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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Google Buys Patents From IBM

Google has purchased more than 1,000 patents from IBM, as part of its strategy to strengthen its patent portfolio to counter litigation, according to records of the United States Patent and Trademark Office.

Jim Prosser, a Google spokesman, confirmed the transfer, reported by a blog SEO by the Sea, but did not provide details such as the the purchase price Google paid for the patents.

Google also acquired another over 1,000 patents from IBM in July. It transferred recently some patents to smartphone maker HTC to help it pursue patent litigation against Apple.

Google has been interested in buying patents for some time now, which led to its failed bid in June for the patents of Nortel Networks, and its proposed acquisition of Motorola Mobility for about US$12.5 billion.

The tech world has recently seen an explosion in patent litigation, often involving low-quality software patents, which threatens to stifle innovation, Kent Walker, Google’s senior vice president and general counsel, said in a blog post in April.

“But as things stand today, one of a company’s best defenses against this kind of litigation is (ironically) to have a formidable patent portfolio, as this helps maintain your freedom to develop new products and services,” he added.

The acquisition of Motorola Mobility’s patents was a key consideration for Google to start talking to the company in early July. But Motorola told Google that it could be a problem for Motorola Mobility to continue as a stand-alone entity if it sold a large portion of its patent portfolio, according to a filing by Motorola to the U.S. Securities and Exchange Commission on Tuesday.

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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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Nokia Puts Free M$ Apps On Symbian Phones

Several of Microsoft’s business productivity applications will be available free of charge on Nokia’s latest Symbian Belle smartphones later this year, Nokia stated Thursday.

The move comes at the same time Nokia is developing its first smartphone on the Windows “Mango” Phone platform. That phone is rumored to be scheduled for a November debut.

The free apps will run on Symbian Belle smartphones announced in August; they’re designed to keep customers buying Nokia products while Nokia ramps up to Windows Phone smartphones.

The free apps for Symbian Belle phones will include: Microsoft PowerPoint Broadcast for broadcasting presentations from a desktop to a smartphone;Microsoft OneNote for taking notes with images by syncing with Microsoft SkyDrive;And Microsoft Document Connection, which provides a single view of documents stored on a smartphone including email attachments and documents on Microsoft SharePoint 2010 sites.

Early next year, Nokia said it will provide OneNote synchronization with SharePoint and will add Word, Excel and PowerPoint as native applications for the first time outside the Windows platform.

Some critics of Nokia’s partnership with Microsoft wonder how successful Windows Phone Mango (version 7.5) will be and said the addition of Microsoft apps to Nokia’s older Symbian line is a way for Nokia to hedge its bets if the Microsoft partnership doesn’t pay off quickly.

The free productivity apps could also be a way to introduce a large number of Symbian users to Microsoft software. There are many more Symbian users outside the U.S. than inside and Symbian until this year had been the world’s largest smartphone platform.

Making the free apps available on the Symbian Belle phones doesn’t cost either company much and the Belle phone users “get something to sweeten the deal to stay with symbian,” Gold said.

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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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Will HP Temporarily Resurrects The TouchPad?

Hewlett Packard Co plans to produce “one last run” of TouchPads, days after declaring it will discontinue a line of tablets that failed to challenge Apple Inc’s domination of the booming market.

A day after the chief of HP’s personal devices division told Reuters the TouchPad might get a second lease on life, HP announced a temporary about-face on the gadget after being “pleasantly surprised” by the outsized demand generated by a weekend fire-sale.

HP slashed the price of its tablet to $99 from $399 and $499 the weekend after announcing the TouchPad’s demise on August 18, part of a raft of decisions intended to move HP away from the consumer and focus on enterprise clientele.

That ignited an online frenzy and long lines at retailers as bargain-hunters chased down a gadget that had been on store shelves just six weeks.

“The speed at which it disappeared from inventory has been stunning,” the company said. “We have decided to produce one last run of TouchPads to meet unfulfilled demand.”

HP may lose money on every TouchPad in its final production run. According to IHS iSuppli’s preliminary estimates, the 32GB version carries a bill of materials of $318.

“We don’t know exactly when these units will be available or how many we’ll get, and we can’t promise we’ll have enough for everyone. We do know that it will be at least a few weeks before you can purchase,” HP said in a blogpost.

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Was Apple’s Victory, Really A Victory?

As we heard this week Apple had won an injunction barring Samsung from selling some of its Galaxy smartphones in Europe.

However, it is likely that an update from Android 2.x to Android 3.0 will resolve the patent issue, which concerns the way photos are viewed on a touchscreen.

According to OS news, only the Gallery application infringes the patent in question, and Samsung has confirmed it will update the software to get around the problem.

“The injunction has been granted due to the method of scrolling in the Gallery. If that’s replaced, there is no more reason to uphold the injunction,” said Bas Berghuis van Woortman, one of Samsung’s lawyers.

The injunction doesn’t come into effect until mid-October, giving the Korean phone maker plenty of time to change the software. OS news points to evidence showing that although Apple entered into battle with three patents and a community design, all but the Gallery patent were thrown out by the judge.

The swipe-to-unlock patent will likely be declared invalid, the judge wrote, specifically referring to the Neonode N1m mobile phone as prior art, which has the exact same unlock method as the Iphone.

Apple’s complaint about the design of Galaxy smartphones was also thrown out, with the judge citing numerous cases of prior art, including the LG Prada. And in the case of the Android GUI patent, the judge cited the Nokia 7710 as prior art.

Although Samsung’s PR firm in the UK hadn’t heard anything about an Android update, Samsung said that it expects only the Netherlands to be affected by the ruling. It said, “[The] ruling is an affirmation that the GALAXY range of products is innovative and distinctive. With regard to the single infringement cited in the ruling, we will take all possible measures including legal action to ensure that there is no disruption in the availability of our GALAXY smartphones to Dutch consumers.

“This ruling is not expected to affect sales in other European markets. We will continue our plans to introduce new products and technologies that meet and exceed consumer expectations. And we will defend our intellectual property rights through the ongoing legal proceedings around the world.”

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