Analysts predict worse than Expected Windows Surface Sales

Microsoft’s Surface tablets are still trying to find its footing in the market months after a steady media buildup that ended with the huge rollout event held last October. The holiday season did not bring the joy that executives might have been hoping for in terms of volume sales, according to recent analyst reports.

According to a piece in Business Insider, Brent Thill the managing director and senior analyst at UBS’s Software Group has released his latest estimation on the Surface’s sales dueling the just completed holiday quarter and the news is not good. He estimates that Microsoft sold approximately 1 million of the Surface RT devices, and that is 1 million less than he had originally estimated. . According to the piece Thill also was critical of Microsoft’s distribution effort that initially had a limited national coverage and so made it more difficult to purchase the devices.

To add insult to injury is the estimation that Apple, the company with the falling stock due to poor perceived performance, is expected to have sold 20 million iPads during that same period. Of course Apple is an established player in this space and Microsoft is trying to carve a new space for itself but that is still a telling number.

There are some issues with the Surface, some of which will be taken care of in the future and some who knows. The new operating system, Windows 8, is a big leap from previous offerings with a wide array of differences that could cause people to have second thoughts on purchasing the device. Or they could simply be waiting for the version of the Surface tablet that runs on Intel rather that ARM processors Maybe they are waiting for a larger ecosystem of apps to be available. Then again maybe consumers simply do not like the platform.

However it is not all bad news from USB. Thill said that he expects the next version of the Surface, the Surface Pro, to have a good deal more success, particularly in the business world. This platform will run on Intel processors and be compatible with existing desktop and mobile apps for Windows.

Mobile Sports Report TechWatch: Happy Cyber Monday

Apple is seeking to keep the pressure on Samsung in the legal game and this week has extended its infringement motion against Samsung to now include the Galaxy S3 Mini, the Galaxy Note 2, the Galaxy Tab 2 10.1, the Galaxy Tab 8.9 and the Rugby Pro according to TechRadar.

The move looks to be in retaliation for a similar push by Samsung which has added Apple’s iPad Mini and iPhone 5 to a list of devices that it claims infringe on its patents.

Tablet shipments top laptops in October
You knew that the day when tablets would pass PCs was coming, but there had been estimates that it would not occur for some time. Apparently those predictions were wrong. According to market research firm NPD Display Search, tablet sales passed laptop sales last month, based on its following of the panels used in both products. In October there was an estimated 16.9 million notebook panels shipped while there was an estimated 18.7 tablet panels shipped. However this may be a one month blip as the researchers also said that there were many notebook buyers holding back until after Windows 8 shipped.

Instagram rules on Thanksgiving
This is probably a no-brainer out there for most people but Thanksgiving was Instagram’s biggest day ever. The photo imaging service reported that it averaged 226 photos posted per second over a 24-hour period, with a total of 10 million photos shared over Thanksgiving. That is a lot of turkey. Or a lot of turkey pictures, anyway.

Microsoft planning a set-top box?
According to the Verge, Microsoft has an Xbox TV in the works that it has slated for release sometime in 2013. The device will enable streaming video as well as serve as a platform for the casual gamer, according to the article.

Most likely to be release roughly a year from now it will represent a two SKU strategy for Microsoft in the Xbox space with a dedicated Xbox that supports higher end games and the TV/Xbox combo for the everyday user.

Motorola repeats request for Apple Source Code
As part of one of its lawsuits against Apple, Motorola Mobility has requested access to Apple’s source code. Five times now, but who is counting? Motorola made the first request last May according to a story in the Inquisitr, and has now just made its fifth.

The case is being heard by the U.S. District Court for the Southern District of Florida. The request is for the source code for both the Mac OS X and iOS and Motorola is also asking for a specific date from Apple on when it plans to hand over the code.

Kickstarter kicked
Kickstarter launched a bit over a month ago in the United Kingdom and it now looks like one of is first projects is going to cause the crowdfunding site a few headaches. A successful funding effort landed a startup called Formlab over 2 million pounds.

Birthed from MIT’s Media Lab, Formlab is developing a 3D printer, however 3D Systems, a maker of 3D printers is claiming patent infringement and has sued the startup, as well as Kickstarter. The issue is over how a laser causes a synthetic substance to solidify as part of the 3D process.

According to a piece in PC Adviser, Kickstarter is also being sued by a rival crowd funding company called ArtistShare over the use of a database software program and how it can be used.

Mobile Sports Report TechWatch: Microsoft Phone Issues

A week after Apple settled its patent dispute with HTC it looks like another of its long-running patent battles may be coming closer to a solution. Bloomberg has reported that Apple is now interested in settling its disputes with Google’s Motorola Mobility unit via arbitration.

The effort could lead to the elimination of all of their legal wrangling that is now taking place in courts around the globe. The two have been exchanging proposals for using binding arbitration to settle the problems, it was reported.

Samsung seeks Apple/HTC info
Not all good things have sprung from last week’s patent deal between Apple and HTC. Samsung, still involved in some bitter patent disputes globally with Apple is now seeking to have the courts provide it with the details of the Apple/HTC deal.

Samsung is arguing that the deal shows that Apple is quite willing to forgo the exclusivity that its designs provide if it receives cash in exchange, according to a piece in Computerworld. In related news about the ongoing Apple/Samsung lawsuits the U.S. District judge who presided over Apple’s huge victory over Samsung is expected to rule in December on Apple’s request for a permanent ban on select Samsung products.

Amazon’s 8.9-inch Kindle HD ships early, New Nexus 7 also available
Amazon is set to please the advance buyers of its Kindle HD by shipping the tablet five days earlier than expected. However the joy could be short lived as it looks as if demand has outstripped supplies and the next batch of the tablets will not ship until early December.

The Nexus Seven with 3G also now available and Google is telling customers that it will be three to five business days to receive the tablet.

Windows phone from Microsoft on the way?
The rumor drumbeat continues to grow that Microsoft has another hardware product in the works and that it will be a smartphone for Windows 8. Not sure if it is just one rumor that continually gets picked up and forwarded or if there are a number of independent sources reporting this but it does make sense. It is already competing with its hardware OEMs in the tablet space, why not in the smartphone space as well?

However all is not good with Windows 8 OS
Slash Gear is reporting that users of Windows 8 Phone are reporting a variety of battery and other issues with phones running the operating system. Among the issues are the phones just randomly rebooting while being used. Also poor battery life has been reported on a forum called WPCentral.

Mobile Sports Report TechWatch: Apple Patent News

Google Ventures, the investment arm of Google has received an additional $100 million in funds to invest in startups. The group had been budgeted to invest $200 million in past years but that number has been bumped up to $300 million according to Tom’s Hardware.

Apple loses latest round in patent fight with Google/Motorola
Apple has lost an important ruling last week when a Federal Judge threw out its lawsuit against Motorola Mobility over patent licensing practices. The suit claimed that using 2.25% of the selling price of the item was too high, but the judge dismissed it without comment.

However, according to Wired, the Federal Trade Commission has recommended that the U.S. Justice Department pursue an antitrust investigation into Motorola Mobility in order to determine if it reasonably offered licensing of its industry-standard technology or used that licensing to block rival hardware from competitors Apple and Microsoft.

Speaking of Microsoft and Motorola
The two have also been fighting over the 2.25% per device issue and Microsoft wants to look at the FRAND pricing based on previous pricing. According to Microsoft it should pay somewhere in the vicinity of around $1.2 million a year for rights to use the patents that are in dispute, while of course Motorola thinks that its number, which would result in a significantly higher return, is just fine.

A look at Huawei’s MediaPad 10 FHD tablet
Huawei, as has already been reported, is entering the 10-inch Android driven tablet space with its MediaPad 10 FHD offering. The tablet features a display with 1920 x 1200 resolution, a Huawei-built quad core 1.4GHz Cortex-A9 processor and will be available in 8GB, 16GB and 32GB versions. For more details head over to Slash Gear.

Apple and HTC bury the patent hatchet
In one of the rare the resolutions in the patent wars that looks like it will be final, Apple and rival smartphone maker HTC have settled all of their outstanding patent disputes globally. The resolution includes a ten year cross patent licensing agreement. Any other terms of the arraignment were not disclosed. They originally tussled in court on the patent issue in 2010 when Apple filed a patent infringement case against HTC with the U.S. Federal Trade Commission.

iPad Mini component costs pegged at $188
Ever wonder how much it costs to make something? Well lucky for you, and the rest of us, a number of companies take the time to break down devices and analyze them, and the latest results are from IHS iSuppli Teardown Analysis Services.

It found that the iPad Mini, which starts at retail at $329 costs $188 for the bill of materials and an additional $10 to actually build for a model that features just Wi-Fi and 16GB of storage. The single most expensive component is the tablet’s 7.1-inch display at $80.

Apple to drop Intel chips?
Stop me if you have heard this one before but the rumor that is again making the rounds is that Apple will jettison the Intel processors that it now uses in its Macintosh computers in favor of its own developed chips that it currently uses in its iPads. However the reports, apparently started by Bloomberg but picked up elsewhere, are very hazy as to when such a change might occur.

Mobile Sports Report TechWatch: Androids Rule!

A report from market research firm IDC shows how well smartphones that are running Android are doing in the market. Its latest report, that covers Q3, shows that they have a 75% market share with a total of 136 million handsets being shipped during the quarter.

These numbers leave all other operating systems in the dust. Apple’s iOS platform shipped 26 million iPhones, good for a 14.9% share of the market, BlackBerry had 7.7 million shipped, good for a 4.3% market share while Microsoft’s Windows and Windows 7 platforms shipped 3.6 million units good for a 2% market share.

Microsoft has a smartphone in the works
There has been a lot of noise over a rumored smartphone from Microsoft this week. It seems to make sense — the company introduces a new operating system for tablets and follows with its own tablet and it now also has a new operating system for phones.

While most just report on the rumor, Forbes has discussed why the phone is a good idea (at least in the eyes of the author) and takes a good look at what the impact of such a phone might have on the market and current and potential future Microsoft OEMs.

Microsoft’s CEO Steve Ballmer is taking aim at Apple it appears and he said that Apple is a low volume player in all of its markets aside from tablets. It will be interesting to see how well Windows tablets do against the iPad.

When is an apology not an apology? When Apple makes it
Stung by a court order Apple has re-apologized to Samsung after a court in the United Kingdom deemed its earlier effort had inaccurate depictions of an earlier court ruling and that the apology must make an obvious reference to the court ruling.

Apple’s original effort was a cut and paste job that gave the appearance of exactly the opposite of what the court wanted it to say.

Microsoft vs Google trial has secrecy issues
The next major trial looming on the horizon in the U.S. is the pending case of Microsoft vs. Google, has a common request that is starting to worry legal experts. A part of the case has to do with royalty payments that these companies make to licensees, and they want that to remain secret, even when discussed at a public trial. The gist of a request that both companies have made separately is that a good deal of the trial be conducted in secret, so as not to reveal information that they deem confidential.

New crowdsourcing for app developers
Mobile app crowdsourcing player AppStori has teamed with Millennial Media to provide funds for not only mobile app development but also for advertising and support. The program provides eligible projects that post on AppStori $500 in cash funding and a $500 advertising credit to put toward driving app discovery. Millennium Media provides mentors to help the developer on everything from creation to marketing.

Microsoft Moves Windows 8 into Smartphone Territory

Microsoft continued its move into a more digital, mobile software provider today with the debut of its Windows Phone 8 smartphone operating systems, offering a very much revamped OS along with a number of its partners’ latest offerings.

Microsoft is looking to leverage changes it has made in its operating system , with its Windows 8 OS introduced just last week, and will now be providing a similar look and feel with the same technology core used in both platforms.

The look and feel of the OS appears to be very different from what is offered from its rivals- no static icons but rather what Microsoft is calling Live Tiles, a technology that has the apps that you use in a tile format.

The nice thing about Live Tiles is that a user can customize the startup page and place the apps and functions that they want right there, rather than being stuck with a large number of predetermined apps.

A key attribute of many of the apps is that they are live, that when you look at the phone or start it up an app such as Facebook will be up to date, even if it is still in lock screen mode.. They are also sizable with three formats and you are provided with 20 options for colors.

Microsoft has also been working on developing a much healthier app ecosystem, an area that it has received criticism in the past. Its Windows Phone Store now has 120,000 apps including most of the top rated. In the future it will have Pandora, the leading Internet radio service, in early 2013 with one year of ad-free music.

There is a feature called Data Sense that helps prevent you from going over your data plan by automating and in some cases delaying tasks. It can compress images, or defer tasks until free Wi-Fi is available. It can monitor how much data apps use and inform you when you are nearing the limit. This is used in conjunction with carriers and Verizon is expected to be the first to support it.

One clever piece of software is it’s “Kid’s Corner” an app that enables children to play games on the phone without deleting information, ordering apps or calling Peru.

Along with the Windows Phone 8 OS, Microsoft had a trio of partners delivering new phones. There will be several options available from Nokia, Samsung and HTC, that will go on sale in November at AT&T, T-Mobile and Verizon in the U.S., as well as at carriers and retailers around the world.

The move comes just hours after Google announced an update to Android, now at 4.2, along with a new Nexus phone and a revamped Nexus 7 and a new Nexus 1 tablet. Apple had a new iPhone out a few weeks back and a new iPad Mini last week.

I think that, depending on real world performance when the phones are available, Microsoft has a strong story simply because all of its products- PC OS, tablet OS and smartphone OS are compatible with each other and using Microsoft’s SkyDrive cloud service a user can start projects on one device and finish them seamlessly on another- a compelling usage model IMHO.