according to Trip Hawkins, the founder of Electronic Arts Inc. who now runs mobile-gaming company Digital Chocolate. He calls Google’s policy of letting consumers use paid apps for as long as 24 hours and return them for a full refund “senseless and lazy.”

“As a game platform right now, Android strikes out,” Hawkins said. “As long as they keep selling devices, Android could be a good game business by 2012, but it would blossom now if Google would get out of their own way.”

Toshiba to Launch New Tablet Computer

The Wall Street Journal

TOKYO—Toshiba Corp. said Friday that it will release by year-end a tablet computer that runs on Google Inc.'s Android operating system, as the Japanese electronics maker aims to grab a chunk of a fast-growing tablet device market spearheaded by Apple Inc.'s iPad.

The company said it will sell the Folio 100 in Europe, the Middle East and Africa. It has yet to decide whether to launch it in other regions such as the U.S. or Japan, a company spokeswoman said.

Toshiba is among many electronics manufacturers around the world looking to ride the wave of demand that has swelled with the iPad. Samsung Electronics Co. Thursday unveiled the Galaxy Tab, which also runs on the Android software. Sharp Corp. in July showed off prototypes of a tablet it hopes will be the "iPad made in Japan," and plans to officially unveil the new product later this month.

"The market for tablet devices like the iPad is attracting a lot of consumer attention," said the Toshiba spokeswoman.

The Folio 100 is not Toshiba's first tablet computer. The Japanese company unveiled a touch-screen tablet called the JournE Touch last September and started selling it in Europe in March, before Apple started selling the iPad in April.

The JournE Touch runs on Microsoft Corp.'s Windows operating system, so the new Folio 100 will be Toshiba's first Android-based tablet.

The Folio 100 is equipped with a 10.1-inch multi-touch display and an embedded webcam. Unlike the iPad, the Toshiba tablet supports Adobe Flash for viewing videos on the Internet.

Toshiba expects the model that can connect to the Internet via Wi-Fi networks to sell for 399 euros. The company has yet to decide when it will launch another model with 3G connectivity.

Still, despite the new tablets from Samsung, Toshiba and other major electronics makers, U.S. market research firm iSuppli expects the iPad to continue to control the global tablet market at least through 2012.

Citing an absence of competitors offering applications and content that can match those of Apple, iSuppli forecasts that the iPad will account for 74.1% of global tablet shipments in 2010. Even after rivals beef up their tablet offerings and related services, iSuppli expects that the iPad will still hold 61.7% of the market in 2012.

Google's Android Passes Apple Among New U.S. Users

Bloomberg

 

Google Inc.’s Android software outsold Apple Inc.’s mobile operating system for the first time last quarter among new U.S. smartphone users, according to Nielsen Co.

Android had 27 percent of the U.S. market in the second quarter, compared with 23 percent for the Apple iPhone OS, known as iOS, Nielsen said on its website today. Research In Motion Ltd. clung to its leading position, with 33 percent share.

Manufacturers such as Motorola Inc. and HTC Corp. used Android in a wider range of handsets, giving new smartphone purchasers more options. Still, the iPhone retained a higher share than Android among existing smartphone users, according to Nielsen’s research.

“There’s a massive hunger for smartphones, and the Android universe came out not just with one blockbuster device but with a whole series of blockbuster devices,” Roger Entner, head of telecom research at Nielsen, said in an interview.

Motorola’s Droid is sold through Verizon Wireless, the largest U.S. mobile-phone service provider. Sprint Nextel Corp. introduced the Evo 4G, made by HTC, in June.

Android’s U.S. success may mean Google will overtake Apple’s iOS globally earlier than previously expected, said Will Stofega, program director at research firm IDC in Framingham, Massachusetts. Earlier this year, IDC said it expected Android to overtake Apple’s iOS globally in 2011.

“It could happen sooner,” Stofega said.

‘Feasting on BlackBerry, Windows’

RIM’s BlackBerry operating system commanded 35 percent of the overall U.S. smartphone market. Still, among the group of newcomers to smartphones, BlackBerry’s market share dropped to 33 percent from 45 percent a year earlier, Nielsen said.

Microsoft Corp.’s Windows Phone software also lost popularity with new users. Its share fell to 11 percent last quarter from 20 percent a year earlier, according to Nielsen.

“Android is feasting on BlackBerry and on Windows,” Entner said.

Microsoft is trying to revive demand for its mobile software with the release of Windows Phone 7 this year. RIM tomorrow may introduce a new version of its software, BlackBerry 6, Shaw Wu, an analyst at Kaufman Bros., wrote in a research note.

Some of the decline in popularity for the Apple operating system may have come as consumers put off purchases before the June introduction of the iPhone 4, Entner said. Apple may regain share in the third quarter, he said.

Among all U.S. smartphone subscribers, Apple’s share increased to 28 percent last quarter from 21 percent a year earlier, according to Nielsen. Android’s share among all U.S. smartphone subscribers rose to 13 percent from 2 percent.

Microsoft’s Lag Time to IPad Leaves HP, Dell Looking

Bloomberg Business Week

Microsoft Corp.’s failure to deliver a tablet-friendly version of Windows is forcing big computer makers like Hewlett-Packard Co. and Dell Inc. to rely on rival software to help them keep up with Apple Inc.’s iPad.

Windows 7, the most recent version of Microsoft’s operating system, is too unwieldy for an iPad-like device, said David Daoud, an analyst at IDC. A lighter edition won’t be ready until the fourth quarter, giving Apple almost a year’s head start in the burgeoning market for tablets.

“The Windows world needs to respond,” said Daoud, whose firm is based in Framingham, Massachusetts. “They will have to play catch-up.”

The iPad’s success caught much of the PC industry by surprise. Within two months of the April 3 release, Apple sold 2 million iPads -- more than IDC expected for the entire tablet industry in 2010. To catch up, Dell and Hewlett-Packard are turning to Google Inc.’s Android operating system. Taiwanese manufacturers that build most of the world’s PCs said they’re dissatisfied with Microsoft’s current lineup.

“We don’t have any choice for now,” said Joseph Hsu, chairman and president of Taipei-based manufacturer Micro-Star International Co., a maker of laptops and computer parts. Windows 7 is too powerful and consumes too much energy from batteries, he said.

The iPad, which can display books, videos and the Internet on a thin touch screen, will reach sales of 5.5 million units this year and jump to 13 million next year, according to Macquarie Group Ltd.

‘Feedback Is Fair’

John Kalkman, a vice president in the Microsoft division that works with computer makers, said the feedback from PC manufacturers is “fair.” Later this year, Microsoft will release Windows Embedded Compact 7, which will require less processing power and reduces the drain on batteries.

Microsoft, based in Redmond, Washington, has tried for more than a decade to build a market for tablet-sized personal computers. Chairman Bill Gates predicted in November 2001 that the tablet would become the most popular form of PC within five years.

Demand for the Windows tablets currently sold by Hewlett- Packard and Dell has been lackluster, according to IDC. Before the iPad made its debut this year, the researcher had been forecasting that sales of tablets would decline to less than 1 percent of the overall PC market in the U.S. IDC had predicted total shipments of just 523,000 tablets.

Passed by Apple

Microsoft, passed by Apple as the largest technology company by market capitalization this year, fell 26 cents to $26.32 at 4 p.m. New York time on the Nasdaq Stock Market. Palo Alto, California-based Hewlett-Packard rose 3 cents to $48.01 in New York Stock Exchange composite trading. Round Rock, Texas- based Dell declined 1 cent to $13.99 on the Nasdaq.

Intel Corp., whose chips run about 80 percent of the world’s PCs, hasn’t helped Microsoft’s cause. The chipmaker’s most energy-efficient tablet-ready processors don’t run Windows 7 -- and won’t until early next year.

Hewlett-Packard spokeswoman Marlene Somsak declined to comment on sales of tablets and notebooks based on Microsoft software. Dell spokesman Jake Whitman said Microsoft Windows, used in the company’s Latitude tablets, “helps provide a flexible and intuitive tablet-PC computing experience.”

Streak Product

Dell will begin selling a combination smartphone and tablet with a 5-inch (13-centimeter) screen in the U.K. this month. It should be in the U.S. later in the summer. Called the Streak, the device uses Android and Qualcomm Inc.’s Snapdragon chip.

Hewlett-Packard, the industry’s leader, acquired Palm Inc. to gain its own operating system for portable devices. Hewlett- Packard is also using a Qualcomm chip in a new Android product called AirLife, which it began selling in Spain this year.

Both companies plan to continue offering Windows tablets.

At Micro-Star, Hsu is waiting for Windows Embedded Compact 7. It also will be compatible with ARM-designed chips, the basis for products from Qualcomm, Texas Instruments Inc. and Nvidia Corp. ARM’s technology also is used in the A4 processor, which runs Cupertino, California-based Apple’s iPad.

Microsoft’s Windows 7 requires a full PC processor to run effectively. Chips of that class need a fan to keep cool and a big battery to keep them going for longer than a few hours.

Atom Chips

Micro-Star is developing a tablet that uses Atom, an Intel processor originally designed for low-cost netbooks. The trouble is, it lacks the power to provide the same kind of smooth video and Internet speeds as the iPad, Hsu said.

Microsoft’s Kalkman suggests manufacturers use a more powerful chip with two processors, a setup known as dual-core.

Asustek Computer Inc., the Taipei-based maker of Eee discount PCs, has a Windows 7 tablet with an Intel dual-core chip. It can run for six hours. Still, that’s about half the 10 hours offered by the iPad.

Intel plans to improve battery life by releasing a dual- core version of Atom for tablets early next year. It will use half the power while offering enough processing to provide smooth video and fast Web surfing.

“We’re very excited about the tablet segment -- we see it as an opportunity for Intel to expand its business,” Matthew Parker, a product manager for Intel, said in an interview.

Even the next crop of products -- Windows Embedded Compact 7 and Intel’s Atom chips for tablets -- may not help the companies achieve the dominance they’ve enjoyed in PCs, said Michael Gartenberg, a partner at Altimeter Group, a research firm in San Mateo, California. Neither technology was originally designed for tablets, he said.

“Because Microsoft is so entrenched in Windows, they seem to be missing these larger opportunities,” he said. “Same for Intel -- they’ve been very focused on PCs and PC-like devices.”

GM's New Volt to Use Google's Android Software

The Wall Street Journal

 

 

General Motors Co. has paired with Google Inc. to create new features for the soon-to-launch Chevrolet Volt that combine the technology giant's Android smartphone with the auto maker's OnStar technology system.

Further pairings between GM and Google are in the works as the auto maker looks for ways to better leverage OnStar to attract new, younger buyers, according to people familiar with the discussions.

"There can be a technological tour de force beyond just vehicle applications," OnStar President Chris Preuss said. "We're looking to enhance the value proposition on OnStar to make us more competitive."

On Tuesday, the auto maker said Volt owners, using GM's OnStar information system and Google Android operating system, will be able to track the location of their vehicle on their Android phone.

The phone also will allow owners to use voice recognition software ask for Google map directions to be sent to the vehicle and delivered to the driver by OnStar's navigation system, which gives turn-by-turn routes to drivers.

In addition to the Google features, GM already planned several features that would join the Volt and OnStar with smart phones, including the ability to charge the vehicle remotely and monitor battery power from a mobile device.

The moves are the latest indication of how electronics and in-car information systems are becoming a key battleground for car makers used to competing on horsepower and mileage.

In the past few years, Ford Motor Co. has used its in-car data system, Sync, to lure customers to its vehicles. Based on technology developed by Microsoft Corp., Sync allows drivers to control a car's entertainment system with voice command and can link to smartphones and music players such as Apple Inc.'s iPod.

While Sync is primarily positioned as an entertainment system, OnStar is marketed as an in-car information system that offers safety and navigation assistance and can relay calls for emergency help, diagnose mechanical problems and track down stolen vehicles.

"OnStar's biggest problem is that the things it does well it does in unfortunate circumstances," said auto analyst Jim Hall of 2953 Analytics.Hall said.

GM has relied on OnStar to provide features such as hands-free calling and navigation, in which a driver can call an OnStar operator to get directions. Years ago, these perks gave GM an advantage over rivals.

But technologies such as in-car and smart phone global positioning systems and Blue Tooth for mobile phones has eclipsed OnStar's capabilities, making it less of an asset, he said.

GM says OnStar has 5.5 million users. About half of subscribers opt to keep and pay for the service after the first free year, according to a person familiar with the number.

Nexus One Components May Cost $174

Business Week

Analysis by iSuppli suggests that parts for the Android-based smartphone made by HTC may be less expensive than those in Motorola's Droid

From the outside, the Nexus One and Droid smartphones have a lot in common. Both run Google's (GOOG) Android operating system software and have touch-sensitive screens. Each is designed to compete against Apple's (AAPL) iPhone.

On the inside, however, the phones boast some key differences. The Nexus One, introduced on Jan. 5, may have been cheaper to build, according to analysis of the devices by market research firm iSuppli. The components used to build the Nexus One may cost about $174 while the Droid's cost about $185, according to iSuppli estimates. Google sells the Nexus One without a wireless service contract for $529, while the Droid is available contract-free from Best Buy (BBY) for $599.

Analysts use so-called teardown analysis from iSuppli and other researchers to assess how much profit a manufacturer or service provider may get from sales of a consumer electronics device. Smartphones are expected to represent 38% of all mobile devices sold in 2013, up from 14% in 2009, according to Gartner (IT). Demand for such advanced mobile phones, which provide access to e-mail, the Web, games, and various software-based tools, has surged in the years since Apple introduced the iPhone. Analysis from iSuppli focuses on components and doesn't include additional costs such as labor, marketing, and distribution.

HTC makes the Nexus One under contract for Google. T-Mobile USA, the U.S. mobile phone arm of Deutsche Telekom (DT), sells the Nexus One with a two-year service plan for $179. Motorola (MOT) makes the Droid, which is being sold through Verizon Wireless, a joint venture of Verizon Communications (VZ) and Vodafone (VOD), for $199 with a two-year service contract.

The Nexus One's parts may be cheaper because of the price of its memory card, says iSuppli principal analyst Kevin Keller. The Droid boasts a 16-gigabyte flash memory card that goes for about $35, while the Nexus One is sold with a four-gigabyte card that costs about $8.50. The Nexus One analysis is preliminary and subject to revision, iSuppli says.

Qualcomm pushing TI out?

Wireless chipmaker Qualcomm (QCOM) is a winner in both phones. With the Nexus One, Qualcomm's Snapdragon chip handles the connection to wireless networks and is responsible for running the software. Keller estimates the cost of the chip at $30.50, or about 18% of the device's component cost. For the Droid, Qualcomm also supplied a less-advanced wireless chip that cost about $14.

Qualcomm competitor Texas Instruments (TXN) landed four chips on the Droid, including a $13 version of its OMAP chip. TI's share of Droid components amounts to about $23, or 12% of the total. TI may have landed no more than $2 of chips in the Nexus One, iSuppli says. "As Qualcomm has been evolving its technology and adding the ability to handle the applications as well as the wireless connection, TI is getting pushed out," Keller says.

Synaptics (SYNA), the Santa Clara (Calif.)-based company that specializes in touch-sensitive technology, is supplying several pieces of the touch-enabled screen in the Nexus One, Keller says. Atmel (ATML), a San Jose-based chip company, supplied the chip that controls the touch interface on the Droid.

Chipmaker Broadcom (BRCM), based in Irvine, Calif., supplied a single chip to handle both Bluetooth and Wi-Fi features on the Nexus One. TI and Triquint Semiconductor (TQNT) of Hillsboro, Ore., together supplied three chips that handled those features in the Droid, Keller says.

One chip common to both smartphones, and used in Apple's iPhone 3GS as well, drives the onscreen compass. All three use compass chips from AKM Semiconductor, the San Jose-located subsidiary of the Tokyo-based industrial and electronics company Asahi Kasei.

Google and Motorola representatives declined to comment on iSuppli's reports.

Developers Frustrated With iPhone App Store

Business Week

Software programmers are designing apps for the Google-backed Android operating system, fired by frustration with Apple's rejections and delays

Programmers at Ubermind are diversifying their app store loyalties. Once the company's mobile-phone software developers trained all their attention on making applications for the Apple (AAPL) iPhone. No longer.

The 34-person team at Ubermind, maker of the popular iLightr app that creates a virtual flame on the iPhone screen, recently began building apps for a rival mobile-phone operating system. They're now releasing two apps a month for devices based on Android, the software backed by Google (GOOG), in addition to the five monthly apps they release for the iPhone. "We have no plans to abandon" the iPhone, says Ubermind CEO Shehryar Khan, who says his company's sales have doubled in the past year thanks to iPhone apps. "But we are not going to put all our eggs in one basket."

Of the more than 125,000 programmers registered to create apps for the iPhone, a growing number are branching out to build apps for Android and other operating systems. The Apple App Store is still growing, with an inventory that recently surpassed 100,000 games, e-books, calendars, and other apps. It remains the largest downloadable mobile app store by a wide margin. But the larger the App Store gets, the harder it is for developers to make money from it. That, combined with sometimes long approval times and dismay over Apple's gatekeeping decisions, has led some developers to branch out or switch allegiances altogether.

When the App Store made its debut in July 2008, it was the first. Now developers can choose among plenty of operating systems. Apart from Android, there's BlackBerry App World for Research In Motion (RIMM) devices. Carriers are opening their own stores, too. The App Store's share of mobile app downloads may slip to 20% in 2014, from 70% this year, according to consultant Ovum.

"We Are in This to Make Money"

Android is garnering much developer attention. In October, the number of apps in development for Android jumped 94%, from September, while iPhone app volume rose by a mere 4%, according to mobile analytics firm Flurry. The number of devices running Android is surging, too. By 2012, Android is expected to become the second-most popular smartphone operating system after Symbian, leapfrogging BlackBerry, Microsoft (MSFT) Windows Mobile, and the iPhone, according to Gartner (IT).

With Android Market, developers can publish apps in a matter of minutes, without going through a review. And developers say it's a lot easier for users to find an app among 12,000 on Android Market than by rooting through more than 100,000 on the App Store. "We love the iPhone, but we are in this to make money," says Craig Hockenberry, principal at Iconfactory, creator of the hit iPhone Twitter application Twitterific. "It's hard to make money [in the App Store]." Hockenberry recently began investigating making apps for Android, though he hasn't turned his back on the App Store.

At the outset, developers stuck with Apple in part because it's a hassle learning to write code for a new system. But technologies such as Ideaworks Labs' Airplay software make it easier for developers to create apps for multiple systems at the same time. That kind of software "will definitely change the game," says Will Stofega, program manager at consultant IDC.

Ideaworks recently did away with fees for independent iPhone app developers. "We want to send a message to iPhone developers: There's lots of other hardware worth looking at" besides the iPhone, says Ideaworks CEO Alex Caccia.

As other operating systems gain traction, Apple could lose part of its competitive advantage, says Charlie Wolf, senior analyst at Needham & Co. "Their whole advertising pitch is the apps," Wolf says. "The real issue is: Are developers making enough to stay loyal to the platform?"

Apple App Store: Rejection and Delay

For many, the answer is no. To start with, application prices are falling. Iconfactory's Twitterific app now costs $4.99, compared with $9.99 a year ago. Large game makers such as Electronic Arts (ERTS) can spend more on marketing than can smaller design shops. Moreover, developers are making fewer sales, with products lost among the more than 100,000 apps. Larva Labs makes iPhone apps such as PhotoTwist, which lets people warp and twist photographs, but the company can no longer break even on new apps. "Every other app we wrote after [PhotoTwist] got less interest than the previous one," says Matt Hall, co-owner of Larva. "We've spent more time on unique features for these apps." Larva Labs now focuses on Android, he says.

Frustrations over the App Store's lengthy and often arbitrary approval process are also turning developers off. In March, Ubermind received three app rejections in one week alone. Developer SMobile Systems waited a year to win approval for its iPhone app, designed to make iPhone content more secure. Recently hundreds of consumers signed a petition asking Apple to publish two DJ apps that have been held up in the review process. "We are really starting to rethink our options," says Russell Haglof, whose Pajamahouse Studios created a DJ app that's been in review for more than two months. "If you are starting to make a business with a partner that can take two months with no response, it's not a healthy relationship," he says. Unsure of when their apps would hit the store, developers can't market them in advance of release, or even advertise release dates.

Developers say Apple is trying to improve its review process and make it easier for consumers to discover new apps. The company now maintains an online system that lets developers track the status of software making its way through the review process. (No mobile app store is without problems: Developers on Android Market try to game the system by updating their apps daily, thereby boosting their rankings on the site, for example.)

As the leader, Apple has cause to keep as many developers as possible on board. If the App Store loses its allure, so does the iPhone. "It's Apple's game to lose," Wolf says.

PC Makers Challenge Microsoft, Test Google Operating Software

As Originally Posted to The Wall Street Journal

Hewlett-Packard Co. and other PC makers are considering using free software developed by Google Inc. to run some small computers, a move that would open a new front in the battle between the Internet giant and Microsoft Corp.

PC makers are testing Google's Android operating system—which has so far been used to power mobile phones—for use in new models of so-called netbooks, inexpensive laptops that have become the fastest-growing segment of the PC industry.

Google, which dominates Internet search, already challenges Microsoft on other fronts, including with its free word-processing and spreadsheet software, neither of which has succeeded in denting Microsoft's Office suite. The effort to move Android to netbooks targets Windows, which generated more than 60% of Microsoft's operating profit in its last fiscal year.

Moving Android to netbooks will be an uphill effort because the software does not run popular PC programs. That is one reason that Windows now runs on the majority of the low-end laptops, even though early models used the Linux operating system.

But H-P, the largest maker of PCs and a major Windows partner, has programmers testing Android for a potential netbook, said people briefed on the matter, though they said the company hasn't decided yet whether to move ahead with the project.

"We want to assess the capability Android may have for the computer and communications industries, and so we are studying it," said Satjiv Chahil, a vice president of H-P's PC division.

Taiwan's Asustek Computer Inc., which is the leading seller of netbooks by units, has also said it is considering making an Android-based version. An Asustek spokesman didn't respond to a request for comment.

Dell Inc. has been customizing Android software for a range of devices it may introduce in the coming year, including a cellphone and pocket-sized computers called mobile Internet devices, said people familiar with the matter. A Dell spokesman declined to comment.

PC makers' interest in Android is partly driven by the desire to maximize income on netbooks, which usually sell for less than $500. Companies like H-P can spend $15 or more per netbook for Windows, cutting into already-thin margins. Another driver is the possibility of offering netbooks at lower prices; industry executives predict that hardware without Microsoft's software could sell for less than $200.

In contrast to Windows, Google doesn't charge for each copy of Android. The Internet giant hopes to justify its development effort by driving more Web use from mobile devices.

A Google spokeswoman said Android was designed to be used in small gadgets like phones and bigger devices like the mini-laptops. "We look forward to seeing what contributions are made and how an open platform spurs innovation," she said.

Market research firm NPD Group Inc. estimates that Windows comes on more than 90% of new netbooks. Microsoft said consumers returned Linux netbooks after discovering the PCs didn't easily work with popular programs and peripherals like printers—a challenge that could also be faced by Android, which is based on the core of Linux.

"With a Linux machine, it's a crapshoot each and every time," said Brad Brooks, a corporate vice president, for Windows consumer product marketing.

People familiar with PC makers' Android projects say they hope that netbooks that use the software would be embraced by cellular carriers, which already use Android for phones. Dell and H-P already sell some netbooks through the carriers, which subsidize them for customers who buy a long-term data plan.

David Young, the president of international business at Borqs Beijing Ltd., a Chinese programming company that customizes Android for phone makers, says he expects Android to make its way into larger devices. He says there is a "convergence" between smart phones and mini-PCs.

The notion of Android-based netbooks also could have sizeable repercussions for chip makers. Intel Corp., which helped popularize the term netbooks, has dominated the category with a microprocessor called Atom that can run software designed for PCs. Android, by contrast, is designed to work on chips that use processor designs licensed by ARM Holdings PLC.

ARM and licensees that make chips for cellphones—including Qualcomm Inc., Texas Instruments Inc. and Freescale Semiconductor Inc.—are betting that Android could help them move those products into the new netbook market, too.

"We have a pretty strong position," said an Intel spokesman. "But we don't take anything for granted."