Barnes & Noble Partners with Microsoft to Create Subsidiary

Barnes & Noble has entered into a relationship with Microsoft that will create a Barnes & Noble subsidiary that will handle all of Barnes & Noble’s digital and college businesses in what may be the first step in spinning off the unit as a separate company.

The new unit is as yet unnamed but goes by the temporary title of Newco and with Barnes & Noble throwing in its business units Microsoft will be providing a $300 million investment in the company, a move that will give the software giant a 17.6% equity stake in the new company.

Barnes & Noble will retain the remaining 82.4% equity in the company and Newco will maintain a relationship with Barnes & Noble’s retail outlets. The company said that the move was important for it because it will help it to capitalize on its Nook tablet and help it grow not only in the education market but also in the consumer space.

As part of the deal pending patent litigation Microsoft launched last year against Barnes & Noble was settled and B&N now has a royalty-bearing license under Microsoft’s patents for its NOOK eReader and Tablet products. The first expected product from this partnership will be a Nook application for Windows 8.

There has been speculation for some time that Barnes & Noble might look to spin off its hardware Nook business because wile it has seen solid acceptance, unlike many of the ereaders and tablets available, it is not viewed as a core competency of the company. B&N said that it is exploring the option of completely separating the business but will not comment on the matter unless it reaches a decision on the matter.

Mobile Sports Report TechWatch: Is Android in Trouble?


The Kindle Fire Rules Android Market

A recent study by comScore shows that Amazon’s Kindle Fire tablet has remained a hot property, doubling its market share in just two months. According to the study the tablets share of the Android market jumped from 29.4% in December 2011 to 54.4% in February 2012.

The report does not count Barnes & Noble’s Nook due to classifying it as an ereader and not a multipurpose tablet, but if you combine the two they have a huge share of the Android market, and it appears that Android users opt for the lower cost offerings from Amazon and Barnes & Noble rather than the pricier ones from players like Asus.

So with Apple dominating the high end and these two at the low end of the tablet market what else is there. I suspect lots of room to grow in both. Many of the first generation Android tablets were touted as iPad killers and were not. They should instead seek to meet specific market needs and stop worrying about other players’ products.

Google Patent Trial shows past expectations.
One piece of evidence that has come out during the Oracle vs Google trial around Java patents has been the revelation of what Google’s expectations for Android were two years ago according to a presentation at the trial.

Some of the information listed was highlights that included device activation and searches while the lowlights noted that the company was behind in music, video and books and said that Apple was maintain momentum with strong product launches.

This is just the tip of the iceberg in terms of information available from the trial, and The Verge has a full readout on what is going on as well as a great deal more data on Android sales and expectations.

Has Google lost control of Android?
Joe Wilcox over at Beta News makes a strong argument that Google has lost control of Android and that it could have very negative repercussions to the developer if it does not actively and quickly reassert control over the platform.

Fragmentation is occurring, and as he noted the most successful implementation of Android that used by Amazon in its very popular Kindle line, does not greatly resemble the version that is available elsewhere. Proprietary versions of the operating system can cause big problems.

The old saying that “Those who cannot remember the past are condemned to repeat it” certainly resonates here. This issue occurred with DOS before Microsoft exerted control over the OS. Then again with Sun Microsystems’ Java, which it just barely managed to prevent fragmentation, interestingly enough, at the hands of Microsoft.

So I imagine that Google’s first priority if to get the Oracle lawsuit finished prior to any work on the OS but I would not be surprised if shortly afterwards the company announced a developer conference and new guidelines for developing on the platform.

Samsung is the King-of smartphones
Samsung released its sales figures last month and it has knocked off Nokia as king of the hill in smartphone sales. Samsung has shipped 93.5 million phones in the first quarter and of that number 44.5 million were smartphones.

Nokia had been top dog for 14 years, with a very brief sojourn at the top for Apple. In the first quarter Nokia is estimated to have shipped 82.7 million phones while Apple shipped 35.1 million in the same period.

According to market research firm Strategy Analytics Samsung’s strong quarter helped move its overall market share to 25.4% from 19.3%, year over year while Nokia went in the opposite direction falling from 30.4% to 22.5%

For the quarter Samsung posted a $5.2 billion profit on $39.8 billion in revenue. Aside from the strong growth in handsets the company also experienced strong sales of its tablet products such as its Galaxy Note.

Winklevoss twins announce venture capital firm
The Winklevoss twins of Facebook fame have launched a venture capital firm called Winklevoss Capital. The firm will focus on early stage, disruptive startups. They said that they expect to close a couple of deals within the next few months.

A $20 trillion rock?
I love all of this space mining talk. The value of what they are doing just keeps going up and up. In case you missed it a company called Planetary Resources and bills itself as an asteroid mining company was announced last week.

Among its backers are Ross Perot Jr., James Cameron, some Google billionaires and Microsoft. The plan is to develop not only the capability to mine asteroids but also to have space-based refilling stations for spaceships.

I have no idea if this will get off the ground but I really hope it does because it sounds like it will be very interesting to follow. The first asteroid that it has its eye on has an estimated value of $20 trillion dollars.

Mobile Sports Report TechWatch: Preliminary Windows 8 Tablet Specs

Intel takes wraps off of Windows 8 tablet specs
Intel has showed the expected features and capabilities of the Windows 8 tablets at its Developer Forum in Beijing last week, a nugget that was dug up by Cnet. Not surprising is the chip powering these next generation devices will be Intel’s Z2760 ‘Clover Trail’ processor.

The chip is a multithreaded dual core processor with a feature called ‘burst mode’ that enables it to accelerate performance for short periods of time. There will be two basic designs, one a 10-inch model and the second a slightly larger 11-inch that will feature a keyboard.

It will have an estimated 9-hour battery life, support 3G/4G and also have NFC (near field communications) and Wi-Fi Direct. Its weight will be roughly 1.5 pounds and it s expected to be 9 mm thick. A second half 2012 release date is expected for the tablets based on the specs, but that is based on Microsoft releasing Windows 8 in that time frame.

Expect a wave of tablets of all size in next few months
A host of tablet manufacturers have tablets in the pipeline and they will start appearing on shelves very shortly, according to multiple reports. Samsung, Nokia, and even possibly Apple have products that should be are nearing the market.

The Asus Transformer Pad 300 is expected to hit the streets next week with a 4G LTE supporting pad that is expected to have a $399 price tag for a 32GB model. Amazon reportedly has three Kindle Fire models on the designing board including a 8.9-inch one.

Then there is the long awaited Google Nexus Tablet that has been rumored for some time and s expected to be built by Asus. It is believed to be a 7-inch tablet that will have a $199 starting price point. For more information on these and others including Nokia, Apple and Samsung’s potential offerings head over to the International Business Times site.

Apple loses appeal on ‘push’ email
Chalk one up for Motorola Mobility as a German court has upheld a ban that prevents Apple from using ‘push’ email in its iCloud and MobileMe service in Germany. The court, based in Mannheim, confirmed that Motorola owns the patent and that Apple must pay to use it.

The ruling keeps the services shut down in Germany and Apple is liable for damages and has been ordered to provide information that will enable the courts to determine the amount of the damage.

A look at how the current patent wars are hurting the market
A nice, general piece on the growing problem of patent conflicts and how it has erupted into major warfare. The rise of patent trolls, including corporate ones and how companies now go out and buy patents simply for protection. Nothing groundbreaking but nice to see that the issue is making more news.

On the same topic the fact that most of the patents in the smartphone area are held by international companies could stunt the growth of home grown developers in China, the world’s largest smartphone market.

Local handset manufacturers sold 455 million units last year but have been warned that they may be violating copyright laws with their devices. The news came from The Mobile Terminal White Paper, issued by the China Academy of Telecommunication Research.

Twitter tried to buy Instagram first
I did not hear about this when the huge deal went down with Facebook but apparently there was more than one company lining up for the photo sharing company. Seems that Twitter co-founder and Chairman Jack Dorsey had tried in the past to purchase the company, but failed to get any real traction on a deal.

However, since Dorsey was one of the investors in Instagram, he will be seeing a pretty penny from the deal. For a nice look at Instagram head over to the NY Times for this piece.

Pew study highlights technology rift
A recent study by the Pew Research Center shows how much of a gap still exists between have’s and have not’s in terms of technology. While a full 19% of Americans now have some form of tablet, be it a fully loaded Apple iPad or a bare bones Barnes & Noble Nook, a greater percentage, 22% do not even have Internet access.

The report is focused on digital access in this country and provides some great snapshots of who uses which technologies including cell phones and laptops as well as tablets, and that is broken down by a variety of demographics.

It is interesting to see that a fairly large number of adults that do not have Internet access do so because they believe that it adds nothing to their lives. Also the rise of mobile Internet access has helped level the playing field in areas that had traditionally lagged n terms of access and use.

The Nook Comes in From the Dark

Credit Barnes & Noble with understanding an issue that plagues a host of readers, particularly ones that read in bed; it’s hard to get the lighting right on the page without straining a reader’s eyes or without annoying a partner in bed. But no more as the company has added a backlight feature to its latest Nook e-reader tablet, the Nook Simple Touch with GlowLight.

The GlowLight automatically comes on and is user adjustable to meet individual needs. It is an array of LEDs that are in the frame and shed a light across the reading surface of the tablet.

Barnes & Noble did not use just anecdotal evidence to make the decision to add backlighting to the Nook. In a survey the company found that 64 percent of people read in bed, and people with ereaders are the most likely to read in bed with 72 percent responding that they did.
This ties in very closely with the results that found 77 percent of respondents say they or their partner requires light for their bedtime reading, while 90 percent said that they prefer a sleep environment that is completely dark.

It is interesting that color screen tablets have the exact opposite issue that black and white ones do. Black and white displays do pretty well in direct sunlight, while the opposite is true with color. But turn off the lights and the color displays really show their stuff.

The company is currently taking preorders for the $139 Nook Simple Touch with GlowLight and said that it is expected to ship in May.The company needs a shot in the arm because despite doing relatively well with its Nook, fears are growing that Amazon will be the beneficiary of the recent DOJ investigation into Apple and 5 publishers.

Mobile Sports Report TechWatch: Mostly Apple Edition

Flush from releasing its latest iPad, its stock price hovering near $600 and with billions in cash in the bank, Apple has announced plans to launch a dividend and share repurchasing program. The two programs will result in the company spending approximately $45 billion in three years.

The plan calls for Apple to spend $10 billion in a share repurchase program that will begin in September 30, 2012. Its goal is to help neutralize the impact of dilution from future employee equity grants and employee stock purchase programs. This program has already been approved by the company’s Board of Directors.

The second program calls for a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012. This is still pending approval by Apple’s BoD.

Apple loses key ITC ruling
After a strong winning streak in its patent battles Apple is starting to lose a few again. The latest comes with an Administration Law Judge at the International Trade Commission ruling that Motorola Mobility did not infringe on three Apple patents. Apple had appealed an earlier ruling on the topic, and will now likely take the issue to court, so it is far from over.

Conde Nast to give advertisers viewer data
Conde Nast is finally relating the information it has been harvesting from readers of its iPad edition of its magazines. For the last 2 years a variety of its publications have been available on the tablets and I has been tracking a variety of information including basic data such as how many readers it has, the breakdown between paid and single issue sales and how long readers view articles and ads.

I would love to hear what some of this information and home the publisher will reveal some details to the public about what impact tablets have had on its business model, both pro and con. Publishers will start receiving data on specific issues 10 weeks after it hits the stands.

Windows 8 Tablets on the Horizon.
There seems to be a lot of breathless talk that when Windows 8 is released a slew of tablets will be released and crush Apple’s iPad, returning the tablet market to the righteous. Who cares? I hope that the tablets are good and have the options I want, not how they compare to Apple. But I digress.

There is a lot of talk about who is going to have tablets when Windows 8 is available, and a list of probables and a few features is included in this piece by the International Business Times. No real surprises, Hewlett-Packard, Nokia, Dell and some others but worth a look so you have an idea of what is on the way.

Kindle and Nook in for a fight from new Nexus tablet?
The site Android and Me is reporting that a Nexus tablet from ASUS is a done deal and expects that the tablet will come in at a very nice $149. It is reporting that Google has selected ASUS to produce the next generation Nexus tablet and that it will have a 7-inch form factor and that all other details are unknown at this time.

However this will go directly against the two popular e-readers out there, from Amazon and Barnes & Noble, which currently are the second and fourth most popular selling tablets. A good price war is always popular with consumers and I am looking forward to what they do if this turns out to be true.

Americans willing to pay for tablet content aside for news
A recent Nielsen study on tablet content purchases found some interesting facts about European and American users. Americans are willing to pay for almost all types of content, with 62% having purchased music, 58% purchased books and 51% have purchased movies, but only 19% paid for news.

That is not too far out of line with the European countries surveyed about news, aside from Italy which had 44% purchasing news content. The Europeans showed they were much less likely to buy books, movies and music than Americans.

Friday Grab Bag: Kindle and iPad Drove Q4 Tablet Sales

Global tablet sales surged in the 4th quarter of last year, driven by the demand for Amazon’s Kindle and Apple’s iPad tablets. An IDC study as reported by Cnet shows that overall tablet shipments grew by 56% on a sequential basis in the fourth quarter of 2011, to 28.2 million units, and a 155% increase from the same period in 2010.

The top players in this sector were led by Apple with a 55% market share with 15.4 million tablets. Second was Amazon’s Kindle Fire at 4.7 million in the quarter, good for a 16.8% market share. Samsung trailed with a 5.8% share and then Barnes & Noble with a 3.5% share.

IDC has upgraded its estimation for worldwide tablet sales in 2012 to 106.1 million, up from its previous estimation of 87.7 million. I wonder what percentage of those sales would have gone to PCs a few years ago?


Did the NFL collude against the players?

The NFL’s very odd decision to fine the Washington Redskins and Dallas Cowboys a combined $46 million in cap space could turn out to be a major mistake, if the league actually goes through with its decision, multiple outlets are reporting.

Dallas and Washington’s crime was apparently spending more money during the uncapped year than the other owners wanted, giving them an ‘unfair advantage’ by actually investing in their teams rather than simply pocketing the money.

It looks like the owners of the two teams are now considering suing the league, a move that looks like it might then result in an additional lawsuit from the players union as it would show collusion and violation of antitrust. While the league has limited antitrust immunity, it does not cover this kind of action. Baseball did the same thing some time back and was expensively slapped by the courts. I suspect the NFL may quietly backtrack on this issue.

Apple and Motorola talked cross licensing–last year?
A series of talks between Motorola Mobility and Apple last year regarding a proposed deal to cross license their patent portfolios, or portions of them, has come to light as part of the EU’s discovery process on the Google/Motorola merger.

It looks like Motorola was demanding that it gain access to Apple’s entire patent portfolio in order for Apple to get access to Motorola’s standards-essential patents (SEPs). It was noted in The Register that usually SEPs are cross licensed for other SEPs, not the entire portfolio.

They did discuss the ‘scope of a possible settlement’ after Google announced its purchase of Motorola for $12.5 billion. According to Foss Patents, Motorola wanted to broaden the scope of the deal to include all Android licensees while Apple wanted it between the two companies.

Yahoo sues Facebook over patents
Yahoo has dropped the other shoe in its face-off with Facebook and has filed a lawsuit contending that the social media giant has violated Yahoo patents that cover a range of features including news feed generation, social commenting and advertising.

The issue initially emerged a few weeks ago and many thought that the effort by Yahoo was just part of a positioning move by the company to show that it has a valuable patent portfolio as it seeks a buyer. The timing of the move is interesting because it coincides with Facebook’s IPO.

Now it looks like it may get the chance to prove that contention via court filings and possibly rulings on its patents. Yahoo is seeking unspecified damages, and has requests that any such amount be tripled due to Facebook’s willful actions.

Sony’s Xperia smartphone features ‘floating touch’ technology
Sony, using something that sounds like it came from a Geisha house has incorporating ‘floating touch’ navigation that allows a user to browse the web without touching the screen, simply by hovering a finger above the screen and moving it to move the cursor.

The phone also features a 1GHz dual core processor, Android 2.3, upgradeable to 4.0 later this year, and a 3.7-inch Reality Display.

Nokia working on Windows 8 tablet
Nokia, one of Microsoft’s strongest supporters in the Windows smartphone market has said that it will be joining Microsoft in the tablet space in the near future. Reuters reported that the company’s design chief is spending a third of his time developing the tablet and that the company is seeking to take a different approach from rivals in creating a product that will challenge market leader Apple and its iPad.

Intel invests in eye-tracking company
Intel Capital has invested $21 million in a third funding round for Swedish company Tobii, that has been working on eye-tracking technology that can be incorporated with laptops, tablets and other hardware. Tobii said that the investment will give Intel a 10% stake in the company.

Tobi has previously raised $14 million in 2007 and an additional $26.8 million in 2009. It said that the investment will help the 12 year old company maintain a steady research and development schedule. Tobii recently unveiled its latest eye-tracking device last week at CeBIT, the Tobii IS-2 Eye Tracker.

It is interesting that Intel is investing in this type of technology. Over a decade ago I saw a demonstration of eye tracking technology at an Intel Labs demonstration and have wondered why it has never seen the light of day. I guess it was red lighted and so the company is now looking to outside sources.

Going to London for the Olympics? Free Wi-Fi!
Well at least it will be free in the Tube, or subway system. The service will run from July 27 to August 12 and will be provided by Virgin Media. After the Olympics end the service will be available to Virgin subscribers.

USC football players live for Twitter
Interesting read at CBS Sports about Twitter and specifically on how a pair of USC athletes use it. Shows how prevalent that technology is becoming.

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