Should HP Reconsider The TouchPad?

Hewlett-Packard Co (HP) should re-think its decision to dump its TouchPad tablet since the device could double the value of the PC division HP plans to spin off, technology research firm Canalys said in a statement to clients.

HP stunned markets in August by saying it may shed its PC business — the world’s largest after the $25 billion acquisition of Compaq in 2002 — while at the same time killing webOS-based phones and the TouchPad tablet which was launched only six weeks earlier.

HP slashed the price of its tablet to $99 the weekend after announcing the TouchPad’s demise, igniting an online frenzy and prompting long lines to form at retailers as bargain-hunters chased down a gadget that had thus far failed to excite consumers.

“The TouchPad was overpriced at launch and did not sell. This led HP to draw a premature conclusion that the product category had failed,” Canalys analysts said in a research note.

Canalys said the price cut had helped make TouchPad the hottest brand in HP’s entire portfolio, gathering more interest than anything from HP in more than 10 years.

“The TouchPad has become the ‘must-have’ technology product of 2011. Perhaps no other technology vendor, apart from Apple, has ever created such hype for a technology product,” the research note said.

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Will Cisco CEO Get The Boot?

Cisco has slashed its forecast revenue increase by more than half, while rumours circulate about the possible departure of its long-serving CEO.

Cisco previously expected to increase revenues by 12 to 17 per cent over the next three years, but it has revised this figure downwards to a much smaller five to seven per cent, according to the BBC. It expects profits, however, to be seven to nine per cent for this three year period, which is a healthy profit forecast for a company that has been struggling in the recent economic climate.

Cisco’s original optimistic outlook appears to have been founded on an overall view that the global economy would recover quickly, a view that is swiftly changing as many fear another dip into recession, particularly with the debt crisis in Europe. This negative outlook has likely had a strong impact on Cisco’s forecast, resulting in its far more modest growth expectations.

Cisco has also had some problems of its own to work out over recent months. In July it announed that it would axe as many as 15 per cent of its workforce, or 11,500 people, in addition to selling a Mexican set-top box factory to Foxconn. It also abandoned its Flip video camera business, with the loss of 550 jobs.

In April the company’s CEO, John Chambers publicly acknowledged that Cisco had lost its way, with fiscal third quarter profit down a massive 18 per cent. He called for a refocusing on areas in which the company is highly successful, such as networking, servers and cloud provisioning.

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Intel Previews Android Tablet On Atom Chip

For the first time on Tuesday, Intel unveiled working prototypes of tablets computers with Google’s Android OS and the chip maker’s upcoming Atom low-power chip, code-named Medfield.

The tablet was about 8.9 millimeters (0.3 inches) thick and had a 10.1-inch screen, and was on display during a briefing at the Intel Developer Forum being held in San Francisco. The tablets ran on Android 3.0, code-named Honeycomb, and alpha software developed jointly by Google and Intel.

Earlier on Tuesday, Intel and Google announced they would ally on developing future releases of Android for smartphones and tablets. Intel CEO Paul Otellini showed off a Medfield smartphone running on Android 2.3, code-named Gingerbread.

The Medfield tablet is a reference design for device makers who want to launch tablets, said Steve Smith, vice president at Intel. Smith didn’t say when Medfield tablets would be released, but said Intel is currently optimizing the chips for tablets to balance power and performance.

Intel is banking on Medfield tablets to prove it is improving on power consumption with its tablet and smartphone chips.

Intel already offers tablet chips code-named Oak Trail and Moorestown, which haven’t been successful. Only a few companies such as Cisco and Fujitsu have adopted the chips for business tablets.

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Microsoft To Overhaul Hotmail

Microsoft will debut next month a major overhaul of its Hotmail webmail service, with upgrades across the board, including in areas like spam, security and performance.

“We listened. We learned. We reinvented Hotmail from the ground up,” reads an invitation sent on Friday to journalists for press events to be held on Oct. 3 simultaneously in New York and San Francisco.

“Forget everything you thought you knew about Hotmail. Just don’t forget this date,” reads the invitation.

Hotmail’s primary competitors are Google’s Gmail and Yahoo Mail. The last time the consumer webmail market got a product jolt was in 2004, when Google surprised the world with Gmail and its then-unprecedented amount of email storage.

At that point, innovation in webmail services had stagnated for years but Gmail shook Microsoft, Yahoo and other webmail providers like AOL out of their comfort zone, as they quickly responded by increasing the size of their email inboxes.

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IMs To Overtake Emails In Workplace

Many CIOs predict that real-time communication technologies, such as instant messaging, SharePoint, Chatter and Yammer will outpace traditional email in the workplace in the next five years.

That’s the conclusion of a Robert Half Technology survey of more than 1,400 CIOs at U.S. companies with more than 100 employees. The survey was published last month.

More than half (54%) of the CIOs polled said real-time workplace communication tools will surpass traditional email in popularity within five years. The prediction was a bit lukewarm, however: 13% of the respondents said real-time messages will be “much more popular” than email, while 41% said they’ll be “somewhat more popular.”

Robert Half Technology, an IT staffing firm, said a transition to real-time tools could yield workplace benefits, potentially making it easier to work as a team, solve problems, share ideas and manage documents.

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Sprint Sues To Stop AT&T-T-Mobile merger

Sprint on Tuesday announced it has initiated a lawsuit against AT&T and Deutsche Telekom to block the two companies from merging “as a violation of Section 7 of the Clayton Act.” Section 7 of the Clayton Antitrust Act bars any person from acquiring “the whole or any part of the stock or other share capital” that would “substantially … lessen competition, or to tend to create a monopoly.” In its suit, Sprint argues that the proposed merger would violate this act because it would lead to AT&T and Verizon’s controlling 75% of the wireless market while taking in 90% of the profits.

Sprint’s antitrust suit comes less than a week after the U.S. Department of Justice filed an antitrust suit against the merger with the U.S. District Court for the District of Columbia. In its suit, the DOJ similarly argued that the proposed merger would significantly damage competition in the wireless industry, especially since T-Mobile has historically offered low-cost wireless voice and data services for customers. The DOJ also contended that any efficiencies gained by combining AT&T and T-Mobile spectrum would not be enough to offset the damage done to U.S. consumers by further consolidation of the wireless industry.

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HTC Is On A Buying Spree

Taiwanese handset maker HTC has been on a shopping spree to reshape its business, though it remains to be seen if the strategy will help it gain ground on rivals such as Apple, Samsung and Research In Motion.

HTC has bought or invested in at least six companies this year, many of which provide technologies to improve how users consume and share content on its devices. It’s a big change for the Taiwanese manufacturer, which focused for much of its existence on hardware, leaving software and content to its partners.

Times have changed, however, with rivals like Apple and Nokia building whole ecosystems around their products, including app stores and content delivery systems. HTC has shifted its focus before, moving from contract manufacturer for Microsoft’s smartphones to selling its own HTC-branded devices. It must now evolve once more.

“It is no longer enough to focus only on hardware innovations,” said Ryan Lee, an analyst with Taipei-based Topology Research Institute. HTC’s acquisitions, which include both technology and patents, “pave the way for HTC’s greater competitiveness,” he said.

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Apple Blasted For Not Blocking Stolen Certificates

A security researcher blasted Apple for what he called “foot dragging” over the DigiNotar certificate fiasco, and urged the company to act fast to update Mac OS X to protect users.

“We’re looking at some very serious issues [about trust on the Web] and it doesn’t help matters when Apple is dragging its feet,” said Paul Henry, a security and forensics analyst with Arizona-based Lumension.

Unlike Microsoft, which updated Windows Tuesday to block all SSL (secure socket layer) certificates issued by DigiNotar, Apple has not updated Mac OS X to do the same.

DigiNotar, one of hundreds of firms authorized to issue digital certificates that authenticate a website’s identity, admitted on Aug. 30 that its servers were compromised weeks earlier. A report made public Monday said that hackers had acquired 531 certificates, including many used by the Dutch government, and that DigiNotar was unaware of the intrusion for weeks.

Because almost all the people who were routed to a site secured with one of the stolen certificates were from Iran, many experts suspect that the DigiNotar hack was sponsored or encouraged by the Iranian government, which could use them to spy on its citizens.

Microsoft isn’t the only software maker to block all DigiNotar certificates: Google, Mozilla and Opera have also issued new versions of their browsers — Chrome, Firefox and Opera — to completely, or in Opera’s case, partially prevent users from reaching websites secured with a DigiNotar certificate.

Users of Safari on Mac OS X, however, remain at risk to possible “man-in-the-middle” attacks based on the fraudulently obtained certificates.

Because Safari relies on the underlying operating system to tell it which certificates have been revoked or banned entirely, Apple must update Mac OS X. The Windows edition of Safari, which has a negligible share of the browser market, taps Windows’ certificate list: That version is safe to use once Microsoft’s Tuesday patch is applied.

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Microsoft: Stolen SSL Certs No Good

Microsoft has officially stated that a digital certificate stolen from a Dutch company could not be used to force-feed customers malware through its Windows Update service.

The company’s assertion came after a massive theft of more than 500 SSL (secure socket layer) certificates, including several that could be used to impersonate Microsoft’s update services, was revealed by Dutch authorities and several other affected developers.

“Attackers are not able to leverage a fraudulent Windows Update certificate to install malware via the Windows Update servers,” said Jonathan Ness, an engineer with the Microsoft Security Response Center (MSRC), in a Sunday blog post. “The Windows Update client will only install binary payloads signed by the actual Microsoft root certificate, which is issued
and secured by Microsoft.”

Seven of the 531 certificates now known to have been fraudulently obtained by hackers in July were for the domains update.microsoft.com and windowsupdate.com, while another six were for *.microsoft.com.

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Dell & Baidu To Create Mobile Devices

Dell Inc and China’s top search engine Baidu Inc plan to join forces and develop tablet computers and mobile phones, targeting the Chinese market dominated by Apple Inc and Lenovo.

China is one of the fastest growing markets for tablets and is home to more than 900 million cell phone subscribers, but analysts were skeptical that the partnership would knock Apple from its dominant perch in the market.

“I suspect this is just Dell, who has a lot of problems on the mobile and tablet front, grasping at straws to get any kind of publicity that it can to make its product more attractive,” said Michael Clendenin, managing director of technology consultancy RedTech Advisors.

“Ultimately in China, I still think it is Apple’s game, still for the iPad and iPhone.”

Dell declined to give a timeline for the launch of the devices, but local media reported on Tuesday, quoting sources, that it may be as early as November.

Baidu launched a new mobile application platform last week and offered a glimpse of its upcoming mobile operating system, which it hopes will serve a growing number of users accessing the Internet from smartphones and tablet computers.

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