Digital Daily » T-Mobile

Succinctly Speaking With Steve Ballmer: Sidekick Fiasco "Not Good"

John Paczkowski — Tue, 20 Oct 2009 19:07:40 +0000

T-Mobile Sidekick users who lost their personal data in a humiliating server failure at Microsoft subsidiary Danger last week are today restoring their contact lists–but not much else. With a tool provided on T-Mobile’s Web site, subscribers can view and restore their contacts as of Oct. 1. This is apparently the first phase of a multistep restoration process that Microsoft promises will eventually include photographs, notes, to-do lists, marketplace data and high scores.

Again, nice to hear this talk of a full data restoration after T-Mobile’s warning that all personal data had been permanently lost. Clearly, Microsoft (MSFT) is doing everything in its power to remedy the issue, which has led many to question the company’s protocols for redundancy and server failure, and beyond these, whether the software giant can even be trusted to safeguard user data. As Microsoft CEO Steve Ballmer told Network World, the Sidekick fiasco was “not good.”

“It is something we are going to have to address and explain to customers, our method and process and quality approach and what went wrong in that case and how we are making sure that it does not happen again,” Ballmer said. “Non-Sidekick users, we are not earning their trust back but I think people are going to say, ‘Hey, look, show me what you are doing to insure this does not happen to me.’”

Cisco Swallows Starent

John Paczkowski — Tue, 13 Oct 2009 16:00:30 +0000

[ See post to watch video ]

Danger Will Robinson! Do Not Approach the Sidekick!

John Paczkowski — Mon, 12 Oct 2009 23:23:46 +0000

A quick update on the Microsoft/Danger Sidekick fiasco.

T-Mobile has pulled its Sidekick handsets off the market following a back-end server failure that resulted in many users losing their personal data. Surf over to the carrier’s Web site and you’ll find that it now lists the entire Sidekick line of devices as “temporarily out of stock.” Evidently, T-Mobile would prefer to resolve the current service issues before it resumes selling the Sidekick–not that anyone would buy one right now anyway.

Microsoft (MSFT) and T-Mobile still haven’t explained why the server failure occurred and more importantly, why they don’t have a backup of lost user data. Meanwhile, speculation is mounting that the failure was caused by an attempted storage area network transition without contingency plans.

Microsoft/Danger. Enough Said.

John Paczkowski — Mon, 12 Oct 2009 11:00:22 +0000

In the canon of Microsoft cock-ups, this may be the most humiliating: A server failure at the company’s Danger subsidiary has wiped out the personal data of a large number of T-Mobile Sidekick users and despite its best efforts, Microsoft cannot seem to get the information back. You see, the Sidekick stores contacts, calendar entries, and other key data primarily on Danger’s servers, not locally. That’s a fine strategy when the information backed up in multiple redundancy RAID configurations. When it’s not, Microsoft has a recipe for disaster, as this latest communication from T-Mobile to its customers illustrates:

“Regrettably, based on Microsoft/Danger’s latest recovery assessment of their systems, we must now inform you that personal information stored on your device–such as contacts, calendar entries, to-do lists or photos–that is no longer on your Sidekick almost certainly has been lost as a result of a server failure at Microsoft/Danger. That said, our teams continue to work around-the-clock in hopes of discovering some way to recover this information. However, the likelihood of a successful outcome is extremely low.”

Microsoft (MSFT) hasn’t yet said what caused the failure, though some speculate it was a bungled storage area network upgrade performed without backup. Nor has the company said why it doesn’t have a copy of Sidekick user data (I’ve asked Microsoft for comment and will update here if and when one is offered).

There’s likely a reasonable explanation for the service disruption and server failure, but it’s hard to imagine one for unrecoverable data loss. Danger should have had a redundant backups of user data. Clearly, it didn’t, or if it did, they were abysmally unreliable. Either way, this is an ugly embarrassment for Danger and Microsoft and one that will probably cost them the trust of Sidekick users.

Sadly, Danger seems to have lived up to its name.

HP to Merge PC and Printing Divisions?

John Paczkowski — Wed, 30 Sep 2009 18:39:00 +0000

[ See post to watch video ]

MOTOBLUNDR?

John Paczkowski — Tue, 29 Sep 2009 21:42:28 +0000

The Cliq, Motorola’s (MOT) first phone based on Google’s (GOOG) Android operating system, is headed to market and will arrive there Nov. 2. Sales to existing customers will begin Oct. 19 and open to the general public Nov. 4.

T-Mobile USA has priced the handset at $199 with a two-year contract, which seems a bit dear considering you can get a 16GB iPhone 3GS for the same price. Given $200 to spend and the choice between Motorola’s first-ever Android device and the first iteration of its Motoblur social networking service or Apple’s (AAPL) third-generation iPhone and second-generation mobile OS and App Store, what would you opt for?

How might your choice change if the Cliq were priced at $150?

[Image credit: LeakDroid]

Has AT&T Bailed on Motorola's Android Phones?

John Paczkowski — Thu, 27 Aug 2009 16:20:07 +0000

When Motorola announces its new Android handsets at a scheduled Sept. 10 event in San Francisco, AT&T isn’t likely to be among their carriers. Sources close to the company tell MKM Partners analyst Tero Kuittinen that AT&T (T) balked at Motorola’s Sawgrass and Heron handsets. Allegedly because of their dated display technology, the company has chosen not to carry them. That’s bad news for Motorola (MOT), which pinned its hopes of a turnaround on Google’s (GOOG) Android OS.

“We expect Motorola’s 2010 performance to hinge largely on the success of Android models debuting in 4Q09. Just months ago, the expected launches were ‘Morrison’ for T‐Mobile, ‘Sawgrass’ and ‘Heron’ for AT&T, and ‘Sholes’ and possibly ‘Calgary’ for Verizon” (VZ), Kuittinen said in a note to clients. “We believe the AT&T models have been canceled, and Verizon has pushed ‘Calgary’ into 2010.”

According to Kuttinen, “The loss of AT&T’s support for 4Q09 changes the winter outlook for Motorola dramatically. It is likely that the success of the $99 iPhone, combined with the possible November launch of the $99 Palm Eos could put AT&T in a situation where its $100 smartphone range for the Christmas quarter is already full of models featuring very advanced software and display technology.”

A worrisome turn of events and one that will weigh heavy on Motorola’s financials if it proves true. Said Kuittinen: “The narrowing of Motorola’s Android plans may have a substantial impact on the winter performance of the company’s handset division precisely because Motorola needs a rapid roll‐out of a wide range of follow‐up models for its ailing RAZR, Q and Z series models.”

iPhone 3GS and Palm Pre: Methadone for the CrackBerry Addict

John Paczkowski — Thu, 09 Jul 2009 12:32:07 +0000

Research in Motion best get to work refreshing its shopworn BlackBerry line, and fast, because growing competition from new rivals like the iPhone 3GS and Pre are cutting into its market share.

According to retail checks conducted by Piper Jaffray analyst T. Michael Walkley, the BlackBerry slowed as the summer kicked off and AT&T (T) and Sprint (S) began peddling new smartphone offerings from Apple (AAPL) and Palm (PALM).

“Our checks indicated BlackBerry sales declined in June at AT&T and Sprint due to increasing smartphone competition, as BlackBerry sales appeared to lose share to the Palm Pre at Sprint and the new 3GS iPhone and older $99 iPhone at AT&T,” Walkey wrote in a research note to clients. “BlackBerry sales at T-Mobile remained solid, but Verizon sales were slightly weaker following the termination of the buy one, get one promotion.”

Unfortunate news for RIM (RIMM), but perhaps to be expected given the lackadaisical evolution of the company’s product line. New devices with advanced features, not incremental improvements, are what it’s going to take to compete the with iPhone and Pre, and soon, with the G2, the latest phone based on Google’s (GOOG) Android OS.

Consider this: A recent ChangeWave survey of over 4,000 respondents found that more than 14 percent plan to purchase a smartphone in the next 90 days. Of those, 44 percent said they plan to buy an iPhone, compared to 23 percent who said they’ll opt for a BlackBerry (click on chart below to enlarge).

RIM Product Line More FrankenBerry Than CrackBerry

John Paczkowski — Fri, 26 Jun 2009 18:00:53 +0000

With the Palm Pre and iPhone 3GS in stores and the myTouch 3G, T-Mobile’s second Google (GOOG) Android phone, headed to market, is the Research in Motion (RIMM) product lineup beginning to look a bit dated? Which leads to another question: Has RIM’s success made it too complacent?

GC Research analyst Tero Kuittinen believes it has. In a research note Friday, Kuittinen described the company’s Blackberry product range as “shopworn,” noting that even the new Blackberry Tour is quite close to the aging Curve in look and feel.

“We are concerned about the autumn and winter Blackberry product range–RIM seems to have made a deliberate decision to rely on incremental improvements in mid-range and low-end models instead of bringing advanced features aggressively to cheaper devices,” Kuittinen writes. “Considering how competitive the smartphone market is getting, we believe this cautious approach may begin backfiring in the autumn and particularly during the Christmas season.”

Kuittinen goes on to question the logic of the company’s new flip phone initiative, wondering why the company is rolling out its 8230 clamshell at a time when consumers are so enamored with large display devices like Apple’s (AAPL) iPhone and the new Palm (PALM) Pre. And that’s a great question because, well, the contract phone bestseller lists at most carriers aren’t exactly overrun with clamshells these days, are they?

“Overall, RIMM’s expansion to flip phones is ill-timed, and the Tour line lacks kick and the low-end improvements are minor at best,” Kuittinen concludes. “It is the combination of these three simultaneous factors that leads us to believe RIMM may have become lulled into complacency by the stellar success of the Blackberry devices over the past couple of years. The year 2009 is a tough period to let your product development program spin its wheels.”

Hard to disagree with that assessment given the handset launches we’ve seen so far this year. But perhaps the Storm 2 will prove Kuittinen wrong on that account. Perhaps it will even raise the bar a little. But even if it does, will that be enough to invigorate the entire product line? Kuittinen doubts it. “One major big-display phone launch, in our opinion, may not fully offset the slight malaise afflicting the rest of the Blackberry range in the autumn,” he concludes.

Below, our D7 Interview with RIM CEO Mike Lazaridis.

[ See post to watch video ]

Coming Soon from Motorola: The DESPRT With Android

John Paczkowski — Tue, 23 Jun 2009 19:04:26 +0000

Is Google’s (GOOG) Android OS a panacea for the decrepitude and irrelevance that are now the hallmark of Motorola’s handset division? The company is betting that it is. “People familiar with the matter” tell The Wall Street Journal that Verizon (VZ) and T-Mobile USA plan to offer Motorola handsets running the OS by the end of the year.

Both devices are said to feature a touchscreen and slide-out keyboard and a “social communications” focus. Which sounds somewhat compelling, though it would probably be more so if the market weren’t already enamored with Palm’s (PALM) Pre, Apple’s (AAPL) iPhone 3GS and its $99 brethren, the iPhone 3G. That said, I suppose there’s always a chance that Motorola (MOT), using Android, could turn out a handset that apes those devices and returns the company to the glory days of the RAZR or at least points it in the right direction.

Certainly, Motorola desperately needs something like that. A weak product portfolio has already reduced its share of the handset market to 6.5 percent, about half what it held a year ago. And with the econalypse in full swing and consumer spending declining, Motorola’s prospects in the mobile handset don’t appear very promising.

Like Snowflakes, No Two myTouch 3Gs Alike…

John Paczkowski — Mon, 22 Jun 2009 19:00:24 +0000

In a summer of handset debuts that already include the Palm (PALM) Pre, Apple’s (AAPL) iPhone 3GS, and soon, Research in Motion’s (RIM) BlackBerry Tour 9630, add one more: the myTouch 3G, T-Mobile’s second Google (GOOG) Android phone. The carrier officially introduced the device today and said customers can begin reserving it on July 8. Price: $199 with a two-year contract.

Sleeker than the somewhat boxy G1, the myTouch boasts longer battery life–up to six hours of talk time, one more than its predecessor–a 3.2-megapixel camera, a virtual keyboard that orients automatically from portrait to landscape mode and, more importantly, better customization.

Now that the Android Market has 5,000-strong range of applications, devices like the myTouch offer a more compelling proposition than even before. “No two myTouch devices will be alike,” Andrew Sherrard, vice president at T-Mobile, told News.com. “They will be as unique as the users that own them. What we have found is that once consumers know how to customize a device and they add everything they want on it, they respond very well to having a phone that is specially designed for them.”

Yep, they sure do.

The S Is for "Sales," Not "Speed"…

John Paczkowski — Mon, 22 Jun 2009 12:41:46 +0000

Looks like Piper Jaffray analyst Gene Munster’s second estimate of Apple’s weekend iPhone sales underestimated demand just as badly as his first. Apple didn’t sell 500,000 units of its new iPhone 3GS over the weekend, as Munster first predicted. Nor did the company sell 750,000 units as he said in a research note this morning. It sold over one million. Moreover, downloads of Apple’s new iPhone 3.0 software, launched last Wednesday, have already reached six million.

“Customers are voting and the iPhone is winning,” Apple CEO Steve Jobs said a press release today. “With over 50,000 applications available from Apple’s revolutionary App Store, iPhone momentum is stronger than ever.”

An impressive showing. Particularly considering all the factors that could slow sales: The souring economy, competition from the Palm (PALM) Pre, the BlackBerry Storm, the T-Mobile G1 and, of course, the iPhone itself. After all, there is now a $99 iPhone on the market. Beyond this, there’s the fact that the 3GS was launched in eight countries. The 3G debuted in 21.

Interestingly, this is the first time we’ve seen Jobs quoted in an Apple release in some time now. As best I can tell, the last quote attributed to him was in a Jan. 21, 2009, earnings release. Since then, Apple (AAPL) has issued 22 more press releases. This is the first in which it is Jobs, and not COO Tim Cook or Phil Schiller, Apple’s senior vice president of Worldwide Product Marketing, who is quoted. Does this mean he’s officially back at work following his medical leave? I’ve put that question to Apple and will update if I hear back.

[Image credit: Gizmodo]

myTouch? Seriously?

John Paczkowski — Wed, 17 Jun 2009 12:00:32 +0000

T-Mobile’s follow-up to the G1 is finally on its way to market. The carrier is expected to announce details of its second Android-based handset next week with an eye toward launching it later this summer.

Called the T-Mobile myTouch 3G, the device is similar in design to the HTC Magic, an Android device currently sold by Vodafone UK (VOD). Like Apple’s (AAPL) iPhone, it features a touchscreen but no physical keyboard. And it’s said to integrate voice-activated search, video recording and enhanced browsing, thanks to Cupcake, otherwise known as Android 1.5.

When it goes on sale, the myTouch 3G will be the second Android-based phone to hit the market from a major carrier in the states, but by the end of the year it will be one of many. Google (GOOG) expects some 18 Android devices to arrive at market this year.

Android on Steroids

John Paczkowski — Mon, 11 May 2009 17:51:09 +0000

2009 is going to be a banner year for Google’s Android mobile operating system. Strategy Analytics estimates shipments of handsets running the OS will grow 900 percent this year as more vendors adopt it. At that rate, it will far outpace the growth of Apple’s iPhone, whose shipments the company expects to increase just 79 percent in 2009.

“Android has fast been winning healthy support among operators, vendors and developers,” said Strategy Analytics director Neil Mawston. “A relatively low-cost licensing model, its semi-open-source structure and Google’s support for cloud services have encouraged companies such as HTC, Motorola, Samsung, T Mobile, Vodafone and others to support the Android operating system. Android is now in a good position to become a top-tier player in smartphones over the next two to three years.”

If that comes it pass, it’s bad news for Palm (PALM) whose Pre handset and WebOS will be facing off against a powerful mobile triumvirate: Apple (AAPL), Research in Motion (RIMM) and Google (GOOG).

BlackBerry Curve More Popular Than iPhone

John Paczkowski — Mon, 04 May 2009 14:19:17 +0000

Question for you: What was the best-selling consumer smartphone in the U.S. in the first quarter of 2009? What’s that? Apple’s iPhone?

Wrong. According to market researcher NPD, the best-selling smartphone was Research in Motion’s (RIMM) BlackBerry Curve, which slipped past the iconic device in market share, bolstered by Verizon’s (VZ) Buy One, Get One promotion.

That deal, which ran from Feb. 6 to March 31, offered a second RIM handset of equal or lesser value with the purchase of any Blackberry and a two-year contract–an attractive proposition and one that many a consumer took the carrier up on. NPD says RIM’s consumer smartphone market share rose to nearly 50 percent in the first quarter, an increase of 15 percent. Meanwhile, Apple’s (AAPL) and Palm’s (PALM) shares both declined 10 percent. “Buy one, get one free” trumps “what are the handy things about the iPhone” every time.

NPD’s Top 5 rankings:

RIM BlackBerry Curve (all 83XX models)
Apple iPhone 3G (all models)
RIM BlackBerry Storm
RIM BlackBerry Pearl (all models, except flip)
T-Mobile G1

“Verizon Wireless’s aggressive marketing of the BlackBerry Storm and its buy-one-get-one BlackBerry promotion to its large customer base contributed to RIM capturing three of the top five positions,” Ross Rubin, director of industry analysis at The NPD Group said in a statement. “The more familiar, and less expensive Curve benefited from these giveaways and was able to leapfrog the iPhone, due to its broader availability on the four major U.S. national carriers.”

It’s not likely we’ll ever see a similar “buy one, get one” free deal from Apple for the iPhone, although if we did, one wonders how long the BlackBerry would be able to hold on to the top spot.