Samsung’s New Chip Line To Boost Flash Memory

Samsung Electronics, the world’s No.1 memory chip maker, said it began mass production at a new $10 billion chip line, as it seeks to raise its profile in the booming flash memory chip market fueled by robust demand growth in mobile products.

Samsung’s new production line, its first in about five years, will help the company sharply lower production costs of the chips and could exacerbate oversupply in the market, stifling smaller rivals.

Apple Inc, the maker of popular iPhones and iPads, and Sony, which joined the crowded tablet market last month with two new devices, buy flash memory chips from Samsung.

The cost-competitive facility will make it difficult for its major customers to shift away to other suppliers.

Apple, Samsung’s biggest customer locked in a series of patent legal battles with the South Korean firm, is trying to reduce sourcing from the emerging competitor.

“The new line won’t have any immediate impact on the supply side, as it will take some nine months to fully raise capacity run rates, but it shows Samsung’s attempt to take more share in the flash chip market,” said Song Myung-sup, an analyst at HI Investment & Securities.

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Dell & Baidu To Create Mobile Devices

Dell Inc and China’s top search engine Baidu Inc plan to join forces and develop tablet computers and mobile phones, targeting the Chinese market dominated by Apple Inc and Lenovo.

China is one of the fastest growing markets for tablets and is home to more than 900 million cell phone subscribers, but analysts were skeptical that the partnership would knock Apple from its dominant perch in the market.

“I suspect this is just Dell, who has a lot of problems on the mobile and tablet front, grasping at straws to get any kind of publicity that it can to make its product more attractive,” said Michael Clendenin, managing director of technology consultancy RedTech Advisors.

“Ultimately in China, I still think it is Apple’s game, still for the iPad and iPhone.”

Dell declined to give a timeline for the launch of the devices, but local media reported on Tuesday, quoting sources, that it may be as early as November.

Baidu launched a new mobile application platform last week and offered a glimpse of its upcoming mobile operating system, which it hopes will serve a growing number of users accessing the Internet from smartphones and tablet computers.

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Lawsuit Says Microsoft Illegally Tracks Customers

Microsoft allegedly tracks the location of its mobile user even after customers request that tracking software be turned off, according to a new lawsuit.

The proposed class action, filed in a Seattle federal court on Wednesday, states Microsoft intentionally designed camera software on the Windows Phone 7 operating system to ignore customer requests that they not be tracked.

A Microsoft representative could not immediately be reached for comment.

The lawsuit comes after concerns surfaced earlier this year that Apple’s iPhones collected location data and stored it for up to a year, even when location software was supposedly turned off. Apple issued a patch to fix the problem.

However, the revelation prompted renewed scrutiny of the nexus between location and privacy. At a hearing in May, U.S. lawmakers accused the tech industry of exploiting location data for marketing purposes — a potentially multibillion-dollar industry — without getting proper consent from millions of Americans.

The lawsuit against Microsoft cites a letter the company sent to Congress, in which Microsoft said it only collects geolocation data with the express consent of the user.

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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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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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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Nokia Had Horrible Quarter

Nokia has just posted very disturbing quarterly results this morning. The European smartphone giant outlook appears to be getting worse and CEO Stephen Elop has acknowledged that things will not turn around overnight.

Elop is reporting that Nokia’s operating profit is down 44 percent since Q1 and sales of mobile devices are down 23 percent consecutively. While the overall sales of mobile phones and smartphones are down, along with average selling prices.

Elop labelled the results as “clearly disappointing” and went on to say that competitive pressures are continuing. He tried to paint a somewhat more positive outlook for the rest of the year, thanks to Nokia’s clear strategy and several major product launches.

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nVidia’s Tegra 3 Coming To Smartphones

It appears as though Nvidia’s next generation quad-core Kal-El (Tegra 3) quad core SoC will also show up on smartphones too. Originally, it was believed that the SoC would only support the ever growing tablet space.

Inside sources have confirmed that projects are already underway and that Tegra 3 aka Kal-El smartphones will be make a debut as well.

Nvidia had hoped to get a lot of play out of Tegra 2, unfortunately the chip was not as embraced as Nvidia had wanted. Even though the Tegra 2 SoC did manage to get a few design wins.

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Samsung Asks ITC To Ban Apple Products

Samsung requested that the U.S. International Trade Commission ban the importation of Apple’s iPhones, iPads and iPods, ratcheting up its fight with Apple.

The filing, dated Tuesday, states Apple’s iPhone, iPod digital music player and iPad tablet infringe on five of Samsung’s patents involving telecommunications standards and user interface inventions.

Samsung also filed a fresh patent lawsuit against Apple in a Delaware federal court on Wednesday.

The complaints are the latest salvo in a growing legal battle between the two electronics giants.

In April, Apple sued Samsung in a California federal court, claiming the South Korean firm’s Galaxy line of mobile phones and tablets “slavishly” copies the iPhone and iPad.

Samsung then countersued in California, and Apple last week filed another lawsuit in South Korea. An Apple spokesman could not be immediately reached on Wednesday.

As well as its own phones and tablets, Samsung manufactures microchips for Apple’s gadgets, a business that brought in about $5.7 billion in revenue for the South Korean company last year.

Before banning the importation of Apple’s popular devices, the ITC would first have to agree to look into Samsung’s allegations, a process that could be quite lengthy.

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Skype Debuts Video Calls For Android

Skype, which is being gobbled up by Microsoft for $8.5 billion, debuted a new service on Thursday allowing users of Android phones to make free video calls to Skype contacts, including those on Apple iPhones.

The company whose name has become synonymous with Internet calling said its updated Android app would initially support video calling on selected HTC and Sony Ericsson Phones, with more devices to follow shortly.

“We are committed to bringing Skype video calling to as many platforms as possible,” Skype’s product and marketing chief Neil Stevens said in a statement.

The move will help makers of phones based on Google’s Android software compete with Apple’s FaceTime video-calling service launched last year for the iPhone and now available on its iPad 2 tablet and Mac computers.

Video calling could also help new Skype owner Microsoft promote its Windows Phone smartphone platform, which it is merging with Nokia’s in an effort to become competitive with Android and Apple.

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