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May 14th, 2009

RIM says phones will still trump netbooks

Posted by: Sinead Carew

Amid a wave of hype about wireless gadgets like netbook computers and mobile internet devices, Research In Motion’s Co-CEO Jim Balsillie says he will keep focused on the BlackBerry maker’s core business of phones even as computer makers are starting to make phones and phone rival Nokia eyes netbooks.  

This means that Balsillie is focused on developing more new versions of each of BlackBerry phones: those shaped like candy-bars, with touch-screen controls and devices with mini-QWERTY keypads. 

“Form factor is a personal preference but it’s got to be something that lasts the better part of the day and you can hold up to your ear and clip onto your belt,” he said  in response to our question about his vision for future products. “Those are a very tight systems constraints for a netbook.” 

And, if a phone’s dimensions seems too cramped for the increasingly sophisticated media, entertainment and business services offered, Balsillie said this:
“If you want richer keyboards and richer displays you can just use perphiperals and bluetooth.”
 
Bob Stutz an executive from business software supplier SAP, which delivers business applications to BlackBerry devices, was dismissive of the relevance of devices like netbooks for his clients. 

“We’ve been down this route with these kinds of devices,” he said, referring to “iPaqs, fliptop notebooks and other specialist devices.”

“Why we are doing this with RIM today is because these (other) devices don’t work,” he said, noting that consumers want sturdy, inexpensive and well connected devices.
“Customers really have been down the gamut … They’ve been down this path. At the end of the day what we’ve really found is that if they can do it on a BlackBerry that’s what they’ll want.”

(Photo: Reuters)

*Verizon to sell wirelessly enabled netbook computers from HP (Reuters)
* Facebook to test payments platform (Silicon Alley Insider) 
* $13,000 bid for Huffington Post Internship (AdvertisingAge)

January 30th, 2009

dellPhone a rumor at best - Michael Dell

Posted by: Sinead Carew

The Web may be buzzing with stories about whether computer maker Dell should or shouldn’t get into the cell phone market, but the company itself  has tried to stay out of the public discussion. 
Michael Dell said on Friday that reports of Dell’s cell phone ambitions were “best described as a rumor” when chased by reporters at the World Economic Forum in Davos, Switzerland. 

The analysts had this to say about the computer maker doing battle with rivals such as Apple in the cut throad phone market as well as in computers. 

 Some were encouraging:

“This strategy makes a lot of sense. Smartphones are a big opportunity and in a way they’re canibalizing notebook and netbook sales to a degree,” said Kaufman Bros analyst Shaw Wu. “It’s probably minor today but could become bigger over time as smartphones get more powerful. It’s better to go embrace the threat than doing nothing.”

He added, “They’re used to competition. It’s not easy. But against Apple and Research In Motion it’s going to be particularly difficult … What it boils down to is price and a decent brand name. Dell has a decent brand name.” he said.  “The risk is that its tough to differentiate. Apple and Rim in particular are very tough competition. Not even the Nokias, the Motorolas, LGs and Samsungs have figured out how to compete with them yet.” 

Others were skeptical Dell could succeed:   

“It’s doubtful that Dell ends up being anything more than noise in this market. it will probably end up being one of their forays that doesn’t amount to much,” said Collins Stewart analyst Ashok Kumar. “Its highly unlikely they’ll get sponsorship from the major carriers. Its going to be a me too product … what is it they’re going to bring to the table? The only factor they can differentiate is on price.”

Reporting by Emma Thomasson and Nichola Groom in Davos

(Photo: Reuters)

December 5th, 2008

Nokia: A $500,000 Exit to Brooklyn?

Posted by: Sinead Carew

Hours after it issued its second warning in three weeks, forecast shrinking cell phone sales for 2009 and promised to reduce expenses, Nokia held an investor meeting in Brooklyn, New York. Most analyst meetings take place in Manhattan, and Chief Financial Officer Rick Simonson told the audience on Thursday that he’d been asked why the company chose the Marriott at the Brooklyn Bridge.  Brooklynites are very accommodating, Simonson said — adding that Nokia saved money by moving the meeting from the heaving center that never sleeps.  Simonson didn’t give a figure, but JPMorgan said in a note that Nokia saved as much as $500,000 by simply making Wall Streeters cross to the other side of the Brooklyn Bridge.  It’s hardly enough to counter a 5 percent cut in cell phone sales volume next year and probably not even a fraction of the cost of putting Nokia’s latest multi-media phone, the N-97 on the market, but it is a good start. Maybe other conference organizations will take its cue, and this reporter will have a shorter commute more often.

(Photo:Reuters)

May 7th, 2008

Phones to make the poor upwardly mobile

Posted by: Reuters Staff

The “Business Call to Action,” hosted by the British prime minister, drew some 80 CEOs of the world’s biggest companies including Microsoft, Coca-Cola and Vodafone as well as top politicians to discuss how big business can stamp out global poverty.

The lure? Big profits. Ghana’s President John Kufuor said it will be easier for U.S. and European businesses to make their next million in Africa rather than anywhere else. The credit crunch has made a few more believe this might be true.

“Three billion of the world’s 6 billion people have mobile phones,” Vodafone CEO Arun Sarin said. “And three-quarters of the new customers are in the developing world. This is a huge opportunity.”

Two companies laid out how they were using technology to tackle issues unique to developing nations in a race to win market share. British telecom company Vodafone has made some headway, while Telefonica O2 is launching new products to allow migrant workers to send money home using their mobiles.

Vodafone CEO Sarin:

  • Vodafone already has 2 million Kenyan and Tanzanian customers, out of 10 million in total, signed up to M-PESA, which allows customers to send much-needed money to loved ones using their mobile phones.
  • The company operates in Afghanistan. To get around the problem of illiteracy, the firm has developed voice recognition software. Luckily you don’t have to shout out your bank details or the amount you’re sending - you give voice instructions and plug in the numbers.

O2 CEO Matthew Key:

  • Telefonica has plans to for a similar service in Latin America, where many leave for the United States and send part of their wages home.
  • Telefonica wants 200 million people to sign up for “a new suite of banking products,” Key said.
  • The company estimates there are 650 million money transfers back to Latin America each year, and its mobile phone products will slash the average $10 cost per transfer.

–Reporting by Chris Wills in London