Microsoft making nearly half a billion in license deals Tweet

updated 08:15 pm EDT, Thu September 29, 2011

Estimates show huge Microsoft profit on Android. Goldman Sachs analysts estimated that, at between $3 to $6 for each device, Microsoft's combined deals could lead to it making $444 million in its fiscal 2012 year, which ends next June. The deals range from majors like HTC and Samsung through to more niche firms like Onkyo and Velocity Micro.
Windows Phone itself is now a much smaller share of Microsoft's revenue at that rate. With 1.72 million Windows phones of all makes shipped in the spring and a $15 licensing rate, Microsoft would have made just $25.9 million a quarter or $103.4 million a year, just a quarter of what it makes from Android.

Goldman Sachs saw the royalties as still secondary to Microsoft versus building up Windows Phone. Google's buyout of Motorola might actually help by taking a completely independent Android maker out of the picture. Microsoft is also widely believed to be wielding Android royalty rates as a way of forcing firms to make more Windows Phones, lowering the rate if they agree to design more models and ship more units.

HTC may be warming up to the platform in spite of legal pressure to use it. Singapore manager Melvin Chua stated Wednesday that 30 percent of HTC's total unit sales were coming from Microsoft's OS. He saw this rising and that it could soon "give Android a run for its money," according to ZDNet.

Some of the hope was coming from the just-shipping Windows Phone 7.5, or Mango. It adds multitasking, a much newer browser, and other additions that have helped it catch up in features. Microsoft still faces some deficits, such as a lack of support for dual-core processors, but has generated "positive feedback" inside and out of the company, Chua said.

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Foxconn may produce Amazon 10.1" tablet Tweet

After passing on orders for the new Kindle Fire from Amazon, Foxconn Electronics is believed to have won the contract to produce the Internet retailer's rumored 10.1-inch tablet and could begin shipping the device from factories by the end of the year, according to a new report.

Taiwan industry publication DigiTimes reported on Friday that industry sources claim Amazon will continue its long-term relationship with Foxconn by outsourcing production of its 10.1-inch tablets to the manufacturer. Amazon has historically hired Foxconn to build its Kindle e-readers, but the retailer went with Quanta for its new Kindle Fire touchscreen tablet, set to ship on Nov. 15.

Unveiled on Wednesday, the 7-inch Fire sells for $199 and is a "souped-up version" of the Kindle that is meant for media consumption through Amazon's ecosystem. Amazon Prime members can enjoy movie and TV show streaming on the tablet and users can purchase apps via Amazon Appstore. The Fire runs an older version of Google's Android operating system with a "fresh and easy-to-use interface" painted over Android's "rough surfaces."

According to the report, sources said Foxconn "decided not to take" orders for the Fire because it had been busy producing Apple's iPad. That's consistent with rumors that emerged in June that said the success of the iPad could place production constraints on Amazon.

Amazon instead turned to Quanta, which had produced Research in Motion's PlayBook tablet earlier in the year. The Fire bears a strikingly close resemblance to the PlayBook.




AppleInsider reported on Monday that, according to analyst Ming-Chi Kuo, the Kindle Fire is a transitional device meant to 'test the waters' ahead of Amazon's true tablet efforts that have been pushed back to next year. The 10.1-inch tablet is reportedly codenamed "Coyote" and is expected to arrive in early 2012. Amazon is also said to be readying an 8.9-inch tablet with an "amazing form factor" for the second half of next year.

Initial response to the Fire has been mixed. Analyst Gene Munster of Piper Jaffray said the device is "not a true competitor, but more competitive than expected," while noting that Amazon is expected to lose about $50 per unit it sells. J.P. Morgan's Mark Moskowitz was unimpressed with the Fire, calling it "noise" and a stepping stone at best. Others, however, have hailed the device as an "iPad killer" that will undercut Apple's tablet on price.

Kuo estimates that Amazon will build 3 million Fires by the end of the year, but some industry watchers have expressed concerns that supply of the device will be tight this holiday season.

"When [Amazon CEO Jeff Bezos] quipped that people should get their pre-orders in quick, that wasn't just a sales pitch," Reuters reported Wedge Partners analyst Brian Blair as saying "That was him warning this will sell out."

Amazon will benefit from using older technology and more readily available 7-inch screens, but may have trouble expanding its production and distribution capabilities. Rival Apple has leveraged its sophisticated operations to give it "a competitive advantage over Amazon, which may find it difficult to produce more than a few million Kindle Fires for the holiday season," Munster said on Wednesday.

In addition to the Fire, Amazon unveiled a $79 low-end Kindle without a keyboard and a Kindle Touch with multi-touch capability. Both devices continue to use e-ink displays and will be sold alongside the previous model, which has been renamed the Kindle Keyboard.

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Amazon may ship 10 inch Kindle Fire before 2012 Tweet

Amazon's 10-inch version of the Kindle Fire could already be shipping from factories in late 2011 if supply chain reports from late Thursday are correct. Foxconn is purportedly taking on production of the larger model before the end of the year for "holiday-season demand," Digitimes said. It's unclear exactly when the tablet would go on sale.
A very late 2011 launch would be unusual given that the seven-inch Kindle Fire will only be shipping November 15. Shipment at the end of 2011 might not lead to real sales until the more widely rumored early 2012 date. The 10-inch tablet is understood to be Amazon's real centerpiece and could have a quad-core TI OMAP or NVIDIA Tegra 3 chip inside with more of an emphasis on video.

Regardless of plans for the larger model, Apple may have disrupted some of Amazon's production plans. Even as Quanta lent its experience with the BlackBerry PlayBook to make the Kindle Fire, it may have come after Amazon was denied a chance at manufacturing from Foxconn. The contract manufacturer was said to have had its capacity booked making iPads for Apple. If true, it's possible Apple's surge of iPad demand may have ultimately dictated the Kindle Fire's design as well as its production limits, giving Amazon a lower ceiling than it would have at the world's largest contract manufacturer.

The seven-inch slate is so far considered Android's best hope at getting significant market share in a climate dominated by iPads. Part of its appeal has been the deliberate decision to get away from conventional Android tablet design and focus on a completely original interface along with a well-established ecosystem already waiting to supply books, music, and videos. Its $199 price may also clinch the deal, although it's speculated Amazon might be selling at a loss just to build market share early on.

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Verizon's Galaxy Tab priced at $600 Tweet

Verizon Wireless defended its $600 price tag for the Samsung Galaxy Tab, which goes on sale Nov. 11, noting that no service contract is required and that the device comes with embedded 3G cellular service along with Wi-Fi.

Verizon customers will only pay monthly for data usage on the Galaxy Tab, starting at $20 a month for 1GB, Verizon spokeswoman Brenda Raney said Wednesday. The pricing is the same as for buying the Wi-Fi iPad bundled with the MiFi mobile hotspot from Verizon starting on Oct. 28, which includes the $20 for 1GB, $35 for 3GB, $50 for 5GB and $80 for 10GB. (The $80 plan was not originally included in the iPad bundle announcement, but applies to both the iPad and the Galaxy Tab.)

Raney said the no-contract plans are unique to tablets, since they are new to Verizon and offer novel uses for customers. She wouldn't say if Verizon is announcing more tablets in coming weeks.

Typically, Verizon and other carriers require a two-year service contract for a smartphone purchase, so Verizon's approach represent an important shift in data pricing from carriers. But it is a similar approach that AT&T started in the spring for monthly iPad 3G service priced at $14.99 for 250MB and $25 for 2GB)

"Verizon Wireless has always been committed to providing customers with the latest technology, and the latest announcements reflect that commitment to a relatively new entrant into the mobile arena -- tablets," Raney said. "The data plan pricing for the tablets are reflective of how people use these multi-purpose devices, and because they are 3G and Wi-Fi enabled, customers have a choice in how, when and where they use them."

Some commenters at Computerworld complained that the $600 price tag for the Galaxy Tab was unreasonable compared to the iPad, which starts at $499 for the 16GB version.

But an iPad with 3G from AT&T adds $130 to the pricetag, bringing the 16GB version to $629, or $30 more than the Galaxy Tab.

Other Galaxy backers have noted that the device has a port for expanding storage by 32GB in addition to the 16 GB internally. (Galaxy will also come with a 32GB internal storage model, but it is not clear whether the carriers will offer it.)

The iPad also has no camera, while the new Galaxy has two: one 3.2 megapixel rear-facing camera and one 1.3 megapixel front-facing camera.

One of the biggest differences is the touchscreen size, with the iPad's at 9.7 inches and the Galaxy's at 7 inches. The iPad with 3G and Wi-Fi weighs 1.6 pounds, while the Galaxy is .84 pounds.

Both run 1GHz processors, and the iPad runs iOS 3.2 (with iOS 4.2 due in November), while the Galaxy runs Android 2.2, which will be upgradable to Android 3.0 at an unspecified time.

All four major U.S. carriers are selling the Galaxy Tab, but only Verizon appears to have officially announced pricing and availability. Sprint is rumored to be offering the Galaxy Tab for $399 with a two-year contract, or $599 without, starting Nov. 14, but Sprint has not officially confirmed that information.

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Android Gingerbread First details Tweet

Android Gingerbread, the most tasty version of Android to come out
yet. It's still in development, but the details are peeking through
the cracks. Let's take a taste! First of all, there's a very possible
graphical overhaul. Google's hired ex-Palm user interface expert
Matias Duarte, pointing directly at a lovely new look that'll blow
everyone else out of the water (not that this is going to be the
hardest thing to do in the world, you aesthetic sinners, you.)
Standard icons have a new simpler look, appearing now to have all come
from the same illustrator rather than a gaggle. And then there's
green, so much green!

This blurred as sin photo is all that's available to the world at the
moment, so I added a little gingerbread man there to brighten your
blurry blues away. The notification bar's turned from a milk color to
a gray, a color more and more prevalent on the internet in layouts
these days, have you noticed? After that, there's lots of greens, a
prominent logo for whichever carrier you've purchased this from. The
main homescreen is essentially the same, most of the colors moving
toward a more prominent green, especially the Browser and Dialer
buttons which are no longer gray but a wild lime.
Sources report that a lot of the change will come through the feel of
the apps, making them more a part of the OS than a plugged-in bonus.
YouTube, for example, will be displayed in a way unlike any other
place you're going to be able to access it, with a full-screen
continuous play mode called "Lean Back" which you can also use to view
the newly -launched Google TV.
Things are getting bouncy as they've been getting on iOS devices and
on TouchWiz 3.0 devices when walking up and down lists. Force-fields
hit your finger as you reach the end of the line in either direction.
Gingerbread overall seems to accelerated, slightly smoother, and in so
many tiny ways just a little nicer. Then there's video chat.
Using the same protocols that power video chat on the desktop version
of Google Talk. SIP support will be added so you can receive calls on
your Google Voice number over WiFi and cell. This means that even if
you don't have a voice plan, you can use your device as a phone for
free just so long as you're within range of the internet. This feature
seems to be Gingerbread-and-higher specific. So what a tasty treat
there shall be!

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Google Updates 'Car Home for Android' Tweet

Car Home for Android is an application that provides lots of the tools
drivers want at their fingertips when behind the wheel. Google on
Friday rolled out updates to the app, including new features like
shortcuts, icon colors, and a background wallpaper option.
"Car Home for Android turns your Android phone into a better driving
companion by providing you with quick access to key applications on
the go: GPS navigation, voice-activated commands, contacts, and more,"
Markus Mühlbauer, Google Automotive's manager of engineering and
product, said on the Google Mobile blog. "We're releasing a new
version of Car Home for Android which makes it easier to customize Car
Home to get the information you need faster."
The app can now be automatically launched when linked with a special
dock mounted on the windshield or when it's connected with Bluetooth.
You can also customize for one-touch access to certain apps and phone
information via "Add shortcut," as well as select personal wallpaper
settings.
The free app is available in Android Market for phones running Android 2.2.
The updated app debuts at an opportune time. This week, several
studies related to the dangers of distracted driving have been
released. A study released Thursday by Vlingo revealed that 35 percent
of drivers are using their phones to text while driving, and a study
by the Highway Loss Data Institute found that bans on texting behind
the wheel aren't decreasing collisions. As more data becomes
available, the need for hands-free solutions will likely increase.

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Android expanding around the world Tweet

According to Google, the Android Market is on its way to 18 more
countries--including Brazil, India, Mexico, Russia, and
Sweden--bringing the total to 32 countries. Google said that
developers who have already made their applications available to "All
Locations" will not need to change that status for their programs to
be available to the new customers.

Android Market users will likely also find more apps in the store,
thanks to Google's decision to allow developers in 20 more countries
to sell paid apps in the marketplace, raising the figure to 29 nations
altogether. The company said developers in Canada, Switzerland, and
Taiwan are among those who can now sell apps.

Developers can start selling apps on the Android Market immediately.
Customers looking to buy apps in the new countries can start doing so
"over the next two weeks," Google said. Android Market it's going to
additional countries in the coming months.

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