Lenovo Passes Dell, Becomes No. 2 PC Vendor

Lenovo surged past Dell to become the world’s second largest PC vendor at the end of the third quarter, according to research firms IDC and Gartner.

Top PC maker Hewlett-Packard also saw its worldwide PC shipments grow by 5.3 percent in the quarter, despite reports that the company may spin off its PC business.

Both research firms said growth for the quarter failed to reach earlier projections. IDC said at the end of the third quarter, worldwide PC shipments increased by 3.6 percent year-over-year, below its earlier 4.5 percent growth projection.

Gartner said PC shipments grew by 3.2 percent year-over-year, which was lower than the research firm’s original projection of 5.1 percent growth for the quarter.

Analysts have pointed to sluggish spending because of weak economic conditions as a key reason behind the slowdown in PC growth. The rise of tablets has also hurt shipments.

“For the moment, PCs have taken a backseat to a range of other devices competing for shrinking consumer and business budgets,” said IDC analyst Jay Chou in a statement.

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WebOS Lives

HP is aiming to keep WebOS alive by putting it on printers.

The firm has discontinued its WebOS devices such as the Touchpad tablet and Pre 3 smartphone but WebOS will appear on new products, according to Pocketlint. The operating system (OS) will come on the Designjet line of HP printers.

An HP spokesperson said, “HP is currently investigating using WebOS on its Designjet range of professional printers.”

It’s likely that the OS will come on consumer printers at some point in the future, too. The following statement also hints that it could appear on products other than printers.

“HP is 100 [per cent] committed to producing print solutions that meet our customer needs and we will continue to drive innovation to ensure our products and solutions meet market demand. We built our printing franchise based on being OS agnostic – we have been and will continue to be agnostic to meet our various customer needs. As webOS plans develop we will continue to evaluate how and if we incorporate it into our future products.”

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Sprint Finally Gets The iPhone

Sprint Nextel confirmed that it will offer the next version of Apple Inc’s iPhone, ending months of speculation about whether it would become the third U.S. carrier to sell the popular device.

But the No. 3 U.S. mobile provider would not say whether its iPhone would come with a flat-fee service for unlimited data use – an offering analysts see as Sprint’s only hope for making its iPhone more competitive than rivals.

While selling the device should help Sprint keep subscribers from fleeing to other operators, some analysts worried whether the costs would outweigh the benefits because Apple phones come at a steep premium to other devices.

This is a huge gamble for Sprint and people are justifiably worried that they won’t be able to make any money doing it. It’s not a company that’s in great financial shape right now,” said Stifel Nicolaus analyst Chris King.

Analysts questioned how Sprint will be able to find the money to pay a premium to Apple on top of its obligations to pay back billions of dollars in debt and its plan to spend about $5 billion on an network upgrade in coming years.

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Most Tegra 2 Tablets Will Get ICS

Sources have confirmed that most Tegra 2 tablets you know will get Ice Cream Sandwich. We are still sniffing around to find out if the ICS is going to end up as Android 4.0 but it will bring phones and tablets much closer and should ship in October or November.

Many Asus, Samsung, Toshiba, Lenovo, Sony and any other Android 3.x compatible tablets on market will have a chance to get the new one. The upgrade will come as manufacturers get it ready and customized for its tablets but most tablets will ship with Android 4.0, Ice Cream Sandwich, probably early next year at the latest.

This is good news for many who were brave to buy the first generation of tablets not based on Apple’s architecture and it will help Google to gather even more momentum for 2012. 2012 looks like a year when Google will be ready for real war against Apple, but at the same time, Android supporters fear that Windows 8 will get a lot of attention when it ships in late 2012.

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Oracle Claims It Lost Over 1 Billion

Oracle now estimates it has lost $1.16bn from Google’s alleged copyright and patent infringement by the Android operating system.

Last year Oracle sued Google claiming that its popular Android operating system infringed Java patents and copyrights. Since then the two sides have been trying to come to an agreement on any damages Google might have to pay.

Initially Oracle claimed $6.1bn from Google, but Judge William Alsup quickly told Oracle to come back with something more realistic. Oracle did just that yesterday with a figure $2.2bn, a figure that Google has urged the court to reject. Now Oracle claims it has lost $1.16bn due to Google’s Android, though this figure is not related to the damages claim it made yesterday.

Google on the other hand has claimed that Oracle’s expert witness Iain Cockburn, who calculated the damages, was a little too zealous in adding up his figures. Judge Alsup has already rebuked Google twice, once for trying to downplay the significance of Android and a second time for trying to use failed licensing talks with Sun to reduce any damage award.

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BlackBerry Falls Behind In Workplace

More workers use iPhone and Android smartphones combined than BlackBerry devices, according to a survey of 1,681 U.S.-based workers released today by Forrester Research.

That finding highlights what many have known for a while about the entrenched workplace smartphone veteran: the BlackBerry faces trouble from its competitors.

The BlackBerry, made by Research in Motion, still leads among U.S. workers, with 42%, the survey said, with Apple’s iPhone accounting for 22% and Android devices, 26%.

The survey also found that nearly half, or 48% of the group, said that they chose the primary smartphone used for their work without considering what their company supports. Only 29% said they chose the smartphone from a list of phones the company supports, while 23% said they had no choice in the matter.

Often, corporate IT shops will choose BlackBerry smartphones when requiring a worker to use a specific smartphone, partly because of the perceived security benefits, many analysts, including at Forrester, have found. The growth in Android phones and the iPhone — many of them brought to workplaces by workers independently — are forcing IT shops to rethink that decision, however.

Ted Schadler, a Forrester analyst, said the survey points to two major trends. The first is that more workers than ever are bringing consumer-focused devices, such as Android and iPhone smartphones, to use for work, and more companies are supporting those devices.

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Did Google Increase Microsoft’s Ad Rates?

Google might have increased Microsoft’s ad rates 50 fold, a Bloomberg report says.

Someone familiar with the matter told Bloomberg that the US Federal Trade Commission (FTC) is looking into the rate increase.

It will also be looking into other allegations against Google about advertising as a result of complaints from Microsoft.

This is part of a larger antitrust probe into Google that began earlier this year, the source told Bloomberg.

An antitrust lawyer at Doyle Barlow & Mazard PLLC in Washington, Andre Barlow, told Bloomberg that, if true, the Microsoft allegations could be used to help the FTC build a case showing that Google has abused its power as the owner of the world’s most popular search engine, violating the Sherman Act and other antitrust laws.

He said, “A lot of this conduct, when put together with a firm with market power, could be viewed as a violation” of antitrust laws.

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Samsung’s New Chip Line To Boost Flash Memory

Samsung Electronics, the world’s No.1 memory chip maker, said it began mass production at a new $10 billion chip line, as it seeks to raise its profile in the booming flash memory chip market fueled by robust demand growth in mobile products.

Samsung’s new production line, its first in about five years, will help the company sharply lower production costs of the chips and could exacerbate oversupply in the market, stifling smaller rivals.

Apple Inc, the maker of popular iPhones and iPads, and Sony, which joined the crowded tablet market last month with two new devices, buy flash memory chips from Samsung.

The cost-competitive facility will make it difficult for its major customers to shift away to other suppliers.

Apple, Samsung’s biggest customer locked in a series of patent legal battles with the South Korean firm, is trying to reduce sourcing from the emerging competitor.

“The new line won’t have any immediate impact on the supply side, as it will take some nine months to fully raise capacity run rates, but it shows Samsung’s attempt to take more share in the flash chip market,” said Song Myung-sup, an analyst at HI Investment & Securities.

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Is HP Going To Court?

HP and its top executives have been accused of misleading investors before a slump in its stock price.

HP is facing a class action lawsuit filed by Robbins Geller Rudman and Down alleging that CEO Leo Apotheker and CFO Cathie Lesjak misled investors before making announcements that included the possible spin-off of its PC business, dumping WebOS devices and the purchase of British software outfit Autonomy.

Those announcements, all made in one afternoon, led to a 20 per cent drop in HP’s share price the following day. That, according to Reuters, was the largest one day decline in HP’s share price since 1987.

The lawsuit against HP does not specify damages but it serves to highlight the growing concern at the way Apotheker is leading HP. The firm’s announcement that it was considering leaving the PC business was a shock to many, but its decision to dump its WebOS devices was perhaps the biggest shock of the lot.

While HP’s PC business was always seen as a low margin operation, WebOS was viewed as a core part of HP’s future strategy. The firm kept banging on about slipping WebOS into as many devices as possible, however all that talk evaporated, just like HP’s Touchpads when it sold them off at fire sale prices for a massive loss.

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RIM’s Woes Continue

PlayBook shipments dropped in half for Research In Motion during its second quarter, which also saw revenue continue its steep decline.

RIM shipped just 200,000 PlayBooks in the second quarter, down from 500,000 last quarter, when it started offering the tablet device.

Revenue was US$4.2 billion, hitting the low end of the company’s expectation and down 10 percent from the same quarter last year. Analysts polled by Thomson Financial expected $4.47 billion.

RIM’s net income was $329 million, or $0.63 per share. Adjusted net income was $419 million, or $0.80 per share. Analysts were expecting better: Those polled by Thomson predicted $0.87 per share.

RIM shipped 10.6 million smartphones during the second quarter. In June, RIM warned that the second quarter might be weak because of delays in shipping new phones. The delays meant RIM would miss the back-to-school sales period, negatively impacting sales, it said at the time.

Executives who spoke during a conference call to discuss the results put a positive spin on phone sales, however. The company only began launching phones running the new BlackBerry 7 software within the past few weeks, and so far it’s the “largest and most successful launch in our history,” Mike Lazaridis, co-CEO of RIM, said during the call.

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