Apple has yet to make any statements about where and when we might ever see an Apple TV product to match the impact it has had in the smartphone and tablet markets. But news of an investment by its key manufacturing partner, Foxconn, could point to the confidence others have of what might be coming soon. Foxconn is investing a combined 133 billion yen ($1.6 billion) in TV maker Sharp Corporation and a flat-panel JV it has with Sony — and it has added a commitment to buy up to 50 percent of all of Sharp’s LCD panel output. The deal is the largest-ever by a Taiwanese manufacturer in a Japanese supplier and could be all the more bold, considering that just yesterday there was a report from iSuppli on how sales of flat-panel TVs were in decline and flattening out. Foxconn’s investment will see the company split its $1.6 billion roughly between two investments: a 9.9 percent stake in Sharp Corp., with a 46.5 percent stake in Sharp Display Products Corp., its flat-panel JV with Sony. Sharp’s stake in the JV is now 46.5 percent; while Sony’s is 7 percent, and it may now choose to divest that to Sharp altogether. There are a couple of reasons for why Foxconn has made this investment. The move could be be to make sure it will have a good supply of flat panels for future products, such as the fabled Apple TV, but also iPad devices and other flat-panel devices that Foxconn makes on behalf of others such as Sony. IHS says that Sharp may be in line to supply panels for iPad tablets starting next month, using its IGZO technology. The other reason is that Foxconn may be trying to shore up a key supplier that is in financial hot water at the moment. “[Sharp is] in trouble and their very survival is at stake,” Edwin Merner, president of Tokyo-based Atlantis Investment Research, told Bloomberg . “Maybe the tie-up will help.” Sharp last month warned the markets that it could face a ¥290 billion ($3.5 billion) loss for the financial year because of the drop in prices for TVs — a problem that has also been affecting Sony and Panasonic, with the three collectively expected to report losses of $16 billion for the financial year. Foxconn’s parent company Hon Hai, meanwhile, yesterday reported rises in both sales (NT$1.074 trillion; $36 billion) and net profit (NT$35.0 billion; $1.2 billion) on the back of lucrative manufacturing deals with the likes of Apple, which sold 3 million units of its new iPad tablet in the first three days of release alone.
Posts Tagged ‘apple’
Foxconn To Invest $1.6B In Sharp For Flat Panels, Maybe For The iPad? Maybe For Apple TV?
Steve Jobs Was Against The Name “Siri” Before He Was For It
A palate-cleanser for the four course meal that will be your long and fruitful day: Yoni Heisler recounts a talk by Siri co-founder Dag Kittlaus in which he describes the naming process. Siri means “beautiful woman who leads you to victory” in Norwegian and Kittlaus owned the siri.com domain. He was planning on naming a child after said beautiful woman but his first child was a boy. Instead, he named his product after her. Once Apple bought the company, Kittlaus was brought into Apple HQ to speak to Scott Forstall. After a bit of hemming and hawing, he was sent to meet with Steve Jobs in secret. And he wanted me to come over to his house the next day, and I did, and I spent 3 hours with him in front of his fireplace having this surreal conversation about the future. And, you know, he talked about why Apple was going to win, and we talked about how Siri was doing. And he was very excited about the fact that.. you know, he was very interested in this area in general but, you know, they’re patient, they don’t jump on anything until they feel they can go after something new and he felt that we cracked it. So that was his attraction. Steve initially didn’t like the name Siri for the iPhone’s voice assistant but, unable to find a better name (Ethel, maybe?) he settled on a Norwegian warrior goddess. And now you know… the rest of the story.
Meet Jean And His Brand New iPad
Meet Jean. He’s one of a few very lucky owners of the brand new iPad. And he’s thrilled. We caught up with him over at Apple’s 5th Ave flagship store in New York city, where he was standing in line waiting. Like a smart lad, he pre-ordered the device and went to pick it up right on launch day. And while thousands of people were shivering in a line that wrapped around the entire block, Jean was asleep in bed. The Frenchman arrived in line around 7:15am (doors open at 8am) and was walking down the street, iPad in hand, by 8:15am. The fact that it only took Jean an hour to get a new iPad on launch day makes me think that pre-order for pick-up is one of the best things that has ever happened to the world. Even better, Jean let us look at his new precious. This is the first time that I personally have seen the new iPad and it’s without a doubt a stunning device. The Retina display is gorgeous, to be sure. The camera is also set to be a stand-out feature. That little 5-megapixel iSight camera could make all the difference in the way people interact with their iPads. In any case, we’re very happy for Jean and every other fanboi who’s making the most of iPad day. Note: We’ll be bringing you guys more in-depth footage and interviews from the iPad launch day madness very soon, so please stay tuned!
Zynga No Longer Has The Biggest Game On Facebook By Daily Users. OMGPOP Does.
Here’s a crazy turn of events: Zynga no longer has the biggest game on Facebook by daily active users. OMGPOP, the New York-based casual gaming company that has had a huge comeback in the last month, now has the top spot for daily usage with its Pictionary-like game Draw Something. In the last couple of days, Draw Something just edged past Zynga’s Words With Friends to take the top spot for a game in terms of users on the AppData leaderboard , which is a tracking service for apps on the Facebook platform. Draw Something now has 10.8 million daily users who are logged in through Facebook, compared to Words With Friends, which has 8.6 million daily active users. (If you look at monthly usage, the picture is different with Zynga’s CityVille and Texas Holdem Poker on top. But game developers tend to focus on daily usage since it often correlates better with monetization.) The company told us a few days ago that it had just passed 25 million registered users and popped above 10 million daily active users a week ago . This is a huge turnaround for the New York-based company, which had struggled to find a massive hit on its own destination site and then on Facebook. While OMGPOP chief executive Dan Porter has told me that he is heads down on building the game, there are many options on the table right now from continuing along, to taking more funding or talking with prospective buyers . (Choose wisely!) It’s also a sign of changing times as the biggest games on Facebook by daily usage like Words With Friends and Draw Something are now played largely on mobile devices. This does not bode well for Facebook’s future gaming or platform revenues since it can’t earn a share of transactions in native iOS or Android games. Facebook even revised its policy a few weeks ago, saying that mobile web apps running inside a Facebook iOS app may only use iOS payment methods and may not reference or encourage Facebook Credits. Despite OMGPOP’s comeback, there’s one very important thing to keep in mind. What’s up one day, goes down the next. This is a hits driven business and there is usually one developer every month or so that has their moment in the limelight. NimbleBit’s Tiny Tower, which was Apple’s Game of the Year, is now 50th on the top grossing charts behind Zynga’s very similar game Dream Heights, which is 19th. Pocket Gems, which had the top grossing iOS game of last year and had two games in the top 5 grossing for awhile last year, now sits at 37th place with Tap Pet Hotel. Because of this reality, valuations for mobile gaming companies have corrected over the last six months, based on conversations I’ve had with several venture investors at the top-tier firms in the Valley. While there was talk of a $1 billion valuation for companies like Rovio and Storm8 last year, those deals didn’t happen. (They might happen this year. Who knows?) But in general, I’m hearing that the valuations later-stage mobile gaming companies are asking for have fallen since last summer.
This American Life Retracts Mike Daisey’s Piece On Foxconn For “Significant Fabrications”
At over a million digital listens, “Mr. Daisey Goes To The Apple Factory” is This American Life’s most popular episode. That’s no small feat for one of the world’s most well-known radio shows. When it aired, it set off yet another firestorm of controversy regarding the ethics of Apple (and other large tech companies) using cheap Chinese labor through major manufacturers like Foxconn. Mr Daisey, who has been touring for years with a monologue about his visit to the factories there and the moral implications thereof, provided details to This American Life to put together what was really a powerful and attention-grabbing piece. Unfortunately, in the words of This American Life host and producer Ira Glass , “We’ve learned that Mike Daisey’s story about Apple in China – which we broadcast in January – contained significant fabrications. We’re retracting the story because we can’t vouch for its truth.” This week’s show will take a full hour to detail the errors and fabrications in Daisey’s report. The episode’s lurid details provoked many responses on the web, including several editorials on TechCrunch. These details were not entirely new, and we have written about the labor and environmental conditions in Chinese factories before, but such a discussion is always relevant. But although the discussion was fruitful, it seems it may have been based partially on false information. Without duplicating too much of the blog post, press release, and forthcoming broadcast, it seems that a Marketplace staffer, China correspondent Rob Schmitz, thought that some of Daisey’s claims didn’t add up. The fact checking team at This American Life (not NPR, as previously written) had already cleared the story despite some small discrepancies, but some things Schmitz was personally acquainted with stuck out — for instance, the idea that Daisey had met in Shenzhen with workers who had been poisoned by n-hexane. The poisoning occurred, no doubt, but it occurred a thousand miles away in Suzhou, a place Daisey never visited. He also contacted Daisey’s interpreter, whom Daisey claimed to be unable to reach, and apparently for good reason. She contradicted much of what Daisey claimed in his monologue and on the radio. Schmitz has written up his investigation here. In the investigative segment shortly to air, Marketplace’s Schmitz confronts Daisey with this information. His response (echoed in a blog post ): I’m not going to say that I didn’t take a few shortcuts in my passion to be heard. My mistake, the mistake I truly regret, is that I had it on your show as journalism, and it’s not journalism. It’s theater. A few weeks ago, a book called The Lifespan of a Fact was released, a peculiar volume detailing a battle between a writer, whose essay had been embellished with inaccuracies and fabrications, and his fact-checker at The Believer, who was attempting to undo those embellishments. The question of which was more valuable, the point being made in an essay that didn’t strictly cast itself as a factual one, or the truth of the matter that it in many ways obscured, is an interesting one. But in this case things seem a little more clear-cut. Mr. Daisey represented as facts and his own experience things that were not true and which he had not done. TechCrunch interviewed Daisey as well early in 2011 ( part one ; part two ). His statements to us must be questioned, now factually as well as conceptually . Fortunately, none of our reporting on China and Foxconn relies on his testimony. Our own John Biggs has been to China to report on the state of manufacturing there twice, the first time to Shenzhen proper to see how smaller factories and shops are run , and the second time to “Foxconn City,” where he received a tour of the mega-campus where your devices are made and assembled . These reports, needless to say, are factual. Update : it is This American Life that did the retracting, not NPR as first reported (and immortalized in the URL). Entirely my mistake, due to the fact that the show is often broadcast on stations the primary affiliation of which is NPR. This American Life is produced by Public Radio International, and Marketplace is produced by American Public Media.
From Zynga To Flipboard: Why All Eyes Are On China For The Next Mobile Boom
Editor’s note: Chris Shen is vice president at Chinese gaming company The9 . Prior to joining The9, he served as group account director and account director for several advertising agencies in Shanghai and Taipei. If you spend any time speaking with Western mobile companies, one topic that’s likely to pop up is their “China strategy.” Due to a mix of mobile penetration, sheer population, and popularity of the mobile web, Western mobile companies recognize there’s a lot of money to be made overseas. The idea is not without merit: China is the world’s largest mobile market with almost one billion users, 69 percent of which access the Internet through their phones on a regular basis. As such, plenty of big-name Western mobile companies have already begun entering China. However, the mobile market is still immature with issues like fragmentation and piracy, making distribution exceedingly difficult for developers. China isn’t quite yet a home away from home for Western developers, but it’s poised to be the next big mobile market. China’s lucrative potential is especially relevant for mobile developers. Mobile apps and games were popular in China well before the United States caught on, and the market is only going to get bigger. Smartphone adoption is picking up and opening a window for Western developers to introduce new titles, while in-app purchases are on the rise in China and app downloads have almost tripled in the last year (more on that in a second). Rise of the Smartphones China has over 980 million mobile users. While this number is staggering, the majority of users own feature phones. As such, many local developers create apps that cater to feature phones. However, in the past few years, smartphone adoption — both iOS and Android devices — has increased significantly. According to research firm Strategy Analytics, almost 24 million smartphones were shipped to China in 2011, surpassing the number of devices in the U.S. This trend is still gaining steam and creating a profitable window for Western iOS and Android app and game developers. The9 and GREE recognized this trend early and established the $100 million Fund9 to help developers port their games to Android and distribute them in China. Loads of Downloads In addition to a massive user base, China’s mobile activity is also skyrocketing. More people are downloading more apps and games. According to mobile analytics site App Annie China’s mobile download numbers have grown by almost 300 percent in the last year. Additionally, research firm Distimo reported that over 30 percent of Apple’s App Store downloads were coming from China by the end of 2011, as opposed to only 18 percent at the beginning of that year. In-App Purchases and Virtual Goods China’s massive mobile potential is more than just a numbers game. It’s true that there are more mobile users in China than anywhere else, but they’re also starting to spend more. A lot more. According to App Annie, mobile revenue in China has nearly tripled in the last year, increasing by 187 percent. This is partially due to Apple’s recent announcement that they’re going to start accepting App Store payments in Chinese yuan. Now Western game developers can seamlessly offer virtual goods to China’s huge audience. Western mobile companies can’t afford to ignore the Chinese market. A good example of this is Flipboard. Before launching in China, Flipboard was plagued by multiple clone apps that grew in popularity in the app’s absence. Since launching in China’s App Store, the company has been successful partnering with big-name companies like Sina and Renren. Hit mobile game maker, Rovio, saw a similar problem with loads of unlicensed Angry Birds (even a theme park) being sold in China. Their solution: open an entire Angry Birds store in China . There’s more incentive to enter China than just to protect a brand. Companies like CrowdStar , GREE , and Zynga have all announced China ambitions. As China’s mobile market continues to mature, it’s safe to assume that issues like piracy and fragmentation will become less problematic. For mobile game developers looking to cash in on China today, there are still some ways they can bring their apps over successfully. Finding a local partner to help with distribution, security, and catering to a Chinese audience will ensure a more successful launch. Companies like The9 recognize both China’s complexity and its opportunity, and are eager to work with Western app developers. By leveraging carrier partnerships and working with multiple distribution channels, local partners can eliminate the headache of entering China. Developers also need to localize their apps if they want them to succeed in China. This means not only translating apps into Chinese, but also customizing design aspects to meet cultural preferences and various channel requirements. China is a beast already and it’s only going to get bigger. As Apple and Google continue to penetrate the market and cater to Chinese audiences, there will be a great window of opportunity for Western developers to rake in the yuan. [ image via flickr/bfishadow ]
Targeting Merchants, Square Debuts Register iPad App And Analytics; Now Processing $4B In Payments Per Year
As we reported earlier this year, mobile payments company Square revealed that it was planning to add a number of new operational capabilities and data analysis to the register, including in-depth analytics. Tonight, Square is debuting this functionality in the form of a new iPad app. The app aims to replicate the actual experience of a register, similar to Square’s existing iPad app. But this new, free app, called Square Register, comes as a more full-fledged point of sale offering. You can access the app here. The app has a completely new UI, and a better integration with Card Case , which is Square’s consumer-facing loyalty, payments and merchant-discovery app. For example, merchants can publish their business’ profile to the Card Case directory so customers can find them as they explore a given city. The app also includes customer notifications, so merchants know when regulars and new customers arrive at their store using Card Case. Basically, the new app’s UI has been reconfigured so that it’s a perfect fit for brick and mortar businesses, whether they have 10 items or 10,000. Custom item arrangement allows merchants to create a mobile version of their store. The app also allows for custom permissions for employees on the register, giving merchants control and access to specific features, settings, or sensitive information in their sales reports. And with a single tap on the iPad, merchants can wirelessly print receipts or open a cash drawer to make change. The new app and Square also features in-depth analytics, allowing merchants to segment consumer payments data and transactions. The dashboard provides a glance of basic sales information and recent transaction history, including the number of payments, subtotals, tax, tips, refunds, account deposits, etc. It also shows several interactive data sets, breaking down sales by month, days of the week, time of day, and even size of payment. Merchants can access and explore these analytics when they log into their Square account online as well. Additionally, Square says it is now processing $4 billion in payments volume per year, which is up from $2 billion in mobile payments volume expected in October 2011. For Square, this new app is about giving merchants tools for free that big-box retailers have been enjoying for years. The company’s existing iPad app was released last year, and the app has seen increased adoption amongst brick and mortar businesses. So this app aims to provide merchants with even more features to help make running a business easier. And Square is betting on the iPad as the go-to device for smaller merchants to manage their businesses. 2011 proved to be an eventful one for Square. The company ended the year with over 1 million merchants using the mobile payments platform to accept credit cards (there are only 8 million merchants who accept credit cards in the US). In November, Square announced it was processing $11 million in payments per day (up from $4 million a day in July). Sir Richard Branson , Kleiner Perkins, Visa , and other investors poured over $100 million over the course of the year into Square, with the company’s latest valuation pegged at $1 billion . Not to mention the unveiling of retail deals with Apple, Wal-mart, Best Buy, Radio Shack, and Target. Already this year, Square has debuted two new retail deals—OfficeMax and select UPS Store locations. And now that Square has tackled analytics and the register for merchants, we’re expecting a more personalized experience for Card Case and perhaps international expansion as well in 2012.
For And Against The iPad Mini
Rumors of a 7- to 7.85-inch iPad have been swirling around for a long while now. We’ve seen reports get killed moments after they initially break, only to be sneakily resurrected weeks or months later. The rumor simply won’t die. The problem, however, is that this one in particular is a tough nut to crack. When you take all the evidence both for and against a little iPad, you’re still left with no real conclusion. So conclusion aside, here are some of the reasons Apple may, or may not, introduce the little iPad: For: The greatest threat to Apple’s iPad is the 7-inch Amazon Kindle Fire. It retails at about $300 less than the iPad, sports a solid browser, has access to plenty of Android apps, and is a great hub for any and all of Amazon’s media content. It also happens to be a 7-inch tablet. Should Apple choose to offer a smaller iPad at a lower price (which the market would most certainly demand), it could snatch back the market share Amazon’s stolen in the past few months. Gaming on tablets is big, but too big a tablet ruins the fun. According to numbers out of comScore in November, 2011, gaming topped the list of entertainment activities on a tablet, beating out watching video and listening to music, with 67 percent of owners gaming at least once a month, and 23 percent playing daily. That said, Apple’s 9.7-inch iPad isn’t what I’d call the best for gaming. Graphics and display quality are top-notch, to be sure, but holding the device for very long — especially stretching that thumb around the edge — can be incredibly tiring. Despite the fact that it has failed me considerably, I still prefer playing games on my 7-inch BlackBerry PlayBook, even if there aren’t many games to choose from. Most smaller Android tablets use a widescreen aspect ratio, leaving a dead zone in the middle of the screen that’s mostly untouchable. The iPad 2 sports a 4:3 screen, which makes even the 10-inch model full touchable. A 7-incher would only be that much better, with greater pixel density and a lighter, easier feel in the hand. Apple is kind of obsessive when it comes to “thin and light,” and a smaller iPad would also mean a thinner iPad. See, if Apple were to build a smaller iPad, chances are it’d be built using the normal screen assembly technology that allows for the iPad 2′s incredibly thin profile. However, a smaller iPad/screen means a smaller battery, which usually takes up a solid chunk of space under the hood. Less screen means less power needed for backlighting it, which inevitably takes us back to a smaller battery. Thin and light! Thin and light! Thin and light! Amazon may release a 9-inch Fire… Why not fight Fire with fire? The word right now is that Amazon has plans to release a 9-inch Fire to compete with the iPad. While, like the 7-inch Fire, it probably won’t have all the capabilities of the iPad, a larger Fire will still retail at a (much?) lower price point than its competitor. For people who mostly browse the web, read, email, and Facebook/Twitter, a lower price point will be more than enough incentive to venture away from the iPad. To be clear, it’s not like Apple’s in some dire position. Cupertino still dominates the market with a 58 percent share as of January, 2012. But that’s down 10 percent from the previous quarter, while analysts claim that 40 percent of Android’s 39 percent share in the tablet market are attributable to the Nook Tablet and the Fire. It’s undeniable: Apple is slowly but steadily losing share to Android, most notably the Fire, and what better way to steal it back then by launching a 7-incher right in Amazon’s face? Against The most notable and evidential reason why Apple wouldn’t release a little iPad is because Steve Jobs said so. In an earnings call in October of 2010, Jobs said that “7-inch tablets are tweeners: too big to compete with a smartphone and too small to compete with the iPad. These are among the reasons that the current crop of 7-inch tablets are going to be DOA — dead on arrival.” Jim Dalrymple points out that Apple made both a 7- and a 9.7-inch iPad right at the beginning and chose to go with the bigger version, which at a first glance would indicate that it’s not going to happen. At the same time, that was a long time ago if we’re counting in tech years and it wouldn’t be the first time Jobs obliterated a product category only to announce something similar to it shortly after. Anyone remember iBooks? Why release a product to compete in a market you already own? Though its market share has fallen since its debut, Apple still absolutely dominates the tablet market right now. A 58 percent share of a market, with not one of its competitors anywhere near that share, leaves Apple with no real reason to put anything smaller in stores. I’m sure some of you will say I made an entirely contradictory point up there with Amazon grabbing share, but it’s all about perspective. Perhaps one person thinks that now is the time to plug up any leaky market share dribbling into Amazon’s hands, while someone else may think that Apple should wait until it absolutely has to throw a lower-priced option into the ring. Too many choices can be a bad thing , and Apple’s well aware of this. Look at iPhone releases: one model at a time. Apple’s all about making one absolutely stellar, blow-your-mind, make-you-believe-in-magic product and selling it well. Design, sell, repeat. Tablets are meant to be simple, easy-to-use products. It’s not like a PC, where users have to review list after list of specs and configurations before figuring out what fits. Some companies, like Samsung, want to stretch across every category of the tablet market with different spec’d and sized models under a shared brand. One of the iPads greatest advantages is being the iPad, rather than an iPad Lite, or an iPad Air, or whatever. It would be a deviation from Apple’s current strategy and over-arching mission statement of “Keep it simple, stupid” if they were to start switching things up now. So… Will Apple release a 7-inch iPad? Truth be told, your guess is as good as mine, but it would seem that there are advantages in either case.
Air Force Could Buy Thousands Of iPads And Android Tablets
The Air Force’s Air Mobility Command will be putting in a request for the purchase of a number of tablets soon in an effort to lighten their pilots’loads. Many commercial airlines are already taking this step, and American Airlines has already gotten FAA approval . The Air Force is feeling the sting of jealousy, and in consequence may be requesting as many as 18,000 devices. The number could also be as low as 63; the Command was not forthcoming on this point. The lower number would probably indicate a pilot program, so to speak, for a few devices, to determine which should get the big order. Which tablet would actually be ordered is also not specified. Bloomberg cannily plays up the iPad angle in its report ( U.S. Air Force May Buy 18,000 Apple IPad 2s ), but the spokesperson they talked to, Captain Ferrero, said the request might also be for Playbooks, Galaxy Tabs, Xooms, or Nooks. If these were to be general-purpose tablets, this little menagerie would be hard to winnow down. But the fact is they are going to be used as virtual flight bags, and the iPad is the only one that has the thousands of hours in the air that the Air Force will require. In a year, maybe, Android tablets will have a little more experience under their belts, but for now it’s probably safe to say that any tablets purchased by the government for the purpose of being electronic flight bags are going to be iPads. Eventually, these platform issues will have to be settled, though: if part of the military is going with Android for security purposes, and others are going with iOS for EFB and, say, general communication, there’s going to be a reckoning sooner or later.



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