Consumer Reports Electronics Issue: Barnes & Noble Praise; Updated Tablet Rankings

by Holly Shoemaker

Consumer Reports Annual Electronics Issue has hit the stands. In this part one of two blogs, I have recapped the latest trends and rankings for tablets, with smartphones to follow. These are new ratings when compared to Consumer Reports Buying Guide 2012.

Tablet Buying Guidelines

• Trends – The non-profit agency says to keep looking for better screen displays at lower prices. Besides mentioning the obvious choices of the Kindle Fire HD and Google Nexus, Barnes & Noble’s nine-inch Nook HD+ at $270 is described as "an even bigger game changer." The model features a retina display close to Apple's and a lower price point. At the time of print, the model was unavailable for testing.
• Still an App Gap – Apple retains its praise for its selection, quality and innovation of apps over Android. Magazines also get a special mention as many have their own apps for iPad. Barnes & Noble's appears to want to gain ground on Apple. The Nook HD+ has a more-square design, specifically designed to make magazine reading easier. Barnes & Noble also features the 100 best-selling magazines.
• Laptop-Like Tablets – While the Microsoft Surface debuted too late for testing, many tablets feature more laptop features, like Samsung’s Series 5 and Series 7 Slate models.

Tablet Rankings

In the seven-inch range, Samsung still reigns. The Galaxy Tab 7.7 ranks first with a score of 82, followed by the Pantech Element at 77. In the WiFi only category, the Toshiba Excite comes in first with a score of 80, followed by Google Nexus at 77 and the Amazon Kindle Fire HD 16 GB at 77.

With little surprise, Apple remains at the top in the nine- to 12-inch category. In the WiFi plus category, the iPad scores an 85, followed by the iPad 2 at 81. Samsung Galaxy Note 10.1 ranks second with 83, after the iPad with the same score. Asus has many models that also make the list.

iPad mini's Interesting Component: Its Samsung Chip

by Holly Shoemaker

Reviews continue to come in regarding Apple’s newest edition, the iPad mini, and the device has now gone international. The main complaint among customers deals with the lack of retina display. However, iFixit, a repair services company, has discovered the most interesting component – the device uses a display driver chip courtesy of Samsung.

Reliance There, but Decreasing 

Apple clearly wants to reduce its reliance on Samsung, and Samsung seems to have the ability to live without Apple. According to DisplaySearch, a supplier of information for display chain and display-related industries, Samsung has stopped supplying displays for the iPhone and does not supply as many chips for the full-sized iPad. 

Concluding Thoughts

While Apple will continue to phase out what it can, the company understands that it needs components from the most logical supplier to meet market demand. If Samsung has the needed part, then both companies profit. I am sure more will follow on this love-hate relationship and of course, its endless patent battles.

No Price War in iPad mini Debut: Amazon to Benefit

by Holly Shoemaker

As expected, Apple unveiled the iPad mini today, and with a degree of arrogance, Apple showed it had no intentions of entering into a pricing tablet war.

iPad mini Details at a Glance

• The screen is about two-thirds the size of the iPad at 7.9 inches and half the weight.
• Apple priced the iPad mini at $329, a price point that lies between the iPod Touch at $299 and the iPad 2 at $399.
• The device has two cameras, one on the front and another on the back.

Consumers may begin ordering the iPad mini on Friday, October 26, 2012.

Surprise Announcement

In another move that has already started to infuriate users, Apple made a change to its full-sized iPad, which comes only six months after its launch. It announced a new chip, called the A6X that delivers twice the CPU and graphics performance of the A5X, the processor that came out in earlier this year. The next iPad launch was not expected until March 2013. It appears that Apple wanted to steal some of Microsoft’s thunder this week as the new Surface will launch. Consumer may also order the new and improved iPad on Friday.

Concluding Thoughts 

Apple’s move seems confusing from a consumer standpoint. It had the opportunity to up the tablet war. However, Apple’s pricing keeps in line with its thinking – that consumers will pay more for an Apple product, and that the company cares more about profiting from sales of the device, rather than accessories and apps.

Apple’s arrogance could result in a win for Amazon whose expanding Kindle line has tablets and e-readers at price points that should appeal to most consumers. Apple’s stock fell after the announcement while Amazon’s shares rose 53 percent.

Amazon Stops Directly Selling Kindle Fire: Hotter Version Expected

by Holly Shoemaker

On Thursday, Amazon announced that it sold out of its Kindle Fire. This has caused many to speculate the company halted production to make way for a new model.

While Amazon never reports how many models of which Kindle it has sold, the company reported that it garnered 22 percent of the tablet market share over a nine-month period. This makes it the second most popular tablet after Apple’s iPad.

My Findings

I checked out Amazon and sure enough, consumers may buy the Kindle Fire from other sellers, but not directly from Amazon. In the “Compare Kindles,” section, Amazon no longer lists its $199 price for the Kindle Fire. More news to follow next week as Amazon should debut some new brand items at a scheduled event.

End of the e-Reader Market?

Overall, tablets have contributed to a decline in e-reader market share. ABI research reported that e-readers peaked last year and estimates that in 2012 e-readers will have sold 11 million units worldwide, down from 15 million in 2011. Still, for consumers who mainly want to read books on a device, e-readers provide a viable alternative to tablets. For those looking to decide between a tablet or e-reader, the Consumer Reports Buying Guide 2012 rankings should assist.

Apple v. Samsung Tests Consumerism, Capitalism

by Holly Shoemaker 

Apple’s lawsuit against Samsung started Monday in a California courtroom. In the current trial, there is another to come, Apple is suing Samsung for patent violations essentially saying Samsung copied its iPhone and iPad designs. One of the allegations includes patent infringement related to using touchscreen features. In turn, Samsung claims Apple violated some of its utility patents, including those that involve 3G capacity.

Monetary Damages Sought

Samsung’s rise in the smartphone market should weigh on Apple’s mind. Samsung sold 22.7 million tablets and smartphones in the United States, earning the company $8.16 billion in revenue. Apple is asking the court to award damages totaling over $2.5 billion. Samsung has asked the court to award 2.4 percent of the price of every sold iPhone as royalties.

Test of Consumerism and Capitalism

If the Court finds either company violated patents, Apple and/or Samsung will need to develop new ways to manufacture items, which could result in an increased cost of smartphones and tablets to consumers.

The onslaught of lawsuits in the smartphone and tablet markets affects capitalism and consumerism. That is exactly what Samsung’s lawyer argued – the legitimacy of competition in the United States. The anticipation of the latest and greatest device is heavily watched by technology enthusiasts, and consumers want the best product for the money. The ongoing patent battles should affect public opinion. In the end, everyone should be fed up with some of the childish antics and at times, over-the-top allegations.

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.

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.

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.

Google Announces Nexus 7: Which Tablet Market Does Google Want to Play In?

by Holly Shoemaker

It is becoming more challenging to keep up with Google’s image. The company has demonstrated it wants to move beyond a search and software company with its acquisition of Motorola Mobility and its changes to things like Google+ to provide social components to rival Facebook. Today, at its annual developer’s conference, the company showed off the expected Nexus 7 tablet.

While some have concluded the tablet was designed to compete with the iPad, the price point of $199 puts it more in line to compete with the Kindle Fire and Nook tablet. The Nexus 7 weighs in at 12 ounces, compared to the Kindle’s 14 ounces. A 16 GB model is also available for $249. The tablet is available now through the Google Play store and will start shipping in mid-July.

Concluding Thoughts

At this time, it is unclear which tablet market Google wants to play in. At last year’s developer’s conference, the company launched the Samsung Galaxy, a high-end tablet to compete with Apple’s iPad. However, Apple just won an injunction against selling the Samsung Galaxy 10.1 in the United States. Perhaps Google's strategy to play in many areas anticipated the upcoming lawsuit.

Microsoft Surface to Enter Tablet Wars

by Holly Shoemaker

Microsoft unveiled its first Window 8 tablet, Surface, today at a last-minute event held in Los Angeles, Calif.

New Territory for Microsoft

This is the company’s first attempt at making its own tablet. The company said it needed its own hardware to complement its Windows 8 software.

The tablet features the following:

• A 10.6-inch HD widescreen display with an ultra-wide viewing angle and self-adjusting screen
• USB and micro SD card slots
• A built-in keyboard with a trackpad
• An integrated kickstand

Will Surface Compete?

To me, Microsoft is associated with business. In that sense, I could see the tablet appealing more to businesses – as a way to further integrate IT operations, especially among employees that travel. At the same time, to compete in tablet wars, Surface will have to appeal to consumers. Microsoft has branded its new tablet keeping in line with Windows 8 and the company even promotes entertainment and apps. Consumers and developers may see what Microsoft will offer by way of apps in its Windows Store, although that site still appears lean.

Does B & N Fit into the Picture?

Of course the lingering question for most is how Surface will compete with the iPad. However, I am curious to know more about what Microsoft plans to do with Barnes & Noble. Many have speculated that Windows 8 will become the default platform for future Nook tablets. If that becomes the case, Microsoft may be positioning itself to see how it may compete in the higher-end and lower-end tablet markets. At this time, Microsoft has not announced pricing or a release date for the Surface.

WWDC Stresses Apple's App Dominance

by Holly Shoemaker

Apple focused on mobile solutions at its 2012 Worldwide Developers Conference (WWDC) this week. While Apple, as expected, did not announce a release date for the next iPhone, the company took the time to rattle off statistics in its keynote address. The company also focused on Mountain Lion, its updated operating system, which should help Apple continue to dominate the market.

App Store Numbers at a Glance

 

At the conference, Apple stressed the following statistics:

• The App Store is available in 155 countries.
• Apple had paid $5 billion to developers for App Store downloads.
• Users have downloaded 30 billion apps from the App Store.
• The App Store has 400 million accounts.
• A total of 650,000 apps are now available in the App Store – 225,000 of them were specifically designed for the iPad.

According to Gartner, Inc., an information technology research and advisory company, the App Store should generate $58 billion in sales by 2014. By providing the above statistics, Apple gave concrete reasons as to why developers should continue to make apps for Apple. After all, developers need to meet goals and make profits too.

How Google Play and Facebook Compare

• The Google Play store, formally the Android Market, has more than 500,000 apps available.
• Facebook opened its App Center to users on June 8, 2012. The App Center opened with about 600 apps. The App Center is available on the web, iOS and Google's Android operating systems. Last month, Facebook reported that it sent users to Apple's App Store 83 million times.

Concluding Thoughts

While much of the focus at the WWDC came as no surprise, Apple's focus clearly showed the company believes it will continue to dominant app downloads and sales. Even OS X Mountain Lion brings features like messaging and apps from the iPhone, iPad and iPod touch to the Mac. Developers received a preview of Mountain Lion back in February. In July 2012, users may purchase Mountain Lion in the Mac App Store for $19.99.

Facebook to Enter Smartphone Market?

by Holly Shoemaker 

Facebook has had its share of good and bad press regarding its initial public offering (IPO). Despite that press, Facebook seems likely to advance its plans to gain more customers in the mobile arena. Late last week, the New York Times reported that Facebook may attempt to enter the smartphone market.

According to reports, Facebook has hired six former software and hardware developers who worked on the iPhone. The report also indicated that one newly hired employee worked on the iPad.

Background Information

Facebook’s attempt at entering the smartphone market is not new. In 2010, the company unsuccessfully attempted to build a smartphone. A report last year also speculated that Facebook and HTC entered into a partnership to build a smartphone nicknamed “Buffy.”

Concluding Thoughts

If Facebook is successful, its smartphone should not pose a threat to Apple as Google is the company trying to create a more-integrated web experience built around is products. The timing of this news also comes as Google finalized its acquisition of Motorola Mobility last week, a move that left some phone device makers like HTC upset.

Facebook knows it needs to improve its mobile position in the marketplace. If Facebook can advance its smartphone plans, it will give the press, investors and consumers something to focus on besides if the company had a successful of unsuccessful IPO. The answer to the IPO question will always depend on the person asked.