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Microsoft Drops The Surface
Microsoft has dropped the prices on its Surface RT tablets by as much as 30%, with the entry-level 32GB model selling for $349.
The 64GB Surface RT was also discounted by $150, and now sells for $449, or 25% off its former price.
When Microsoft launched the tablet, it sold the 32GB device for $499 and the 64GB configuration for $599.
Microsoft started selling the Surface RT at the lower prices Sunday, as did some of its U.S. retail partners, including Best Buy and Staples. On its website, Staples noted that the discounted prices are valid until July 20, and only while supplies last.
Microsoft’s website, however, listed no caveats, hinting that the lower prices might be permanent or at least will be honored for longer than one week.
The prices are another attempt by Microsoft to clear its existing inventory in preparation for a second-generation line of Windows RT devices. Previously, Microsoft had launched multiple deals to rid itself of the poor-selling tablet, most recently in June when it slashed prices by 60% in a bid to get universities and K-12 schools to buy the device.
Earlier, it kicked off a buy-a-Surface-RT-get-a-free-cover deal that ran until June 30. And at several conferences, including June’s TechEd North America and this month’s Microsoft Partner Conference, the company sold attendees a 64GB Surface RT for $100, 83% off list price.
Today’s sale prices were nearly Microsoft’s cost, which according to estimates of the tablet’s component prices, runs the company at least $284 for the 32GB Surface RT.
Microsoft has not abandoned Windows RT, the pared-down operating system that powers the Surface RT, but virtually every third-party OEM has either pointedly ignored the OS or publicly announced that they would not support it with devices of their own. Instead, the OEMs have flocked to Windows 8 Pro, even though some analysts question the value of touch devices on a platform whose biggest selling point is legacy software that doesn’t support touch.
Microsoft has not revealed sales figures for the Surface line — which also includes the Surface Pro, powered by Windows 8 Pro — but estimates by research firms like IDC have been lackluster.
MS Office Demand Fizzles
After a promising start, downloads of Microsoft’s free Office for the iPhone quickly nosedived, as the latest data from a mobile app analytics company showed.
But at least 200,000 copies of the small suite — iPhone versions of Word, Excel and PowerPoint — were downloaded in the first six days.
Distimo, a Dutch firm that tracks app store market data for several platforms, including Apple’s iOS, Google’s Android, and Microsoft’s Windows 8 and Windows Phone, said Office Mobile for the iPhone debuted in the No. 10 spot on June 15, the day after Microsoft launched the free app.
That was Office Mobile’s peak: On June 16, Office Mobile slipped to the No. 19 position among all free iPhone apps, then continued to slide throughout the week of June 17-23, starting that seven-day stretch at No. 36, falling to No. 86 by Friday, June 21, and ending at No. 299 on June 23.
From June 24 to July 6, Office Mobile was not on Distimo’s leaderboard, which lists only the top 400 downloaded apps.
The number of downloads of Office Mobile for iPhone is unknown — Distimo requires a paid account to show developers the estimated downloads of their apps and those of competitors, and did not reply to questions Sunday — but the tally was probably significant.
According to Distimo, to place in the App Store’s No. 10 spot, an app must average 72,000 downloads daily. Office Mobile was ranked No. 10 on June 15. Apps ranked at No. 50 averaged 23,000 downloads daily: Office Mobile held position at No. 50 or lower for five consecutive days.
Those numbers implied that at least 200,000 copies of Office Mobile were downloaded in the six days between June 15 and June 20.
Likewise, the sharp decline of Office Mobile’s position in the App Store’s free list after just a week hints at a pent-up demand that was quickly satisfied.
Although rumors of Office on iOS had circulated since the iPad’s 2010 introduction, they heated up last November when reports claimed Microsoft would launch a mobile version of the suite this year and tie the software to Office 365. At the time, most analysts agreed that Office 365 was the smart move because it could boost interest in the subscription concept Microsoft has bet will result in more, and more regular, revenue from its Office cash cow.
Linking Office on iOS to Office 365 would also let Microsoft avoid the Apple “tax,” the 30% cut that Apple takes from all App Store sales.
Only Office 365 subscribers can use Office Mobile. Subscriptions range from the consumer-grade Office 365 Home Premium, which costs $100 annually, to several business plans that start at $150 per user per year and climb to $264 per user per year.
Intel Invests In Tablet Business
Intel has invested in E La Carte, a firm that designs tablets for restaurants.
Intel Capital, the chipmaker’s investment arm, has bought into in all sorts of companies outside of semiconductors in a bid to diversify the firm’s income. Now the chipmaker has invested in E La Carte, a firm that designs tablets for use in restaurants.
E La Carte raised a total of $13.5m in second round funding for its niche tablet business, with Intel Capital leading the investment. The firm said it would use the capital injection to grow the firm and to try to increase the number of restaurants that use its tablets.
Christine Herron, director of Intel Capital said, “E La Carte offers the most innovative and reliable guest tablet solution in the industry. We’re thrilled to further accelerate the company’s growth with not only capital, but also our significant resources and expertise in manufacturing, operations, and media.
“As E La Carte transforms the dining experience, we are creating a new market for both restaurant and guest services.”
E La Carte claims to have sold thousands of tablets to restaurants and cites a month on month growth rate of 35 percent. For Intel it is one way of getting a foothold in the tablet market, even if its Clovertrail+ tablets have yet to take the market by storm.
Rajat Suri, CEO of E La Carte said, “We are excited to work with Intel to grow our footprint to more restaurants across the country. With more than 200,000 casual-dining restaurants in the US, we see an enormous opportunity to make full service and fast casual restaurant experiences more enjoyable for guests, and more profitable for restaurant operators.”
Aside from the cash, Intel Capital will also provide advice in manufacturing, operations and media to E La Carte, presumably with the hope of taking the firm public in the future.
HP Aims To Boot ‘Useless’ Data
Hewlett-Packard wants to help organizations rid themselves of useless data, all the information that is no longer necessary, yet still occupies expensive space on storage servers.
The company’s Autonomy unit has released a new module, called Autonomy Legacy Data Cleanup, that can delete data automatically based on the material’s age and other factors, according to Joe Garber, who is the Autonomy vice president of information governance.
Hewlett-Packard announced the new software, along with a number of other updates and new services, at its HP Discover conference, being held this week in Las Vegas.
For this year’s conference, HP will focus on “products, strategies and solutions that allow our customers to take command of their data that has value, and monetize that information,” said Saar Gillai, HP’s senior vice president and general manager for the converged cloud.
The company is pitching Autonomy Legacy Data Cleanup for eliminating no-longer-relevant data in old SharePoint sites and in e-mail repositories. The software requires the new version of Autonomy’s policy engine, ControlPoint 4.0.
HP Autonomy Legacy Data Cleanup evaluates whether to delete a file based on several factors, Garber said. One factor is the age of the material. If an organization has an information governance policy of only keeping data for seven years, for example, the software will delete any data older than seven years. It will root out and delete duplicate data. Some data is not worth saving, such as system files. Those can be deleted as well. It can also consider how much the data is being accessed by employees: Less consulted data is more suitable for deletion.
Administrators can set other controls as well. If used in conjunction with the indexing and categorization capabilities in Autonomy’s Idol data analysis platform, the new software can eliminate clusters of data on a specific topic. “You apply policies to broad swaths of data based on some conceptual analysis you are able to do on the back end,” Garber said.
Will Icahn Boot Michael Dell?
Carl Icahn reportedly is drawing up a shortlist of potential Dell CEO replacements for Michael Dell should his bid for the company be successful.
Icahn and Southeastern Asset Management have made a bid to rival that of Michael Dell and Silver Lake Partners in the high stakes fight over Dell and its board. Now it is being reported that Icahn has already started drawing up a list of candidates that he and Southeastern Asset Management will propose as replacements for Michael Dell as CEO of Dell.
Icahn has previously warned that should his offer for Dell be accepted by the shareholders he would look to not only oust Michael Dell as CEO but replace the firm’s board of directors. Reuters reports that Icahn is casting his net far and wide, including consideration of former HP CEO and current Oracle co-president Mark Hurd.
According to Reuters’ sources Cisco director Michael Capellas, IBM services head Michael Daniels and Oracle’s Hurd are all in the frame, although none of the individuals would confirm having been approached by Icahn.
Michael Dell’s initial plan to buy back the company he founded has met with strong opposition by existing shareholders, some of whom think they are getting shortchanged. According to Michael Dell, the firm’s reorganisation into an enterprise IT vendor will be easier if the company goes private and doesn’t face investor and market scrutiny.
So far Dell’s board is backing Michael Dell’s and Silver Lake Partners’ buyout offer, suggesting that Icahn’s offer is short of cash. However some of Dell’s investors might like the drastic action that Icahn is promising, along with the fact that his offer allows existing shareholders to maintain a diluted stake in the company.
Should Icahn manage to get his takeover offer accepted by Dell’s shareholders, it will set up a sensational return to the PC industry for Hurd and give Dell renewed momentum to compete with HP.
Lenovo Soars
PC sales in China and high growth in smartphones sales helped boost Lenovo’s net profit for its fiscal fourth quarter by 90% year-over-year.
For the quarter ended March 31, Lenovo’s net profit was $127 million, the company said on Thursday. Revenue shattered records and was at $7.8 billion, growing 4% from the same period last year.
In Lenovo’s home market of China, the company had an operating margin of 4.9%, an increase of 8% year-over-year. The company also saw continued profitability in its mobile devices business, which makes up 9% of its overall sales. At the end of the quarter, Lenovo’s smartphone shipments were up 206% year-over-year.
Globally, PC shipments were down 13.9% year-over-year in the quarter, the market’s steepest decline since research firm IDC began tracking the market in 1994. Lenovo itself posted flat year-over-year PC shipment growth in the period.
Smartphone and tablet popularity have hurt PC sales, according to analysts. Computers running Microsoft’s Windows 8 have also failed to drum up consumer interest in the previous two quarters.
Lenovo, however, has managed to weather the slowdown by taking advantage of the Chinese PC market, where it has an over 30% market share. Close to half of the company’s revenue comes from the country, now the world’s largest PC market.
The company is now close to surpassing leading PC vendor HP for the top spot. The company had a 15.3% share of the market in this year’s first quarter, while HP had a 15.7% share.
But the Chinese PC maker also plans to focus more of its investment on tablets, smartphones and enterprise hardware, the company’s CEO Yang Yuanqing said in a statement. Earlier this year, Lenovo also reorganized its operations to sharpen the company’s branding and compete better in high-end products.
For the current fiscal year, Lenovo aims to ship 50 million smartphones, up from 30 million last year, Yang said Thursday in an earnings call. It aims to ship 10 million tablets, a five-fold increase from the previous fiscal year.
Most of Lenovo’s smartphone sales come from China, but the company has also begun selling handsets in the emerging markets of Russia, India, Indonesia, the Philippines and Vietnam. In addition, Lenovo is preparing to bring its smartphones to the U.S. and European markets, Yang said, without saying when.
Is Yahoo Really Back?
Yahoo has once again made the list as one of the world’s 100 most valuable brands.
The Internet company nabbed the 92nd spot in the annual list of global companies from multiple industries including technology, retail and service, released Tuesday by BrandZ, a brand equity database. The ranking gave Yahoo a “brand value” of US$9.83 billion, which is based on the opinions of current and potential users as well as actual financial data.
Apple occupied the number-one position on the list, with a brand value of $185 billion. Google was number two, with a value of roughly $114 billion.
The BrandZ ranking, commissioned by the advertising and marketing services group WPP, incorporates interviews with more than 2 million consumers globally about thousands of brands along with financial performance analysis to compile the list. Yahoo last appeared on the list in 2009 at number 81.
Yahoo’s inclusion on the 2013 list comes as the Internet company works to reinvent itself and win back users. Previously a formidable player in Silicon Valley, the company has struggled in recent years to compete against the likes of Google, Facebook and Twitter.
Improving its product offerings on mobile has been a focus. New mobile apps for email and weather have been unveiled, along with a new version of the main Yahoo app, featuring news summaries generated with technology the company acquired when it bought Summly.
Most notably, Monday the company announced it is acquiring the blogging site Tumblr for $1.1 billion in cash. Big changes to its Flickr photo sharing service were also announced.
Yahoo’s rebuilding efforts have picked up steam only during the last several months, but the 2013 BrandZ study was completed by March 1.
However, last July’s appointment of Marissa Mayer as CEO likely played a significant role in the company’s inclusion in the ranking, said Altimeter analyst Charlene Li. “Consumer perception has gone up since then,” she said.
“Yahoo’s leadership has a strong sense of what they want to do with the brand,” she added.
Yahoo’s 2012 total revenue was flat at $4.99 billion. However, after subtracting advertising fees and commissions paid to partners, net revenue was up 2 percent year-on-year.
Qualcomm Sticks With Windows RT
Tim McDonough, Vice President, Marketing at Qualcomm, was Qualcomm´s commitment to Windows RT. Ever since Microsoft announced Windows RT, ARM supporters had high hopes and Windows RT has yet to live up to some.
Tim confirmed Qualcomm´s commitment to Windows RT and future releases, saying “we are here for the long run”. He describes the partnership as the beginning of a long journey and of course Qualcomm is going to continue rolling out chips that will run great with Windows RT.
Qualcomm mentioned that Samsung ATIV and Dell XPS 10, both of which use Qualcomm’s S4 dual-core APQ8060A chips, run really nice. Tim told us that he is a real fan of both devices and that he is currently using one of them.
We also learned that Snapdragon 600, the one used in the HTC One and some versions of Samsung’s Galaxy S4, is 40 per cent faster than the S4 Pro, adding that Adreno 320 graphics core is significantly faster than the Adreno 225 used in the S4 APQ8060A chip. Another number we got is that the Adreno 330 is up to four times faster than the 225, which is a huge leap forward. Let’s not forget that Snapdragon 800, which is up to 75 per cent faster than Snapdragon S4 Pro, is also coming in mid-year, second half of 2013. The 800 will be Qualcomm’s first chip with Adreno 330 graphics.
One can easily conclude that there should be some Snapdragon 600 and 800 Windows RT convertible tablets at some point in the future. To stay on the safe side, Qualcomm just confirmed that new and exciting things are coming in the next months and quarter and they are Windows based.
We have to notice that most people in the tablet world get really excited talking about convertible tablets in all shapes and sizes, as the physical keyboard is definitely an accessory you want to have.
Xerox Moving Into IT Services
Printer and copier maker Xerox Corp forecast current-quarter earnings below estimates as it quickens efforts to transform itself into a technology services provider.
Xerox, whose shares were little changed at midday, also offers services such as managing toll systems and healthcare programs to counter sluggish growth in its printers and copiers business, which accounts for about 40 percent of its revenue.
Services is now the larger part of the company’s business and lower margins in IT and business process outsourcing is dragging overall margins.
The company said it expects second-quarter revenue from its document technology business, which includes printers and copiers, to decline in the mid-single digits. Revenue fell 9 percent to $2.14 billion in the business in the first quarter.
Based in Norwalk, Connecticut, Xerox moved into business services with its purchase of Affiliated Computer Services Inc (ACS) for $5.5 billion in 2009 – the company’s biggest deal in its 106-year history.
Xerox said it plans to quicken the pace of a restructuring plan kicked off in the last quarter of 2012 and included a 2-cent restructuring charge in its second-quarter forecast.
Xerox said it expects flattish revenue for the full year, compared with previous expectations of up to a 2 percent growth, it said on a conference call with analysts.
The company said it was on track to reach its target of adjusted EPS of $1.09 to $1.15 for the full year and to generate operating cash flow of $2.1 billion to $2.4 billion.
“Europe remains weak. US remains stable, but weak. We have not seen a pickup in the US,” Xerox CEO Ursula Burns said on a conference call with analysts.
“We did see a slowdown, a bit of a slowdown, in some developing market economies. But our business model is fairly resilient in the developing markets,” she said.
Microsoft Looks Into Smart Watches
April 24, 2013 by admin
Filed under Consumer Electronics
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Microsoft is developing designs for a touch-enabled smart watch, joining a number of other large competitors like Samsung Electronics and Apple who are said to be working on similar devices, according to a recent report.
Executives at suppliers to Microsoft told The Wall Street Journal that the company was sourcing components for the prototype of what could potentially be a “watch-style device.”
Microsoft has, for example, requested 1.5-inch displays from component makers for the prototype, an executive at a component supplier told the newspaper. It is unclear whether the company will decide to go ahead with the watch, the newspaper added.
Microsoft could not be immediately reached for comment.
A large number of vendors are looking at new product categories beyond smartphones and tablets.
This isn’t the first time, however, that Microsoft may be looking at watches as a product. It launched a smart wrist watch around a concept called Smart Personal Object Technology it unveiled in 2002, but withdrew it after a lackluster performance.
The Redmond, Wash., company is seeing its key PC market under threat from smartphones and tablets, and the failure of its new Windows 8 operating system to boost sales significantly. IDC said last week that first quarter PC shipments totaled 76.3 million units, down 13.9% compared to the same quarter last year. (The decline was worse than the 7.7% previously forecast by the analyst firm, and the market could be headed into further contraction, the research firm added.