Google Facing DOJ Probe

Google is under investigation by the U.S. Department of Justice concerning practices within its advertising program, and has set aside $500 million for a potential resolution fund, the company said in a regulatory filing on Tuesday.

In its quarterly report filed with the U.S. Securities and Exchange Commission, Google said that in May it accrued $500 million for the three-month period ended March 31, 2011 in connection “with a potential resolution of an investigation by the United States Department of Justice into the use of Google advertising by certain advertisers”.

Although it cannot predict the ultimate outcome of the matter, Google said that it believes that it will not have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows.

The company did not explain why the charge had been taken retrospectively on its first quarter earnings. It is also not clear to whom Google would have to make the payment in the event of settlement.

Google declined to comment, stating that it was a legal matter. The company has updated its first-quarter results press release on its web site, to reflect the new charge.

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iPhone Gaining on Nokia’s Dominance

Apple’s iPhone is moving closer and closer  to Nokia’s top spot in smartphones globally, according to first-quarter 2011 results reported by IDC on Thursday.

With the iPhone in the second spot, BlackBerry maker Research In Motion dropped to third after finishing second a year ago, IDC said. 99.6 million smartphones shipped in the first quarter, out of 372 million mobile phones overall.

Nokia sold 24.2 million smartphones in the first quarter, holding on to its global smartphone lead despite announcing that it will move from Symbian to Windows Phone as its main smartphone operating system in next few years, IDC said. Nokia “may find itself in danger of ceding market share as the competition ramps up,” IDC said.

Apple shipped 18.7 million iPhones in the first quarter, IDC said, a new record for a single quarter, “and inched closer to market leader Nokia, with fewer than 6 million units separating the two companies,” IDC noted.

Apple also had triple-digit growth in the U.S., with the Verizon Wireless CDMA iPhone 4, and in greater China.

RIM, while down from second place where it was a year ago, remained in third place from the fourth quarter of 2010. The majority of RIM’s shipments are older, lower-cost devices, IDC noted, a trend that will continue in the second quarter.

Samsung finished fourth in smartphones for the first quarter, with 10.8 million smartphones shipped, while HTC finished fifth, with 8.9 million shipped.

Samsung grew the most of any vendor for the first quarter — 350% year-over-year. Samsung has a multiple-OS strategy and sells mostly Android smartphones, including Galaxy S phones, as well as Windows Phone 7 and Wave devices.

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Samsung Infuse Smartphone Outed

AT&T Wireless and Samsung Mobile jointly announced the thin and lightweight Infuse 4G smartphone during a press conference Thursday in New York.

The phone is 8.99 millimeters (0.35 inches) thick, making it just a fraction thinner than Apple’s iPhone 4, and has a 4.5-inch Super AMOLED display, one of Samsung’s most advanced, stated Jeff Bradley, senior vice president for devices at AT&T Wireless.

The device weighs 4.7 ounces and is powered by a single-core ARM processor running at 1.2GHz. It runs Google’s Android 2.2 OS and will become available in the U.S. on May 15, priced at $199 with a two-year wireless contract. It runs on AT&T’s HSPA+ (Evolved High-Speed Packet Access) network, which AT&T considers a 4G service.

The display shows more pixels than Samsung’s earlier AMOLED smartphone screens offered on the AT&T network, Bradley said. Infuse also includes an 8-megapixel camera with auto-focus and flash.

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Panasonic May Boot 40,000 People

Analysts are speculating that Panasonic is planning to cut approximately 40,000 jobs over a couple of years.

Reuters is stating that Panasonic is being forced to take such drastic measures in its restructuring plans in its struggle to cut operating costs.  That said Panasonic is facing stiff competition from other Asian consumer electronics companies in Korea and China and has seen its profits dwindle over the year.

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Intel Developing Thunderbolt Technology

A new interconnect technology being developed by Intel could be ready for market by 2015 and will be able to move data between computers at up to five times the speed of its recently launched Thunderbolt technology, an Intel researcher said earlier this week.

The new technology uses silicon photonics, which combines silicon components with optical networking, to transfer data at up to 50 gigabits per second over distances of up to 100 meters, said Jeff Demain, strategy director of circuits and system research at Intel Labs, at a company event in New York.

Intel expects the technology to be ready for use in PCs, tablets, smartphones, televisions and other products by 2015, Demain said. As well as being faster than today’s interconnect technologies, it’s expected to lower costs because the components will be built using existing silicon manufacturing processes.

The technology could possibly be used in TVs and set-top boxes to carry video streams at much higher definition than those available today. Image resolution is likely to quadruple by the middle of the decade, when successors to 1080p have arrived, and that will mean more data has to be pushed to the TV.

It should also enable faster data transfers between smartphones, tablets, PCs and peripherals such as external storage drives.

The technology still has a way to go, but Intel showed its progress at the event in New York Wednesday. It showed what it said were working prototypes of the silicon chips used to transmit and receive the laser signals.

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Tegra 3 Smartphones Being Developed By Motorola

Many sources around the Internet are a buzz with news that Motorola is apparently developing a couple of smartphones using Nvidia’s Tegra 3 SoC processor.

One of the smart is being called the Bullet which features a 4.3-inch touchscreen, 1GB of RAM and 16GB of storage with a 12MP camera. The other phone is code named the Jet and is basically rhe same as the Bullet with a 4-inch screen and keyboard.  The pair of phones are expected to debut in early 2012.

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Samsung Sues Apple

In the uber competitive world of mobile device development suing is fast becoming a sport engaged in by all of the titans of technology. Add another lawsuit to the pile as Samsung Electronics hits Apple with lawsuits in three countries alleging infringement of patents on smartphone technologies. Last week Apple sued Samsung for allegedly copying the designs of Apple’s iPad, iPod Touch and iPhone in its Galaxy smartphone and Galaxy Tab tablet PC.

On Thursday, the South Korean electronics maker sued Apple in Seoul alleging five patent infringements, in Tokyo over two alleged infringements and in Manheim, Germany, over three.

“Samsung is responding actively to the legal action taken against us in order to protect our intellectual property and to ensure our continued innovation and growth in the mobile communications business,” the company said in a statement.

According to Samsung, the lawsuits say Apple infringed on patents concerning reducing data transmission errors in WCDMA (Wideband CDMA) mobile networks, tethering mobile phones to PCs so the PC can use the phone’s wireless data connection, and reducing power consumption when transmitting data over HSPA (High Speed Packet Access) networks.

Apple’s lawsuit filed on April 15 in the U.S. says Samsung copied external design features on the iPhone, iPod Touch and iPad. The lawsuit further alleges that Samsung designed application icons for that come close to icons on Apple’s devices.

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Verizon May Not Carry The PlayBook

Verizon Wireless is still evaluating whether or not it will carry the PlayBook tablet computer from Research In Motion, the biggest U.S. mobile operator stated on Wednesday.

While BlackBerry maker RIM had said it expected Verizon Wireless to be one of its distribution partners for PlayBook, the company said it has yet to make such a determination.

“We’re still evaluating the BlackBerry Playbook and have not made a determination as to whether we’re going to distribute it,” Verizon Wireless Spokeswoman Brenda Raney said.

The comment came the day after PlayBook debuted at North American electronics retailers.

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HTC Profits Rise, Lead By Android Popularity

Taiwan smartphone maker HTC Corp said first-quarter profit almost tripled, beating forecasts, driven by strong demand for its mobile devices, especially those running on Google’s Android operating system.

The company, which has just overtaken industry giant Nokia in terms of market capitalization, said on Friday that first-quarter net profit was $511 million.

“That its first quarter would be above expectations was well foreseen, Q1 seasonality was better than expected,” said Bonnie Chang, an analyst at Yuanta Securities in Hong Kong.

“For the second quarter everyone is expecting revenue sequential growth in the high teens to 20 percent, shipments will be strong and average selling prices are holding up pretty well.”

Growing demand for phones running on Google’s Android platform will help the smartphone market grow in 2011, boosting companies such as HTC and Samsung Electronics who are betting on the platform.

The smartphone market is likely to grow 58 percent this year and 35 percent the next, according to research firm Gartner.

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NFC Support Coming to Windows Phone 7

Microsoft is adding support for NFC (near field communication) to its Windows Phone mobile operating system, according to a report on Bloomberg Businessweek. NFC technology is a key component to the upcoming mobile payment and mobile wallet systems now reportedly under development at Google, RIM and Apple as well as the new carrier-led initiative Isis, a coalition of three of the four major cellular providers here in the U.S.

Support for NFC technology in Windows Phone 7 will be pushed out in an update to Microsoft’s mobile operating system, sources told Bloomberg reporters. Those updates may arrive sometime this year.

Bloomberg says that the addition of NFC is an effort to close the gap between Microsoft and Google, the latter which is currently the leading smartphone platform here in the U.S., and, according to at least one analyst firm, worldwide.

Google’s Android mobile operating system added in NFC support in the release code-named Gingerbread (Android 2.3) and has incrementally added new capabilities since then to broaden its feature set. In February 2011, for example, an update delivered the ability to both read and write to standard NFC tags, whereas before the NFC support was read-only.

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