NewsFactor Network

Verizon's Buzz for Motorola's Droid Fizzles at Day's End

Fri, 06 Nov 2009 14:06:30 -0500

Motorola's Droid smartphones may have been dropping out of the sky like meteors in Verizon Wireless commercials, but they weren't selling with as much force on the first day of launch.

Verizon stores throughout the nation made the Droid available Friday after heavily marketing the Android 2.0-based device during the World Series. Motorola and Verizon are hoping the Droid will have as much success as the Motorola Razr during in its four-year run, when it sold 110 million units.

Anxious consumers lined up at midnight to have first dibs at purchasing the Droid, and some shorter lines formed Friday morning when Verizon stores opened. But the excitement fizzled by the end of the day despite Verizon's efforts.

Tethering Not Available

Some purchasers praised Motorola for the Droid's features, saying it is equipped with everything they need. The features also have some observers predicting the Droid will hurt Apple's iPhone sales.

The device is equipped with a 3.7-inch-high and 854-pixel-wide screen, features voice-activated search, the ability to toggle between applications, a thin QWERTY keyboard, a five-megapixel camera, a 16GB memory card, and turn-by-turn directions with the Google Maps Navigation beta.

Preloaded apps include YouTube, Verizon Wireless Visual VoiceMail, Facebook, Google Talk, and Gmail. It also comes with a $299 price. If purchased with a two-year contract, the price is $199 with a $100 mail-in rebate.

"We have plenty of inventory, so customers are walking out with the Android phone of their choice, either the Droid by Motorola or the Droid Eris by HTC," said Brenday Raney, a Verizon spokesperson.

Verizon requires a nationwide voice plan starting at $40 a month and an Internet data plan for an additional $30 a month. It also offers a modem plan called Mobile Broadband Connect for $30 more a month that does not yet include tethering so other wireless devices can connect...

Is Google Dashboard Really Transparent or a PR Stunt?

Fri, 06 Nov 2009 14:06:46 -0500

A new product that gives users a new level of insight into what the world's biggest search engine knows about them was launched Thursday. Google Dashboard lets users see reports on the data Google has collected on them.

In a blog post, Google said the Dashboard is an improvement on past efforts like the Privacy Center to give users access to retained information. Dashboard is "an effort to provide you with greater transparency and control ... (and) designed to be simple and useful," the posting said.

"The Dashboard summarizes data for each product that you use (when signed in to your account) and provides you direct links to control your personal settings," Google wrote. At launch, Dashboard included 20 Google products, including Gmail, Calendar, Docs, Web History, Orkut, YouTube, Picasa, Talk and Reader.

Privacy Settings Hard to Find

While Dashboard offers a new level of user access to their data, it's also raising privacy concerns about how secure the service is. "If you want to make that stuff private -- or just find out if it's even possible to make it private -- you have to go deep into the settings of each Google app. If you don't already know where to go to change this setting, you may not get there," complained Robert X. Cringley on InfoWorld.

Google's programs contain scads of potentially damaging information about users. For instance, an article on the Dumb Little Man site details how a burglar could easily discover when a Google Calendar user is away from home just by looking at a public calendar and using a few easy research techniques. The author details his pursuit of one user like this:

"In literally 20 minutes, I now know the name, address, phone number, and schedule of this woman. If I can do it, you can be ... sure...

EMI Wins Beatles Music Injunction Against BlueBeat.com

Fri, 06 Nov 2009 14:07:00 -0500

On Friday, EMI won an injunction against BlueBeat.com, forcing the web site to stop selling Beatles songs without permission. The London-based record label alleged that the music site was breaching its copyrights.

A Los Angeles federal court moved swiftly to issue a temporary restraining order against BlueBeat. EMI, which represents The Beatles works, filed suit against the BlueBeat site on Tuesday.

BlueBeat.com was selling songs from the British band's archives for 25 cents each. By contrast, Apple's iTunes Store sells songs for about $1, but does not have The Beatles' catalog. BlueBeat had all its Beatles bases covered, offering original recordings and remastered versions of Beatles classics.

"EMI did not authorize its content to be sold or made available on BlueBeat.com," the label said earlier this week. BlueBeat insists it was selling different sound recordings that were not EMI copyrighted by using a technique called psycho-acoustic simulation.

BlueBeat's Blue-Faced Argument

"It appears BlueBeat is arguing that they are substantially altering The Beatles material, but if the copyrighted material is the source, you are still in violation of copyright," said Rob Enderle, principal analyst at the Enderle Group.

That's the perspective under U.S. copyright law. But in other parts of the world copyright law is not as strict. Enderle pointed to a case in Eastern Europe involving a Harry Potter book that was rewritten using different characters. In court, the defendant's case held up because the book was substantially altered.

"We're pretty strict in the United States with how we consider copyright. If by listening to the song you can connect it back to the copyrighted work, that would be enough to suggest that you violated the copyright," Enderle said. "We've seen musicians with pieces that were vastly different in terms of lyrics, but the beats were the same as the copyrighted work -- and they...

World Smartphone Market Grows Despite Economy

Fri, 06 Nov 2009 14:07:15 -0500

Having a device that enables users to take pictures, e-mail colleagues, browse the web, and send text messages is no longer a nice-to-have device but a need-to-have device. That mentality is creating a recession-proof smartphone market.

While technology businesses continue to suffer because of the downturn in the economy, the smartphone market continues to thrive, according a report by IDC, a technology research firm. In fact, in the third quarter the market set a new record for quarterly shipments, according to IDC. Vendors shipped 43.3 million units worldwide during the quarter, an increase of 4.2 percent from the 41.5 million shipped in the same quarter in 2008.

The five mobile-device makers leading the market are Apple, HTC, Nokia, Research In Motion, and Samsung. Nokia had the highest market share in the quarter with 37.9 percent and 16.4 million units shipped.

Behind Nokia was RIM, with 19 percent of the market and 8.2 million units shipped. Apple, HTC and Samsung each had less than eight percent of the market.

Driving Force

There is no one driving force behind the increase in shipments of smartphones for the quarter, analysts say.

"It is a perfect storm," said Ramon Llamas, mobile analyst with IDC's Mobile Devices Technology and Trends team. "Even though there is a recession going on, demand has been steady because people are willing to pay more because they are more than just phones to make phone calls."

"Think of your smartphone as not just a phone but a mobile computer sitting in the palm of your hand," Llamas added.

Another factor increasing shipments was a lowering of prices. Apple dropped the price of its iPhone to $199.

"That was a strategic move, because they were able to catch a lot more users that way," Llamas said.

Other vendors, including RIM and Palm, followed Apple's...

Internet, Cell Phones Don't Increase Isolation, Study Says

Fri, 06 Nov 2009 14:07:33 -0500

If you're worried that your employees or children are disengaging from the world by using the Internet and cell phones, relax. A new study from the Pew Internet and American Life Project found that these technologies have not increased social isolation in the U.S.

The Personal Networks and Community Survey is the first to examine this issue. It found that the amount of "severe isolation" has hardly changed since a previous study, which was conducted in 1985 before these technologies emerged. About six percent of adults, roughly the same as in 1985, report they have no one in their life that they consider "especially significant" and with whom they can discuss important issues in their lives.

Larger Discussion Networks

The study found that Internet-based activities and cell-phone ownership led to "larger and more diverse" discussion networks. And the use of social media is more likely to lead to discussion networks among people from different backgrounds, such as those of another race or a member of another political party. Facebook and blog writing were specifically cited as helping a person have a more diverse social network.

In spite of worries that using a global Internet would tend to limit people's local activities, the study found little or no such impact. Internet users, for instance, are as likely to visit neighbors as non-Internet users, and cell-phone users, people who use the Internet often at work, and bloggers are more likely to belong to a young group, a charitable organization, and the like.

Some kinds of social networking, such as MySpace or Facebook, have become a kind of neighborhood involvement, according to Pew. Any frequent Facebook user, for instance, can describe using the service to keep up with friends, even if they live nearby. In fact, the Internet is used as much for contact with people in...

Motorola, Carriers Have High Hopes for Droid's Launch

Fri, 06 Nov 2009 08:53:24 -0500

With the launch of its new Droid smartphone at Verizon Wireless stores Friday, Motorola finally appears poised to recover from a three-year slide during which its mobile handset shipments fell from 22.5 percent to a 5.4 percent share of the global market, according to iSuppli. Verizon is looking for Droid to help overcome the advantages that AT&T has long enjoyed from its exclusive iPhone deal with Apple.

iSuppli Senior Analyst Tina Teng believes Motorola is finally in a good position to reinvigorate its brand. "Droid is potentially a game-changer for Motorola," Teng said. "Motorola now is no longer just emphasizing slick form factors, such as it did with its RAZR handset."

Plenty of Options

T-Mobile and Sprint Nextel, which already support Android on their networks, are widely expected to find their own ways to capitalize on the Android market buzz. According to iSuppli, both carriers have plenty of Android options, given that the mobile OS is licensed by seven key smartphone makers, including HTC, LG, Motorola, Samsung and Sony Ericsson.

Though Friday's media hoopla was largely focused on Verizon's launch of the Droid, Gartner Research Director Carolina Milanesi advises not to overlook new offerings from HTC, which has had "some issues with product delays recently on the Windows OS, but on Android things are going well."

"The HTC Hero, which is the first device with the enhanced user interface, called 'Sense,' is a very good product," Milanesi said. "And the HTC Tattoo will also do well over the holiday season, in my opinion."

Still, HTC has been mired in the No. 4 global smartphone sales slot behind Apple for more than a year and competition in their core space is increasing, Milanesi observed. "If they want to grow share, they need to appeal to a wider consumer segment than they have been...

Windows 7 Tops Vista's Rollout as Patch Tuesday Looms

Fri, 06 Nov 2009 07:59:02 -0500

Score one for Windows 7. The initial sales of the latest version of Microsoft's flagship operating system surpassed Vista's performance during its first few days on the U.S. market, according to the NPD Group.

Windows 7 unit sales in the U.S. were 234 percent higher than Vista's first few days of sales. A combination of early discounts on pre-sales and a lack of promotional activity for the Ultimate version resulted in dollar sales that were 82 percent higher than Vista.

"Microsoft's program of early low-cost pre-sales, high-visibility marketing, and aggressive deals helped make the Windows 7 software launch successful," said Stephen Baker, vice president of industry analysis at NPD. "In a slow environment for packaged software, Windows 7 brought a large number of customers into the software aisles."

PC Hardware Sales Measured

While boxed software sales were up compared to the Vista launch, PC hardware sales had more of an uphill battle. PC sales growth was higher than any week during the high-volume back-to-school third quarter, but not as strong as growth during the Vista launch, NPD said.

Total Windows PC sales were up 49 percent year-over-year and 95 percent over the week before launch. However, PC sales growth during the Vista launch was stronger, soaring 68 percent over the previous year and 170 percent over the week preceding the launch. Windows PC sales were down six percent compared to PC sales during the Vista launch week.

"A combination of factors impacted Windows 7 PC sales at the outset, but the trajectory of overall PC sales is very strong leading into the holiday season," said Baker. "Vista had a slight advantage at launch, as January traditionally has a bigger sales footprint than October. The other hurdle Windows 7 faced was that sales of PCs with older operating systems (XP and Vista) were high, making up...

Psst! Private-Sale Shopping Sites Are Hot

Fri, 06 Nov 2009 07:02:23 -0500

During last year's bleak holiday shopping season, fashion designer Lauren Merkin greatly overestimated the number of handbags she'd sell in upscale retail stores such as Neiman Marcus and Bloomingdale's.

She found a good way to sell them elsewhere without consigning them to a bargain-basement rack that might tarnish the brand in the eyes of would-be customers. All year, she's been selling the excess goods for half-price on the members-only Web site Gilt Groupe, during 36-hour sales that are hidden from the view of the general public. "What we're selling is first-rung, but if it sits around at a sale I think the consumer gets the wrong impressions about the product," Merkin says.

Saddled with overstock from the retail recession, makers of luxury apparel, home furnishings, and other high-end goods are selling their wares at reduced prices through Gilt Groupe and other private shopping sites. Many of these companies help fuel pent-up demand by limiting membership, forcing would-be clients to park on a waiting list or be referred by existing members.

Lure for Bargain-Hunting Fashionistas

Luxury brands can use these members-only sites to hide markdown prices from retail shoppers willing to pay the full amount, while attracting scores of wannabe fashionistas willing to wait for haute couture at a low price. "The brands they offer are of such high quality, and because they're at discount prices it makes them much more attainable," says Meghan Donovan, a 24-year-old San Francisco resident who shops on Gilt.com.

The private-sale model also makes sense for Gilt Groupe and other sites that act as middlemen, because they carry no inventory and earn a wide margin on sales. Combined revenue at Gilt Groupe, Rue La La, and Ideeli, three of the top four players in the U.S., is expected to exceed $300 million this year. That, along with sales at other private-sale...

Startup Aims To Protect At-Risk Data

Fri, 06 Nov 2009 07:09:19 -0500

In the wake of the charred devastation wrought by the Witch Creek fires in San Diego, [CA] two years ago this week, Dina Moskowitz and Marc Zimmerman saw something that made them wonder.

Was there any service available to the homeowners that could have protected them from losing highly valued items, such as birth certificates, memorabilia, family photos and videos and business records?

They found that plenty of services offered digital document storage for large firms. But they found nothing for homeowners needing digital storage of their documents and interior videos that could be privately accessed via the Internet.

Combining their experience in real estate, business and technology, they came up with the idea for their San Diego-based startup, Critical Digital Data Inc.

"It was clear people did not have the best way of organizing and taking care of their most important information," Moskowitz says.

Their research showed that 19 percent of Americans have been evacuated from their homes at least once.

Virtual File Cabinets

By May of last year, company CEO Moskowitz and President Zimmerman raised "about six figures," in start-up cash from friends and family, and developed a prototype. In August they rolled out their main product, HomeDataGuard Online File Cabinet.

It allows users to scan, upload, organize and retrieve all their home-based valuable information. Password-protected items such as documents, videos, images and any other digital files can be retrieved at any time from any computer with Internet access.

With graphics and sound effects of a traditional metal file cabinet, HomeDataGuard is designed to put the non-technical at ease.

The company charges $99 to video the rooms of a home for digital storage, and $150 for two hours of home-based document scanning. To put the data in a secure hosted server online, it charges $4.95 a month or $49.95 a year.

Marketing efforts have begun with direct mail, public...

Study: Internet Use Leads To More Diverse Networks

Fri, 06 Nov 2009 07:11:21 -0500

A new study confirms what your 130 Facebook friends and scores of Twitter followers may have already told you: The Internet and mobile phones are not linked to social isolation.

Online activities such as e-mail, blogging and frequenting Internet hangouts can even lead to larger, more diverse social networks, according to the study released Wednesday by the Pew Internet and American Life Project. The study refutes research earlier in the decade suggesting that people's growing embrace of technology has come at the expense of close human connections.

"Social isolation has not changed that much since 1985," said Keith Hampton, the main author of the study professor at the University of Pennsylvania's Annenberg School for Communication. This means that very few adults -- 6 percent of the population -- say they have no one to talk to about important matters in their lives.

The 2008 survey of 2,512 adults did find that Americans' core discussion networks -- that group of people you count on being able to confide in -- has gotten smaller in the past two decades. It's down, on average, to about two people instead of three. They've also become less diverse because they contain fewer friends and more family members.

This trend, however, was not linked to the use technology. It's not the Internet's fault you have fewer good friends.

The Internet also hasn't pulled people away from public places like parks, cafes and restaurants -- just the opposite.

The study, which had a margin of error of plus or minus 2.5 percentage points and accounted for differences because of age, education and other factors, also found that people now tend to use cell phones more than landlines to stay in touch with closest family and friends.

In fact, people now text these close friends and family members as much as they use traditional landline...

A Growing PayPal May Soon Overshadow Parent eBay

Fri, 06 Nov 2009 07:11:59 -0500

Most people know eBay Inc. for its online marketplace, where deals abound on everything from gadgets to antique furniture. But soon, eBay's biggest business will likely be PayPal, the online payments service that has been growing steadily even as the economy has stumbled.

EBay has spent much of the past two years trying to improve its faltering marketplace business, hoping to increase buyers' trust and clean up the look of its Web site. In the meantime, PayPal has thrived as more consumers and merchants use it to send money online.

Its growth is expected to continue in spite of competition from Amazon.com Inc. and Google Inc., which have services that online retailers sometimes offer alongside PayPal.

PayPal bills itself as a shopper's online wallet. Users set up accounts and link them to bank accounts and credit cards, making it easy to transfer cash into the account. Then users can make payments through PayPal using either their cash balances or the underlying credit card. PayPal users can also send cash to someone based on as little information as an e-mail address or cell phone number.

But unlike what happens with a credit or debit card online, PayPal doesn't share your financial information with merchants. That brings peace of mind to people who might otherwise worry about shopping at a site they've never heard of.

PayPal, which began in 1998 as a way for people to beam cash from one Palm Pilot to another, was bought by eBay for $1.5 billion in 2002 and has been a steady performer. The service charges fees for certain transactions, and in the most recent quarter it reported $688 million in revenue, a 15 percent jump from last year. As of the end of September, 78 million people had active PayPal accounts, up from 65 million a year ago.

To try to...

Cisco Forecasts First Revenue Growth in a Year

Fri, 06 Nov 2009 07:16:00 -0500

Cisco Systems Inc. doesn't want Wall Street to interpret its forecast for its first quarterly revenue growth in a year as evidence that the U.S. and other economies are roaring back.

A slow improvement in orders is under way but the pace is still slow and the recovery is fragile, executives from the world's No. 1 maker of computer-networking equipment told analysts Wednesday.

Cisco forecast that revenue will grow 1 percent to 4 percent in the current quarter, which ends in January. That would translate to revenue of $9.2 billion to $9.5 billion. Analysts polled by Thomson Reuters were expecting a decline from last year.

Cisco's results are seen as a gauge of how large corporations and government agencies and Internet providers are managing their technology budgets. Rising sales suggests they are loosening the pursestrings to buy Cisco mainstays such as routers and switches, which direct data traffic.

Cisco's CEO, John Chambers, said orders are rising again after passing a "tipping point" in the downturn this summer.

Cisco executives urged caution, though, saying sales could still sputter if the economic recovery wobbles.

"There's still uncertainty in the economy on a global basis," Cisco's chief financial officer, Frank Calderoni, said in an interview. "It's not completely back to normal levels, and with that kind of uncertainty, you really have to take things quarter by quarter."

Cisco's numbers for the fiscal quarter ended Oct. 24 indicate that the company is still suffering from the downturn, which has forced its biggest customers to rein in spending, but is seeing green shoots that pleased investors.

Cisco's net income dropped 19 percent to $1.8 billion, or 30 cents per share. Excluding one-time charges, Cisco earned 36 cents per share. Revenue fell 13 percent to $9 billion.

Wall Street was expecting even steeper declines, though. Cisco's shares climbed 82 cents, or 3.5 percent, to $24.11...

Productivity Gains May Be Bad News for Job Seekers

Fri, 06 Nov 2009 07:17:19 -0500

Companies across the economy are finding ways to do more with fewer workers, dimming hopes that hiring will take off anytime soon.

Employers became leaner and more efficient in the third quarter. Wages, meantime, remain flat or falling. The result is that productivity -- output per hour of work -- jumped at the fastest pace in six years.

The good news for companies, though, is bad news for the jobless. As long as companies can get their workers to produce more, they have little reason to hire -- at least until consumer spending picks up. And the squeeze on incomes could depress consumer spending, putting the economic recovery at risk.

Productivity rose at an annual rate of 9.5 percent in the July-September quarter, the Labor Department said Thursday. That was much better than the 6.4 percent gain economists had expected. Unit labor costs fell at a 5.2 percent rate.

Still, while companies aren't doing much hiring, they're also not cutting as many workers. The number of newly laid-off workers filing claims for unemployment benefits last week fell to the lowest level in 10 months

The 9.5 percent productivity rise followed a 6.9 percent surge in the second quarter and was the fastest since a 9.7 percent increase in the third quarter of 2003.

The gain reflected that the overall economy, as measured by the gross domestic product, grew for the first time in a year -- at an annual rate of 3.5 percent. The higher output came as companies continued to lay off workers. That meant employers produced more with fewer workers.

The 5.2 percent drop in unit labor costs marked the third straight decline and was larger than the 4 percent decrease economists were expecting.

Productivity is the key ingredient to rising living standards. It lets companies pay their workers higher wages. The increases are financed by...