iPad Expected To Dominate Until 2013

Apple’s iPad will maintain its dominance of the tablet market through at least 2013, research firm IHS iSuppli said today.

El Segundo, Calif.-based iSuppli bumped up its iPad sales forecast for 2011 from an earlier estimate of 43.7 million to 44.2 million, citing Apple’s ability to solve its supply issues and the blunders by rivals, including Hewlett-Packard.

“Apple has resolved the iPad supply issues,” said Rhoda Alexander, senior manager of tablet and monitor research in an interview today. “It was never a demand problem.”

Earlier this year, Apple struggled to produce enough iPad 2 tablets to meet a surging demand for the new device. Those problems have been addressed, and Alexander said that Apple is in the cat bird’s seat for the second half of the year.

“All the momentum in the media tablet market is with Apple right now,” she said. “The competition can’t seem to field a product with the right combination of hardware, marketing, applications and content to match the iPad.”

iSuppli also boosted its forecast for overall tablet sales this year from 58.9 million to 60 million units, meaning the iPad will account for nearly three-fourths of all tablets sold in 2011.

That dominance will continue through 2013, said Alexander, noting that iSuppli previously expected Apple to fall under the 50% share mark in 2012.

“They’ve taken every lesson they’ve learned with previous products and applied them to the iPad,” said Alexander. “Their whole production process is a marvel to watch.”

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RIM To Launch Music Service

BlackBerry maker Research In Motion is making plans to roll out its own music streaming service that will work across its mobile devices, according to people familiar with the plans.

The new service is likely part of an attempt by RIM to improve its BlackBerry Messenger service as it competes with the mobile media platform strengths of rival Apple Inc and Google Inc’s Android.

RIM is in late-stage negotiations with major labels, including Vivendi SA’s Universal Music Group, Sony Corp’s Sony Music, Warner Music Group and EMI Group. The new service is expected to be announced by Labor Day in the United States, September 5.

RIM has been enhancing its BlackBerry Messenger offering, popularly known as BBM, since announcing its “social platform” at last September’s DevCon event where it unveiled the PlayBook tablet computer.

A RIM spokeswoman declined comment on the report but said BBM is one of the largest mobile social networks in the world.

RIM’s BlackBerry smartphones have been hit by a sharply declining market share in the United States, even as the company has expanded sales in other parts of the world, partly because of BBM’s popularity.

Analyst Matthew Thornton at Avian Securities said he doubted the music service would attract new users but might help the company keep its existing BlackBerry customers interested.

“I just don’t think trying to replicate Apple is really going to change their situation near term,” he said.

“For RIM it’s going to be the new OS 7 product first and foremost … and then it’s about QNX and making that transition.”

RIM has just launched an updated operating system on three new touchscreen devices intended to catch up with the technical specifications of Android and other rivals. The company plans to launch the first BlackBerrys using the QNX software, used on its PlayBook tablet, early next year.

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Beetel Teletech, part of India’s Bharti Enterprises that controls top mobile carrier Bharti Airtel (BRTI.NS), unveiled a tablet computer priced at 9,999 rupees ($220) on Wednesday.

The 7-inch tablet, branded Beetel Magiq, uses Google’s (GOOG.O) Android operating system and supports both 3G and Wi-Fi networks, Beetel said in a statement.

Beetel is one of the largest makers of fixed-line phones in India. A company spokesman said China’s Huawei HWT.UL was their manufacturing partner for the tablet.

India is the world’s second-biggest and the fastest-growing market for mobile phones, although computer penetration is still low.

Apple Inc (AAPL.O) began iPad sales in India in January this year, while Samsung Electronics (005930.KS) launched its Galaxy Tab in India in November last year.

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Best Buy Stuck With TouchPads

Best Buy is sitting on a boatload of 200,000 HP Touchpads and wants to send them back to HP.

According to Allthingsd, Best Buy stocked its warehouses with around 270,000 HP Touchpad tablets. However, the retailer has been unable to sell the tablets and has only sold at most 25,000, even with a $100 discount, so Best Buy is requesting that HP take back all of the unsold devices.

Furthermore, it is being said that things are so bad that HP EVP Todd Bradley might have to go to Best Buy’s headquarters and plead with executives to exercise patience. It appears that the Touchpad is suffering from poor sales in many stores across the country, with Wal-Mart also said to be an unhappy camper.

Update…HP will stop making the HP Touchpads…….

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China Debuts Apple iPhone Knock-Off

The latest version of Apple Inc’s popular iPhone has already hit the Chinese market — the counterfeit market that is.

The ‘hiPhone 5′ is selling for as little as 200 yuan ($31) on China’s top e-commerce platform Taobao, which is owned by Alibaba Group.

But one has to pay around 800 yuan for a more “genuine” one, according to some store representatives at a mobile phone market in Shanghai.

“Look at this. It’s not the same as the 300-400 yuan ones,” Shanghai-based daily Metro Express quoted a clerk as saying, pointing to one originally priced at 850 yuan.

The ‘hiPhone 5′ is based on leaked images of the yet-to-be-launched iPhone 5 and is thinner and with less rounded edges than the existing iPhone 4, according to the newspaper. However, it is extremely light, almost like a plastic toy, like most pirated mobile phones, it said.

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iPad Rivals Have Better Chance In Europe

Would-be rivals to Apple’s iPad have a better chance in Europe than they do in the United States, but they need to drop prices fast to grasp the opportunity, IT research firm Forrester said on Tuesday.

Apple’s relatively small retail presence in Europe — with 52 stores compared with 238 in the United States — offers a chance to the likes of Samsung, Acer and Research in Motion, Forrester said.

But their prices cannot yet compete with Apple, which has far larger scale in the tablet market and an efficient supply chain. Forrester said emerging challengers from China and Taiwan would likely step in soon with cheaper offerings.

“There is this opportunity for iPad challengers, but the competition is very fragmented. Competing with Apple will require a different approach from what we’ve seen so far,” said analyst Sarah Rotman Epps, the author of the Forrester report.

Apple still has the tablet-computer market almost to itself after launching the iPad a year and a half ago. It has sold close to 30 million iPads, whose prices start at about $500.

Forrester expects Apple to sell 80 percent of all consumer tablets in the United States and 70 percent in Europe this year.

It expects 2011 worldwide tablet sales to reach 48 million units, with half of those sold in the United States, 30 percent in Europe, 15 percent in Asia and 5 percent in Latin America.

Forrester surveyed almost 14,000 online adult consumers in France, Germany, Italy, the Netherlands, Spain, Sweden and Britain, and also interviewed product strategists from manufacturers, telecommunications operators and retailers.

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Apple Tech Support Satisfaction Plummets

Apple customers are increasingly unhappy with the company’s technical support, which could affect the firm’s bottom line in the future, a researcher said today.

Although Apple continues to outperform rival computer makers Hewlett-Packard and Dell in overall customer satisfaction with technical support, in several areas Apple’s slippage over the last year is alarming, said Peter Leppik, CEO of Vocalabs, a Minneapolis-based company that surveys consumers after they’ve contacted customer or technical support.

“Apple is still definitely ahead of its competition, but what we are highlighting are deeper metrics that are showing negative trends,” said Leppik. “Customers are upset with the automated part of support calls to Apple, and that might be trickling into higher metrics.”

Those higher metrics Leppik referenced include the likelihood customers will return for another purchase in the future, or continue to recommend Apple products to friends and family.

In the past 12 months, consumers who said they were “very satisfied” with Apple’s technical support dropped 15 percentage points, from 73% at the mid-point of 2010 to 58% halfway through 2011, said Leppik.

The primary cause of the tumble was a turnabout in customers’ opinion of the automated section of their calls to Apple. In the last year, the percentage of those who said they were very satisfied with the quality of Apple’s automation fell 13 points to 24%. That’s a new low for Apple in Vocalabs surveys, and a whopping 28 points off the peak of 52% a year-and-a-half ago.

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RIM Unveils New BlackBerry Torch Phones

Research In Motion on Wednesday unveiled two more powerful versions of its touchscreen BlackBerry Torch, hoping to buy time until it can introduce a radically new software package in its smartphones.

The new smartphones, along with a Bold upgrade unveiled earlier, are part of what the Canadian company called its biggest global launch ever as it seeks to claw back North American market share losses from Apple’s iconic iPhone and a slew of devices running on Google’s Android software.

The three touchscreen phones, running on the new BlackBerry OS 7, each boast an improved screen display and pack a 1.2 GHz processor from Qualcomm, the most powerful ever for a BlackBerry phone. All three devices will launch with carriers globally by the end of August, RIM said.

The browser for the new phones is 40 percent faster than the original Torch, RIM’s last major phone launch which hit shelves almost a year ago.

But since co-chief executive Mike Lazaridis has already promised “superphones” next year using the QNX-based operating system running RIM’s PlayBook tablet
computer, analysts are looking beyond the launch.

“This is a necessary product refresh in advance of the big bang that we hope and expect will happen with QNX-based phones,” said CCS Insight vice-president of research John Jackson.

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Is Sprint’s Future Questionable?

Sprint Nextel Corp’s shares fell sharply on Thursday as heavy subscriber losses in the second quarter called into question the strategy and outlook of the No. 3 U.S. wireless company.

Sprint had spent heavily to promote its service and better compete against larger carriers Verizon Wireless and AT&T Inc. But that strategy backfired as profit margins eroded and customer losses persisted.

The weak results overshadowed Sprint’s announcement of a $9 billion network contract with start-up LightSquared, and sent the stock tumbling to its lowest point since February before recovering a little to close down 16 percent.

Investors questioned whether Sprint would be able to meet its 2011 targets after such a disappointing showing.

“Their cost of doing business went up dramatically,” said Piper Jaffray analyst Christopher Larsen. “People have less confidence they can meet expectations.”

Sprint’s operating profit margin of 16.3 percent was well below the average Wall Street estimate of around 19 percent as the company had changed its product rebate terms in an effort to combat Verizon Wireless’ sale of the Apple Inc iPhone, and an iPhone discount at AT&T.

But the bet did not pay off as Sprint still saw defections of 101,000 net subscribers — also known as post-paid customers — compared with analysts’ expectation for losses of 15,000.

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RIM Cuts 11% Of Workforce

BlackBerry maker Research In Motion Ltd plans to slash approximately 11 percent of its workforce to curb costs as it struggles to compete against Apple Inc and Google Inc.

The announcement of 2,000 job cuts on Monday came a month after the Canadian company acknowledged that it would reduce headcount for the first time in a decade.

One analyst said the job cuts were slightly deeper than expected but were key to RIM’s recovery from a slump triggered by product delays and intense competition from Apple’s iPad and iPhone as well as devices powered by Google’s Android software.

RIM’s U.S.-listed stock, already near multi-year lows, was down as much as 2 percent before the market opened. It was trading down 1.8 percent at $27.40 on the Nasdaq
just before the open.

“This is not totally unexpected. I think the size of (the cuts) is a little bit bigger than what they were intimating before,” said Jefferies & Co analyst Peter Misek. “I think this is obviously realigning the cost structure to a new growth, or sales, reality.”

RIM said one-time charges from the job cuts were not included in its outlook for the second quarter or for the full year, and it would explain the financial impact of the cuts when it reports second quarter results on September 15.

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