Apple has Record Quarter, iPhones, iPad Sales Soar

Apple continues to see strong sales for its mobile products as iPhones and iPads witnessed record sales, as did its Macintosh computers, in its fiscal first quarter that ended December 31, 2011. The company had quarterly revenue of $46.33 billion and a quarterly net profit of $13.06 billion.

It is interesting to note that in its product lineup Apple’s computers come in a far third place in terms of unit sales with only its iPod platform showing a decline, most likely because its iPhones, with their large storage capacity can easily double as a dedicated music player.

The company sold 15.43 million iPads during the quarter, a 111 percent unit increase over the year-ago quarter. The Company sold 5.2 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter. Those figures are all time highs for the company. It only sold 15.4 million iPods, a 21 percent unit decline from the year-ago quarter.

Another fact that stands out from the results is that Apple admitted that its tablets are cannibalizing sales of its Macintosh computers, even when it has a record setting quarter for the computer.

It will be interesting to see how this phenomenon carries over to the Intel-based PC space. Will the ultrabooks stave off declining sales? If not Intel had better ramp up its push to establish its Atom processor in the tablet and smartphone space.

Apple also reported that it did not believe that the Kindle Fire, and other smaller form factor ebook readers that also had very strong holiday sales, had any material impact on its iPad sales.

While analysts had expected a strong quarter from the company some admitted that they were staggered by the results and predict that the company will be able to maintain its momentum going forward, at least in the near term, as it has just started to expand into the Chinese market. It is also expected to release at least one new generation of iPads as well as a new iPhone later this year, moves that should also help see a surge in demand for its products.

Friday Grab Bag: People buy Kindles to read Books, Who Knew?

How do people use Kindle- let me count the ways
With all of the great sales news for Amazon’s Kindle platform in recent weeks one might wonder what all of these customers are using the tablets for. Well wonder no more as a survey by RBC Capital, as reported in Business Insider, comes away with a number of details on users needs

Not a huge surprise is that its primary use is as an ebook reader. That seems to show that it is hitting its target market, and by doing so will help Amazon, which reportedly is losing money on actual Kindle sales, make a net profit due to app, ebook and other add-on sales.

The second is that it is not used too much to surf the web. Many reports have shown that rival products such as the iPad are used to surf the web, often while watching television.

Panorama Sports viewing coming to a TV near you-hopefully
Every time I watch an NFL game, or for that matter many different sporting events, I often want to see something that is not in the camera-it could be following a specific receiver run their route or how the defense is lined up.

Well a company named Technicolor is working hard to rectify this issue with a technology it calls Personalized Content Rendering that it publicly showed at CES.

Using a system of six cameras at the sporting venue it can create a moving panorama view of the stadium that enables a user to personalize their viewing experience.

The company has a software program that combines the video feed from all six cameras that when used in conjunction with something like a Microsoft Kinect sensor for the Xbox 360 tracking your eyes and head movement to allow you to look around the field and even zoom in on specific spots. However it is still some time before we see a commercial offering from the company.

ZTE set to focus on US and China markets to grow smartphone sales
ZTE, one of the top handset makers in the world is looking at two of the largest markets for smartphones, the United States and China, as key targets in its efforts to continue its growth as a premium phone provider.

The company has been evolving in the consumer electronics market and this looks like the latest step as it said it will increase its sales efforts to establish its smartphone models such as the Blade and the Skate in these countries.

With a stated goal of doubling sales in 2012 it could lead to an interesting price war if the company bears down and gets serious. It is estimated that ZTE shipped 12 million smartphones last year.

Kupa breaks out its Windows Tablet
Kupa has unveiled the Kupa X11 Lux Tablet, a dual input device that can use either touch or a stylus as its primary input device. It runs Windows 7 OS and is capable of operating for 10 hours on batter power. It comes in two models, one with a 64GB solid state drive (SSD) and the other with a 128GB SSD.

Using its Pen + Touch technology with pen is sensitive to to different pressure levels which can result in different outcomes. It features Wi-Fi, 3G, Bluetooth, USB and mini HDMI connectivity, and has a 2MP front camera and a 3MP rear facing camera.

Recon adds two new partners to lineup
Recon Instruments has expanded its partnerships for its Micro Optics Display (MOD) technology with the addition of official partnerships with Smith Optics and SCOTT Sports.

The two are the latest that have signed with the company to develop ski goggles that incorporate OD technology or are MOD compatible. MOD provides a variety of projected video feedback information for skiers including GPS and an altimeter. MOD Live boasts additional smartphone connectivity and advanced onboard apps.

Apple’s iOS to have integrated Facebook feature?
Reports are starting to surface that when Apple releases the iPad 3, expected in March, it will have an integrated version of Facebook as part of its core feature set according to iMore. The site reported that in iOS 5.1 beta release 3 that there is references to Facebook, but notes that this has happened in the past but apparently the two companies could not come to an agreement to include it.

Windows 8 tablets to have minimum hardware requirements
If you are planning on building a tablet that will run Microsoft’s Windows 9 operating system you will be required to meet some minimum standards for hardware, according to a report from eWeek. Not terrible breaking news since developers of Windows Phones also have to meet minimum requirements.

The reasoning behind this is to ensure that all of the hardware is there for the OS to operate properly. Microsoft wants to avoid an issue that has arisen in the Android space where a user might have very different experiences, and the devices different capabilities, even when running the same operating system.

Among the features that will be required to be included are a both Bluetooth 4.0 and Long Term Evolution (LTE), 10GB of storage, a minimum 1,366 x 768 resolution display and a 720p camera.

Bookeen Seeks to Break Into U.S. E-Reader Market

French E-Book developer Bookeen seeks to break into US market with its Cybook Odyssey, a reader that incorporates the company’s high speed interface that it claims will help differentiate its platform from rivals.

The reader features a 6-inch E Ink Pearl with 800 x 600 pixel touch display. It is powered by an 800MHz Texas Instruments Cortex 8A OMAP3611 processor with 128MB of memory. The Wi-Fi only system comes with 2GB of on board storage that it said can store as many as 2,000 e-books. This is expandable to 32GB with the microSDHC slot.

The user interface is available in 23 languages and it uses Linux 2.6.31 as its operating system. It will initially ship with 100 books already preloaded, with 30 in English and currently only a French dictionary.

The reader supports open book format such as ePub and PDF. It also has MP3 music and supports JPEG, PNG, GIF, TIF and other picture formats.

The company used the International Consumer Electronics Show as the backdrop for its introduction and said that the $159.99 Cybook Odyssey will be delivered to U.S. retailers in the near future and is currently available from the company’s web site. The company said that different sizes models are likely in the pipeline as well as color models.

It looks like this could be a hard sell. With much greater name awareness and market presence rival eBook developers such as Amazon with its Kindle lineup and Barnes & Noble with its Nook lineup are already well on their way to dominating this space.

Bookeen will need to show strong advantages over these two in order to become an established player, and right now its price and performance do not set it apart, but this is just a step so it will be worth following to see what the company develops going forward.

Who Will Build a Kindle for Sports? Millions of Fans Await the Answer

One great comment I heard at CES in Las Vegas this week was that tablet computers are “the killer app for watching video.” To that I would add a caveat: Tablets could also become the complete killer app for watching sports in a mobile fashion, if and only if the leagues, cellular providers and broadcasters could come to some workable agreement on viewing rights. What could make all that happen quickly? Why not something like Amazon’s Kindle, but instead of books, have it devoted to sports?

The real revolution started by the Kindle isn’t the cool technology behind the device itself. Instead it’s the simple pricing and content procurement method which eliminates the need for consumers to care about the cellular connection and simply allows them to pay for the books they want to read. If only sports could be so simple.

In the real world, we know it’s far from easy to get sports content on your mobile device. Just trying to definitively describe how you could get Monday’s BCS Championship game to show live on a mobile device took a weekend’s worth of reporting and numerous email exchanges with the supremely helpful ESPN folks. It’s not all ESPN’s fault that its mobile offerings are so constricted, but the fees ESPN charges cable providers play a part in the snarl of rights and access barriers that make mobile sports viewing such a pain in the rear.

The hope here at MSR is that all parties concerned learn some lessons from the digital music business, where a simple store and powerful simple device — iTunes and iPod — led to an explosion in sales of music, videos, podcasts and now books too. The Kindle is an extension of the iPod/iTunes simplicity to the mobile ecosystem, eliminating the concerns about how much data you’re downloading and whether or not you are exceeding your monthly mobile limits. Why not build one tailored for sports, with the connectivity costs and rights fees built in? If half a million people went through the maze of tasks necessary to watch the BCS game online, what could the size of that audience be if folks could walk down to Best Buy, pick up a “KindleSports” and start watching immediately?

At another CES panel I heard representatives from the major motion picture houses talk about how mobile video is no longer a future thing, but a booming business already grabbing millions of viewers and the associated advertiser interest. It’s time for sports entities to get into the game in a similar big way, and a KindleSports would be a great way to start. I would be just one of the millions waiting in line to buy one.

Rockchip Hopes to Spark Low-cost Tablet Market

Rockchip Electronics Co., a Chinese company that makes processors for a variety of markets is now focused on the tablet and smartphone market is hoping to create the same type of tablet buying frenzy that accompanied Hewlett-Packard’s TouchPad when its price was slashed and that Amazon is now garnering with its Kindle Fire, but industry wide.

It sees its technology the RK2918 chip that is based on ARM’s processor cores, as the solution to the development and adoption of low cost full featured tablets that are priced in the $100 range, significantly lower that Apple’s immensely popular iPads and the Amazon’s top of the line Kindles.

The company is displaying over 40 prototypes based on its technology at the CES show this week and will even have version that will be running Adobe’s Flash 11.0 technology, which is not standard in the emerging Android standard.

It said that it sees the advent of its low cost chips with the emerging Android 4.0 operating system, code named Ice Cream Sandwich, as the key issues in driving the new sales. (Free Ice Cream Sandwiches are available at the booth at CES)

The company believes that it can succeed in both the 7-inch and 10-inch tablet space and that products will range from $100 to $250. This all comes as some are calling Android tablets a failure. This seems like a bit of overkill but they certainly have not lived up to expectations, for the most part.

There were a few nice products that hung around but they did not light the world on fire as some had expected. This is really to be expected as many companies put their toe in the water with their first generation tablets and hopefully are using it as a learning experience.

Look at Amazon’s Kindle Fire, selling a million or more units a week during the holidays and Amazon’s best selling product for more than three months running. The Kindle Fire showed how accepted a tablet can be when it has the right features and the right price point.Price is important in this space, but more so is the entire environment, and many hope that Android 4.0 helps deliver a better experience for customers.

Rockchip faces a range of challenges. If the Kindle Fire breakdown shows that it cost over $200 to build, where will all of the savings come from? Also it is not alone in developing chips for the Android market that are based on ARM technology. Nvidia, Qualcomm and others have chips on the market or at least a license from ARM to build them. Intel is still touting its Atom technology for this space and is gearing up for a renewed push. Apple of course is going its own way on chips, using its own processors.

Also for experienced visitors to CES and to older, now defunct shows such as Comdex, there always seemed to be a huge number of low cost options for popular products ranging from MP3 players to PCs, and yet few of them managed to hang on. However Rockchip is already established as a technology provider in other market segments so it is not gambling all on this effort.

It would be great to see tablets become low cost items because this will help greatly expand the market for them as an alternative to notebooks as companies will be much more willing to invest in them if the upfront and replacement costs are not prohibitive.

Mobile Sports Report TechWatch: Solar Powered Cover for Kindle

SolarFlare develops sun-powered e-reader cover
SolarFlare Technology Co. has unveiled the SolarKindle this week at CES, a lightweight cover that features a built-in solar panel right in the cover. Built with a dual charging reserve battery that can get power from either a USB connection or the solar panel the company claims that it can give a Kindle user 3 moths reading time in the sunlight or 50 hours of reading using the lamp feature.

The integrated leather cover requires only one hour in the sun to fully charge the reserve battery to provide the users with days of use. The device was impressive enough that at the show it was an International CES Innovations Design & Engineering Awards Honoree

Marvell teams with One Laptop per Child for new tablet
Marvell is unveiling its XO 3.0, a low cost, low powered laptop that is designed for classrooms around the globe. The developer of integrated semiconductors has teamed with One Laptop per Child, a non-profit organization whose mission is to help child worldwide gain access to a modern education, to help its mission.

The two announced that they will start shipping a laptop developed by Marvell, the X 1.75, in March and that 75,000 have been ordered for OLPC projects in Uruguay and Nicaragua. The XO 1.75 and the XO 3.0 tablet are both powered by Marvell’s ARM-based Armada PXA618 system on a chip processor.

Windows 8 Tablet on the Horizon for ASUS
According to a report in Netbook News ASUS jumped the gun on CES by revealing that it has a new tablet that will be powered by an ARM processor and run the Windows 8 operating system in the works. However do not hold your breath since it appears that the product is slated for late in 2012.

In the short term the company plans to deliver a 7-inch tablet possibly named the ASUS Memo and a 10-inch tablet at CES and in a few months will refresh its Transformer Prime lineup with a 3G version and enhance some of its features including a more robust GPS unit.

Sony cuts Tablet S price $100
Sony has cut the price of its Tablet S line by $100 and is now offering five free downloadable “Classic PlayStation” games in its PlayStation Store app for new Tablet S owner. The Tablet S features a 9.4-inch display with 1280 x 800 resolution, a 5 megapixel rear facing camera and a 0.3 MP front facing camera and 1GB of RAM.

The version with 16GB of storage is now $400 while the 32GB version has a $500 price tag. Buyers will also receive a free 180-day trial of Sony’s Music Unlimited service, as well as five free rentals from Sony’s Video Unlimited Services.

Nokia acquires phone OS developer Smarterphone AS
Nokia has apparently purchased Oslo, Norway based Smarterphone AS for an undisclosed sum in a move that looks like it is once again going to be delivering a phone with a proprietary technology. Smarterphone reportedly is developing an operating system that will provide smartphone functionality on lower end hardware, according to BGR.

The company currently offers a lineup of smartphones that feature Microsoft Windows Phone operating system and in the past have offered other OSes including Symbian and MeeGo. So far Nokia has not indicated what it plans to do with the company and its technology.

The move comes at a time when some analysts are predicting that Windows Phone will help revive Nokia’s market share. I have to assume that an analyst from Credit Suisse would have at least had an inkling that the Smarterphone purchase was occurring and so sees this as just a personnel grab by Nokia.

The Green Bay Packers are the latest to adopt tablets for training purposes
The Green Bay Packers have taken to using Apple’s iPads along with specialized software so that receivers can watch game film and look for game trends as well as potential mismatches. The team provides its players with a complete look at how opponents play each possession based on down and distance. I wonder how much of a help this was for a team that tied the NFL record of 51 passing touchdowns this year?


This and that…

Apple, after losing its latest round in Germany has received good news in France and Italy, sort of- judges have refused to block sales of iOS devices.

Microsoft to develop Xbox Live games for rival platforms
Business Insider is reporting that Microsoft is planning on developing apps that will enable people that have Android and iOS products to play Xbox Live games.

According to BetaNews Microsoft and its partners including Nokia plan a $100 million ad blitz for the new Windows phones. Or is it $200 million?

Apple is reported to be preparing not one but two iPads for release in 2012, with the iPad 3 in March and the iPad 4 in October.