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The Year Ahead: Keep Your Eyes on Microsoft |
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Older
tech companies may be struggling to keep apace in the mobile era, but
Microsoft may have the best strategy to catapult itself back to the top
in 2012.
The Year Ahead is a series examining the challenges and opportunities facing the mobile industry and its players in 2012. What forces and trends will impact companies and consumers next year? Look into our crystal ball to find out. The Redmond, Wash.-based behemoth has struggled against rivals like Apple and Google for dominance in the smartphone era, but the company planted lots of seeds in 2011 that may yield fruit in the coming year. The company's high-stakes smartphone partnership with Nokia, its near-supremacy in the patent arena, continuing commitment to new technologies like Kinect, and its potentially game-changing Windows 8 OS push prove a winning strategy for a rebirth, keeping the tech giant relevant as consumers shift to tablets and smartphones for their computing needs. The Nokia Deal Less than a year ago, Nokia agreed to make Windows Phone its primary smartphone operating system, and the two companies hitched their fortunes together. In preparation for the new devices, Microsoft began shoring up a new version of its Windows Phone OS to make it more robust and user-friendly. By simplifying and enhancing its phone software, Windows may have aimed to match the friendly user experience provided by Apple's iPhone, and define itself as more intuitive than Android. The strategy may be paying off. This fall, Nokia debuted the Lumia 800 in the U.K. to high demand and reported difficulty meeting consumer demand for the new Windows device. The positive reaction supported a recent study from the NPD Group found that nearly half of smartphone users are considering a switch to Windows, which may mean higher than expected sales for the U.S. and Canadian launches as well. Microsoft is employing a range of initiatives to spark interest in consumers. For example, Android and iPhone users can try Windows Phone 7.5 Mango with an HTML 5 demo that runs in the competing devices' mobile browsers. And just this week, the company, Nokia and wireless carrier AT& T announced they are ponying up $100 million to fund an advertizing blitz for the latest Nokia Windows smartphone, the Nokia Ace. The recent Skype acquisition, beta tests of its new social network So.cl, and a possible Nokia Windows tablet next summer also aim to bring Microsoft into the modern era of technology. The Redmond, Wash.-based tech company trails far behind both Android and Apple with just a two percent share of the smartphone market, but these recent moves by Microsoft point to its plans to compete more strongly in the year to come. Patent Wars Microsoft has found something in common with rival Apple: both companies see a common adversary in Google's Android OS, and their alternating legal attacks have delivered a one-two punch to the search giant. While Apple targeted hardware makers Samsung, HTC and Motorola for lawsuits, Microsoft is taking the settlement and licensing route, finding ways for phone makers to pony up fees and revenue cuts for using contested patents in their devices. The Redmond company's recent deal with Samsung is one such deal, and the company has suggested LG, Sony Ericsson and even Amazon's new Android-based Kindle Fire tablet may be next. The path is lucrative for Microsoft, which receives $5 from HTC for every Android handset sold and has similar deals with ViewSonic, Acer and a slew of smaller companies, a practice that generates more money for Microsoft than its own Windows Phone sales. In addition to revenue, the strategy of keeping Google and its Android partners off-balance, may give the narrow foothold Microsoft is looking for to jump in with its phones, tablets and other devices. Kinect Microsoft's Kinect is the motion-sensing device that works with the popular Xbox gaming system. When Kinect debuted, it became the fastest-selling gadget of all time, beating out the iPad. Microsoft's commitment to Kinect, as well as other gesture and voice recognition technology, could pay huge dividends this coming year. Microsoft is reportedly incorporating gesture recognition capability in its next Windows OS release, showing that controlling multiple devices with a flick of the wrist may not be so far off and helping the company move into a future where devices are increasingly connected to each other and to the cloud. Bolstering Kinect and other gesture-based technology is only the tip of the iceberg for Microsoft, however. The company's recently released a " Productivity Future Video" demonstration with numerous theoretical devices including transparent smartphones and tablets, as well as non-electronic items such as walls and tables, all of which recognize touch, voice and gestures. With considerable R& D budgets, Microsoft may be able to make these innovations happen in the far future, perhaps keeping it ahead of the game. Windows 8 Pulls it Together Microsoft's new Windows 8 platform, which is designed to run on PCs and tablets, and provide app developers with a wider platform for their work, is gathering these elements together. Windows 8, expected to roll-out in 2012, will likely be integrated with Windows Live, so users can access photos stored on SkyDrive, Facebook and Flickr as if they were stored locally. The integration will also blend instant messaging, contact information and calendars across multiple services via cloud services. There was a time when Microsoft failed to keep up with rivals like Apple and Google, taking only a sliver of the mobile market share. Windows 8's promise to unify both mobile and desktop computing environments, its lucrative patent strategy against Android, Windows-powered smartphones and continuing innovation in new technology may restore Microsoft's prominence. |
Taiwan market: HTC smartphone sales to top one million units in 2011
Daniel Shen, Taipei Steve Shen, DIGITIMES [Thursday 22 December 2011]
Sales of HTC smartphones in the Taiwan market will top over one million units in 2011, accounting for 40% of the segment compared to 20% a year earlier, according to Jack Tong, president of HTC North Asia.
Sales from the high-end HTC Sensation lineup have been amazing in the local market, and other models such as Wildfire S, Incredible S and the Desire lineup have also made inroads into the entry-level and mid-range markets, Tong added.
China has now become the largest market for HTC in North Asia, with its market share comparable to that held by Motorola Mobility, Tong revealed.
HTC to Release Fewer Phones in 2012 |
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HTC is expected to release fewer phones next year, opting to diversify its product line and focus on high-end devices as it retools its competitive strategy.
By choosing Windows over its standard Android for the year's first release, HTC is pointing to plans to diversify its product offerings. The company spent much of this year locked in patent battles with rival device maker Apple, and recently agreed to remove software using an Apple-owned patent from all of its smartphones. The legal battles have been expensive and time-consuming for HTC, and resulted in a sales ban in Germany against its devices that put a serious damper on holiday sales. Growing competition from rival makers Samsung and Apple is also challenging HTC in device sales. HTC is expected to use the updated Windows mobile platform to differentiate its product offerings, and can expect to grow along with Windows phones if they succeed in the marketplace. Offering a second device platform also gives HTC insurance if the pending merger between Google and Motorola becomes reality, possibly giving Motorola an advantage in the Android market and potentially leaving behind Asian handset makers like HTC, which originally helped propel the Android platform to dominance. By starting the year with a non-Android offering on the shelves, HTC is in a position to both fend off future patent infringement suits and gain momentum against rival handset makers to rebound in the market, especially in the face of Motorola's possible advantage. HTC isn't leaving Android behind, however. The manufacturer is expected to release a new flagship Android phone in April, the Elite, which will run the 4.0 version of Android, Ice Cream Sandwich, and carry Beats Audio. It will reportedly be offered by AT& T under the name " Congressional." The smartphone world can expect to see fewer releases from HTC next year as the company looks for ways to deflect further lawsuits and diversify its product line. Fewer could prove better for the handset maker if its new strategy helps it carve a new, more competitive foothold. |
PlayBooks Stolen by Truckload, RIM Suffers Another Blow |
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Research in Motion suffered another setback when thieves stole a truck carrying 5,000 PlayBook tablets, another in a long line of losses for the BlackBerry maker.
The Canadian company launched its tablet market entry in April to lackluster sales, diminishing hopes it would pose a serious challenge to Apple's iPad domination. The company lost more competitive ground as the year wore on, trying to manage worldwide service outages, plummeting stock prices and PR nightmares. As the holiday shopping season dawned, Staples and other retailers offered the PlayBook tablet for $200 as part of their Black Friday promotions. Soon after, RIM offered the tablet to its employees for $100, fueling rumors of an imminent fire sale of the device. The stolen truck was reportedly headed north to Ontario, and the tablets on board may have been earmarked for RIM's own employees. The theft was no fault of RIM's, but it adds more bad press at a time when the device maker is trying to rebuild its struggling brand. The truck was not equipped with tracking devices. Police report there may be up to five suspects involved in the theft. Local law enforcement is expected to get help from the Federal Bureau of Investigation and an interstate theft task force in locating the missing truck and its cargo of PlayBooks. RIM is counting on new releases carrying its updated OS to turn its fortunes around, but recently announced a delay of its new smartphone line until the second half of 2012. Those added months may prove too long to save the ailing company's reputation in the eyes of consumers and investors. In the meantime, the PlayBook thieves dealt another blow to RIM's suffering reputation at a time when it needs the bad news least. |
Google to Launch Siri Rival for Android |
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Google
plans to launch a voice assistant for Android to rival Apple's Siri,
integrating voice recognition with its established search capabilities.
Codenamed " Majel" after the late actress Majel Barrett-Roddenberry, who provided the computerized voice of the Starship Enterprise in " Star Trek," the technology will reportedly upgrade Android's " Voice Actions" app, which lets users make calls, get directions and perform searches on Android smartphones using voice commands. However, Voice Actions only responds to preset voice commands. Majel is expected to use intuitive voice recognition, much like the iPhone 4S's much-publicized voice assistant, Siri. This capability would allow Android users to search for restaurants, businesses, get weather forecasts, and make other requests by speaking into their phone using natural language. Google chairman Eric Schmidt voiced concerns over Siri's potential to transform search and compete with his company's core business. Majel's debut may put these concerns to rest by endowing Android handsets with voice-activated search capabilities to rival the iPhone's. The search giant has already made steps towards beefing up a Siri rival. Google recently announced plans to acquire Clever Sense, a start-up that put out the restaurant recommendation app " Alfred," which provides automatic restaurant and night club recommendations based on location and past visits. Clever Sense's technology in personalized, intelligent search is likely a natural fit for Majel. Google's October relocation of a senior U.K. programmer with experience in speech recognition to its California headquarters is also fueling the Majel rumor, and points to the company's eagerness to catch up in the emerging field of advanced voice-activated technology. Google is chasing after Siri, but Apple's voice assistant is experiencing some problems, such as periodic outages, security glitches and a reported reluctance to discuss abortion and birth control. Google may learn from its rival as it plans its own entry to the voice-assistant field, combining technological know-how with search expertise to take voice to the next level for Android. |
Ultrabooks Set to Flood Market in 2012 |
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Ultrabooks
are expected to flood the market next year, as PC and laptop makers
search for ways to compete against the proliferation of mobile devices.
Desktop and laptop computers are in decline thanks to the rapid rise of mobile devices, including tablets that can perform many of the same functions as their bulkier cousins. Smartphones have also boosted their power and computing capacities, able to browse the Internet and check email on the go. Ultrabooks represent the next generation of portable, laptop computers and figure heavily in the competitive plans of PC makers like Microsoft and Acer, providing a potential foothold in the mobile market. Acer has spent the year retooling its mobile strategy in the wake of its CEO's spring departure and its unsuccessful foray into Android tablets. The company plans to release affordable ultrabook models next year that run Windows. Intel's new Ivy Bridge chip is also fueling the change, which is expected to launch early next year and has a smaller footprint than existing processors, allowing it to be used in smaller, thinner devices. Ultrabooks are expected to play a part in Microsoft's plans to revive its stalled Windows platform. The company has been hinting it expects to launch a concentrated mobile strategy in coming months with the release of new Windows phones, and now it is planning to power ultrabooks as well. New technologies Microsoft has in the works, such as integrating touch capabilities in its operating system, are expected to be especially suited to ultrabooks, further blurring the lines between mobile devices and PCs. Current models of ultrabooks cost around $990-$1,300, putting them out of range for many mainstream, price-conscious consumers. Next year's ultrabooks will likely aim for a wider audience with prices expected to dip below $700. This will put them well under Apple's lightweight laptop, the Macbook Air, and also create a reasonably priced alternative to the iPad and other tablets. Acer chairman J.T. Wang predicts ultrabooks will become the " mainstream model for tablet PCs and notebooks in the next five years." Next year's ultrabooks are expected to combine the computing power of a PC or laptop with the features and portability of a mobile device. As new features such as mobile payments grow in popularity, these devices may become more popular as users demand more power, battery life and features to fuel their mobile activities. |
Samsung Challenges Apple, Ships 300 Million Phones in 2011 |
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Samsung
emerged as one of the biggest challengers to Apple, shipping more than
300 million mobile phones in 2011, only the second company, after
Nokia, to reach this milestone in a 12-month period.
Samsung, which has a diverse lineup of devices, from the low- to high-end, running on both its Bada operating system and Google's Android platform, also produced the Samsung Galaxy S2, which analysts believe is the iPhone's number-one competitor. The company said its Galaxy S and S2 smartphones powered sales, selling 10 million units each in 2011. Next, Samsung will release the Galaxy Nexus on Verizon. The device is the first-ever running Android 4.0 Ice Cream Sandwich, which early reviewers say elevates the platform to the level of Apple's iOS. If ICS truly bring Android to the next level, the combination of software and hardware Samsung's high-end devices presents may be enough to outshine Apple in the near future. The company has also exceeded the performance of its Android phone making competitors. Motorola, HTC and LG have all had varying degrees of success in 2011, but Samsung has separated itself from the pack by launching quality devices in the low-end market and becoming the first stop for customers looking for a high-end device that's not an iPhone. Samsung said it is looking to continue its success into 2012, and if the Galaxy S2 can deliver an impressive follow-up performance, it may even leave Apple a little jealous. The company reached the 300 million mark for the first time in the its history, after shipping 1.6 billion mobile phones since it began its cell phone business in 1988. | |||||||||||||
