The stated reason for the reductions: An effort to better align the company’s operations with its focused portfolio of future products. Seems Nokia (NOK), which typically spews out 50 or so new phones a year, many of them unremarkable, plans to concentrate on a smaller number of more “iconic” devices going forward.

In other words, Nokia is going to work a little harder to catch up with Apple (AAPL), which has really shown up the company these past few years. As Bengt Nordstrom, chief executive of telecom consultant Northstream, told Reuters earlier this year: “As much as iPhone and App Store is a success for Apple, it’s a humiliating defeat for the rest of the mobile industry. Twenty years of efforts from operators and vendors to create mobile applications that customers like is overtaken in a heartbeat by someone that never done it before.”

How will Google bring Chrome OS to market? The company is working with vendors to specify reference hardware. You cannot download and install Chrome on just any device, you will have to purchase a Chrome device. Google is looking at a launch window of late 2010, before the holidays.

Google sounds very concerned about the end-user Chrome OS experience. Pichai says the company wants to ensure that the displays, keyboard, etc., on the netbooks that run Chrome are robust and easy to use.

Pichai wraps things up, but before the Q&A, we’re shown a short explanatory video. “The first thing I want to do when I fire up my computer is browse the Internet….If there isn’t any Internet, I might not even use my computer….What if when you pressed on, your PC turned on, what if your operating system was more like a Web browser…what if it was a browser?…Chrome OS is a totally rethought computer that lets you focus on the Internet, which is what most of use our computers for these days anyway.”

Q&A
At this point, Sundar Pichai opens the event to questions:

If you’re specifying hardware components, do you have an idea of what they’ll cost?

A: “We expect Chrome netbooks to be in the price range of what people have come to expect….We are not specifying a price target.” Price will be determined at the OEM level.

Will the APIs support W3C standards?

A: “We’re working very closely with the W3C to standardize as much as we can….In general we want to see everything standardized across multiple browsers.”

Will there be an application store?

A: “The Web offers hundreds of millions of applications. Our job is to make people aware of them.”

What about desktop applications that are not available on the Web?

A: “We expect most of our users to have a second machine at home….Chrome OS is about a delightful experience on the Web….If you’re a lawyer spending your entire day on contracts, etc., this is not the machine for you.”

Will you support Microsoft Silverlight?

A: In the case of certain selection plug-ins, we are working to integrate them. No comment beyond that.

Since Chrome is open source, could people build their own variations?

A: Yes. We expect people will do many interesting things with it.

Do you see Chrome running on laptops or desktops?

A: We’re initially focused on netbook-like form factors–clamshells, etc. That said, the OS is being developed to work on other devices.

Is there any level of offline access? What happens when I’m on a plane and don’t want to pay for Wi-Fi?

A: Chrome devices are primarily intended to be Internet-connected. That said, it will have some caching abilities so, for example, you could play a game offline.

Virtualization?

A: Yes. You could run Chrome today on a virtual machine.

Are you working with outfits like Adobe to, say, build a Web-friendly version of Photoshop?

A: We’re very excited by things like Photoshop on the Web and we’re working hard to make that possible.

Will Android apps work on Chrome? Are there plans for third-party apps?

A: Pichai dodges this one. If it’s a Web app, he says, it will work on Chrome. The Web works very, very well for Google’s purposes, he adds.

Will Chrome work on both X86 and ARM?

A: Yes.

Is there a direct business model for Chrome OS or is this another variation of the-more-people-who-use-the-Web-the-better-for-Google?

A: We are working with partners. No plans for advertising. That said, Pichai notes again that anything that runs on the Web will run on Chrome. And of course, AdWords does, indeed, run on the Web.

[Sergey Brin joins the Q&A]

Do you want Android Apps to run on Chrome?

A: We are focused on creating the use case in which everything is a Web application, but hopefully we can do more in the future.

How does Chrome handle peripherals? Can it print?

A: Most keyboards, cameras, phones, etc., will work. In terms of printing…yes, Chrome OS will print and we’re working hard to make that possible.

What is Chrome’s strategic position for Google?

A: [Brin]: Call us dumb businessmen, but we really focus on user needs rather than focus on business strategies. We believe that the Web platform is a much simpler way of computing for individuals to use, and that’s a very important need in the market right now. That’s what we’re trying to fulfill.

Direct from Google headquarters and liveblogged by John Paczkowski, Google unveiled its Chrome OS. This is the first of three segments:

Google did not offer a beta of the new operating system today. Vice President of Product Management Sundar Pichai says Google is a year away from an official launch. The company, however, is making Chrome OS code available today.

According to Pichai, Google’s Chrome browser has some 40 million users one year after launch. He boasts about the browser’s speed, noting that it handles Javascript 39 times faster than Internet Explorer. There will be three more big Chrome announcements in the future: Chrome for Mac, Chrome for Linux and the debut of Chrome Extensions.

Google’s goal is to ensure that Web applications function as well as desktop apps, Pichai explains. The company is figuring out a way for Web apps to safely take advantage of the operating system in the same way that desktop apps do. A few examples: Graphics, video/audio applications, real-time communication, notification and local storage.

“By 2010 we expect to have all these things built into Chrome.”

The advent of Chrome coincides with a perfect storm of converging trends, Pichai notes, including the tremendous popularity of netbooks during the recession, the growing acceptance of cloud apps and the rapid innovation in mobile devices. Smartphones are becoming more like laptops, he adds, and laptops are becoming more like smartphones. Is there a better level of computing available for these devices? There is, says Pichai, and he believes it is Chrome OS.

Once again, AT&T (T) argues that coverage maps featured in Verizon’s (VZ) ad are misleading and falsely suggest that AT&T offers no coverage in areas where it actually does service.

“Contrary to the image presented in the Verizon ads, our wireless network is pervasive,” said an AT&T spokesman. “It covers over 300 million people, or 97 percent of the U.S. population. Our fastest, or 3G, network covers approximately 233 million people, or 75 percent of the U.S. population….[Verizon's] use of white space is misleading.”

While AT&T is deadly serious about this accusation, the fact that it must make it by referencing creatures like the Abominable Snow Monster and a pink spotted elephant makes it, well, hysterical.

“The ‘Island of Misfit Toys’ television advertisement is a parody of the ‘Rudolph the Red Nose Reindeer’ television special that depicts an island to which Rudolph travels after escaping an attack from the Abominable Snow Monster,” AT&T argues in its complaint. “The advertisement begins with outdated, discarded toys expressing surprise at the arrival of an Apple iPhone. The red Charlie-in-the-Box says ‘Hey! Check out the new guy!’ The spotted elephant, in a surprised manner, asks the iPhone ‘What are you doing here? You can download apps and browse the web!’ and a Dolly for Sue asserts that ‘Yeah. People will love you [the iPhone].’”

The complaint continues: “In response, a blue AT&T coverage map depicting large swaths of ‘white’ or ‘blank’ space across the United States appears above the iPhone. All the toys exclaim ‘Oh . . .’ in dismay, while the iPhone wilts and its screen turns dark. The toy airplane then assures the iPhone that ‘you’re going to fit right in here!’”

Finally, as AT&T describes it, “AT&T’s and Verizon’s coverage maps then appear and the announcer states, ‘with five times more 3G coverage than AT&T, Verizon Wireless is your destination for great gifts.’ The image of the sad and wilting iPhone on an island of misfit toys falsely communicates that the iPhone is a broken device because it cannot browse the web or download applications when outside of AT&T’s depicted coverage area. Further, the maps in the advertisement deceive consumers into believing that AT&T’s customers have no coverage whatsoever when they are outside of AT&T’s depicted coverage area and thus cannot use their wireless devices in many parts of the United States.”

Verizon’s attorneys are probably doubled over with laughter at this very moment.

Below, AT&T’s amended complaint in its entirety:

VerizonAmendComp _3_ –

Astonishing, really, when you think about it. The App Store isn’t even two years old yet. Nor is the iPhone software development kit. Before the SDK was released March 6, 2008, the only developers working with it were the handful of outfits Apple (AAPL) had partnered with while it was in beta.

So Apple is entitled to a bit of gloating. And gloat it did, in a press release celebrating the 100,000-app milestone this morning:

Apple Announces Over 100,000 Apps Now Available on the App Store

CUPERTINO, Calif., Nov. 4 — Apple® today announced that developers have created over 100,000 apps for the revolutionary App Store, the largest applications store in the world. iPhone® and iPod touch® customers in 77 countries can choose from an incredible range of apps in 20 categories, including games, business, news, sports, health, reference and travel. App Store users have downloaded well over two billion apps, continuing to make it the world’s most popular applications store.

“The App Store, now with over 100,000 applications available, is clearly a major differentiator for millions of iPhone and iPod touch customers around the world,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “The iPhone SDK created the first great platform for mobile applications and our customers are loving all of the amazing apps our developers are creating.”

“The App Store has forever changed the mobile gaming industry and continues to improve,” said Travis Boatman, vice president of Worldwide Studios, EA Mobile. “With a global reach of over 50 million iPhone and iPod touch users, the App Store has allowed us to develop high quality EA games that have been a huge success with customers.”

“With 10,000 downloads a day, worldwide customer response to our I Am T-Pain App has exceeded our wildest expectations,” said Jeff Smith, CEO of Smule. “The App Store has given us a unique opportunity to create and grow a very successful business, and we’re looking forward to an exciting future.”

Apple continues to improve search and discovery with new features including Genius for Apps, App Store Essentials selections, sub category listings and more valuable customer reviews. With the recently introduced iTunes® 9, it’s also now easier than ever to organize and sync your apps right in iTunes and they will automatically appear on your iPhone or iPod touch with the same layout.

The release of iPhone OS 3.0 this summer made over 100 new features available to iPhone and iPod touch users including Cut, Copy and Paste; MMS; landscape view for Mail, Text and Notes; stereo Bluetooth; shake to shuffle; parental controls; automatic login at Wi-Fi hot spots and Push Notifications. These new features have been incredibly popular with customers and there have already been more than two billion Push Notifications sent to apps available from the App Store. Additionally, the recently introduced In App Purchase feature for free apps means leading developers will now be able to offer customers the choice of buying content, subscriptions and digital services from directly inside their apps.

[Image Credit:148apps.biz]

According to its 10-K, the company “anticipates utilizing approximately $1.9 billion for capital asset purchases during 2010, including approximately $400 million for Retail facilities and approximately $1.5 billion for corporate facilities, infrastructure, and product tooling and manufacturing process equipment.”

That’s a wide range of potential applications–wider, in fact, than it has been in years past, as Caris & Company analyst Robert Cihra notes. “Interestingly…this year’s 10K added wording for purchases of ‘product tooling and manufacturing process equipment’ which could imply Apple reversing course to actually build certain products/components in-house,” Cihra said in a note to clients today. “Beyond that are signals of Apple investing in massive new data center capacity (e.g., North Carolina) that could support anything from iTunes/iPhone Apps through new ‘cloud computing.’”

Sounds plausible. After all, there’s a lot a company like Apple could do with an additional $1.9 billion in capital expenditures. Certainly, an iTunes TV subscription service would require some investment. A tablet/slate device might as well. Whether that’s where this money is headed–if it’s headed anywhere at all–remains to be seen. Who knows, perhaps Apple intends to blow it all on CEO Steve Jobs’ dream of the “ultimate computer factory.”

Revenue fell nine percent, year over year, to $2.5 billion, missing the consensus estimate of $2.67 billion. And at 39 cents, profit per share missed analysts’ 42-cent estimate.

Worse, SAP (SAP) reduced its forecast for the year. Where the once Teutonically solid company had foreseen a drop in revenue of four to six percent, it now sees a drop of six to eight percent. Clearly, sales of the software licenses necessary for building ongoing revenue continue to deteriorate.

Add to this Apothekar’s comments about “a particularly challenging environment in Japan and emerging markets” and his claim that “businesses are still very cautious in making major investments,” and you begin to see why SAP’s shares were so brutalized in early afternoon trading.

SAP’s earnings were “a clear miss” analysts at Commerzbank said in a report issued this afternoon. “The lowered software and software-related services guidance for 2009 indicates that the deal pipeline still suffers from a lack of larger deals and that clients remain reluctant to spend on SAP applications.”

In a 13-page letter to the Federal Communications Commission Wednesday, the carrier again said that Google should play by the same rules as its telecom competitors. AT&T also took issue with the search giant’s claim that Google Voice restricts calls to certain rural areas to avoid the so-called traffic pumpers that route calls there to drive up charges.

“Contrary to the public pronouncements of Google and its allies, Google’s rural call blocking regime is not limited to Google simply blocking calls to ‘adult sex chat lines’ and ‘free’ conference calling services to avoid high access charges,” wrote AT&T’s senior vice president, Bob Quinn, in the letter to the FCC’s wireline bureau. “In fact, Google is blocking calls to, among others, an ambulance service, church, bank, law firm, automobile dealer, day spa, orchard, health clinic, tax preparation service, community center, eye doctor, tribal community college, school, residential consumers, a convent of Benedictine nuns, and the campaign office of a Member of the U.S. House of Representatives.”

My God. Google, the company whose business philosophy proudly proclaims “you can make money without doing evil,” blocking calls to small businesses? To Benedictine nuns? Don’t be evil?

Don’t be evil, my ass.

“We can now see the power of Internet-based applications providers to act as gatekeepers who can threaten the ‘free and open’ Internet,” Quinn continues. “Google’s double standard for ‘openness’–where Google does what it wants while other providers are subject to Commission regulations–is plainly inconsistent with the goal of preserving a ‘free and open’ Internet ecosystem.”

That established, Quinn goes in for the kill, arguing that the FCC should regulate the search giant not just on the wires, but on the Web as well.

“Google’s call blocking begs an even more important question that the Commission must consider as it evaluates whether to adopt rules regarding Internet openness,” he writes. “If the Commission is going to be a ’smart cop on the beat preserving a free and open Internet,’ then shouldn’t its ‘beat’ necessarily cover the entire Internet neighborhood, including Google? Indeed, if the Commission cannot stop Google from blocking disfavored telephone calls as Google contends, then how could the Commission ever stop Google from also blocking disfavored websites from appearing in the results of its search engine; or prohibit Google from blocking access to applications that compete with its own email, text messaging, cloud computing and other services; or otherwise prevent Google from abusing the gatekeeper control it wields over the Internet?”

An interesting question. And one for which Google (GOOG) is presumably already preparing a long-winded answer. This is far from over yet, and we’ll continue to go round and round until the FCC puts a stop to it.

Essentially, Wi-Fi Direct turns supporting devices into access points, allowing them to connect to one another without joining a traditional network. They’ll support typical Wi-Fi ranges and the same data-transfer rates, which in the case of 802.11n is some 30 times faster than the three megabits per second for Bluetooth.

“Wi-Fi Direct represents a leap forward for our industry. Wi-Fi users worldwide will benefit from a single-technology solution to transfer content and share applications quickly and easily among devices, even when a Wi-Fi access point isn’t available,” Wi-Fi Alliance Executive Director Edgar Figueroa said in a statement. “The impact is that Wi-Fi will become even more pervasive and useful for consumers and across the enterprise.”

And Bluetooth inevitably less so. Especially since Wi-Fi Direct will be available as a software upgrade for existing Wi-Fi devices. Why wait around for high-speed Bluetooth, which itself will rely on Wi-Fi for high speed data transfers, when you can use Wi-Fi Direct for your personal area network?

This morning, the research and development company filed suit against nearly two dozen companies, accusing them of violating two of its patents–U.S. Patent No. 5,838,906, the same one Microsoft allegedly ran afoul of, and No. 7,599,985, an extension of the 906 patent that covers embedded apps using AJAX. Among the companies named in the suit: Adobe (ADBE), Amazon (AMZN), Apple (AAPL), eBay (EBAY), Google (GOOG)–including YouTube–Sun (JAVA) and Yahoo (YHOO).

“All we want is what’s fair,” Eolas Chairman Dr. Michael Doyle said in a statement. “We developed these technologies over 15 years ago and demonstrated them widely, years before the marketplace had heard of interactive applications embedded in Web pages tapping into powerful remote resources. Profiting from someone else’s innovation without payment is fundamentally unfair.”

Sadly, “what’s fair” in this case threatens the very fabric of the Web, as Tim Berners-Lee, the computer scientist credited with inventing the World Wide Web argued back in 2003 when Eolas was pursuing Microsoft (MSFT). “The ’906 patent will cause cascades of incompatibility to ripple through the Web,” Berners-Lee said in an appeal to the U.S. Patent and Trademark Office. “[It] is a substantial setback for global interoperability and the success of the open Web.”

“Integral to this agreement is a commitment by the companies to devote substantial resources to accelerate delivery of leading-edge innovation that will put unique applications in the hands of consumers quickly,” the companies said in a joint release. “The two industry leaders will create, market and distribute products and services, with Verizon Wireless also contributing the breadth of its nationwide distribution channels. Consumers will be able to purchase products resulting from the collaboration in Verizon Wireless retail and online stores.”

The first new phones are expected at market within weeks. Two will be released before the end of the year and they will, according to Verizon Wireless CEO Lowell McAdam, support Google Voice. They’ll also come with Google’s (GOOG) Android Market preinstalled. So Verizon (VZ) is not favoring its own app store here. There will apparently be netbooks as well, though the companies haven’t yet said when.

During a conference call to discuss the announcement, Google CEO Eric Schmidt applauded Verizon’s “openness,” saying it was “frankly, enormously surprising, given the history and the old-line nature of telcos….In Verizon, somehow, the leadership has decided to embrace a very different philosophy, which works very, very well with the Internet.” Schmidt didn’t go into specifics beyond that, but presumably he was referring to Verizon’s willingness to allow Google Voice on its phones–something Apple (AAPL) hasn’t yet done with the iPhone despite continuing controversy.

Asked during the same call if Verizon would allow Google Voice, Verizon Wireless CEO Lowell McAdam said it would. “Either you have an open device or not,” he said. “This will be open.”

The deal is potentially a big one for Google. Verizon serves some 87 million customers. Putting some slick Android phones in front of them could do much to bolster Google’s standing in the wireless market.

Interesting, given the recent flap over Google Voice for iPhone, which Apple (AAPL) hasn’t yet allowed into its iTunes App Store because it “appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voice mail.”

How is Vonage’s (VG) app different? Its features and functionality are certainly very similar to those of Google Voice.

Apple won’t say, but the company did tell the Associated Press that Vonage’s app falls under the same category as other VoIP applications that have already been approved for the iPhone.

From Palm’s webOS 1.2.1 version information:

Feature changes to existing applications
System

• Resolves an issue preventing media sync from working with latest version of iTunes (9.0.1).
• Media sync now synchronizes photo albums, maintaining the album structure in the Photos app.

How did Palm (PALM) do this? By once again making the Pre masquerade as an Apple (AAPL) device. Plug your Pre into your computer and set it to Media Sync and it identifies itself like this:

USB Product ID: 0×1209
USB Vendor ID: 0×05ac (Apple, Inc)
Manufacturer: Apple Inc.

A brazen move, considering the USB-IF specifically warned Palm against doing exactly this in its Sept. 22 letter to the company:

I attach for your information the USB-IF’s adopted and published policy regarding Vendor Identification Numbers (VIDs). Under the Policy, Palm may only use the single Vendor ID issued to Palm for Palm’s usage. Usage of any other company’s Vendor ID is specifically precluded. Palm’s expressed intent to use Apple’s VID appears to violate the attached policy.

Please clarify Palm’s intent and respond to this potential violation within seven days.

Now that Palm has “clarified its intent” with regard to this potential violation, I wonder how Apple and the USB-IF will respond. Do they have any recourse? The USB-IF could revoke Palm’s membership in the group, but what would that accomplish? Very little, as far as I can tell. Certainly, it wouldn’t prevent Palm from continuing to update its devices to synch with iTunes.

Reached for comment, Palm declined to offer one. Apple and the USB-IF have not yet responded to my requests. If and when they do, I’ll update here.

UPDATE: Looks like this cat and mouse game is going to go another round. This just in from Apple: “As we’ve said before, newer versions of Apple’s iTunes software may no longer provide syncing functionality with unsupported digital media players.” Presumably, iTunes 9.0.2 will disable Palm’s latest fix.