Apple has Sold 55 Million iPads

Company believes that they will soon outpace PC sales
The pace at which new technology gets adopted seems to be faster than ever, or it might be more accurate to say that once it is popularized it gets adopted faster than ever, as Apple showed when it revealed the sales numbers of its popular iPad tablets.

The iPad is not the first, or even the second tablet to hit the market, attempts have been ongoing for more than a few decades including Alan Kay’s Dynabook computer concept, Motion Computing’s Tablet PCs, and the Microsoft PC Tablet to name just a few.

There are a number of failed attempts over the past years, in part because the technology was just not there in terms of enabling developers to create fully functional devices that were lightweight, tough and yet could rival a computer.

However that issue is a thing of the past and tablet sales have been growing at a tremendous rate- according to a recent report from market analyst firm BI Intelligence, tablet sales are expected to hit 500 million units a year by 2015. The firm estimates that tablets will be a $100 billion market and surpass PC sales by a good percentage- it believes PC sales will be approximately 360 million units. No wonder Intel is working so hard to enter this space.

So how is Apple doing in this space you wonder? Well according to Tim Cook, Apple’s CEO the number is around 55 million units. He revealed the number during a presentation at the Goldman Sachs Technology and Internet Conference.

He attributed the healthy ecosystem for the iPad platform as being very important for the growth and said that there were 170,000 apps that have been optimized for the platform as well as peoples previous experience with the iPhone.

He said that since its introduction he and others at Apple have believed that in the long run tablets would outsell PCs. As a user he said that he now spends between 80-90% of his time on an iPad. He said that it is cannibalizing Mac sales but if someone is going to do that he prefers it be Apple.

To put the sales figures in prospective with other Apple products Slashgear points out that it took Apple three years to sell that many iPhones and 22 years to sell that many Macintosh computers.

Intel Patent Buy from RealNetworks Targets Smartphones and Tablets

Intel has entered into a deal to buy a significant number of patents and next generation video codec software from RealNetworks for $120 million. As part of the deal RealNetworks will retain select rights to continue to use the patents in current and future products.

The deal includes the sale of the approximately 190 patents and 170 patent applications and next generation video codec software. In addition the two have signed a memorandum of understanding to collaborate on future support and development of the next-generation video codec software and related products

RealNetworks said that the sale will not materially alter its expectations for future sales and that it would use the funds from the deal to invest in new businesses and markets while also retaining its existing markets.

It is pretty obvious where Intel sees this technology going-it has been working feverishly to get its technology adopted in the smartphone and tablet space, and is seeking to enhance its notebook presence by working with partners to develop a new very slim category that it calls ultrabooks.

Renee James, Intel senior vice president and general manager of the Software and Services Group said in a release that “We believe this agreement enhances our ability to continue to offer richer experiences and innovative solutions to end users across a wide spectrum of devices, including through Ultrabook devices, smartphones and digital media.”

Intel has always been a strong advocate of investing in technology in good times and bad. During the Dot.Com bust it continued to heavily fund its massive research and development efforts, one of the biggest in the world.

It currently spends in excess of $6 billion annually in R&D and has labs around the world doing research not just in semiconductors but a surprising range of other activities as well including studying the habits of tech users to see how and why they use products.

But the company has also used its strong financial position to use cash as a form of R&D, purchasing companies and technologies that it sees as either important to it as a key competency or as an investment that can enable it to participate in new markets if they emerge.

Buying technology and even developing new technology is only one step. The seamless integration of that technology into core products, or passing it on to others to us in conjunction with Intel developed products is the next step.

It had once gone on a huge buying spree in the communications market only to sell off assets at pennies on the dollar. I expect that Intel has learned quite a bit from that experience a decade ago and will put that to good use.
Also in favor of a smooth integration of the acquired technology is the fact that RealNetworks is not just some startup that has ‘gee whiz’ technology but an established player with technology that Intel is no doubt very familiar with.

Fujitsu Contest Shows Flexible Design Concepts for All-in-One Device Combos

Want a quick glimpse of the future of high tech gear? Maybe these products will not see the light of day but a recent concept contest by Fujitsu has shown some great product ideas for a range of technologies.

Naturally a number caught my eye but one combo product really had me thinking that it would be interesting to own. The product was a combination notebook computer, tablet, smartphone and digital camera-but not as an all-in-one solution but rather as removable parts of a whole.

The concept design, which is on the short list in the Fujitsu Design Competition 2011 was created by designer Prashant Chandra which he named “Lifebook 2013”. It is designed to both provide a user with all of the tech tools that they might be carrying and put them into one slim, highly integrated package.

The drive behind the design is not just a gimmicky form factor that enables users to have a convenient place to keep all of their devices together. As additional devices are added their functions and capabilities are added as well.
Add the camera and get a high end digital imaging device as part of your notebook.

Add your phone you have communications, possibly your MP3 collection and other features. A tablet could serve as a second display or as a keyboard, helping to keep the weight down. Syncing all of a users devices should be a snap under a design like this.

But a key differentiator would be that the processors that are stored in the individual devices could also be tasked with some of the laptop’s functions as well.

If this device did manage to come to market in some form in the near future Fujitsu would have to exercise absolute control over both software and hardware design. Code would need to be written to enable programs to take advantage of the different processors, and to adapt when some processors or hardware are not present.

It would also have to be aware of what is and is not present so that it can alter its abilities in real time. A user would not want to constantly change settings when using a phone.

One hidden advantage is that a user might be able to use their smartphone as the communications device for the notebook and tablet without getting contracts for those devices. If nothing else it might serve to push telcos to offer better bundles so that a person can reasonably afford to have cellular capabilities on multiple devices with a reasonable contract covering them all. Ah to dream.

Restructuring Management at RIM, Corporate Restructure Next?


Co-CEOs step down, New CEO Named

The top management picture of wireless developer Research in Motion (RIM) has been completely redrawn this week with its cofounders surrendering the position of CEO and the board implementing a new top executive.

Jim Balsillie and Mike Lazaridis, the co-chief executives and co-chairmen of the company announced that they were stepping down and submitted a succession plan to the company’s Board of Directors that included promoting one of the company’s two Chief Operating Officers, Thorston Heins, as the new CEO and president.

Lazaridis was the company’s founder and he has worked very closely with Balsillie as it grew to a $20 bn player and developer of the first popular smartphone, the BlackBerry.

However both Balsillie and Lazaridis will remain with the company in prominent roles. Lazaridis was named vice chairman of the board while Balsillie will remain as a director. Barbara Stymiest, who formerly served as a member of Royal Bank of Canada’s Group Executive and has been a member of RIM’s Board since 2007, has been named the independent Board Chair. John Richardson, formerly Lead Director, will remain on the Board. Prem Watsa, Chief Executive Officer of Fairfax Financial Holdings, also was named to the Board, expanding it to 11 members.

Declining Market Cap, Revenue and Market Share

The move comes as the once high flying developer of the BlackBerry is facing losses that are expected to extend across the current fiscal year and possibly beyond as demand for its technology continues to wane and the current generation of smartphones and tablets siphon away business.

It suffered a very bad 2011. Its market share has been plummeting in the smartphone segment, dropping from an estimated 30.4% to 16.6% as Android and to a lesser extent Apple iPhones have both expanded the overall market and at the same time eroded RIMs position in it.

The decline in market share has been accompanies by an even greater stock price decline, with a 75% decline in its stock value over the course of the year. It reported a 71% decline in earnings in its 3rd Quarter, it’s most recent. It has been hurt also by a delay in its next generation phones, the BlackBerry 10, now due late this year, and the fact that its tablet, the Playbook, has been a non-starter.

There have been increasingly growing demand from shareholders for vigorous action by the company, up to and including breaking it up or selling it in the last months. The promotion of Heins has not been met with universal approval by shareholders and analysts and is likely to fuel even more negative comments as Heins tries to turn around the company.

Fortune called Heins the wrong choice for CEO. Investopedia wonders if his appointment is simply ‘old wine in a new bottle’ and The New York Times led off with the headline ‘Markets Are Not Convinced by a New Leader at RIM’.

Yet he does have a number of assets in his favor- the company has new generation phones and tablets in the pipeline, it has $1.5bn in cash in the bank and a loyal core of customers that still claim it has the best tools for business. So while Heins has a tough road ahead of him, he has some props to help him along the way.

Intel Aggressively Pushes Smartphone, Tablet Vision at CES

CEO Paul Otellini brings out Lenovo, Motorola as first smartphone partners

Intel president and CEO Paul Otellini used his keynote speech at the International Consumer Electronics Show to roll out new partners, products and reference designs as the chip company ramps up an aggressive push into tablets, smartphones and ultrabooks.

Paul Otellini

While the company has been participating in all of these spaces, with varying degrees of success for years, this is one of the biggest concentrated pushes from the company and one that appears to be ready to bear some immediate fruit.

Smartphone partnerships
Two key players came on stage to show prototype smartphones that they said will be shipping later this year, possibly by the end of the summer, powered by the next generation Intel Atom processor Z2460 platform, formerly code-named “Medfield,” Atom processors.

The first on stage was Liu Jun, Lenovo senior vice president and president of Mobile Internet and Digital Home where he showed the pending Lenovo K800 smartphone, using the Atom processor. That will run the Android operating system. Expected to ship in the second quarter of this year the phone will run on China Unicom’s 21Mbs network and includes support for HSPA+ the Lenovo LeOS user interface for a localized experience in China.

The second is with Motorola Mobility and is a much more complex relationship. The two have amulti-year, multi-device strategic partnership that will also include tablets. Otellini said “Our long-term relationship with Motorola Mobility will help accelerate Intel architecture into new mobile market segments.”

Atom Processor Z2460

Motorola will be building Android devices using Intel’s Atom processors in both the smartphone and tablet space. The companies will collaborate across hardware, software and services, according to Sanjay Jha, chairman and CEO of Motorola Mobility.

Intel has made several products aimed at establishing itself as a provider of core technology in the cellular handset market over the last decade, with very poor results. However it has never had two major partners like Lenovo and Motorola not only on board but ready to ship products in the near future.

Strategic Reference Designs
Aside from the two key partners Intel has also delivered a pair of reference designs, one for tablets and one for smartphones, in order to help customers quickly build a phone that can also accept any innovation the partner may have internally.

The Intel Smartphone Reference Design features a 4.03-inch high-resolution LCD touch screen for crisp text and vibrant images, and two cameras delivering advanced imaging capabilities, including burst mode that allows individuals to capture 15 pictures in less than a second with 8-megapixel quality.

There is also a tablet reference design. A demonstration on stage had a Clover Trail processor running a tablet that had Microsoft’s Windows 8 operating system and Intel said that Clover Trail-based systems would support the Metro user interface from Microsoft as well as be compatible with millions of Windows applications.

Reference designs have long been a staple in Intel’s arsenal, providing a quick easy way for OEMs to enter a new or emerging space using Intel technology. The company faces an uphill climb in this market due to the firm establishment of ARM-based devices in the market already.

It appears that Intel’s long push for energy efficiency, and renewed push on advanced graphics will help it in this space but the battle here will be an interesting one, and one that for the most part Intel has lost the previous encounters.

Ultrabooks Galore
Ukltrabooks, for those that do not know, is a new and emerging class of notebook computers that closely resemble the shape and form factor of tablets but bring much more to the market. While smartphones, and phones in general, is a space Intel has struggled to enter and tablets are still a relatively new market, ultrabooks are right in the company’s wheelhouse.

The concept was introduced just over half a year ago and the company said that there are already 75 models in the pipeline, with virtually all of its major notebook partners involved. Dell showed one that it will be shipping next month, the new XPS 13, a sub-3lb system, that is less than half an inch think at its thinnest point and is powered by Intel’s i7 processor.

However Intel said that future ultrabooks will be powered by its future 22nm 3-D processor codenamed Ivy Bridge, due later this year. If you are wondering what advantage Intel gets by pushing processors down to smaller sizes, one is that they are faster because the signals have shorter distances to travel.

Intel showed a pair of prototypes on stage, one that really caught my eye was the one that allowed a user to flip the display over and turn it in to a tablet system. While I am sure this will not be for everyone I believe that people that need a full keyboard sometimes and want tablet functionality the rest this will be a strong selling point.

I will be very interested to come back to CES next year and see how well Intel has succeeded in getting the tablet and phone OEMs to adopt its technology. We will probably get a good feel for its acceptance later this year at the company’s annual developer forum.

Friday Grab Bag: Pre Black Friday Issue

Site takes you on Stadium Journey
Every year or so you see a story about some intrepid fans that are going to travel around the US and visit all of the ball parks during baseball season. A bit rarer but you also see people that try to hit all of the minor league fields on occasion.

Well if you are just an armchair traveler, or looking to do research about a sporting venue prior to leaving home then the folks at Stadium Journey have the site for you. Sure it covers all of the MLB parks with solid info and interesting photo montages, but that is the tip of the iceberg.

How about the Central Hockey League arenas? Or are you headed to Europe and want to see what Old Trafford, the home of Manchester United looks like before attending? Its there and much more. Of course there are gaps in its lineup, particularly in Europe and possible elsewhere (I did not carefully check each league) but it is a fun and informative site. One comment- in its AT&T review it mentions “blistering Candlestick”- try freezing Candlestick.

EA’s Twitter Campaign gets Results
Electronic Art’s decided to use a sponsored Twitter to promote its FIFA 12 video game several months ago it found that the social media site, couples with a focused time-sensitive ads brought solid results, 5%-8% higher than normal for Twitter-based campaigns.

The program had a 11% customer engagement was due to what EA said was its ability to take advantage of the traffic generated by the ads and so turn it into both sales but increased following for EA’s normal Twitter feed, thus setting up potential future sales as well.

For those of you that are scratching your head and wondering what FIFA is, it’s the The Fédération Internationale de Football Association (International Federation of Association Football) that hosts the World Cup every four years. You know, soccer.

Facebook is seeking another avenue into your soul
Rumors have it that Facebook is teaming with Taiwanese cellphone developer HTC to develop a customized Android-powered smartphone code-named ‘Buffy”. Buffy, really? This rumor is according to the blog All Things Digital.

The reason is clear why Facebook would want to move further into the mobile space, it already has 350 million mobile users and relationships with a huge number of mobile operators across the globe. Still this just brings the ESPN phone back to my mind.

However don’t hold your breath waiting to use this phone to poke your friends- Facebook still has a ways to go including signing carriers, designing and then building the devices so it is not expected for at least 12- 18 months.

Top iPhone Games-No football?
Ever wonder what sports apps you should have loaded on your iPhone, assuming you have an iPhone, so that when you finally tire of shooting birds at pigs while sitting in an airport lobby you can have something else to do?

Well a short list has been created at appolicious advisor, which brings in 5 programs that it touts as timeless- thus eliminating from consideration season focused apps such as SEC Football lite or NBA 2011-12 (is there such an app?)

The five that made the cut include Bill James Baseball IQ, ESPN Radio, PrePlay, Tiger Woods: My Swing and Yahoo Spectacular. Anybody have an issue with this or what they fell is better choices send them my way and maybe I will follow up with fan favorites.

Is Malware a threat on Android?
Google is in a verbal fight with at least one security expert over the threat that viruses and other malware present to the Android mobile operating system, according to a recent post at ITWorld.

On the one hand we have Google’s open source program manager Chris DiBona claiming that the virus and security software companies are a buch of charlatans and scammers and there is no problem.

On the flip side there is Denis Maslennikov, a senior malware analyst for Kaspersky Labs who claimed that the number of malware discoveries on Android has been growing and that in less than half a year the number has rapidly grown.

Parade-
Have a great Turkey day and if you are stuffed and sitting on the sofa as the Macy’s Parade goes by look for my niece in the Homestead High marching band- she’s the cute one! And did you know there is an app to follow what is happening in the parade? Someone had too much time on their hands!

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