Apple Launches New OS and Reports Record Profits

  • Apple Inc. officially unveiled its newest operating system — OS X 10.7 “Lion” — on Wednesday. The OS introduces many features that mimic functions seen on its popular iPad.
  • The company also reported record earnings in the third quarter, despite any major new product announcements. Revenue was up 82 percent, and profits more than doubled, as consumers continued to purchase iPhones and iPads in record numbers (Apple computers also continued to sell, although iPod sales declined 20 percent).
  • Global sales of iPads nearly tripled to 9.25 million during the third quarter. Apple credits some of the success to adoption of the device by businesses such as Alaska Airlines and Nordstrom.
  • The New York Times reports that Apple’s current market value is 10 times Dell’s and nearly five times Hewlett-Packard’s.

Insiders say Amazon Plans to Launch an iPad Rival

  • Amazon may be selling a tablet computer as early as October, report people familiar with the matter.
  • The new tablet is expected to feature a 9-inch screen and run on Android’s operating system (but will reportedly not include a camera). An Amazon-designed second tablet may be available next year.
  • Amazon is still expected to introduce two new Kindles in the third quarter.
  • With its own online retail operation, Amazon is well positioned to compete with Apple. Moreover, one analyst says Amazon can offer a cheaper alternative and make up the difference with movie, music and book sales.

Pop Culture and Media App: Video Time Machine for iOS

  • “Video Time Machine” is an entertaining and informative 99-cent iOS app from Original Victories, Inc. (compatible with iPhone, iPod touch, and iPad).
  • The app chronicles more than a century of compiled movies, commercials, TV broadcasts, and other moving images (the iTunes Preview description reads: “Watch over 10,000 hand-picked videos from 1860 to 2011”).
  • A simple interface enables users to select a year and then browse categories, including: news, games, sports clips, ads, movies, TV, and music.
  • For those more interested in entertainment surfing than a specific year or category, the app features a “random” button.
  • According to the Engadget post (which includes a video demo), all of the cataloged videos are available via YouTube, but the Video Time Machine “isn’t designed to simply mimic it; rather, the program’s meant to act more as a history lesson, giving us a unique opportunity to witness a slice of life.”

Milestone: Apple Surpasses 15 Billion App Store Downloads

  • Apple announced the 15 billionth app download this week. The App Store has been open three years.
  • There are some 425,000 apps and 100,000 iPad apps available to users in 90 countries.
  • Apple has paid more than $2.5 billion to app developers to date.
  • From the Apple press release: “Users of the more than 200 million iOS devices around the world can choose from an incredible range of apps in 20 categories, including games, business, news, education, sports, health, reference and travel.”

Tablet-Notebook Convergence: Ultra-Thin, Touch-Sensitive Devices

  • “Tablets aren’t cannibalizing notebooks; they’re converging with them,” writes John Paczkowski in a WSJ article about how fears regarding an iPad takeover of PC sales is overblown.
  • Bernstein Research analyst Toni Sacconaghi sees tablets and notebooks converging as solid-state storage, low-power processors, app stores, touch interfaces, and lighter weights continue to span both platforms.
  • Sacconaghi predicts there will be notebooks of iPad weight with touchscreens and integrated keypads for under $1,000 which may undermine sales of tablets.
  • Paczkowski concludes: “In other words, the cannibalized becomes the cannibal. And in the end, it turns out that the post-PC era doesn’t mean that the PC is dead, but rather that it’s been born anew as a converged device — an ultrathin, touch-sensitive notebook.”

Access to Month-Long iTunes Festival Available via iOS App

  • The annual iTunes Festival kicked off Friday in England, streaming select performances live in HD to iPads and iPhones for those who downloaded the free app.
  • The event is scheduled for 31 consecutive nights at the Roundhouse in London.
  • Paul Simon was the first artist to take the stage. Additional headliners include Coldplay, Linkin Park, My Chemical Romance, Foo Fighters, Jimmy Eat World, Moby and more.
  • Apple funds the event by recording the live sets and selling them exclusively on iTunes.
  • Wired suggests an alternative business model: “But it makes me wish more festival organizers would do this the other way around — free recordings of the gigs you paid to see at festivals. Or perhaps a handful of free tracks to choose from an entire festival’s lineup, with the complete collection put on sale. There’s no better live recording than one created during the night you attended.”

New Book on Tablet Impact: iPad in the Enterprise

  • In his new book, iPad in the Enterprise (available this August), Nathan Clevenger examines how the Apple iPad has started to transform the way enterprise IT departments are operating. Some interesting excerpts from the book are listed below.
  • “The day the iPad was introduced we had some discussions about adding them into our environment; 24 hours later, we had 500 devices accessing e-mails,” said Frank Modruson, the CIO of Accenture. “CIOs who resist will eventually be forced to change.”
  • “As we move forward into a world where cloud enabled networks are the norm,” says Art Glasgow, the CTO at Ingenix, “CIOs have to accept the fact that the world has changed. Any device at any time on the network will be the norm and it will have to be done without sacrificing security and manageability. Cool matters and usability rules the day so devices like the iPad have to be not just accounted for, but designed for. The good news is that devices like the iPad aren’t just cool. They are flexible, multifunction tools that are changing the way we work and create and in that sense may very well be not just an innovation themselves, but a catalyst to innovations.”

HP Enters the Tablet Fray This Week with the TouchPad

  • Hewlett-Packard will start selling its new TouchPad on Friday, entering the tablet market currently dominated by the iPad 2.
  • The new tablet, starting at $500, features a 10-inch screen with “a slick, distinctive software interface.”
  • Walt Mossberg likes TouchPad’s UI but downgrades it for poor battery life, a small number of apps, and an operating system that is buggy and requires regular rebooting.
  • The TouchPad will initially be available in two versions (16 or 32 gigabytes of storage) and will only offer Wi-Fi connectivity.
  • Mossberg: “At least for now, I can’t recommend the TouchPad over the iPad 2.”

Hauppauge Broadway Box Delivers Live TV to iPhone and iPad

  • Hauppauge Digital is expected to release its $199 “Broadway” box by late July or early August.
  • The device enables viewers to use Wi-Fi signals to watch TV on mobile devices or via a Web browser.
  • It features a multi-format TV receiver that can tune QAM digital and ATSC over-the-air SD and HD channels.
  • Broadway operates much like the Slingbox device, but without an extra fee for mobile viewing.
  • The box currently works only with Apple’s mobile devices (iOS 3 or higher), but can be used with both Mac and Windows PCs.

TV Execs Predict Significant Changes in Content Delivery

  • At the Elevate Video Advertising Summit in New York earlier this month, executives from Comcast Interactive Media, Turner, Disney and ESPN agreed that in two years 75 percent of television content will be available online and on mobile devices.
  • For an increasing number of consumers, the line between traditional TV content and Web video is blurring.
  • The immediate hurdles involve negotiating broadcast rights across platforms and addressing the threat of broadband usage caps and fees.
  • Regardless, it seems the concept of “TV Everywhere” is inevitable.
  • “It’s interesting to think of what the definition of a TV is,” said Comcast’s Matt Strauss. “My kids think an iPad is a TV. People don’t think of TV anymore, they just think of video. For us, in the broader context of what we’re doing, we’re beginning to migrate everything to Internet video.”

Is Facebook Finally Ready to Announce its iPad App?

  • Facebook is reportedly preparing to release a free social networking iPad app, after nearly a year in development.
  • Developers have overhauled the Facebook Chat and Facebook Groups features, which are now in the final stages of testing.
  • The app will also allow users to shoot and upload photos and video content from the iPad’s built-in cameras.
  • “People who have seen the application said it has a slick design that has been tailored for the iPad and its touchscreen interface.” (Facebook users have previously complained (read the related TechCrunch post) that its interface is not optimized for touchscreen functionality.)
  • Facebook claims it is approaching 700 million users worldwide, with 250 million of them actively accessing the site on mobile devices.

3D Phones: Next Big Thing or Next Big Gimmick?

  • Recent product announcements indicate 3D technology may not be just for cinema releases and home theaters, as the technology is beginning to make its way to mobile devices.
  • The first significant 3D mobile device was the Nintendo 3DS (launched in March). The $249 3DS features a 3.5-inch glasses-free 3D screen. However, sales so far have been disappointing. NPD Group reports that Nintendo sold almost 400,000 units in the first week following its U.S. launch (100,000 units less than sales of the original DS in November 2010).
  • Now, tablets and smartphones are in the 3D spotlight.
  • Rumors are surfacing that the next iPad will feature 3D capabilities – and two new Android smartphones, the LG Thrill and the HTC Evo 3D, are already touting glasses-free 3D.
  • Manufacturers hope these devices will make watching movies, playing games, and sharing photos more of an immersive experience.
  • The LG and HTC phones include special 5MP dual-lens cameras for shooting 3D photos and videos.
  • It is too early to tell whether 3D technology for mobile devices will be the next big thing or merely the next big gimmick. However, the much lower cost of mobile devices could make adoption more swift than its been for comparably higher priced HDTVs.
  • According to Ross Rubin, director of industry analysis at NPD Group: “Handsets by themselves are typically not as strong a voice for developers to create 3D applications. If someone the likes of Apple or Google get into 3D, then there will be a large enough base.”

PlayBook Outsells Motorola Xoom in its First Month

Research In Motion has had an interesting month. ETCentric’s story submission stream has featured a number of PlayBook-related stories in recent weeks… from the tablet’s weak initial launch — to the unfortunate recall of 1,000 units due to faulty operating systems — to the news that it had surprisingly sold 250,000 units during its first month of availability. In fact, despite mixed reviews and April’s slow launch, RIM’s PlayBook managed to outsell the Motorola Xoom in its first month.

In April, initial reports indicated a disappointing launch, with many units reportedly remaining on shelves during the first days of availability. Many reports credited the ongoing success of Apple’s iPad and the current lack of apps made for the PlayBook. Reuters reported: “RIM, which has priced the PlayBook to match the iPad, has struggled to win consumer fans since Apple’s iPhone and a slew of devices running Google’s Android entered the smartphone fray.”

Less than one month later, reports circulated that RIM had recalled approximately 1,000 units that were shipped with what the Wall Street Journal described as, “faulty operating systems which may have prevented users from performing the initial setup of the device.” The recall fell on the heels of RIM issuing a first-quarter profit warning, after citing lower-than-expected BlackBerry sales.

Yet not all news was negative. By the third week of May, RBC Capital Markets reported that the PlayBook had sold 250,000 units in its first month (it took Motorola’s Xoom two months to reach the same numbers). If the pace of PlayBook sales remains consistent, RIM will sell over 2 million units this year (slightly less than most analysts’ sales estimates for the tablet).

Of course, these numbers don’t come close to iPad sales, so the question remains: Is there a current tablet that is ready to compete with Apple’s iPad (at least in the near term)?

Related Reuters article: “RIM launches PlayBook but fans don’t play along” (4/19/11)

Related Wall Street Journal article: “RIM Recalls 1,000 PlayBook Tablets” (5/16/11)

Related BGR Media post: “250,000 BlackBerry PlayBook tablets sold to date, RBC says” (5/18/11)

Related Wired review: “BlackBerry PlayBook Tablet Lacks All the Right Moves” (4/13/11)

Related CNET review: “BlackBerry PlayBook review: A great surprise” (4/13/11)

Related SmartBlog post: “Will PlayBook play nice in the cloud?” (5/23/11)

Samsung Galaxy Tab 10.1: the iPad 2 of Honeycomb Tablets

CNET offers a “first look” video review of the new 32GB Samsung Galaxy Tab 10.1, a Honeycomb tablet recently demonstrated at the annual Google I/O event (the full production unit will be available June 8). The video notes that the “10.1” in the device’s name refers to the screen size and the UI is the same as that of the Motorola Xoom running Android. However, the review also notes that the Galaxy Tab has more in common with the iPad 2 than the Xoom.

The CNET review describes the new device: “As thin as the iPad 2 and even lighter, the Samsung Galaxy Tab 10.1 is the sexiest Honeycomb tablet we’ve seen. Also, it has an 8-megapixel back camera and a 2-megapixel front camera, and powerful dual speakers.” On the negative side, the review points out that lack of ports may be problematic to some users — and that from a design perspective, the plastic back of the limited edition version feels less solid and looks like “cheap kitchen wallpaper” (the release this summer may not have this problem).

The CNET evaluation goes on to praise the clean design, screen size, 1280×800 resolution and overall performance.

The bottom line: “Apple still has superior support for games, apps, music, and movies. While Honeycomb 3.1 seeks to offer more features, it’s still not here yet. So, if it’s down to these two tablets, we still recommend the iPad 2; however, the Galaxy Tab 10.1 would be the Android tablet of choice.”

Related Xconomy article: “The iPad Finally Has a Worthy Rival: Samsung’s Galaxy Tab 10.1” (5/13/11)

Related Engadget post and video: “Samsung Galaxy Tab 10.1 Limited Edition (white) hands-on from Google I/O!” (5/10/11)

Related PC Magazine post and slideshow: “Unboxing the Samsung Galaxy Tab 10.1” (5/10/11)

Impact of The iPad Effect on Tablet and PC Industries

Rob Woodbridge of UNTETHER.tv hosts a three-person online video panel for Episode 12 of his site’s program, The Week in Mobile. The informal 56-minute discussion provides an interesting take on how mobility is shaping content consumption — with a focus on “The iPad Effect” and its rapidly developing impact on the PC industry.

The panel cites a recent Fast Company article in which analysts anticipate 35 of the 45 million tablets expected to sell in the upcoming year will be iPads and that the only way for others such as Dell, Motorola, Samsung and RIM to compete with Apple is to dramatically undercut the price — begging the question, “Is the tablet PC industry really an industry yet at all?”

Additionally, as PC makers are being adversely impacted by the growing success of the iPad — not only with tablet sales, but in regards to laptops and desktops sales — another result may be the surprising “stealthy” success of MacBook Airs (for which the panel credits the proliferation of apps). According to Fast Company, the Air grabbed 15 percent of of the total notebook sales for the last quarter of 2010.

The discussion also addresses mobile privacy abuse in a new era of apps and Amazon’s concern regarding the consumer power enabled by NFC wireless technologies.