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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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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T-Mobile Will Offer Unlimited Data Plans

Wireless telecom firm T-Mobile USA said it will begin offering unlimited data service plans, in a move aimed at snagging customers of bigger rivals Verizon Wireless and AT&T Inc which have discontinued offering such plans.

T-mobile, a unit of Deutsche Telekom AG, said the new plans will become available from July 24. The unlimited plans will be available with a two-year agreement for new and existing customers.

Verizon Wireless, the biggest U.S. mobile provider, said earlier in July it will stop offering unlimited data service plans, meaning higher prices for heavy users of services such as mobile Web surfing.

AT&T had stopped offering unlimited data services last year.

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Mobile Networks Near Capacity

Mobile networks in North America are using 80 percent of capacity, with 36 percent of base stations facing capacity constraints, according to a survey by investment firm Credit Suisse.

Networks in other regions also are more than 50 percent utilized, with the global average at 65 percent, Credit Suisse said after surveying carriers around the world. That level of use matches the average “threshold” rate that would trigger the service providers to start buying more network equipment, the report said. Looking ahead, on average the carriers expected their utilization rate to grow to 70 percent within 12 months.

Credit Suisse used the results to predict new sales by makers of cellular equipment, such as Ericsson, Alcatel-Lucent, Nokia Siemens Networks and Huawei Technologies. But at a certain level, heavy use of a base station can also affect the mobile experience of individual subscribers. The survey found that 23 percent of base stations worldwide had capacity constraints (defined as a utilization rate over 80 percent during busy hours), while 36 percent in North America were under that kind of pressure.

The North American networks were 72 percent utilized two years ago. The region’s carriers expect the rate to ease back down to that point within two years. North American service providers are likely to buy more equipment soon, because having their networks 74 percent filled is the threshold rate in that region, the survey said.

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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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States Subpoena Sprint

Sprint Nextel has been subpoenaed by nine states in connection with antitrust reviews of AT&T’s proposed $39 billion purchase of T-Mobile USA, according to information Sprint posted on the Federal Communications Commission (FCC) website.

In a letter dated June 28 to FCC, Sprint said it had received subpoenas and civil investigation demands from attorneys general in the states of Arizona, Florida, Hawaii, Illinois, Minnesota, New York, Pennsylvania, Texas and Washington, as well as from the Antitrust Division of the U.S. Department of Justice.

Sprint, the No.3 U.S. mobile service, is opposing AT&T’s proposed $39 billion purchase of No.4 U.S. mobile service T-Mobile USA, a Deutsche Telekom AG unit, on the grounds it will give too much competitive power to one company.

Sprint said in its letter that the states have asked the company to provide all the materials it had submitted to FCC regarding AT&T’s deal.

Meanwhile, an AT&T spokesman told Bloomberg that his company had also received subpoenas from the same nine states regarding its proposed T-Mobile transaction.

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TI Chip Goes 1080p On Android Devices

Texas Instruments on Tuesday said its OMAP chip had been certified to unlock full 1080p movies from Netflix for Google’s Android 2.3 based devices, which includes smartphones and tablets.

TI’s on-chip security feature, called M-Shield, will be able to decode 1080p high-definition movie streaming from Netflix, stated Fred Cohen, director of the OMAP user experience team at TI. A security layer unlocks the encoded video, which can then be viewed on smartphones and tablets or TV sets connected through an HDMI (high-definition multimedia interface) port.

The purpose of having this technology is to provide end-to-end security for protected video content, Cohen said. Movie studios are making more high-definition 1080p content available and are adamant about protecting their product, which are considered premium content.

The on-chip feature minimizes the ability to copy content, as it is easy to take control of a rooted Android device, Cohen said. It’s easy for users to access memory where the stream is temporarily stored, and then write the movie to another device.

“You have to protect those devices,” Cohen said. “We have implemented a firewall.”

TI’s security technology is to provide a security layer so devices get access to high-definition movies, Cohen said.

Netflix provides different levels of security certification depending on features such as the video quality and resolution, Cohen said. Netflix did not return a request for comment on whether it was streaming 1080p video content to mobile devices, or whether chip makers required certification to unlock secure 1080p content.

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Nokia Slashes Smartphone Prices

Nokia has lowered the price of smartphones across its entire portfolio in an attempt to slow the decline of its share in the higher-end of the cellphone market, two industry sources said on Tuesday.

One of the sources with direct knowledge of Nokia’s pricing said the company’s flagship model, the N8, the multimedia phone C7, as well as the business user-targeted E6, saw the steepest cuts of around 15 percent.

Other price cuts were smaller, both sources said. “There are no very big cuts per model, but the scale — across the portfolio — is unseen for a very, very long time,” said one of the sources, who works at a European telecom operator.

A Nokia spokesman declined to comment on specific prices and said changes were part of its normal business. “It’s business as usual,” he said.

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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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