Nokia’s workforce is deteriorating nearly as fast as its share of the mobile phone market. This morning, the company–which sacked 1,700 employees in March and another 450 in April–said it will cut 330 more jobs in its research and development group.
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Direct from Google headquarters, Vice President of Product Management Sundar Pichai explains that the company’s forthcoming Chrome OS could signal the end of desktop apps as we know them.
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Speaking at Microsoft’s Worldwide Partner Conference in New Orleans this past July, Microsoft CEO Steve Ballmer said of Google’s forthcoming Chrome OS, “Who knows what this thing is?” Today, he found out. The operating system, a direct challenge to Microsoft Windows, was on display at a media gathering at the company’s HQ this morning, and in the words of Sundar Pichai, Google’s vice president of product management, it is intended to make computing a “delightful” experience.
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The official price of Palm’s new Pixi smartphone is $99.95, but Wal-Mart is now offering the handset for $24.99 with a two-year contract, as is Amazon. That’s a 75 percent price cut. Staggering, considering the Pixi arrived at market just four days ago.
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Since 2008, AT&T’s network in and around San Francisco has experienced an increase in 3G data traffic of 2,000 percent. If you find this metric as astonishing as I do, consider this: The increase in Bay Area data traffic is actually below the national average–significantly below. According to AT&T CTO John Donovan, 3G data traffic on the company’s wireless network has risen nearly 5,000 percent nationally in the past 12 quarters.
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For Palm, 2010 will be a year of channel expansion, with its new webOS handsets coming to more carriers. Top among them, Verizon, which has been rumored to be getting a device “like the Palm Pre” since Palm launched it. In a research note to investors today, Kaufman Bros. analyst Shaw Wu says a Palm smartphone from Verizon is pretty much inevitable.
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“AT&T did not file this lawsuit because Verizon’s ‘There’s A Map For That’ advertisements are untrue; AT&T sued because Verizon’s ads are true and the truth hurts.” So begins Verizon’s response to AT&T’s complaints about its new ad campaign and as you can see, it pulls no punches. For 53 pages, the new filing mercilessly thrashes AT&T, proving over and over again that the carrier’s carping over Verizon’s ads has transformed a no-win situation into a horrific PR disaster.
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Palm shares are trading higher today, bolstered by anticipation of the Nov. 15 launch of the Pixi, the company’s second webOS handset, and by some silly rumors about a potential takeover by Nokia. Does the company really need another software platform to add to Symbian, Maemo and Qt? C’mon.
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After nearly three years of rumor and speculation, Dell is finally entering the smartphone market–in China and Brazil. Later this month, China Mobile and Brazil’s Claro will begin selling the company’s Mini 3, a handset designed around Google’s Android mobile OS.
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Lest there be any doubt that Apple’s iPhone is redefining the smartphone market, consider this: In under two and a half years, the device has managed to claim nearly a fifth of the worldwide market for smartphones.
According to new data released this week by Gartner, Apple shipped some 7.04 million iPhones in the third quarter–up from just 4.72 million phones in the same period a year ago–for a 17.1 percent share of the market.
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Given the havoc the econalypse has played with other industries, the smart-phone market is in extraordinarily good shape. Shipments of the devices rose 4.2 percent to 43.3 million globally compared with 41.5 million shipped in third quarter of 2008.
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Motorola’s ambitious turnaround strategy is beginning to pay off. Posting earnings this morning, the company said it managed a surprise profit in the third quarter, despite a decline in revenue. For the period, the troubled handset maker reported a profit of $12 million, or a penny a share, compared with a year-earlier loss of $397 million, or 18 cents a share. Sales fell 28 percent to $5.45 billion from $7.48 billion. Not the prettiest of quarters, but that penny-a-share profit beat the consensus estimates of analysts, who had expected the company to simply break even.
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Nokia describes the management overhaul it’s undertaking as a common “job rotation,” but coming as it does after its lousy third-quarter financial performance and a worrisome decline in smartphone market share, it seems perhaps just a little bit more. This morning the Finnish mobile phone giant tapped Rick Simonson, currently its chief financial officer, as head of its handset division. And the company named Timo Ihamuotila, currently global head of sales, CFO.
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