Mountain Lion Roars Only for Some: Redemption Code Errors Plague Release

by Holly Shoemaker

Apple released Mountain Lion, its latest version of OS X, on Wednesday, July 25, 2012. Developers first received a preview in February and the company officially unveiled it at its annual conference in June 2012.

After reporting disappointing numbers that failed to meet Q2 2012 expectations, Apple needed good news regarding its latest release. However, the release of Mountain Lion has resulted in some fed-up customers.

News for Customers

The update comes with more than 200 features. Those include: better integration with iCloud, desktop versions of Messages and Game Center and a new Notification Center. It runs on Macs using OS X Lion or Snow Leopard.

Consumers that purchased a Mac on or after June 11, 2012 from an authorized reseller or directly from Apple should have received redemption codes via email courtesy of Apple’s Up-to-Date Program. The redemption codes were emailed to eligible participants two days before the release of Mountain Lion.

While reports indicate that Mountain Lion garnered three percent of OS X share in the first 48 hours after the release, some Mac users have vented on Twitter regarding the codes, saying they have not received them, received out-of-date codes or have received wrong ones. Apple is handling the complaints manually and said it may take 72 hours to resolve. In the meantime, users still report code issues as Apple sent codes to automatically download Mountain Lion server tools instead of the operating system.

Consumers not eligible for the upgrade are having an easier time. They may purchase Mountain Lion for $19.99 from the Mac App Store. A reseller has indicated that the upgrade takes anywhere from 13 minutes to almost an hour to install.

Concluding Thoughts

The release of Mountain Lion should have deflected some concerns over Apple's Q2 2012 reporting results. While notifying customers of the redemption codes prior to the product launch seemed like a proactive move, that decision resulted in sending expired codes that consumers tried to use 48 hours too late. Worse yet, its manual fix resulted in continually sending codes for the wrong product.

Apple Bites Itself: Q2 Numbers Fall Short of Expectations

by Holly Shoemaker

On Tuesday, Apple reported its Q2 2012 numbers, falling short of analyst’s expectations.

Numbers at a Glance

• Apple posted revenue of $35 billion. While the figure shows an increase of 23 percent compared to Q2 2011, the figure fell short of expectations by $2 billion.
• The company said its net income increased by 21 percent from Q2 2011 to $8.8 billion. This fell short of expectations by approximately 10 percent.
• iPad sales increased 84 percent to 17 million units sold.
• Apple shipped 26 million iPhones from April to June 2012. While this showed an increase of 28 percent, analysts predicted the company would sell 28 to 29 million smartphones. Apple sold 35.1 million iPhones in the previous quarter. Tim Cook, Apple’s CEO, and many analysts attributed the drop to the upcoming iPhone 5 or new iPhone release.
• Sales in Greater China totaled $5.7 billion, which was an excepted drop of $2.2 billion from January through March.

The Continuing China Factor

China will continue to play a key role in the smartphone global market battle. The iPhone 4S has limitations for Chinese consumers as Siri does not speak Mandarin or Cantonese. The iPhone 5 will feature these languages and should boost sales.

The unexpected decline has resulted in many questioning if Apple products do not hold the same appeal in China as the new iPad launch in China last week failed to generate the usual excitement of an Apple launch.

Other companies have taken advantage of Apple’s gap in the market for Chinese consumers. The Samsung Galaxy S III and HTC One X have appealed to consumers because of their wider screens, enhanced camera feature and available apps.

Concluding Thoughts

Apple will continue to see a decline in iPhone sales as consumers will wait to purchase the iPhone 5. Apple generates more than half its revenue from iPhone sales and when the next iPhone debuts, Apple should recoup some of its losses. Samsung also continues to take away from Apple’s market share. Its move to launch the Galaxy S III earlier than the iPhone 5 paid off. However, Samsung will likely see a decline in some numbers after the iPhone 5 debuts as newer and popular brands generate demand, at least in the short term. The battle comes down to how long the hype lasts.

Galaxy S III Continues to Take a Bite Out of Apple

by Holly Shoemaker

Samsung has rebounded from the yo-yo week it experienced a couple weeks ago. The company continues to dominate the Android smartphone market with the Galaxy S III, and it continues to show the world that it can nibble away from Apple’s market share.

Less than two months after releasing the Galaxy 3 III in Europe, and then in the United States in June, Shin Jong-kyun, president of Samsung’s information technology and mobile communications division, reported that the Galaxy S III has sold more than 10 million units to date. However, he did not provide an exact figure.

Concluding Thoughts

Samsung has made some smart moves for its flagship smartphone line. By launching the Galaxy S III before Apple launches the iPhone 5, or new iPhone if Apple drops the number from the naming convention like it did with the new iPad, the company has positioned itself to continue to take away from Apple’s market share into Q 3 2012. Analysts expect Apple to launch the iPhone 5 in September or October of this year.

Protecting Patient Privacy Remains at the Forefront of Medical Mobile Apps

by Holly Shoemaker

Patient privacy continues to remain a top priority and focus of concern regarding medical mobile applications. As the Federal Drug Administration (FDA), other government agencies and a medical app store drafted guidelines pertaining to aspects of eHealth applications, the Future of Privacy Forum (FPF) has provided its own input regarding how to best protect data collection and has also released best practices for app developers.

Overview of Best Practices

The FPF stresses that developers should embed privacy measures throughout the development lifecycle. The guidelines also stress the importance of using clear and simple language to ensure all users understand how data is collected and shared. Along with that, the FPF discusses the importance of securing data and having someone accountable for ensuring privacy measures are followed.

Concluding Thoughts

As mentioned before, guidelines will help developers streamline the development lifecycle and provide consumers with information on how to best protect their information. The challenge comes in when integrating all the feedback gathered from all sources to ensure all parties get what they need from regulatory measures - no developer wants to prolong an already long lifecycle for medical applications.

New iPad Launches in China without Chaos

by Holly Shoemaker

Weeks after settling its lawsuit with Proview Technology over then naming rights to iPad, the company launched the new iPad in China on Friday. Most noteworthy, was the absence of crowds and often chaotic nature that marks Apple launches in China. In January 2012, the police became involved, and Apple decided not open the doors of its Beijing Apple Store when it launched the iPhone 4S.

Concluding Thoughts

This time, consumers who showed up early to Apple stores noted the absence of long lines and a noticeable calmness surrounding the launch. After the iPhone 4S launch in January, Apple adopted an online reservation system to assist with crowd control. The system seemed to work as the new iPad launched in China without a hitch.

The demand for Apple’s products remains high throughout China. Reports indicate that Apple saw its profits increase in Q2 2012 threefold to $7.9 billion in Greater China.

Nexus 7 Ships, Unclear How Tablet Affects Retail Chains

by Holly Shoemaker

Google shipped its Nexus 7 tablet to customers in the United States this week. Reports remain mixed regarding the availability of the tablet in retail stores. Google has not officially said when the tablet will be for sale in retail chains, although some consumers indicate they have purchased the tablet in stores. Some retailers report they have sold out of all Nexus 7 tablets. Google has not publicly released information on how many Nexus 7 tablets it shipped to retailers or the quantity stores ordered.

Concluding Thoughts

This is the first tablet to have Google's name on it and the first to run Jelly Bean, the latest Android operating system. At this time, the Kindle Fire is the best-selling Android tablet. As I have stated before, based on the price point, Google’s tablet seems like it could affect sales of Amazon's Kindle line over Apple's iPads. However, its smaller size could sway some customers considering iPads and Android tablets. For those that do not want a skin over the Android platform, like the Kindle Fire has, the Nexus 7 could be a good choice.

Medical App Store Drafts Guidelines for Developers

by Holly Shoemaker

In the past, I blogged about where developers store an app was just as important as the app itself. In particular, I discussed how Happtique, an app store dedicated to healthcare professionals, seemed like an ideal place to find apps for medical purposes. Now, in a move that follows the Food and Drug Administration (FDA), Happtique has announced its own guidelines regarding medical mobile app regulation. 

Overview of Guidelines

In addition to meeting security guidelines, apps will have to:

• Effectively run on mobile devices and connect to peripherals like WiFi.
• Follow certain speeds, although at this time, the guidelines do not specify particular ones.
• Identify who receives patient information before a consumer downloads them.
• Contain information written for laypersons. 
• Come from current and recognizable sources.

Concluding Thoughts

Happtique is dedicated to medical apps. By putting guidelines in place, the company shows that it wants to further differentiate itself as the marketplace leader for medical applications. Because of its narrow focus, it has the time to put together detailed guidelines, something the Apple App Store and the Google Play Store cannot do.

With all guidelines, they could hinder or help developers depending on how stringent everyone reviews the requirements. For some developers, it could mean a longer development cycle. At the same time, Happtique makes all the factors known upfront. Therefore, developers could use the information as a checklist when developing medical apps. The drafted guidleines also assign accountablity and make credibility focuses. These are factors that are needed considerations as the numbers of medical mobile apps continue to increase.

Happtique is currently accepting feedback from doctors, nurses, other medical professionals and consumers through Friday, August 17, 2012.

China: The Ally in the Map App Battle

by Holly Shoemaker

Apple escalated the map app battle at its annual developer’s conference this past June with its decision to drop Google Maps as the default map application on its upcoming iPhone. Now, the company selected AutoNavi Holdings Ltd. as its map partner for future iPads and iPhones in China. AutoNavi has worked with Google since 2006.

Concluding Thoughts 

AutoNavi should profit on both sides and gain an edge over its competitor, NavInfo Co. Auto Navi announced last June that Samsung chose its navigation app for the Galaxy S III. For Apple, the move is strategic and makes sense for its Chinese customers. China remains Apple’s second largest market behind the United States. Its move to partner with AutoNavi, a company that also knows Google, should help Apple continue to build its consumer base in China.

Trojan App Outsmarts Apple

by Holly Shoemaker

Malicious apps may be a more frequent occurrence for Google because of its use of open-source technology. For Apple, a recently discovered trojan app marks a first  – the first time someone found malware in the Apple App Store since it launched five years ago. Last week a Russian app known as “Find and Call” found itself in the Google Play and Apple App Store.

Researchers at the Kaspersky Lab discovered the app actually worked as a trojan. When users downloaded the app, they needed to sign in with an email address and cell phone number. The app then asked users if they wanted to "find friends in a phone book." If agreed, the app uploaded the device's address book without telling users. It then took users’ contact lists and uploaded the information to a server. In turn, the app sent spam to SMS contacts. While developers are supposed to obtain permission when they use address book information, Find and Call made no mention of this in its end-license agreement.

Apple and Google removed the app last Thursday. However, it appears the application remained available for at least a week.

Concluding Thoughts

Find and Call should serve as a warning for those who download apps geared toward social networking to always read the fine print to see if apps pull source code from a user’s address book. If the information does not appear in an agreement, you do not trust what the agreement says or there are no validation checks, do not launch.

Samsung’s Yo-Yo Week

by Holly Shoemaker

This week the U.S. Court of Appeals refused Samsung’s request to allow the company to continue to sell the Galaxy Tab 10.1 in the United States. Last week, Apple filed a temporary injunction to halt sales of the tablet, claiming Samsung copied one of Apple’s patent designs. However, the Court temporarily lifted the ban on selling the Galaxy Nexus pending Apple’s response. The smartphone is available again in the Google Play Store.

Profits Increase, but Sales Come up Short

The news came as Samsung reported some highs and lows this week. Samsung set a second-quarter profit record of $5.9 billion. The company’s second-quarter operating profit increased 79 percent to 6.7 trillion. That beat estimates of 6.58 trillion.

Sales of the Galaxy S III totaled about seven million units through the end of June 2012. The number was lower than expectations. Samsung acknowledged it encountered a shortage of some equipment components, especially when the Samsung Galaxy III went on sale in Europe in May 2012.

Samsung did not provide net income or divisional earnings information. That information is expected later this month.

Concluding Thoughts

Samsung still remains Apple’s largest threat. At this time, analysts do not expect any final court ruling(s) to significantly impact Samsung. The company has ways to go before it reaches Apple’s numbers. Apple sold 16.3 million iPads from January through March 2012, giving the company 63 percent of the global tablet market share. In comparison, Samsung sold 1.6 million tablets, giving it 7.5 percent of the tablet market share.

comScore Releases Latest Survey: App Use Increases

by Holly Shoemaker

comScore surveyed more than 30,000 U.S. mobile subscribers from March 2012 through May 2012. The survey looked at activated  app use on mobile phones, smartphone use by platform and top-ranked device manufacturers.

App Use Leads Web Use

More consumers used their smartphones to access apps over the web. The survey reported that 51.5 percent of respondents accessed a downloaded application, an increase of 1.6 points from the survey released in February. In comparison, 49.8 percent of respondents accessed the web from their smartphones, up slightly from 49.2 percent in February.

Android and Apple Increase Numbers

Android continued to grow its market share. The survey reported that Google’s platform accounted for 50.9 percent of smartphone subscribers. Apple captured 31.9 percent. Research in Motion’s (RIM’s) BlackBerry accounted for 11.4 percent and Microsoft Windows Phone came in at four percent. The numbers reported are similar to what comScore reported in February 2012 – iOS increased by 1.7 percent, BlackBerry, which should come as no surprise, declined by two percent.

Samsung Top Manufacturer, but Apple Gains Most Points

Samsung remained the most popular manufacturer with 25.7 percent on the market share. LG garnered 19.1 percent, Apple came in with 15 percent, Motorola grossed 12 percent and HTC made up 6.1 percent. Apple gained the most increase, up by 1.5 percent.

Concluding Thoughts

Depending on preference, and audience, people spin the numbers differently. Android fans reported that the numbers shows Android is still the most popular platform, while Apple fans point out that Apple is only one company. The statistics do show that almost one out of three subscribers goes to Apple. In the categories, Apple’s numbers show the highest increase.

For Android fans, Samsung still appears to make the best smartphone to compete against Apple. When the numbers come out for the Galaxy S III, we will see how the most competitive Android phone to date compares with the iPhone.

iPad over IPAD Triumphs: Apple Officially Owns iPad Name

by Holly Shoemaker 

Apple’s legal battle with Proview Technology, a Chinese-based technology company, has come to end. Today, a Chinese court has confirmed that Apple has paid Proview Technology $60 million to settle the dispute over who owns the right to the iPad name.

While a lawyer for Proview said the company hoped for $400 million, Proview really had no choice but to settle. The company faces a growing amount of debt.

Overview of Dispute

Proview claimed it trademarked the IPAD, not iPad in 2001. Apple paid the company $55,000 for the name. However, the Court did not recognize the payment and ruled last year that Proview still owned the name. Proview also tried to get iPads removed from stores in China.

What Settlement Means for iPad Market

China, with a population of 1.3 million people, represents Apple’s second-largest market behind the United States. Now that both sides have removed a legal obstacle, Apple has the opportunity to bring the new iPad, or the iPad 3 for those who cannot part with the old naming convention, to China. The iPad 2 was in demand, and earlier this year China led the way in app sessions and new activations.

Concluding Thoughts

For some, $60 million may seem like a larger sum of money than Apple wanted to pay. However, for Apple, the price does not seem that high given the potential windfall that will come with selling the new iPad in China.