PC Sales Continue The Downward Trend

Gartner is reporting the biggest slump in PC sales for almost two years. The second quarter report saw 68.4 million units shifted in the three-month period, a year-on-year reduction of 9.4 percent, and the steepest drop in seven quarters.

What’s more, the prediction is that the next quarter will see a further reduction of 4.4 percent.

It seems that the dislike of Windows 8, coupled with the impending arrival of Windows 10, has battered the sales of new PCs.

The fact that most PC users will be entitled to a free upgrade, coupled with the fact that chip and RAM technology haven’t moved on at a spectacular pace this year, has created a perfect storm among consumers who are waiting it out for their machines to be born again on 29 July (or 30, or 31, or possibly 1 August).

If you’re reading this and thinking ‘It’s just a dying market’ you’re not wrong, but you have only to look at today’s IDC figures to see that this really is made of Microsoft.

IDC is even more pessimistic than Gartner, quoting 66.1 million units, down 11.8 percent year on year.

But more importantly, when drilled down to the OEMs, you can see where the real problem lies. Apple is the only company in the top five not rooted in the Windows ecosystem.

It is also the only manufacturer to see a rise in its market share, and is now the fourth biggest vendor in the world, up 16.1 percent. Acer at number five has seen its share plummet by 25.9 percent.

Things were a bit rosier this time last year, because businesses were migrating away from Windows XP (not all of them, mind). This year, there’s no ballast and a lot of hesitation to see exactly how Windows 10 does before big orders start being deployed in enterprises.

“The price hike of PCs became more apparent in some regions due to a sharp appreciation of the US dollar against local currencies,” said Mikako Kitagawa, principal analyst at Gartner.

“The worldwide PC market experienced unusually positive desk-based growth last year due to the end of Windows XP support. After the XP impact was phased out, there have not been any major growth drivers to stimulate a PC refresh.”

IDC’s Loren Loverde, VP of worldwide PC trackers and forecasting, said: “We’re expecting the Windows 10 launch to go relatively well, though many users will opt for a free OS upgrade rather than buying a new PC.

“Competition from 2-in-1 devices and phones remains an issue, but the economic environment has had a larger impact lately, and that should stabilize or improve going forward.”

Meanwhile, Apple, despite having a tiny market share for its OS X operating system at just 7.5 percent, according to this month’s Netmarketshare figures, has managed to avoid being the winner or loser OEM by being the referee, which is a nice trick if you can do it.

Both analyst firms see the top three remaining as Lenovo, HP and Dell. Nothing to see there.

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Qualcomm Has No Plans To Split

US chipmaker Qualcomm has told the world that it will not be dumping its “essentially useless chip making” business.

Hedge fund Jana Partners said in April that Qualcomm would make a pile more dosh if it just stuck to being a patent troll and stopped trying to flog “essentially worthless” chips.

Apparently Qualcomm thought about it. Executive Chairman Paul Jacobs the idea has been talked about for a long time, but came to the conclusion that the status quo contained a lot more “synergies.” Apparently synergies are a good thing to have about the place, particularly if you have a breeding pair.

Jacobs was less optimistic about Jana Partners’ idea which was apparently full of dis-synergies which might eat the synergies – or just diss them in public.

Executive Chairman Paul Jacobs said all this intensifying industry competition was not enough to spin off his chip business from its patent-licensing business.

Jacobs said, however, that the company is always evaluating its options and that the situation could change in the future, so maybe there a future for a Qualcomm troll walloping other companies with dis-synergies.

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Microsoft Drops Ad Business

Microsoft Corp that it will hand over its display advertising business to AOL Inc and sell some map-generating technology to ride-hailing app company Uber, as it scales back on unprofitable operations.

The moves mean Microsoft will focus on its growing search advertising business based on its Bing search engine, and displaying maps on its Windows devices rather than generating the maps themselves.

Microsoft, which employs hundreds of people in its display ad business around the world, said those employees would be offered the chance to transfer to AOL and that it was not making any layoffs.

The world’s largest software company no longer breaks out results for its online operations, chiefly its MSN web portal and Bing, but they have lost more than $10 billion over the past five years. Chief Executive Satya Nadella has said Bing will turn a profit next fiscal year.

“Today’s news is evidence of Microsoft’s increased focus on our strengths: in this case, search and search advertising and building great content and consumer services,” saidMicrosoft in a statement.

Under a 10-year deal struck with AOL, now a unit of Verizon Communications Inc ,AOL will sell display ads on MSN, Outlook.com, Xbox, Skype and in some apps in major countries. As part of the deal, Bing will become the search engine behind web searches onAOL starting next year.

Microsoft also struck a multi-year extension to its existing deal with AppNexus, which provides the tech platform for buyers to purchase online ads.

Microsoft and Uber did not disclose financial terms of their deal, under which Uber will take over the part of Microsoft’s mapping unit that works on imagery acquisition and map data processing. Uber will offer jobs to the 100 or so Microsoft employees working in that area, according to a source familiar with the deal.

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RedHat Goes PaaS With Linux

Red Hat has announced the release of OpenShift Enterprise (OSE) 3, a new version of its Platform-as-a-Service offering.

Based on Red Hat Enterprise Linux (RHEL)7, Openshift is built on Docker Linux containers with Kubernetes orchestration using technology developed in collaboration with Google.

The news comes in a busy week for Red Hat, which has also announced a new productivity tie-up with Samsung and taken a leading role in the formation of a new alliance known as the Open Container Project to standardise containers.

Users will have access to a wide range of apps via the Red Hat Container Certification Programme. Middleware solutions including Red Hat JBoss Enterprise, Web Server (Tomcat) and JBoss A-MQ messaging are also included.

Included are a number of tools to help developers create and collaborate, with web, command line, and integrated development environment interfaces. Options include direct code-push from GIT and source to image building. There is also flexibility for deployment, rollback and integration.

In addition, a preview of Openshift Dedicated has been released. The public cloud service based on OpenShift 3 will succeed Openshift Online, which already hosts 2.5 million applications online, allowing businesses to quickly build, launch and deploy bespoke apps.

Ashesh Badani, vice president and general manager, OpenShift, Red Hat, said, “This release of OpenShift Enterprise 3 employs open source containers and orchestration practices to change the developer experience and move the platform in the direction of what customers are asking for – a flexible platform for a microservices architecture.

“Our continued upstream work in the Docker and Kubernetes communities enable us to deliver the most updated technology platform for developers and operators, enabling them to remain competitive through quicker innovation.”

To assist users, Red Hat is offering a range of enterprise administrator courses to teach users how to deploy, configure and manage the system, which can result in a Red Hat Certificate of Expertise in Platform as a Service – a worthy certificate for any office wall.

OpenShift 3 is available now with bespoke pricing models based of socket and core pairings.

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IBM Partners With BOX

IBM and BOX have signed a global agreement to combine their strengths into a cloud powerhouse.

The star-crossed ones said in a joint statement: “The integration of IBM and Box technologies, combined with our global cloud capabilities and the ability to enrich content with analytics, will help unlock actionable insights for use across the enterprise.”

Box will bring its collaboration and productivity tools to the party, while IBM brings social, analytic, infrastructure and security services.

The move is described as a strategic alliance and will see the two companies jointly market products under a co-banner.

IBM will enable the use of Box APIs in enterprise apps and web services to make a whole new playground for developers.

The deal will see Box integrate IBM’s content management, including content capture, extraction, analytics, case management and governance. Also aboard will be Watson Analytics to study in depth the content being stored in Box.

Box will also be integrated into IBM Verse and IBM Connections to allow full integration for email and social.

IBM’s security and consulting services will be part of the deal, and the companies will work together to create mobile apps for industries under the IBM MobileFirst programme.

Finally, the APIs for Box will be enabled in Bluemix meaning that anyone working on rich apps in the cloud can make Box a part of their creation.

Box seems to be the Nick Clegg to IBM’s ham-faced posh-boy robot in this relationship, but is in fact bringing more than you’d think to the party with innovations delivered by its acquisition of 3D modelling company Verold.

What’s more, the results of these collaborations should allow another major player to join Microsoft and Google in the wars over productivity platforms.

It was announced today that Red Hat and Samsung are forming their own coalition to bring enterprise mobile out of the hands of the likes of IBM and Apple which already have a cool thing going on with MobileFirst.

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Yahoo Beefs Up Mobile Search

Yahoo is beefing up its search service on mobile devices, following Google’s lead by highlighting content such as images, videos and reviews ahead of regular search results

The changes will apply to Yahoo search on the mobile web in the U.S., in browsers such as Safari and Chrome. Yahoo’s mobile app and desktop site already provide some additional content within results.

A search on the mobile web for Barack Obama, for instance, displays information about him from Wikipedia, such as his height and birth date, as well as links to news, images and YouTube videos. In one search Thursday, the videos included some curious choices, including “Barack Obama is Illuminati.”

Google already highlights a variety of content related to search queries, including news and related tweets, as well as links to other services like Maps. Microsoft’s Bing does something similar.

Because Yahoo is playing catch-up, the changes might not attract many new users, but they could help it retain people who use Yahoo for mobile searches today.

In the last quarter of 2014, mobile accounted for half of Yahoo’s search traffic in North America, up from 32 percent during the same period in 2013, according to research firm eMarketer.

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Will Blackberry Embrace Android?

BlackBerry Ltd’s move to embrace Android, although geared towards lifting revenue from its software and device management segment, could inadvertently give its device arm a new lease on life.

“From the standpoint of marketing, this is a great way for BlackBerry to get visibility. It really doesn’t hurt them much, and the upside is high,” said Rob Enderle, who runs technology consulting firm Enderle Group.

Enderle and other financial and tech analysts agree that the move by BlackBerry does present its own set of challenges as the company would have to support two platforms and potentially put some resources into marketing an Android device, but with little to lose most agree it comes with little downside.

“If Android has one significant weakness it is security and that’s just the thing that BlackBerry can fix, so it could play out pretty well and I am actually quite surprised that they did not try this sooner,” said Enderle, adding that BlackBerry has to deliver a compelling device in order for the gambit to work.

Reuters reported last week that BlackBerry was considering a move to test run Android on its upcoming slider device, as part of a bid to convince potential corporate and government clients that its device management system, BES12, is truly able of manage and secure not just BlackBerry devices, but also devices powered by Google’s Android, Apple’s iOS and Microsoft’s Windows operating system.

“In order for BES12 to succeed it has to be viewed by all as platform agnostic, and what better way to demonstrate that other than by doing it yourself,” said Ramon Llamas, an analyst with technology research firm IDC.

BlackBerry, which once dominated the smartphone market, has seen its market share drop to under 1 percent, as the iPhone and a slew of Android devices from Samsung have captured market share. John Chen, a turnaround expert brought in to fix its slide, is now pivoting BlackBerry to focus more on its well-regarded software and device management business.

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Jawbone Sues Fitbit

Jawbone has filed another lawsuit against Fitbit in less than two weeks, alleging its activity tracking products infringe several of Jawbone’s patents.

The new suit, filed Wednesday in San Francisco by Jawbone parent company AliphCom, seeks unspecified damages and an injunction to block the sale of Fitbit devices such as the Flex, Charge and Surge bands.

Late last month, Jawbone filed another lawsuit, accusing Fitbit of poaching its employees and stealing trade secrets. Fitbit has said it has no knowledge of any such information in its possession.

In its latest complaint, Jawbone says it will also ask the U.S. International Trade Commission to investigate Fitbit, which could potentially lead to an import ban on Fitbit products.

Jawbone says it has hundreds of patents granted or pending, and claims that Fitbit infringes several of them. One patent describes a “general health and wellness management method and apparatus for a wellness application using data from a data-capable band.”

Another patent covers a “system for detecting, monitoring, and reporting an individual’s physiological or contextual status.”

Fitbit didn’t immediately respond to a request for comment on the latest suit.

The timing is bad for Fitbit, which is preparing to go public on the U.S. stock markets. It also faces intense competition from a number of rivals, which also include Garmin and Apple with its Apple Watch.

Both Jawbone and Fitbit make wearable bands and associated software that tracks people’s movement, exercise, sleep and heart rate.

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Acer Shifts Focus To IoT

Acer is still churning out PCs, but the Taiwanese vendor is far more bullish about the Internet of Things (IoT), a market the company doesn’t want to miss out on.

Acer held a news conference not for a new consumer product, but to promote an upcoming miniature PC that will be sold to developers.

The PC, called the aBeing One, will arrive in the third quarter, and is aimed at developers working in the IoT area. It’s designed to connect to smart home and wearable products, and act as a hub that can analyze incoming data from the devices.

The PC vendor has spoken to many IoT companies looking for an affordable hardware system they can develop on, said Robert Wang, a general manager with Acer.

“Fast-moving IoT developers keep running into this issue,” he said after Acer’s news conference. “Now they can buy from us.”

It’s a big change for the vendor, given that it once focused on selling consumer notebooks. However, with PC sales sagging and competition rife in the mobile devices area, the company has been shifting toward enterprise products.

That emphasis was apparent at this week’s Computex show in Taipei. Acer notebooks and tablets were still on display, but equal billing was given to itscloud computing business, which is starting to power IoT devices, not only from Acer, but also its clients.

In addition, Acer is hoping to pave the way for more third-party IoT devices. It has partnered with Canonical to install a version of Ubuntu on its aBeing product, so that the hardware can serve Ubuntu developers working on smart connected gadgets.

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FCC To Tighten Rules On Robocalls

The top U.S. telecommunications regulator wants to make it more difficult for telemarketers and other businesses to robocall and text messages consumers under changes to autodialing rules being proposed.

The Federal Communications Commission plans to vote on June 18 on the proposal, which would give legal cover to telephone companies to offer consumers technologies that would block robocalls, regardless of where they originate.

“The FCC wants to make it clear: Telephone companies can – and in fact should – offer consumers robocall-blocking tools,” FCC Chairman Tom Wheeler said in a blog post.

The wireless carriers have worried that blocking automated calls could be construed as violations of the law that requires them to ensure that all calls placed over their networks reach their intended recipients.

The proposal would also reassert that consumers have to agree to receive automated calls and texts and clarify that they can revoke their consent in any “reasonable” way, including a simple request for calls to stop, without the need to file convoluted paperwork.

Robocalls and robotexts are by far the most common cause of consumer complaints at the FCC, topping 215,000 in the last year alone. Consumer advocates and the majority of U.S. states attorneys general had pressed the FCC to clarify the robocall rules.

Numerous business associations, including the U.S. Chamber of Commerce, have also pushed for clarifications, facing a growing number of lawsuits prompted by violations such as calling cellphone users whose numbers used to belong to someone else.

The FCC’s proposal would reassert that companies should try to avoid numbers reassigned to consumers who have not agreed to receive their calls. If they do not know that a number has been reassigned, they are allowed one call to find out.

The business community had also complained that some lawsuits unfairly target them for using dialing technologies that could be modified to become autodialers. FCC officials said any technology with the capacity to dial random or sequential numbers qualifies as an autodialer, even if it would require modification.

U.S. law prohibits telemarketing calls to both landline and cellphones of consumers who have not given written consent.

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