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Is Sprint’s Future Questionable?
August 4, 2011 by admin
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Sprint Nextel Corp’s shares fell sharply on Thursday as heavy subscriber losses in the second quarter called into question the strategy and outlook of the No. 3 U.S. wireless company.
Sprint had spent heavily to promote its service and better compete against larger carriers Verizon Wireless and AT&T Inc. But that strategy backfired as profit margins eroded and customer losses persisted.
The weak results overshadowed Sprint’s announcement of a $9 billion network contract with start-up LightSquared, and sent the stock tumbling to its lowest point since February before recovering a little to close down 16 percent.
Investors questioned whether Sprint would be able to meet its 2011 targets after such a disappointing showing.
“Their cost of doing business went up dramatically,” said Piper Jaffray analyst Christopher Larsen. “People have less confidence they can meet expectations.”
Sprint’s operating profit margin of 16.3 percent was well below the average Wall Street estimate of around 19 percent as the company had changed its product rebate terms in an effort to combat Verizon Wireless’ sale of the Apple Inc iPhone, and an iPhone discount at AT&T.
But the bet did not pay off as Sprint still saw defections of 101,000 net subscribers — also known as post-paid customers — compared with analysts’ expectation for losses of 15,000.
Alibaba Debuts Smartphone Running Its Cloud OS
August 3, 2011 by admin
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Alibaba Group unveiled its first self-developed mobile operating system and smartphone on Thursday in a bid to capture a slice of China’s burgeoning mobile Internet market.
The cloud computing-based operating system, Aliyun, will run the K-Touch Cloud Smartphone, to be launched at the end of July in 10 colors, said Wang Jian, president of Alibaba Cloud Computing, a unit of Alibaba Group.
A tablet PC running the Aliyun OS, which is based on a customized Android system, will also be launched in China by the end of the year, Wang told reporters after a presentation in Beijing.
Handset manufacturer Tianyu will manufacture the K-Touch as well as the tablet, Wang said.
“Mobile users want a more open and convenient mobile OS, one that allows them to truly enjoy all that the Internet has to offer, right in the palm of their hand, and the cloud OS, with its use of cloud-based applications, will provide that,” said.
The Aliyun operating system will feature cloud services such as email, Internet search and support for web-based applications. Users will not be required to download or install applications onto their mobile devices, Wang said.
Alibaba Cloud plans to integrate the operating system with other devices including mobile phones with larger screens and tablet computers in the coming months.
Wang said the company was looking to launch tablet computers running Aliyun by the end of the year.
The company is currently in talks with Qualcomm Inc to develop a lower-end chipset optimized to run Aliyun OS in lower-end mobile phones, Wang said. The K-Touch phones use a high-end chipset from Nvidia Corp for crisp display of intricate games.
RIM Cuts 11% Of Workforce
July 31, 2011 by admin
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BlackBerry maker Research In Motion Ltd plans to slash approximately 11 percent of its workforce to curb costs as it struggles to compete against Apple Inc and Google Inc.
The announcement of 2,000 job cuts on Monday came a month after the Canadian company acknowledged that it would reduce headcount for the first time in a decade.
One analyst said the job cuts were slightly deeper than expected but were key to RIM’s recovery from a slump triggered by product delays and intense competition from Apple’s iPad and iPhone as well as devices powered by Google’s Android software.
RIM’s U.S.-listed stock, already near multi-year lows, was down as much as 2 percent before the market opened. It was trading down 1.8 percent at $27.40 on the Nasdaq
just before the open.
“This is not totally unexpected. I think the size of (the cuts) is a little bit bigger than what they were intimating before,” said Jefferies & Co analyst Peter Misek. “I think this is obviously realigning the cost structure to a new growth, or sales, reality.”
RIM said one-time charges from the job cuts were not included in its outlook for the second quarter or for the full year, and it would explain the financial impact of the cuts when it reports second quarter results on September 15.
Nokia Had Horrible Quarter
July 27, 2011 by admin
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Nokia has just posted very disturbing quarterly results this morning. The European smartphone giant outlook appears to be getting worse and CEO Stephen Elop has acknowledged that things will not turn around overnight.
Elop is reporting that Nokia’s operating profit is down 44 percent since Q1 and sales of mobile devices are down 23 percent consecutively. While the overall sales of mobile phones and smartphones are down, along with average selling prices.
Elop labelled the results as “clearly disappointing” and went on to say that competitive pressures are continuing. He tried to paint a somewhat more positive outlook for the rest of the year, thanks to Nokia’s clear strategy and several major product launches.
T-Mobile Will Offer Unlimited Data Plans
July 24, 2011 by admin
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Wireless telecom firm T-Mobile USA said it will begin offering unlimited data service plans, in a move aimed at snagging customers of bigger rivals Verizon Wireless and AT&T Inc which have discontinued offering such plans.
T-mobile, a unit of Deutsche Telekom AG, said the new plans will become available from July 24. The unlimited plans will be available with a two-year agreement for new and existing customers.
Verizon Wireless, the biggest U.S. mobile provider, said earlier in July it will stop offering unlimited data service plans, meaning higher prices for heavy users of services such as mobile Web surfing.
AT&T had stopped offering unlimited data services last year.
Mobile Networks Near Capacity
July 23, 2011 by admin
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Mobile networks in North America are using 80 percent of capacity, with 36 percent of base stations facing capacity constraints, according to a survey by investment firm Credit Suisse.
Networks in other regions also are more than 50 percent utilized, with the global average at 65 percent, Credit Suisse said after surveying carriers around the world. That level of use matches the average “threshold” rate that would trigger the service providers to start buying more network equipment, the report said. Looking ahead, on average the carriers expected their utilization rate to grow to 70 percent within 12 months.
Credit Suisse used the results to predict new sales by makers of cellular equipment, such as Ericsson, Alcatel-Lucent, Nokia Siemens Networks and Huawei Technologies. But at a certain level, heavy use of a base station can also affect the mobile experience of individual subscribers. The survey found that 23 percent of base stations worldwide had capacity constraints (defined as a utilization rate over 80 percent during busy hours), while 36 percent in North America were under that kind of pressure.
The North American networks were 72 percent utilized two years ago. The region’s carriers expect the rate to ease back down to that point within two years. North American service providers are likely to buy more equipment soon, because having their networks 74 percent filled is the threshold rate in that region, the survey said.
Flaw in Intel’s 320 Series SSD Confirmed
July 22, 2011 by admin
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There had been talk on the Internet in reference to the nasty bug discovered and reported on Intel’s support forums regarding the data loss on its recently released 320-series SSDs and today, Intel has finally and officially confirmed it.
The users have mentioned that under power failures, the drive reverts back to 8MB capacity and thus looses all the data stored on the drive. According to preliminary reports the drive tries to reconnect with the SATA port rather than to go for a proper shutdown.
Cisco And HP At Odds Over Catalyst 6500
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It appears that HP is calling Cisco out on its advertisement that it’s new improved Catalyst 6500 switch is better than anything HP has to offer. As many IT professionals already know Cisco finally introduced the long-awaited upgrade to the very popular Catalyst 6500. The new Catalyst it equipped with Cisco’s Supervisor Engine 2T, a 2-terabit card which can manage 80 Gbps and triples the 6500′s throughput from 720 Gbps to 2Tbps and quadruples the number of devices that can connect to the network. These stats are based on literature from Cisco’s point of view. Cisco also states that an upgrade to Supervisor 2T on existing Catalyst switches would cost customers around $38,000. However, Cisco is saying if you went the same upgrade path with a comparable HP switch architecture; it would cost the customer more than $100,000 and would only give the customer 720 Gbps of throughput.
HP Announces TouchPad 4G Deal
Hewlett-Packard announced it would release a 4G TouchPad tablet with upgraded hardware that will be available on AT&T’s wireless network.
The tablet will have a 1.5GHz processor, which is a change from the dual-core 1.2GHz Qualcomm Snapdragon processor available with older Wi-Fi-only TouchPad models that went on sale just two weeks ago.
Last August Qualcomm said that by the start of this year it would ship the dual-core Snapdragon QSD8672 chip that could run at clock speeds of up to 1.5GHz.
The TouchPad will have 32GB of internal storage, GPS and built-in AT&T wireless mobile broadband capabilities, HP said in a statement. Specific pricing and availability will be announced at a later date.
Wireless connectivity will be available through AT&T’s DataConnect mobile data plans for tablets or Wi-Fi hotspots around the country, HP said.
TouchPad users have expressed concerns about the device’s performance, especially the long load times for some applications. HP attributes the performance issue to software problems and said it will deliver an over-the-air software update that should resolve some performance problems.
Some buyers also were concerned about the TouchPad’s weight of about 1.6 pounds (740 grams), which is heavier than Apple’s iPad at 1.32 pounds. The TouchPad includes a 9.7-inch screen and comes with WebOS 3.0, which is also used in smartphones.
nVidia’s Tegra 3 Coming To Smartphones
July 18, 2011 by admin
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It appears as though Nvidia’s next generation quad-core Kal-El (Tegra 3) quad core SoC will also show up on smartphones too. Originally, it was believed that the SoC would only support the ever growing tablet space.
Inside sources have confirmed that projects are already underway and that Tegra 3 aka Kal-El smartphones will be make a debut as well.
Nvidia had hoped to get a lot of play out of Tegra 2, unfortunately the chip was not as embraced as Nvidia had wanted. Even though the Tegra 2 SoC did manage to get a few design wins.