Most Popular Smartphone Platforms: Android, iOS, BlackBerry

  • Google’s Android continues its lead over all other smartphone platforms, according to the latest quarterly report from comScore.
  • However, Apple has overtaken Research In Motion’s BlackBerry for second place among U.S. smartphone software providers.
  • Android grew from 33 percent to 38.1 percent, while Apple grew to 26.6 percent and RIM declined to 24.7 percent.
  • Microsoft and Palm both showed declines as well.
  • In terms of handsets, Samsung currently leads with 24.8 percent of the smartphones in circulation while Motorola remains in second place.

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.”

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.”

Will Apple Offer a Free Version of its iPhone?

  • Apple may soon “amp up competition with Android” by offering its iPhone 3GS for $0 (with a qualifying service contract).
  • The iPhone 3GS was launched in the U.S. in June 2009.
  • RBC Capital Market analyst Mike Abramsky suggests the free phone will be made available the same time that Apple releases its successor to the iPhone 4, providing options for different demographics.
  • Abramsky also forecasts the free 3GS could “expand the iPhone’s worldwide marketshare from some 64 million users to more than 150 million users.”
  • Google’s Android is currently the top-selling smartphone platform in the U.S.

PayPal Will Process $3 Billion in Mobile Payments for 2011

  • PayPal’s new 2011 estimate for mobile payment processing of $3 billion is twice what the company estimated last year.
  • The $3 billion is divided into two categories: 1) individuals using Paypal’s mobile app to transfer money to each other, and 2) people completing purchases on mobile online commerce sites.
  • The PayPal online payments service (owned by eBay) has 8 million users and is processing up to $10 million/day in mobile total payment volume.
  • PayPal’s competitors include Google Wallet, Square and credit card companies.

Samsung Galaxy Tab 10.1 Takes on the Apple iPad 2

  • International Business Times provides an interesting side-by-side comparison of tablet market leader Apple iPad 2 and the newly available Samsung Galaxy Tab 10.1.
  • For the Galaxy Tab: higher display resolution (1280×800 vs. iPad’s 1024×768); more RAM; 9 ounces lighter and 0.01 inch thinner than the iPad; Adobe Flash playback capability; features new Plane to Line Switching (PLS) panel technology that enhances brightness, clarity and viewing angles; higher megapixel cameras and 1080p video capability.
  • However, Galaxy Tab’s thinness was achieved by excluding USB, HDMI and SD card slot.
  • For the iPad 2: better battery life than the Galaxy Tab (10 hours vs. 6 hours under similar conditions); better speaker sound, particularly at a higher volume; and perhaps most importantly, more than double the number of available apps (425,000 and growing).
  • The Galaxy Tab is powered by Honeycomb 3.1 OS: “And, no matter whichever way you look at it – slice it or dice it – Honeycomb lacks the finesse and elegance of iOS.”
  • Conclusion: “Galaxy Tab is the best Android tablet to be ever released. No doubt about that. But if you’ve made up your mind about getting iPad 2, don’t give it a second thought. The UI of iOS will not make you want to regret your decision.”

Toshiba Releases its Thrive Tablet with Honeycomb

  • Add another new tablet to the growing list of available devices… Toshiba began taking pre-orders last week for its 10.1-inch Thrive Tablet, expected to hit retail shelves in early July.
  • The $430 Wi-Fi-only 8GB tablet runs on Android 3.1 Honeycomb and is powered by Nvidia’s Tegra 2 chip.
  • PC Magazine reports there will also be 16GB ($480) and 32GB ($580) models available.
  • Inputs include: USB 2.0, Mini USB, HDMI and SD Card.
  • Features include: Multitouch 1280×800 LED display, front and rear cameras and a replaceable battery.
  • According to a PC World review this week, interoperability may be what makes the Thrive stand out from the pack: “The Thrive is the first Honeycomb tablet to include a full-size SD Card slot. None of this microSD card nonsense for Toshiba; ditto for only having a micro- or mini-USB port. By including the SD Card slot and USB port, the company recognizes the need for interoperability among devices. And only with interoperability can a tablet begin to replace a laptop in your arsenal.”
  • In related news, Hewlett-Packard also recently announced its first media tablet, the 9.7-inch webOS-powered TouchPad. The Wi-Fi-only TouchPad is priced at $500 (16GB) and $600 (32GB).

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.

Nielsen Reports TV Viewing Increase Across All Platforms

  • Americans are watching on average 22 more minutes of television per month than last year, according to Nielsen’s cross-platform video report.
  • The average viewer watched more than 158 hours a month of television content on a TV set in Q1 2011.
  • Viewing has increased across all platforms, with Internet and mobile devices seeing increases of 34.5 percent and 20 percent, respectively.
  • However, a subset of viewers who access video via their PCs tend to watch significantly less traditional TV (especially in the 18- to 34-year-old demographic).
  • Nielsen credits the surge to increased amount and diversity of content in addition to the ability to view content based on viewer’s convenience.
  • Another factor is the rise of the tablet, which offers a bigger and better viewing surface than smartphones.
  • According to Peter V. Dobrow from Comcast, families are increasingly adopting mobile devices for TV viewing. “Families use them, if the adults want to watch one thing, then the kids can watch another on the iPad and the whole family can still be in the same room,” Dobrow said. “We’re pulling together different apps and trying to make it easier to use and more consumer friendly.”

Smartphone Data Usage Hits All-Time High

  • It should come as no surprise that Nielsen’s monthly analysis of cellphone bills for more than 65,000 lines indicates that smartphone users (which comprise 37 percent of U.S. mobile subscribers) are consuming more data than ever before on a per-user basis (especially those with app-friendly iPhones and Android devices).
  • The average smartphone user is accessing 89 percent more data per month than last year’s figures, growing from an average of 230MB per month to 435MB per month in the first quarter of 2011.
  • Nielsen reports that “data usage for the top 10 percent of smartphone users (90th percentile) is up 109 percent while the top 1 percent (99th percentile) has grown their usage by an astonishing 155 percent from 1.8GB in Q1 2010 to over 4.6GB in Q1 2011.”
  • As data usage dramatically increases, most users are paying approximately the same amount they did a year ago for data, translating to a lower cost per unit of data consumed.  According to Nielsen: “The amount the average smartphone user pays per unit of data has dropped by nearly 50 percent in the last year, from 14 cents per megabyte (MB) to a mere 8 cents.”

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.”

$139 Nook Introduced; E-Reader Announcements from Amazon and Kobo

This has been a significant week for new product announcements as the e-reader war rages on. New devices, features, price points, sales reports (and a potential acquisition) have been announced from Kobo, Barnes & Noble and Amazon.

Canadian-based Kobo announced its new $130 Kobo eReader Touch Edition will ship in June. CNET expressed concern regarding the general speed of the Wi-Fi device and the new Freescale i.MX508 that powers the e-reader, but added: “That said, the Kobo Touch Edition has a compact, elegant design, with only a couple of buttons (since this is a touch-screen e-reader, there’s a built-in virtual keyboard). I didn’t see a Web browser and like other Kobo e-readers, the device seems very reading-centric. It’s also geared to the international market, with Kobo making a push into several countries, most notably Germany, which has the fastest growing e-book market outside the U.S.”

The next day, Barnes & Noble announced it will also have a new e-reader available in June. The new $139 Wi-Fi Nook claims to have the longest battery life of available e-readers (up to two months) and a growing bookstore (with over two million current titles). The Nook has reportedly been a major contributing factor in Liberty Media’s interest in a potential acquisition. The Wall Street Journal reports: “Liberty executives in recent days have said Barnes & Noble’s digital strategy played a key role in their decision to make a $17-a-share bid for control of the company.”

Not to be outdone, a few hours following the B&N announcement Amazon unveiled its all-new Kindle 3G with Special Offers (currently available) — an ad-supported 3G and Wi-Fi device weighing only 8.7 ounces and featuring improved screen contrast with the latest E Ink Pearl technology. At $164, it costs $50 more than the non-3G ad-supported version (reported last month by ETCentric), but $25 less than the ad-free equivalent.

Can the other e-readers compete with the number of current Kindle options? That question remains to be answered — as does the speculation that e-readers may eventually be replaced by more affordable tablet PCs. One thing is undeniable, however: the Kindle continues to gain in popularity.

In an Amazon press release issued last week, Amazon.com announced it is now selling more Kindle books than print books and the $114 Kindle with Special Offers is already the best-selling member of the Kindle family of products. According to the release: “Since April 1, for every 100 print books Amazon.com has sold, it has sold 105 Kindle books. This includes sales of hardcover and paperback books by Amazon where there is no Kindle edition. Free Kindle books are excluded and if included would make the number even higher.”

Related Wired post: “Amazon Brings Ads to Kindle 3G” (5/25/11)

Related Wall Street Journal article (with video): “Amazon Introduces Cheaper, 3G-Enabled E-Reader with Ads” (5/25/11)

Related CNET article (with video): “Kobo unveils Wi-Fi Touch Edition e-reader for $129.99” (5/23/11)

Related Kobo Blog post (with video): “The Rumors are True! Kobo Launches the Kobo eReader Touch Edition Today” (5/23/11)

Related Wall Street Journal article: “Liberty Says Nook Inspired B&N Bid” (5/24/11)

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)

Which Smartphone OS will Come Out on Top?

Nick Nero provides some interesting perspective in this month’s Connected World Magazine regarding which smartphone OS will become the dominant global platform by the end of the year. The short answer according to Nick: Google’s Android.

The article provides an interesting overview regarding the progression of RIM’s BlackBerry, Apple’s iPhone, Windows Mobile devices — and the growing worldwide adoption of Android devices. It further points out that Android will continue its dominance throughout 2011 based on several key factors: Open Software Architecture (“arguably Android’s biggest competitive advantage”), Open Marketplace (consumers recognize “the benefit of a free-market approach to smartphone apps and this will continue to push Android to the head of the pack”), and More Partners (Android “is available on devices from practically every carrier in the country”).

Nick offers these final thoughts: “By the end of this year I expect Android to have a very comfortable lead in the smartphone OS market unless Apple begins to open up its model a bit. I wouldn’t bet on that happening given that a very pretty walled garden is essentially Apple’s business model. I don’t feel too sorry for Apple though — it does extremely well in the high-quality experience niche it occupies in the Macintosh space.”

Related CNET article: “Gartner: Android leads, Windows Phone lags in Q1” (5/19/11)

Related ReadWriteWeb article (including videos): “The Future of the Smartphone: Holograms & Folding Screens” (5/18/11)

Related Gadgetbox article: “PlayStation phone coming to Verizon Wireless” (5/17/11)

Related Mashable article: “Smartphone Sales Up 85% Year-Over-Year” (5/19/11)

Related ReadWriteWeb article: “iOS Ad Impressions Up Nearly 50% this Year, says Millennial Media” (5/19/11)

Walt Mossberg Reviews New G-Slate Honeycomb Tablet

The new G-Slate tablet from LG (sold by T-Mobile) was launched last week as the first tablet in the U.S. using Google’s Honeycomb software (Android 3.0 for tablets) to offer 4G speed and 3D video. With an 8.9-inch screen, the G-Slate offers less viewing area than Apple’s iPad 2 and the Motorola Xoom, but more than the Samsung Galaxy Tab and RIM’s BlackBerry PlayBook.

The greatest challenges for the new device may be how to compete with the highly successful iPad — and how to differentiate itself from the other Android-based devices currently on the market. In his WSJ “All Things Digital” column, Walt Mossberg suggests that the G-Slate aims to be different in three major ways: by offering 4G cellular data speeds, enabling 3D video creation and viewing, and featuring an “in-between” screen size as compared to current offerings.

In his review, Mossberg found the performance to be on par with the Honeycomb Xoom, but overall not as good a choice as the iPad 2 (especially in terms of price, size and weight). And regarding the 3D functionality, he writes, “The 3D feature, which requires the use of 1950s-style colored glasses, seems like a parlor trick to me.”

Mossberg reports that the biggest selling point of the G-Slate is the 4G speed, but adds that the current problem with all Honeycomb devices involves a lack of “tablet-optimized third-party apps.” It’s tough to compete with Apple in this regard, considering it already claims 65,000 tablet apps.

Mossberg’s bottom line: “The G-Slate isn’t as good a tablet as the iPad 2. I’d only recommend it for people who want the higher cellular speeds, or who prefer Android.”