Is It “Game Over” For RIM?

Research In Motion’s share price on Monday fell to less than $10 on Nasdaq, a breach that technical analysts say could prompt even further declines, after an analyst warned that the BlackBerry maker’s sales were dismal last month.

The stock, which is trading at its lowest since 2003, has fallen nearly 15 percent in the past week alone.

After an announcement last week that RIM expects to post a quarterly operating loss, sentiment is extremely bearish on the stock, said Elvis Picardo, a strategist at Global Securities in Vancouver.

To make matters worse, Pacific Crest analyst James Faucette said in a note to clients on Sunday that RIM sales deteriorated further in May.

On Monday, RIM’s shares fell 5.8 percent to $9.66 on the Nasdaq, while its Toronto-listed shares closed on Monday 6.1 percent lower at C$10.03.

“You would have expected the C$10 level to have provided pretty strong support, but if it cracks through that it’s really hard to say where this decline will stop,” said Picardo.

RIM, which almost invented the concept of on-the-go email with its first BlackBerry device in 1999, has seen its once dominant position fade in the face of competition from Apple Inc’s iPhone and devices from the likes of Samsung Electronics Co using Google Inc’s Android software.

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Global Semiconductors On the Rise

Global semiconductor revenue is expected to rise at faster and force bigger chipmakers to acquire smaller rivals to increase their market share, according to bean counters at research outfit IDC.

In an industry report, IDC predicts that revenue may expand by between six percent and seven percent this year. Global semiconductor sales rose 3.7 percent to $301 billion in 2011, as orders for chips used in wireless devices offset declining revenue for computing-related chips, IDC said.

But it thinks all this will coase nergers and acquisitions among chipmakers will continue. Already Qualcomm bought Atheros and Texas Instruments took over National Semiconductor. But IDC thinks that industry consolidation may allow bigger chipmakers to offer products that are used in a wider range of applications.

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LG Only Wants To Support Android

Smartphone-maker LG Electronics has backed off manufacturing Windows Phone devices for now and will instead focus on Android phones, according to a report.

The Korea Herald reported Monday that LG, based in Seoul, South Korea, will take a step back from the Windows Phone platform, though it intends to “continue research and development efforts” on the Microsoft operating system.

LG currently makes the Optimus 7 based on Windows Phone 7 and other WP7 handsets.

LG has noted that Windows Phone 7-based devices hold less than 2% of the global smartphone market, according to multiple market analysts.

“The total unit[s] of Windows Phone sold in the global market is not a meaningful figure,” an LG spokesman told the Korea Herald.

In 2009, LG had decided to make Windows Phone its primary smartphone OS, with plans for 26 new Windows phones in 2012.

Ken Dulaney, an analyst at Gartner, said the LG decision to cut its Windows Phone plans, at least temporarily, is likely not an absolute reversal of strategy.

He theorized that LG may be waiting for Windows Phone 8 to materialize late this year before producing more devices on the platform.

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Apple Faces Another Lawsuit

Apple devices using touch technology infringe on a patent owned by the Pennsylvanian company FlatWorld Interactives, the company stated in court documents filed on last Friday. FlatWorld asked for a permanent injunction that Apple stop infringing, and for sufficient compensation for the infringements, the company’s attorneys said.

The Pennsylvanian designer of touchscreen systems for use in museum displays alleged that Apple knowingly infringed on its patent, according to documents filed with the U.S. District Court for the Northern District of California said. The infringing products are said to include the iPhone, iPad, iPod Touch, MacBook Pro, MacBook Air, Magic Mouse and Magic Trackpad.

FlatWorld said Apple’s infringement has been on a massive scale and has caused it irreparable harm. The company demanded a permanent injunction enjoining Apple from continued infringement plus an unspecified amount of damages to compensate for Apple’s infringement. The company is seeking a jury trial.

FlatWorld was founded in January 2007 by Slavko Milekic, a professor in cognitive science and digital design at the University of the Arts in Pennsylvania, in order to commercialize his touch screen patent, the filing said.

Milekic filed a provisional patent application on August 28, 1997, claiming priority from that date in his definitive patent application, according to the court documents. He applied for his patent on June 12, 1998 and was granted it as U.S. patent 6,920,619 on July 19 2005, according to the U.S. Patent and Trademark Office.

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Is E-Commerce Next For Facebook?

A group of e-commerce start-ups, backed by some of the tech world’s most respected financiers, are hoping that Facebook Inc will become an e-commerce powerhouse to rival Amazon.com Inc and eBay Inc.

As the world’s largest social network moves toward a $5 billion initial public offering, it will come under more pressure from Wall Street to generate new sources of profit growth and reduce its reliance on advertising, which accounted for 85 percent of its 2011 revenue.

Some entrepreneurs and investors increasingly think “f-commerce” – meaning e-commerce on Facebook – is the answer. Start-ups such as BeachMint, Yardsellr, Oodle and Fab.com are coming up with novel ways to persuade Facebook users to not just connect with friends on the social network, but to shop as well.

Backed by tens of millions of dollars from venture capital firms like Accel Partners and Andreessen Horowitz, and other big investors like Goldman Sachs, these start-ups are pushing out shopping apps, hosting online garage sales and testing out new business models on Facebook.

“E-commerce is a huge category with very strong tailwinds and it’s a natural move for Facebook,” said Sam Schwerin of Millennium Technology Value Partners, which owns Facebook shares and has a stake in BeachMint.

Amazon revolutionized online shopping by crunching lots of customer and purchase data to come up with relevant, personalized recommendations. In the same vein, Facebook’s combination of data, analytics and payment technology could fuel the next generation of e-commerce, Schwerin said.

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SanDisk Hurt By Weak Demand, Supply Glut

Flash-memory maker SanDisk Corp warned that tepid demand from mobile phone manufacturers and a glut in supply that has led to lower prices are putting a dent its revenue margins.

The maker of NAND chips — used as storage memory in smartphones and tablets — has recently seen demand taper with some of its key customers scaling back orders.

Smartphones and tablets have caused a boom in NAND production, but SanDisk’s customers have not all done equally well from the explosion in mobile gadgets.

“Anybody who is not a Samsung or an Apple is burning through some (mobile) handset inventory,” RBC Capital Markets analyst Doug Freedman said.

“Until we get the PC market, tablet market and handset market back buying, we’ll see an oversupply situation.”

SanDisk’s weak outlook mirrors warnings from rival flash-memory makers, who have also blamed weak prices and demand for their disappointing results.

Late last month, Micron Technology said it was facing persistently low prices for memory chips and posted a wider loss. Toshiba Corp, Japan’s biggest chip maker, also posted a drop in quarterly sales at its electronics devices business, which includes semiconductors, hit by lower prices for memory chips.

SanDisk in January expressed concerns about weaker demand weighing on sales in the first half of this year and forecast lower-than-expected revenue for the first quarter.

The Milpitas, California-based company, which is set to report results later this month, said its gross margins for the January-March quarter will come in below its prior expectations of 39-42 percent, hurt by lower prices for its chips.

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Corporate America Prefers iPads

Corporate customers who are planning tablet purchases next quarter overwhelmingly picked Apple’s iPad, a research firm said Tuesday.

Of the 1,000 business IT buyers surveyed last month by ChangeWave Research who said they would purchase tablets for their firms in the coming quarter, 84% named the iPad as an intended selection.

That number was more than ten times the nearest competitor and was a record for Apple.

“The percentage reporting they’ll buy Apple iPads has jumped to the highest level of corporate iPad demand ever seen in a ChangeWave survey,” the company said in a blog post.

Apple’s share of future business purchases has never been lower than 77% in any ChangeWave survey, which go back to November 2010.

Just over a fifth of all IT buyers — 22% — confirmed that they would be purchasing tablets for employees in the April-June quarter, ChangeWave said.

While Apple’s stock among corporate buyers rose by seven percentage points from the 77% that tapped the iPad as their preferred device last November, all other tablet makers’ numbers dropped in the most recent survey.
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Google Had Developed Own Currency

Google once contemplated the idea of issuing its own currency, to be called Google Bucks, company Executive Chairman Eric Schmidt said on stage at the Mobile World Congress in Barcelona,Spain on Tuesday.

At the end of his keynote speech, Schmidt hit on a wide array of topics in response to audience questions. “We’ve had various proposals to have our own currency we were going to call Google Bucks,” Schmidt said.

The idea was to implement a “peer-to-peer money” system. However, Google discovered that the concept is illegal in most areas, he said. Governments are typically wary of the potential for money laundering with such proposals.

“Ultimately we decided we didn’t want to get into that because of these issues,” Schmidt said.

He also hinted that Google might be preparing for a battle in China once its acquisition of Motorola is complete.

“Google’s been willing to take on China pretty well,” he said in response to a question about whether Google expected to continue to ignore theft of Motorola intellectual property in China, as Motorola has been doing. The acquisition hasn’t closed yet, Schmidt noted. “We’ve taken a pretty strong position on IP. We are well aware of the issues and we are considering your question,” he said.

Google is still waiting for some government approvals of its proposed acquisition of Motorola.

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Experts Think iPad 3 Coming in March

Apple will debut a new iPad some time in early March, and will start selling it the following week, according to reports and industry analyst expectations.

The March debut of the iPad 3, as some have called it, was first reported today by AllThingsD, the blog owned by Dow Jones, the publisher of the Wall Street Journal. Citing unnamed sources, the blog said Apple will host a launch event the first week of March, likely at the Yerba Buena Center for the Arts in San Francisco, a regular venue for the company’s press announcements.

Last year, then-CEO Steve Jobs returned from medical leave to lead the launch event of the iPad 2 on March 2. Apple started selling the new tablet on March 11, 2011 via its online store.

If Apple follows the same timeline, it will probably conduct the event the week of March 5-9, and begin selling the new model the following week.

It’s possible that Apple will trot out a new iPad on one of the first two days of March — Thursday, March 1 or Friday, March 2 — but Apple usually hosts events earlier in the week.

Next month’s iPad introduction, if it does take place, will be the first without Jobs, who died last October at the age of 56 of complications from his long-running battle with pancreatic cancer.

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iPhone Adds To Sprint’s Losses

Sprint Nextel posted a bigger loss, reflecting the higher costs of offering Apple Inc’s iPhone. But the loss was smaller than expected because its signed up fewer new customers than expected.

Since Sprint subsidizes the cost of some of its phone sales, its costs rise and profit dwindles the more customers it wins. But since subscriptions fell short of expectations, its loss was smaller than expected.

Sprint’s loss was 35 cents per share excluding unusual items compared with Wall Street expectations for a loss of 37 cents per share, according to Thomson Reuters.

Its profit margin based on operating earnings before interest, depreciation and amortization (OIBDA) fell to 9.5 percent from 16 percent a year earlier but beat expectations for 8.6 percent, according to eight analyst estimates Reuters compiled.

“It’s still unbelievably depressed and subscribers were below expectations,” said Roe Equity Research analyst Kevin Roe who also noted that Sprint’s targets for the full year were not particularly impressive.

The margin decline was hurt by the hefty cost of selling the iPhone.

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