Apple Squashes Rumors

Apple will not develop a new, inexpensive iPhone just for the sake of offering a cheaper alternative, Apple CEO Tim Cook said in a speech on Tuesday.

The company’s focus is on creating great products, and it will not make a smartphone that does not past the quality test, Cook said during a webcast from the Goldman Sachs Technology and Internet conference, which is being held in San Francisco.

“There are other companies that do that, that’s not who we are,” Cook said. “Our North Star is great products.”

Instead, the company is now dropping prices on the older iPhone models. That has been successful, and the demand for iPhone 4 models in December was greater than supply, Cook said.

“It surprised us as to the level of demand we have for it,” Cook said.

Lowering the price on older models is just one of the approaches Apple is taking to reach out to price-sensitive buyers. It’s not easy to balance quality and price, and that’s when innovation comes into play and new products could be created to meet consumer demand, Cook said.

“Sometimes you can take the issue … and you can solve it in different ways,” Cook said.

For example, the first iPod that shipped in 2001 was priced at $399, and now users can buy an iPod Shuffle for $49. There was also a big demand in the past to drop the price of Macs to under $500, and Apple tried and couldn’t do it, so it created the iPad tablet.

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Is Apple Hiding Billions?

According to Apple’s Q4 corporate filings, the company channeled $11 billion into tax havens in a single quarter. The Sunday Times claims the company is sheltering a total of $94 billion in tax havens. However, Apple’s activities are completely legal and the IRS can’t do anything about it.

But Apple’s tax avoidance strategy is not limited to the US. The company is avoided an estimated £550 million in tax in Britain back in 2011. A different analysis suggests a £550 million tax bill. Let’s not forget Kate Middleton is about to have a baby, and babies tend to cost money, so shame on you Apple.

American politicians, from both sides of the political spectrum, like to have their photos taken next to anything Apple.  The company is often viewed as an American success story, as it managed to reinvent itself and come back from the brink to become the world’s second most valuable company.

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T-Mobile To Make More Cuts

T-Mobile USA will eliminate an additional 900 jobs in a restructuring, on top of a 1,900-job reduction at its call centers that was announced in March, the carrier confirmed on Wednesday.

T-Mobile, now with about 36,000 employees, has faced more than two years of subscriber losses. Last year, the wireless carrier lost out on a $39 billion deal to be taken over by AT&T — federal regulators rejected the deal.

In its first quarter results announced May 9, T-Mobile said it lost 510,000 contract customers. It now serves 33.4 million customers.

Not having the iPhone 4S to sell, compared to the other three major U.S. carriers, also hurt T-Mobile and lead to more contract deactivations, the company said in its first-quarter results.

A T-Mobile spokeswoman said in an email that the elimination of 900 jobs was the result of a “restructuring of key functions and departments across the company, including the elimination of some positions and outsourcing of others.”

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Is NFC Taking Off?

Analyst working for Berg Insight have noted a growth in global sales of handsets featuring Near Field Communication (NFC) increased ten-fold in 2011.

More than 30 million units were sold in 2011 and the market was growing at a compound annual growth rate of 87.8 percent. It predicts that shipments will reach 700 million units in 2016. The global rise in smartphone adoption is also driving higher attach rates for other wireless connectivity technologies in handsets including GPS, Bluetooth and WLAN, the report said.

Some of the reason for the growth is the reduction in the cost of the technology. It is now a staple feature on high-end smartphones and most medium- and low-end models. Declining costs will also enable broader integration in the featurephone segment that is rapidly gaining smartphone-like functionality.

Shipments of WLAN-enabled handsets have more or less doubled annually in the past four years and the attach rate increased to 33 percent in 2011.

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Experts Think iPad 3 Coming in March

Apple will debut a new iPad some time in early March, and will start selling it the following week, according to reports and industry analyst expectations.

The March debut of the iPad 3, as some have called it, was first reported today by AllThingsD, the blog owned by Dow Jones, the publisher of the Wall Street Journal. Citing unnamed sources, the blog said Apple will host a launch event the first week of March, likely at the Yerba Buena Center for the Arts in San Francisco, a regular venue for the company’s press announcements.

Last year, then-CEO Steve Jobs returned from medical leave to lead the launch event of the iPad 2 on March 2. Apple started selling the new tablet on March 11, 2011 via its online store.

If Apple follows the same timeline, it will probably conduct the event the week of March 5-9, and begin selling the new model the following week.

It’s possible that Apple will trot out a new iPad on one of the first two days of March — Thursday, March 1 or Friday, March 2 — but Apple usually hosts events earlier in the week.

Next month’s iPad introduction, if it does take place, will be the first without Jobs, who died last October at the age of 56 of complications from his long-running battle with pancreatic cancer.

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iPhone Narrows Gap With Android

Apple’s iPhone gained major ground among recent buyers in its battle against smartphones running Google’s Android, but still lagged behind its OS rival, pollster Nielsen said today.

In a December 2011 survey of U.S. consumers who had purchased a smartphone in the previous three months, 44.5% chose an iPhone, a jump of nearly 20 percentage points from the 25.1% that Nielsen measured in October.

That represents a 77% increase in the iPhone’s numbers.

But Android maintained the lead in the recent-buyers game with a 46.9% share, down from October’s 61.6%.

A majority of the new iPhone owners — 57% to be exact — bought an iPhone 4S, the newest model in Apple’s line-up, said Nielsen. The iPhone 4S debuted in the U.S. on Oct. 14, 2011.

Nielsen said the iPhone 4S had an “enormous” impact on Apple’s huge jump in share among new smartphone purchasers.

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Windows Phone 7 Roadmap Leaked?

A purported Microsoft slide showing the 2012 Windows Phone roadmap seems to indicate that we could see the next major update by mid-2012.

The Tango update is scheduled for the second quarter of 2012, but it won’t be aimed at high-end phones. Instead, Tango is supposed to bring Windows Phone to dirt cheap devices, or “products with the best prices” as Microsoft calls them. This seems to indicate that it will be even better at resource management than Mango, which is already far ahead of iOS and Android in terms of its OS footprint.

The big new, of course, is Apollo. The new OS is scheduled to appear in Q4 and it should enable Microsoft to offer competitive superphones. Currently Windows Phone devices max out at WVGA resolutions and single-core Qualcomm chips. Apollo could change all this and pave the way for dual-core designs with high resolution screens, probably 720p.

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Nokia Drops Luxury Brand Vertu

Nokia’s Vertu mobile phones sell for thousands but the firm is looking to unload this relatively low volume part of its business as it tries to focus on producing Windows Phones. According to the Financial Times (FT), Nokia has appointed Goldman Sachs to oversee the sale of its UK subsidiary.

Vertu’s market value is not known but the firm makes between 300 to 400 millionin annual sales and, according to the FT, private equity groups have expressed interest. The brand is fairly well known as a maker of expensive mobile phones and it might attract high-end ‘designer’ brands that want to break into the mobile phone market.

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Blackberry Delays Update

Last week at its BlackBerry DevCon conference, Research in Motion tried to get developers excited about the upcoming PlayBook OS 2.0 mobile operating system, to spur developers to create applications for RIM’s BlackbBerry PlayBook tablet, released last spring to poor reviews and low sales. But yesterday, RIM wrote in a blog post that it was delaying the release of the PlayBook 2.0 OS “until we are confident we have fully met the expectations of our developers, enterprise customers, and users.”

PlayBook OS 2.0 was originally promised for October 2011, but RIM has now set a target of February 2012. To meet the new February 2012 release date, RIM said it was dropping a key feature originally promised for PlayBook OS 2.0: its popular BlackBerry Messenger instant-messaging service.

Developers were looking forward to the promised October PlayBook 2.0 OS release in hopes it might spur sales of the poorly selling tablet, especially as the original timing would have taken advantage of the holiday sales season that will also see the release of the unified tablet/smartphone Android 4.0 “Ice Cream Sandwich” operating system and a bevy of new smartphones using Microsoft’s recently released Windows Phone 7.5 “Mango” operating system, in addition to Apple’s strong-selling iPad and new iPhone 4S, both featuring the recently released iOS 5 operating system.

The PlayBook OS is based on the QNX operating system that RIM bought in spring 2010 to be the basis for its tablets and, sometime in the 2012-13 timeframe, be the basis for a new operating system for its BlackBerry smartphones. Last week, RIM said that it will provide a unified tablet/smartphone operating system called BBX, based on the QNX/PlayBook platform. It said that applications developed for the PlayBook OS would be compatible with BBX, but did not make the same promise for BlackBerry OS apps.

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30% Of BlackBerry Users Want Out

The BlackBerry smartphone and its maker, Research in Motion, were in serious trouble even before last week’s global service disruption.

More than 30% of BlackBerry users in large companies said in September, a month before the outage, that they were looking to use a different smartphone device in 2012, according to a survey of 243 smartphone users in companies with more than 10,000 workers by Enterprise Management Associates (EMA).

“With last week’s outage, I suspect the 30% number is even higher,” said Steven Brasen, the EMA analyst who conducted the survey. “User satisfaction with BlackBerry is by far the lowest of smartphones. A huge number are dissatisfied.”

Brasen said the survey found that 11% of BlackBerry users in large companies are “completely dissastisfied” with the device, while only 2% of iPhone users and 0% of Android users are completely dissatisfied with their smartphones.

Brasen said the opinions of end users are becoming very important to IT executives.

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