Based on Q2 statistics, Android has extended its dominance as the most popular smartphone operating system in the U.S., while Apple’s iOS also continues to gain traction.
According to NPD, 52 percent of smartphones shipped in the U.S. during the second quarter were running Android (up 19 percent from the previous year). Apple’s iOS earned a 29 percent share, up seven percent from Q2 2010.
NPD reports that these figures may have an impact on the potential revitalization of Motorola. “Google’s acquisition of Motorola shifts the balance of power in the handset-patent conflict between Google and its operating system competitors,” said Ross Rubin, executive director of industry analysis for NPD. “Android’s momentum has made for a large pie that is attractive to Motorola’s Android rivals, even if they must compete with their operating system developer.”
Market gains for Android and iOS have negatively impacted the competition. Market share for Research In Motion’s BlackBerry OS dropped significantly from 28 percent in the second quarter of 2010 to 11 percent this year. Microsoft’s Windows Mobile also suffered, falling from 10 percent in Q2 2010 to four percent in Q2 2011.
Prepaid smartphone numbers are on the rise, which may also impact Motorola (8 percent of prepaid phones were smartphones in Q2 2010, a figure that jumped to 22 percent this year). “Android is also leading the charge in the rapidly growing prepaid smartphone market,” Rubin said. “This was once a key segment for Motorola that the company has an opportunity to reclaim as prepaid carriers build their smartphone portfolios.”
Verizon Wireless launches Verizon Video this week — a new version of its video-on-demand application for mobile phones, providing Android users with more than 250 current full-episode TV shows from ABC, NBC, CBS, MTV, Comedy Central, Disney Channel, ESPN, Cartoon Network and others.
Premium content is also available including live sports coverage from NFL Mobile, NFL RedZone, NBC’s Sunday Night Football and NFL network.
The 4G LTE and select 3G service will cost $10/month or $3 for 24 hours.
According to the press release: “Verizon Video updates V CAST Video on select devices and current V CAST Video subscribers will be prompted to update the app the next time it launches. After the upgrade, it will then appear under the name Verizon Video.”
If you haven’t already seen the flood of reports online (including a number of related stories on ETCentric), Google announced it will acquire Motorola for $40 per share in cash, or a total of about $12.5 billion. The deal has led to a great deal of speculation this week regarding the future of the Android ecosystem and other enterprises such as Google TV.
“This acquisition will not change our commitment to run Android as an open platform. Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business,” stated Larry Page in the official Google blog. “Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences.”
Page believes the acquisition will also serve as a buffer to anti-competitive patent attacks on Android: “Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.”
This deal raises a number of compelling questions (see thoughts by Robert Scoble, Peter Kafka and others in the related posts listed below), but first I have to ask: Can Google have its “open platform” and compete with its licensees too?
Facebook has announced a new iOS and Android messaging app named Messenger that will allow users to send and view messages to Facebook friends across the two most popular phone platforms.
The app will also include a group messaging feature that will enable users to message multiple people for a single large conversation. Additionally, Messenger will help with coordinating group events by allowing users to include their current location in messages.
“Now Facebook’s vision when buying app maker Beluga is becoming clear,” reports Digital Trends. “The company has taken Beluga’s group messaging app and married it with Facebook contacts and messages.”
Messenger joins other emerging messaging services such as Apple’s iMessage and Google’s Huddle, but Facebook has the advantage of its 750 million member user base.
Will Facebook’s Messenger have an impact on RIM’s BlackBerry?
Vizio has released an 8-inch Android tablet priced at a mere $299. It features Adobe Flash, a three-speaker configuration and a MicroSD slot for expanding to 32GB.
The Wi-Fi tablet is being promoted by Vizio as an affordable back-to-school option and as a media device designed to interact with TVs.
According to the press release: “The VIZIO Tablet features VIZIO Internet Apps Plus which combines the latest technologies with a unified, easy-to-use and fun user interface across select future VIZIO HDTVs, Blu-ray players and other devices — further differentiating the sleek VIZIO Tablet. In addition, the new Tablet is able to control nearly every element of a user’s home theater with a universal remote app and includes a built-in HDMI port with HDCP support for content protected HD playback on the big screen.”
French CE manufacturer Archos announced it is getting ready to launch an Android Honeycomb 3.2 tablet with 250GB of internal storage capacity.
The Archos G9, expected to hit shelves in September, will be available in 8- and 10-inch models ($370 and $470, respectively).
The new tablet will feature a Seagate Momentus Thin 2.5-inch hard drive modified to include 4GB of flash storage.
“Another marquee feature is the 1.5GHz Texas Instruments OMAP 4460 dual-core processor,” CNET reports. “This is the same processor that Google has approved for upcoming Android Ice Cream Sandwich devices. That means consumers can expect to see a new wave of tablets and smartphones built around the TI 4460.”
Time Inc. announced it will offer all of its 21 magazines including Time, Sports Illustrated, People and Fortune on just about every tablet platform.
Look for Time’s publications on iTunes, Android’s store, HP’s new tablet, Next Issue Media, and Nook by the end of this year. (There is no mention of RIM’s Playbook or Kindle yet.)
To date, Time’s digital magazine and content apps have been downloaded more than 11 million times.
“Note that while the release mentions ‘digital subscriptions,’ what that really means is ‘digital-only subscriptions available everywhere but iTunes,’ reports the Wall Street Journal. “Apple and Time Inc. still haven’t come to terms on subscription rules, so right now the only way to get a digital subscription for the iPad is to buy a subscription package that also includes print.”
Google has purchased more than 1,000 patents from IBM, its most recent step in what the Los Angeles Times describes as “an arms race for patents.”
The acquisition is part of an effort to strengthen its intellectual-property portfolio and avoid legal assault.
It may also bolster the legal buffer surrounding its Android mobile OS court showdown with Oracle set for October.
Google has some 700 patents (mostly for search engine technology) while its competitors, especially those in the mobile industry, have thousands.
“Patents are instruments of war. Companies are acquiring patents to both defend their market share and to countersue competitors,” suggests technology patent valuation specialist Alexander Poltorak, chief executive of General Patent Corp. “Google neglected patents for many years because it did not realize that they were essential business tools. It can no longer neglect them.”
Lenovo’s ThinkPad Honeycomb tablet (starting at $480) will offer a stylus for taking on-screen notes, security features, detachable keyboard, Netflix compatibility and a variety of business features.
The new tablet is expected to ship by August 23.
Lenovo does not seem to be concerned with entering the Android tablet price war, since most of the other competitors are angling toward $400 and below. Instead, the company is positioning the tablet as a business-savvy device.
Digital Trends reports: “Lenovo is also launching a few accessories alongside of the ThinkPad. You can buy a folio-style case that has a built-in keyboard, which might mean the Asus Transformer might finally have some keyboard competition. Lenovo has been making some of the best laptop keyboards for several years, and if this keyboard can rival those it might be a game changer in the Honeycomb tablet war.”
Ustream launched its first iPad-optimized app this week. According to TechCrunch, the app “allows users to view live and recorded content streaming through the service — and to stream their own footage direct from their iPad 2.”
The company released its Android app on Honeycomb two weeks ago. There is also an iPhone version available.
The free Ustream app supports AirPlay, which means users can stream whatever they are watching on their iPad 2 to bigger screens.
“The AirPlay support is especially nice because while the video is projected onto your TV you can still use your iPad for chatting and social stream,” writes Gizmodo.
Ustream will also allow users to broadcast their own videos using either of the iPad 2’s cameras.
Twentieth Century Fox has announced a new service that will offer Fox movie downloads on Android devices as early as October. This is a first for the Google Android OS.
Due largely to the lack of playback and copy-protection technologies, Android has so far taken a backseat to Apple’s iPhone and the convenience of the iTunes store.
These issues should be addressed now that Google has acquired rights-management company Widevine.
Digital Trends points out that the service won’t enable downloading directly to phones: “Customers will need to initially buy a physical Blu-ray disc of a Fox movie. Afterward, they will be allowed to download a digital Android-friendly copy of the movie from Fox’s website to a computer, which can then be side loaded onto the Android device.”
Google launched its new Google+ social network June 28th, and an Android app was made immediately available.
Three weeks later, Apple finally approved the official Google+ app for iOS (until Tuesday, iPhone users had to access a mobile Web version in Safari).
Similar to the Web version, Google+ for iPhone includes Circles (stream of updates from a user’s contacts) and Huddle (for group messaging within a user’s circles).
Google+ for iOS works on the iPhone 3G, iPhone 3GS and iPhone 4 (running iOS 3.1 or later). A dedicated iPad version has yet to be announced.
Apple spin-off Apperian is hosting private-label iOS app stores for Cisco, Procter & Gamble, Estee Lauder and others.
Smarter Technology reports: “Apple’s over-the-air protocol enables any enterprise to bypass iTunes and create its own private-label application store, with complete IT control of provisioning, with Apple spin-off Apperian Inc. providing the necessary cloud-based hosting services.”
Apperian was spun off with Apple’s blessing in 2009. One year later, Apple’s over-the-air protocol became available.
Apperian CEO David Patrick says the service will also be adding Android apps in the future.
Videogame maker Electronic Arts announced this week it would acquire PopCap Games, maker of games like “Bejeweled,” “Zuma” and “Plants vs. Zombies.”
According to the deal, Electronic Arts is expected to pay $650 million in cash and $100 million in new shares.
EA has long been a dominant player in the console gaming market; this acquisition plans to strengthen its presence in mobile and causal gaming.
Mobile games, like those played on Android and iOS devices, are the fastest-growing segment of the gaming market.
“EA’s global studio and publishing network will help PopCap rapidly expand their business to more digital devices, more countries and more channels,” explained Electronic Arts chief exec John Riccitiello.
Android is the global leader in smartphone platforms with over 500,000 daily activations, serving as an obvious advantage for Google.
However, Android’s success is also becoming a boon for Microsoft, which has negotiated agreements with several Android licensees to settle patent infringement claims, providing $5-10 for each device shipped.
With the potential of 500,000 activations per day, this could amount to $1 billion in value to Microsoft.
This amount would exceed the value of their Windows 7 and Bing businesses currently.
