HELSINKI: Nokia's first phone model with free access to music is scheduled to go on sale on Oct 17 in Britain, retailer Carphone Warehouse said on its Web page. Nokia's "Comes with Music" bundle of phone and music service could help the music industry make up for falling CD sales, while challenging dominance of Apple's iTunes in the digital music market.
The package will differ from other bundles on the market as users can keep all the music they have downloaded during the 12 month subscription period. Carphone, the exclusive retailer for the first model, said the phone was expected to go on sale on Oct 17.
A Nokia spokesman declined to comment. Nokia has signed deals with the top three music labels -- Universal, Sony BMG and Warner Music Group -- to offer their tracks on the service. Having the world's three largest labels on board is set to help Nokia attract smaller music companies and challenge the dominant pay-per-track sales model for digital music.
"'Comes with Music' and other bundled services, should they succeed, offer a lifeline to the music labels which have seen revenues decline sharply in the digital age," David MacQueen, analyst at researchers Strategy Analytics, said in a statement.
Strategy Analytics said its consumer survey showed clear latent demand for bundles like "Comes with Music", with 84 percent of respondents willing to pay for such service. "Comes with Music" is a key part of Nokia's push to expand its offering to services, beyond maturing cellphone market. While last year Apple grabbed most of the headlines in mobile world with iPhone, now analysts say Nokia has stolen the spotlight from Apple in the digital music world with the "Comes with Music" package. Record labels are looking to Nokia and others to challenge the dominance of Apple's iTunes as they have struggled to negotiate with the American group on a level footing when it comes to issues such as pricing.
Nokia's Carphone deal is for prepaid sales of its first "Comes with Music" model, but getting the new lineup to carriers portfolios is likely to prove more challenging as many telecom operators already run their own music stores and create additional revenue and profit from those. Nokia's head of new services business, Niklas Savander, told Reuters last week the firm was confident its phones with free access to music also will be sold by telecom operators, with the timing now up to the carriers. ID:nL9295900 Deals with operators are usually more beneficial to phone makers as operators subsidise phones to boost demand and win new clients, hoping to win the subsidy back in monthly bills.
Friday, September 19, 2008
Will Google's Android be an iPhone killer
NEW YORK: Anyone expecting the Google mobile operating system to change the market as Apple's iPhone has over the past year will probably be disappointed, for now.
Industry insiders who have worked on Google's Android system say it will struggle in the near term to match the consumer enthusiasm generated by the iPhone, which redefined the touchscreen phone market and greatly improved mobile Web surfing.
Instead, Google sees Android as an open source platform for designing mobile devices and says it will encourage innovation by allowing outside software developers to tinker with the system and create better mobile programmes and services.
But these things take time, and the first phone using Android, code-named the Google "Dream" phone, is unlikely to wow consumers. The device is made by HTC of Taiwan. Deutsche Telekom's T-Mobile unit reportedly intends to introduce it in New York on September 23. The mobile phone to use Google Inc's Android mobile operating software will cost $199, the Wall Street Journal reported on its website
"I'm not sure the consumer experience is significantly better than that of the iPhone," said Rajeev Chand, a wireless analyst at the investment bank Rutberg, who has tried out an early version of Android. "When the iPhone came out, the experience was several orders of magnitude better than anything that was out there."
Google, its partner carriers and application developers hope the Android platform will drive even more mobile Web surfing than the iPhone, which has helped mobile Internet use rocket in comparison with other smartphones.
But unlike Apple, which keeps a tight grip on the iPhone's hardware and software, Google will have less control. Android will be open to developers to create componenttechnologies in almost any way they can imagine.
Google's engineering-led culture appears content to introduce the first Android phones as a kind of science project that will be rapidly improved afterward. But Google will not have the kind of leverage in mobile that it is used to in the PC world, where it dominates Web search. Phone carriers have a huge say over how devices are designed and what data services are accessible over their networks.
While Android could offer real promise in terms of technology and usability it is unlikely by itself to change the restrictive nature of the mobile industry, said John Poisson, founder of Tiny Pictures, a developer partner of Android.
Carriers in each market will still control how it gets implemented and on which devices and in which form," Poisson said. "Android lives and breathes at the pleasure of the operator."
Another problem for Android is how to explain what it is to consumers. Unlike the iPhone, which came on the back of Apple's hugely successful iPod music player, Android is an unknown brand, even though the Google name has plenty of cachet.
Industry insiders who have worked on Google's Android system say it will struggle in the near term to match the consumer enthusiasm generated by the iPhone, which redefined the touchscreen phone market and greatly improved mobile Web surfing.
Instead, Google sees Android as an open source platform for designing mobile devices and says it will encourage innovation by allowing outside software developers to tinker with the system and create better mobile programmes and services.
But these things take time, and the first phone using Android, code-named the Google "Dream" phone, is unlikely to wow consumers. The device is made by HTC of Taiwan. Deutsche Telekom's T-Mobile unit reportedly intends to introduce it in New York on September 23. The mobile phone to use Google Inc's Android mobile operating software will cost $199, the Wall Street Journal reported on its website
"I'm not sure the consumer experience is significantly better than that of the iPhone," said Rajeev Chand, a wireless analyst at the investment bank Rutberg, who has tried out an early version of Android. "When the iPhone came out, the experience was several orders of magnitude better than anything that was out there."
Google, its partner carriers and application developers hope the Android platform will drive even more mobile Web surfing than the iPhone, which has helped mobile Internet use rocket in comparison with other smartphones.
But unlike Apple, which keeps a tight grip on the iPhone's hardware and software, Google will have less control. Android will be open to developers to create componenttechnologies in almost any way they can imagine.
Google's engineering-led culture appears content to introduce the first Android phones as a kind of science project that will be rapidly improved afterward. But Google will not have the kind of leverage in mobile that it is used to in the PC world, where it dominates Web search. Phone carriers have a huge say over how devices are designed and what data services are accessible over their networks.
While Android could offer real promise in terms of technology and usability it is unlikely by itself to change the restrictive nature of the mobile industry, said John Poisson, founder of Tiny Pictures, a developer partner of Android.
Carriers in each market will still control how it gets implemented and on which devices and in which form," Poisson said. "Android lives and breathes at the pleasure of the operator."
Another problem for Android is how to explain what it is to consumers. Unlike the iPhone, which came on the back of Apple's hugely successful iPod music player, Android is an unknown brand, even though the Google name has plenty of cachet.
Qualcomm plans Rs 4,000 3G mobile
In a bid to make 3G handsets affordable, US-based chip giant Qualcomm is working with handset manufacturers and telecom operators (both CDMA and GSM) to launch 3G-enabled mobiles for as low as Rs 4,000 in India.
These handsets, which will offer Internet on mobile besides other features, will be available early next year. Also, 3G smartphones, on the lines of Apple iPhone and Nokia’s N96, will be rolled out in the second half of 2009 with an entry-level price tag of Rs 10,000.
“We are in talks with all operators to explore, along with our OEMs (original equipment manufacturers), how this space can be penetrated so as to increase the addressable market. We are working to make sure 3G entry-level phones start at Rs 4,000. Affordable 3G smartphones, beginning at Rs 10,000, will bring in a new dimension to enterprise connectivity,” Qualcomm India and South Asia president Kanwalinder Singh told ET.
Qualcomm will provide the chipsets for mobiles and other devices. These are used by low-cost manufacturers like Huawei and ZTE to make handsets while telecom operators bundle them with their services because it increases their revenues from new applications and value added services (VAS).
The San Diego-headquartered company is also bringing together its OEMs and GSM operators to offer data card connectivity solutions comparable to CDMA operators. “3G USB modems will bring ‘always on’ wireless broadband connectivity to laptops and desktops. These modems will enter the market in the Rs 3,500 price range,” he said.
Currently, the data card market in India is dominated by Tata Teleservices and Reliance Communications (RCOM). Till now, Qualcomm has only been associated with CDMA operators. However, as 3G comes to India, Qualcomm is also working with GSM service providers including Airtel, Vodafone Essar and Idea. This is because for evolution to 3G services, the GSM community has chosen wideband-CDMA radio interface, which increases data transmission rates in GSM systems.
Globally, GSM 2G is transitioning to 3G. “In India, we will drive a similar trend and bring in affordable tiered solutions to stimulate mass market adoptions. While the key application of all 3G handsets will be no-compromise-access to mobile Internet, various price points will provide experience of different kinds. We expect all devices to support downloading and uploading of videos,” Mr Singh said. According to technology research firm IDC, 3G feature phones and smartphones in the range of Rs 4,000 and above will account for 30% of the Indian handset market.
These handsets, which will offer Internet on mobile besides other features, will be available early next year. Also, 3G smartphones, on the lines of Apple iPhone and Nokia’s N96, will be rolled out in the second half of 2009 with an entry-level price tag of Rs 10,000.
“We are in talks with all operators to explore, along with our OEMs (original equipment manufacturers), how this space can be penetrated so as to increase the addressable market. We are working to make sure 3G entry-level phones start at Rs 4,000. Affordable 3G smartphones, beginning at Rs 10,000, will bring in a new dimension to enterprise connectivity,” Qualcomm India and South Asia president Kanwalinder Singh told ET.
Qualcomm will provide the chipsets for mobiles and other devices. These are used by low-cost manufacturers like Huawei and ZTE to make handsets while telecom operators bundle them with their services because it increases their revenues from new applications and value added services (VAS).
The San Diego-headquartered company is also bringing together its OEMs and GSM operators to offer data card connectivity solutions comparable to CDMA operators. “3G USB modems will bring ‘always on’ wireless broadband connectivity to laptops and desktops. These modems will enter the market in the Rs 3,500 price range,” he said.
Currently, the data card market in India is dominated by Tata Teleservices and Reliance Communications (RCOM). Till now, Qualcomm has only been associated with CDMA operators. However, as 3G comes to India, Qualcomm is also working with GSM service providers including Airtel, Vodafone Essar and Idea. This is because for evolution to 3G services, the GSM community has chosen wideband-CDMA radio interface, which increases data transmission rates in GSM systems.
Globally, GSM 2G is transitioning to 3G. “In India, we will drive a similar trend and bring in affordable tiered solutions to stimulate mass market adoptions. While the key application of all 3G handsets will be no-compromise-access to mobile Internet, various price points will provide experience of different kinds. We expect all devices to support downloading and uploading of videos,” Mr Singh said. According to technology research firm IDC, 3G feature phones and smartphones in the range of Rs 4,000 and above will account for 30% of the Indian handset market.
Thursday, September 18, 2008
iPhone Hobbled by High Prices in Japan, Lack of 3G in India
Apple's iPhone may be giving competitors a run for their money in North America but when it comes to three of the biggest telecom markets in Asia — Japan, India and China — the company seems to be coming up lame.
The latest sales figures suggest the Jesus phone is struggling to find new converts in Japan. Not far away in India (the second largest telecom market after China) sales of the device are also lackluster thanks to prices that are pushing seven Benjamins for the entry level 8-GB version. And Apple has yet to finalize a deal with Chinese telecom carrier, China Mobile, to bring the iPhone to the People’s Republic.
A combination of high pricing and a marketing strategy that fails to take into account the needs of local markets has left Apple selling just a few hundred thousand units in countries where millions of other phones are sold every month.
Take India, one of Asia's fastest-growing telecom markets. Between 2006 and 2007, sales of smartphones within the nation grew an estimated 31.4 percent. The data-centric convergence device segment exploded at 89 percent, while voice-centric devices shot up by 26.3 percent. As of July 2008, the Telecom Regulatory Authority of India reported total wireless subscribers of about 296 million. About 9.2 million subscribers were added in July alone.
Nokia is the market leader in India but other players like Research In Motion (makers of Ur-smartphone BlackBerry), HTC and Sony Ericsson are gaining traction. But not Apple.
It isn't for lack of interest in the iPhone, says Naveen Mishra, an analyst at IDC India.
Apple's brand and the iPhone's design have captivated Indian consumers but the high cost of the device and the lack of a nationwide 3G network has kept away users from buying the phone.
"The iPhone has a large fan following," says Mishra, "but when it comes to buying the device not a lot of people want to spend that kind of money."
Apple CEO Steve Jobs introduced the 3G iPhone with the promise of $199 price tag at which it retails in the United States along with a two-year contract with the service provider.
But in India the device has been priced much higher at 31,000 Rupees ($673) for the 8-GB version and 36,100 Rupees ($785) for the 16-GB model.
The reason for the higher cost? Wireless customers in India flat out refuse to sign legally binding mobile phone contracts. Because they’re not obligated to stick with a service provider, handsets on the subcontinent are always full priced, never subsidized.
The iPhone's limited availability through a contract with just two mobile service operators has cramped sales, says Mishra.
Unlike the United States, India's telecom market is skewed in favor of prepaid users, who comprise at least 70 percent of total cellphone users in the country.
Most cellphone users in India buy their handsets from a retail store and activate it with the carrier of their choice; cellphones are generally sold unlocked.
The iPhone is the exception. It is currently available only on Airtel and Vodafone leaving potential iPhone buyers with limited options. India does not offer number portability and switching carriers means existing users could lose their phone number as they move to a new carrier.
India also does not have the 3G … yet. Analysts expect the first 3G networks in the country to be available mid-2009.
For the iPhone in India, sales are unlikely to pick up unless the service providers slash the price of the device, make it available through retail stores and launch their 3G network, says Mishra.
"There's going to be very limited uptake for the device unless the carriers do one or all of these things," says Mishra.
Despite weak sales, it is unlikely Apple will push for significant price cuts in the country, say analysts. "Apple throughout its family is willing to forgo large market share for profitable market share," says Ezra Gottheil, an analyst with Technology Business Research.
Meanwhile in Japan, Apple has partnered with Softbank, Japan's third-largest mobile service provider to sell the iPhone 3G. After the initial buzz, demand for the iPhone has fallen to a third of what it was as users cringe at the high cost of ownership for the phone and the unavailability of some features, says a report inThe Wall Street Journal.
As for China, despite speculation, Apple seems no closer to signing a deal with China Mobile to offer the iPhone 3G in the market.
For Apple, it may be time to take a closer look at its business in Asia. Unless the company can move swiftly to change its strategy, it may find itself locked out of the largest telecom markets of the world.
Wednesday, September 17, 2008
The First Android Phone Will Be Launched Next Week
HTC Dream, the first mobile device that uses Android will be introduced on September 23 by T-Mobile at a press conference in New York. "HTC says it expects to ship 600,000 to 700,000 units of the smart phone, dubbed the Dream, this year," according to Wall Street Journal.
The phone will be available at the end of October, but you can see a demo from Google Developer Day in London.
Popout
Andy Rubin, Google's director of mobile platforms, is aware that the first Android-powered mobile phone is very important for the public perception. "If we come out with a dud, people will go, 'Well, that was a waste of time'". Reuters reports that the device will ship with a beta version of the Android application marketplace and Google will not make money from selling applications. "We made a strategic decision not to revenue share with the developers. We will basically pass through any revenue to the carrier or the developer."
The phone will be available at the end of October, but you can see a demo from Google Developer Day in London.
Andy Rubin, Google's director of mobile platforms, is aware that the first Android-powered mobile phone is very important for the public perception. "If we come out with a dud, people will go, 'Well, that was a waste of time'". Reuters reports that the device will ship with a beta version of the Android application marketplace and Google will not make money from selling applications. "We made a strategic decision not to revenue share with the developers. We will basically pass through any revenue to the carrier or the developer."
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