Laptop Users Still Prefer USB Modems

Mobile data users still overwhelmingly prefer USB modems for keeping PCs and other devices connected while on the go, but they may turn more to built-in cellular radios and portable Wi-Fi hotspots over the few years, according to ABI Research.

Despite the growing market for connected tablets and the availability of laptops and netbooks with high-speed cellular modules built in, worldwide shipments of USB modems still surpass embedded 3G and 4G modules by three to one, ABI said in a report Monday. But by 2016, that ratio may change to near an even split, said ABI analyst Jeff Orr.

Mobile operators including AT&T, Verizon Wireless and Clearwire give consumers the option of buying a laptop or netbook with an integrated cellular module. Those computers let subscribers go online almost anywhere without using up a USB port or carrying around a separate piece of hardware that sticks out of the side of the system.

Built-in modems lock buyers into one carrier or network technology for the life of the device, which most consumers and enterprises don’t want, Orr said. They buy USB modems because they can be easily discarded when a better network comes along, he said. Prices are low and often there is no early termination fee for getting out of the carrier data contract.  “That device becomes almost disposable,” he said.

One problem with built-in modems is that wireless technology changes faster than most users want to change computers. For example, the past three years — a typical PC lifetime — have seen the construction of both a WiMax and an LTE network in many cities around the U.S., offering 10 times or more the speed of 3G networks.

The market for embedded modems is still fairly small, according to ABI. In 2010, only about 5% of laptops worldwide shipped with built-in cellular modems, Orr said. Among netbooks, 17% came with modems, but overall shipments were much smaller for netbooks than for laptops. Meanwhile, 40% of tablets came with such modems, but the overall tablet market was smaller still.

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Motorola Xoom Sales Better Than Expected

Motorola Mobility shipped 250,000 Xoom tablets in the first month the device was released, the company said on Thursday as part of their first-quarter earnings report.

The tablet, the first to run Google’s Android Honeycomb OS, went on sale in February. Within weeks, several analysts said early sales numbers were disappointing. By early April, one analyst estimated that Motorola had sold a total of 100,000 of the tablets.

Shipping a quarter of a million in a month isn’t quite the same as  Apple first iPad shipment, but the number appears to be better than most had expected.

For the full year, Motorola is expecting to sell 1.5 million to 2 million tablets, it said. It plans to introduce new tablets, including some with new form factors, this year, executives said during a conference call to discuss first-quarter results.

During the quarter, Motorola Mobility also began selling the Atrix, a phone that can be docked into a device with a full keyboard and monitor. Some analysts have also said sales of the Atrix are unimpressive.

The company did not release Atrix sales numbers separately. It said it shipped 9.3 million mobile devices, including 4.1 million smartphones, during the quarter.

Motorola expects to record an operating profit for the full year, but faces challenges ahead. It has delayed the launch of the Bionic, its first LTE device, and on Thursday said the delay is related to a software problem. That same problem is also pushing back the launch of LTE on the Xoom, which was initially expected for the first half. Both the LTE Xoom and the Bionic are now expected to come in “summer,” which in North America could be as late as September.

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Intel Developing Thunderbolt Technology

A new interconnect technology being developed by Intel could be ready for market by 2015 and will be able to move data between computers at up to five times the speed of its recently launched Thunderbolt technology, an Intel researcher said earlier this week.

The new technology uses silicon photonics, which combines silicon components with optical networking, to transfer data at up to 50 gigabits per second over distances of up to 100 meters, said Jeff Demain, strategy director of circuits and system research at Intel Labs, at a company event in New York.

Intel expects the technology to be ready for use in PCs, tablets, smartphones, televisions and other products by 2015, Demain said. As well as being faster than today’s interconnect technologies, it’s expected to lower costs because the components will be built using existing silicon manufacturing processes.

The technology could possibly be used in TVs and set-top boxes to carry video streams at much higher definition than those available today. Image resolution is likely to quadruple by the middle of the decade, when successors to 1080p have arrived, and that will mean more data has to be pushed to the TV.

It should also enable faster data transfers between smartphones, tablets, PCs and peripherals such as external storage drives.

The technology still has a way to go, but Intel showed its progress at the event in New York Wednesday. It showed what it said were working prototypes of the silicon chips used to transmit and receive the laser signals.

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iPhone 5 May Debut In September

Apple’s next-generation iPhone will have a faster processor and will start shipping in September, several sources with direct knowledge of the company’s supply chain said.

The production of the new iPhone will start in July/August and the smartphone will look very similar to the current iPhone 4, one of the sources said on Wednesday.

The iPhone -debuted in 2007 with the touchscreen, on-demand application template now adopted by its rivals- remains the gold standard in the booming smartphone market.

Reports on the timeline of the new iPhone launch vary, though it is largely expected that Apple will likely refresh its iPhone 4 later this year.

The sources declined to be identified because the plans for the new iPhone were not yet public. An Apple spokeswoman in Hong Kong was not available for comment.

The iPhone is one of Apple’s most successful products, with more than 16 million sold in the last quarter of 2010 and the product accounted for more than a third of the company’s sales in the quarter.

The current iPhone 4 was launched by Apple Chief Executive Steve Jobs in June last year and began shipping the same month in 2010.

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Is Twitter Finally Getting A Competitor?

Twitter your days alone at the top of the micro-blogging mountain may soon be ending. UberMedia, which owns major third-party mobile applications for the Twitter platform, is said to be building a service that will compete directly against Twitter. If it’s true, the move would come on the heels of Twitter briefly suspending the company’s apps for alleged use policy violations.

Citing unnamed sources, CNN.com reported today that UberMedia is looking to attract users to its own microblogging service by addressing common complaints about Twitter, such as its rules on message lengths as well as how the service can be confusing to new users.

UberMedia declined to comment on whether its programmers are building a new microblogging service. However, in an emailed statement to Computerworld, company marketing chief Steve Chadima said, “Our foremost desire is to continue to innovate on the Twitter platform and bring more users and usage to Twitter.”

UberMedia owns UberTwitter, which is for the BlackBerry platform; Twidroyd, for Android devices; and UberCurrent, which can be used on iPhones and iPads. The company also has been in the news in recent months because it’s moving to acquire popular Twitter client TweetDeck.

TweetDeck competes directly with Twitter’s Web and mobile clients.

Ezra Gottheil, an analyst with Technology Business Research, said he wouldn’t be surprised if UberMedia were to go after some of Twitter’s business, but the company would have an uphill climb.

Hackers Breach WordPress Servers

Hackers have gained access to several servers that support WordPress and may have obtained source code, according to the founding developer of Automattic, the company behind the popular blogging platform.
Matt Mullenweg wrote on the WordPress blog that Automattic has been reviewing log records to determine how much information was breached and re-evaluating “avenues to gain access.”

“We presume our source code was exposed and copied,” Mullenweg wrote. “While much of our code is open source, there are sensitive bits of our and our partners’ code. Beyond that, however, it appears information disclosed was limited.”

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Microsoft Delivers Massive Security Updates

Microsoft today patched a whopping 64 vulnerabilities in Windows, Office, Internet Explorer (IE), and other software, including 30 bugs in the Windows kernel device driver and one in IE that was exploited at the Pwn2Own hacking contest last month.

The company also delivered a long-discussed “backport” to Office 2003 and Office 2007 that brings one of the newer security features in Office 2010 to the older editions.

The 17 updates, which Microsoft dubs “bulletins,” tied a record set late last year, but easily beat the October 2010 mark for the total number of flaws they fixed. Altogether, today’s updates patched 64 vulnerabilities, 15 more than in October and 24 more than in the former second-place collection of December 2010.

Nine of the 17 bulletins were pegged “critical,” Microsoft’s highest threat ranking, while the remainder were marked “important,” the next-most-serious label.

Microsoft and virtually every security expert pegged several updates that users should download and install immediately.

“There are three we think are top priorities,” said Jerry Bryant, group manager with the Microsoft Security Response Center (MSRC), in an interview earlier today. Bryant tagged MS11-018, MS11-019 and MS11-020 as the ASAP updates.

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DRAM Prices Going Up

iSuppli is reporting that global chip revenue should increase to $325.2 due to supply and demand.  Two months ago iSuppli originally forecasted a 5.8 percent increase to $320.1 billion.  Apparently, DRAM chips will be impacted the most with a price increase due to supply issues as a result of the recent earthquake in Japan.  iSuppli had originally forecasted sales of DRAM chips to shrink by four percent this year instead of seeing a drop of 10.6 percent.

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NFC Support Coming to Windows Phone 7

Microsoft is adding support for NFC (near field communication) to its Windows Phone mobile operating system, according to a report on Bloomberg Businessweek. NFC technology is a key component to the upcoming mobile payment and mobile wallet systems now reportedly under development at Google, RIM and Apple as well as the new carrier-led initiative Isis, a coalition of three of the four major cellular providers here in the U.S.

Support for NFC technology in Windows Phone 7 will be pushed out in an update to Microsoft’s mobile operating system, sources told Bloomberg reporters. Those updates may arrive sometime this year.

Bloomberg says that the addition of NFC is an effort to close the gap between Microsoft and Google, the latter which is currently the leading smartphone platform here in the U.S., and, according to at least one analyst firm, worldwide.

Google’s Android mobile operating system added in NFC support in the release code-named Gingerbread (Android 2.3) and has incrementally added new capabilities since then to broaden its feature set. In February 2011, for example, an update delivered the ability to both read and write to standard NFC tags, whereas before the NFC support was read-only.

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NY To Investigate AT&T’s T-Mobile Acquisition

The state of New York  has indicated that it will investigate AT&T’s proposed take over of T-Mobile USA for anti-competitive effects, including possible increases in mobile broadband costs for New York residents and businesses, Attorney General Eric Schneiderman said.

New York is the first state that has committed itself to probing the $39 billion deal, which was announced on March 20 but is expected to take 12 months to close. At their current sizes, the combined telecom companies would have 130 million subscribers, dwarfing the next-biggest operator, Verizon Wireless, with 93 million. In a press release on Tuesday, the attorney general’s office raised the possibility of Verizon responding with an acquisition of Sprint Nextel, which has about 58 million subscribers.

“The proposed merger could start a process of consolidation that would lead to two firms -AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide,” Schneiderman stated.

Schneiderman said mobile service has changed from a luxury to a basic necessity and T-Mobile currently is a low-cost option for many New York residents. People in some areas, including Albany, Rochester, Buffalo and Syracuse, already have limited wireless choices, he said.

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