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  • Huawei Cancels Auction For Its Mobile-Devices Unit; Cites Economy

    China's Huawei Technologies is canceling the sale of a major stake in its mobile-devices unit after only two bidders submitted offers, the WSJ reported. The lack of interest is an example of how the credit crisis is affecting private equity in Asia. Huawei is able to postpone the auction because it didn't need the cash, but was interested in selling part of its handset division to a U.S.-based firm in order to gain some capital and momentum for entering the North American cellphone market. At initial bids of around $4 billion, it would have marked one of the biggest private-equity deals in China. But the two bidders—Bain Capital Partners and Silver Lake—didn't submit offers at the valuation Huawei wanted. Huawei said in a statement: "While international investors exhibited strong interest in the business, Huawei believes that given current global market conditions and prevailing economic uncertainty the interests of the company are best served by postponing the sale process." The business "will continue to fund its expansion plans from operating cash flow, and Huawei remains fully committed to the business." This may not bode well for Motorola ( NYSE: MOT ), which is also trying to sell its struggling handset business. Related Huawei Receives Formal Bids For Mobile Device Unit Register for Future of Business Media: http://fobm2008.eventbrite.com
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  • RAZR Still The Top Selling Cellphone In The U.S.

    Even though it has lost its sense of cool, Motorola's RAZR is still the best-selling cellphone in the U.S. more than four years after it first hit the scene, Electronista reports . The latest NPD Group data puts the device above the second-place iPhone 3G, followed by the BlackBerry Curve, LG (SEO: 066570) Chocolate and BlackBerry Pearl. The clamshell device is almost universally available for free on a contract with carriers throughout the country, and yet because the device's value has shrunk so low on the market, Motorola ( NYSE: MOT ) reaps very few benefits from sales. The company has failed to develop a replacement with as much popularity, despite its varied attempts at refreshing the design. Our mobile application for Blackberry and other Smartphones brings you the latest headlines when you're on the go. Go here to download .
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  • IT And Telecoms Giant To Spend $1 Billion To Promote Mobile Broadband

    Sixteen global IT and telecoms giants, including Vodafone ( NYSE: VOD ), Telefónica, Microsoft ( NSDQ: MSFT ), and Qualcomm ( NSDQ: QCOM ), have come together to create a new gadget category—the always-connected mobile broadband device, which they're backing with a $1 billion marketing campaign. Mobile broadband has been a hit for many of Europe's operators, including Vodafone and T-Mobile, which has seen subscriber numbers to the service surging. But competing wireless broadband networks, such as WiMax, launching in several American cities this week, could threaten its growth. WiMax, for example, can offer speeds of 2 to 10 mbps, quicker than the typical mobile broadband speed of 1 to 3 mbps, though its coverage isn't as widespread. Currently, users hook into mobile broadband through a dongle, but the new initiative will see SIM cards pre-installed into laptops that will allow consumers to easily surf the net "out of the box." The laptops will also be able to access WiFI networks, which usually offer better connection speeds than mobile broadband, and be able to switch back and forth from the two to offer the best coverage. GSMA chief marketing officer Mike O'Hara told Reuters that the trade group "definitely expect to see several hundred thousand in the shops by Christmas time." The $1 billion ad budget will be spent toward creating "Mobile Broadband" into a brand, much as the FT.com notes Intel ( NSDQ: INTC ) did with its "Intel Inside" service mark. In a Microsoft and GSMA-sponsored study, Pyramid Research concluded that the demand for internet-enabled laptops could worth $50 billion this year. Meanwhile, Wireless Intelligence estimated that more than 55 million people subscribe to mobile broadband services in 91 countries, and expects the figure to grow by another 12 million by year's end (r elease ). Social Media Deals Report: This 199-page report, filled with charts and data, examines the categories,...
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  • ZTE CEO: "Not Interested In Motorola"

    Chinese telecoms equipment maker ZTE "isn't interested" in Motorola's handset operations, and will focus instead on organic growth, Chairman Hou Weigui told Dow Jones Newswires . Chou said that acquiring Moto's struggling handset business didn't "make sense" as the "synergies won't be big enough to cover the costs." Plus, ZTE doesn't actually have the money to buy out a large company like Motorola ( NYSE: MOT ). In February, Samsung, LG (SEO: 066570), and Sony ( NYSE: SNE ) Ericsson ( NSDQ: ERIC ) have all said they wouldn't make a bid for Motorola either. ZTE recently sold its 100 millionth handset and is hoping to crack the "big five" mobile handset makers. It's not an unrealistic goal, especially as ZTE is currently in sixth position, and number three Motorola and fifth placed Sony Ericsson are struggling. The company, which started selling handsets in 2002 in its domestic market of China, made its name in low-end phones for emerging markets, but recently said it intended to enter the smartphone market. Related Sony Ericsson Not Interested In Motorola Handset Division LG Doesn't Want Motorola's Handset Business Either Samsung Won't Buy Motorola Handset Unit Either Check out the best business jobs in digital media. Go here for paidContent.org Job Board.
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  • Android Phones To Be Remote Controls ; Nokia Rolls Out App Challenge Aimed At Emerging Markets

    More details on the upcoming Android phone. This time partner developer PacketVideo gives its take, in an interview with Forbes.com . Joel Espelien, VP of strategy, at the San Diego-based company, which provides Android with its media software, says the phone is much faster in loading web pages, because it's built on a "clean slate." He also reveals that the phone won't be smothered in Google ( NSDQ: GOOG ) branding, an won't support any new form of ads. Eventually, Android phones will be able to act as remote controls, as PacketVideo plans to adapt its "PVConnect" software to let users send content such as video, photos, and even TV shows between their computers, TV's and game consoles, similar to AT&T's ( NYSE: T ) recent announcement that it would link the iPhone to its high speed internet and video U-verse service. There will also be an app store, much like Apple's. The applications come from big and small developers, with 50 chosen from its Android Developer Challenge. With the OS wars intensifying, Nokia ( NYSE: NOK ) is launching an application challenge of its own to drum up sales for its Symbian-based handsets . Its "Calling All Innovators" contest is especially aimed at emerging markets, where phone sales have been particularly good to Nokia's bottom line in the last few quarters. Such applications might include real-time market updates for Indian farmers, for example, or tailored weather reports sent via SMS, reports ZDnet.co.uk. The other two categories include "Eco Challenge," focusing on apps that help consumers reduce their environmental impact, and the other "Technology Showcase," is looking for cutting edge applications. Related AT&T Says The iPhone And U-verse Will Work Together In The Future Join us for EconMusic Sep. 23 in London featuring a Mobile Music panel with Nokia Music’s Tom Erskine, Sony BMG’s Ian Henderson, Vodafone UK’s Tom McLennan and O2’s Julian Zmood...
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  • Google's Android Mobile A Hard Sell?

    Does anyone really expect Google's Android-based mobile to be an immediate competitor to Apple's iPhone? The phone, which is being made by HTC and launches first in the US through T-Mobile, is reportedly even being priced around the same as the iPhone at $199. But, several press reports are now surfacing dismissing the notion that the two should even be compared, for now. First off, there's the question of how to sell Android to consumers. As Current Analysis analyst Avi Greengart told newsfactor.com , consumers "don't buy operating systems—they buy products. " Moreover, they buy new products because they offer something different from existing ones, especially in such a crowded market as mobile phones. As for being able to get Google ( NSDQ: GOOG ) services easily on the phone, as Greengart notes, you can already get many of its features such as Gmail, mapping, calendars, and search on other mobiles, including the iPhone, Blackberry and those running Windows Mobile. Plus, it's Google that has the brand power here, and who knows how it will translate to Android. Frank Meehan, Hutchison Whampoa global GM for mobile phones and applications glumly told Reuters , "We operators struggle with how to market this phone. There's nothing really unique about it and we can't say it's a Google phone." Then there's the actual user experience. Rajeev Chand, a wireless analyst at investment bank Rutberg, who has actually played around with Android, told Reuters was not sure that the consumer experience was "significantly better" than that of the iPhone, which in his view blew everything away when it first launched. Plus, Apple ( NSDQ: AAPL ) had an established track record and was able to ride the success of the iPod and iTunes. As Meehan adds, "People forget these things get to customers through the retail channel and marketing." Finally, operators will have more control over Android phones, rather than Google...
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  • Fries With That Zune? Fast Food, Slow Connection

    Sitting in a McDonald's in suburban St. Louis, breaking my rule about eating fast food when I'm not on the road and trying out the latest Zune gimmick — free wireless access via Wayport at roughly 9,800 golden arch outlets across the US. First impressions: Way easy and way slow . It's not just the Zune WiFi that's sluggish; the free-with-food hour of Wayport WiFi on my laptop is slower than real ketchup. It took about 5 minutes to establish a connection, load the page and log on. You could finish a Happy Meal by the time you're actually doing anything purposeful. As for the Zune, as soon as I went to the Marketplace area on my freshly updated 2nd gen 8G model, it started looking for the network. Once it found Wayport, it took two tries to get signed on but no codes were required and once the connection took, it went right to the screen with links to top songs, top albums, new releases. I started listening to the Mama Mia movie soundtrack as it streamed, then decided to download the whole thing (a free download of Pierce Brosnan singing? priceless). Zune asked if I wanted to add it to the "cart" then I had to go the cart and start downloading. It's a clunky process but not difficult. The download started immediately. That's the good news. More than 45 minutes later, it's only at 57 percent. I had to give up listening to the soundtrack as it downloaded because it kept stuttering. Luckily, last night I downloaded an excellent new B.B. King album One Kind Favor using my wireless home network, a faster process, and it's doing a very nice job of drowning out the flat-screen TVs tuned into the OJ trial. I'll try streaming or downloading a song at a McDonald's next time, but not an album. The Wayport process was much simpler than trying to use the WiFi on other out-of-home networks so far. I had absolutely no luck accessing it on T-Mobile at Starbucks; I could see the network but without a way to tell it my login, no dice...
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  • iPhone Sales In Japan Falling; Germany Bans iPhone VoIP App

    So the iPhone isn't doing well in Japan. Is this a shock in the land where 3G is the norm, and phones are packed with so many features that there are government-licensed cell phone experts to help consumers understand them? The WSJ reports that while Japanese consumers did line up to get an iPhone, and shortages did occur around the July 11 launch, demand for the iPhone has fallen to a third of what it was initially. Market research firm MM Research Institute estimates that Apple ( NSDQ: AAPL ) sold 200,000 iPhones in Japan in the first two months, with demand declining to such a point that analysts now believe that the phone won't even hit the half a million mark. Apple had thought it could sell one million in Japan. The success of the iPhone was always questionable in Japan. On the one hand, Apple has a powerful brand presence in the country, where iPods are extremely popular. On the other hand, Japan's cell phone market is one of the world's sophisticated with its own set of popular features—including OneSeg TV and DoCoMo's mobile wallet. Indeed, some Japanese buyers of the iPhone were carrying their old ones as well to specifically access those features. Softbank, the exclusive Japanese carrier of the iPhone, has already lowered tariffs once to make the gadget more cost-friendly to younger buyers. But analysts believe that iPhone should make more of its AppStore, to show what the gadget can do, to help boost Japanese sales. Meanwhile, a German court has banned the use of Sipgate, a VoIP application that lets iPhone users make internet calls when hooked up to a Wi-Fi hotspot in Germany, reports Cellular News . Germany's Higher Regional Court of Hamburg found in favor of T-Mobile, iPhone's exclusive carrier in the country, who brought the suit against Sipgate, saying that the company had used "unfair business practices" in order to attract customers, who are tied to T-Mobile for voice calls. T-Mobile argued that customers have...
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  • Investors Gird Themselves For Apple News, Sending Shares Down 5 Percent

    Investors appeared anxious to hear how sales of Apple's ( NSDQ: AAPL ) iPhone have been doing amid the current wider economic turmoil, as the company's stock was down more than 5 percent by early Monday afternoon, Reuters, reported . Apple will be hosting an event called "Let's Rock" on Tuesday, during which it is expected to offer details about 3G iPhone sales and the latest version of the iPod Nano. One analyst said that Apple's stock typically takes a slight dive in advance of big press conference. But economic uncertainty is also playing a role and confidence in Apple appears to be ebbing in some quarters. In an analyst note, Shaw Wu of American Technology Research said: "While there is always room for surprise, it seems this event may be somewhat underwhelming vs previous expectations and events." And Shannon Cross, an analyst at Cross Research, told Reuters that Apple's stock is being buffeted by worries about consumer spending and doubts about how quickly they will be refreshing products. Cross added, "It is kind of a buy on the rumor sell on the news kind of stock. Apple often sells off ahead of their announcements." Matt Kapco, MocoNews.net's senior entertainment reporter, will be reporting live from the Let's Rock event tomorrow. Our mobile application for Blackberry and other Smartphones brings you the latest headlines when you're on the go. Go here to download .
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  • Consumers Upgrade Phones Less Often; Will Apple Be Able To Break The Trend?

    As consumers buy higher-end mobile phones that are capable of doing more and cost more, they might find less reasons to upgrade their devices as often. Qualcomm ( NSDQ: QCOM ) CEO Paul Jacobs said today in an interview with CNBC that his company is seeing some signs that customers are slower to upgrade their mobile phones than before, Reuters reports . Jacobs: "We're seeing some evidence there's a lengthening of replacement cycles." The trend is more apparent in developed markets, such as Japan and South Korea, where clearly devices have been more advanced for longer. Depending on the region, Jacobs said consumers tend to keep the same phone for a year to two before replacing. The one company that will likely break this trend is Apple ( NSDQ: AAPL ). Last year, it launched the 2G iPhone. About 13 months later, iPhone users and new customers lined up to buy a device at a lower price that offered more storage and faster network speeds. It's the iPod strategy all over again. From here, iPhones will predictably get smaller and cheaper, while at the same time offering incrementally larger hard drives and spiffier features. Might as well get in line now. Social Media Deals Report: This 199-page report, filled with charts and data, examines the categories, number and size of VC and M&A deal in social media from 2007 through 2008. Visit the ContentNext Reports page
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  • iPhone Bits: "Small But Enthusiastic" In India; Orange Poland Hires Actors; O2 UK Sells Out

    — India's "Small But Enthusiastic" Reception : Maharajas, rich kids, and entrepreneurs: so that's who's buying the iPhone in India, according to a Reuters report from the front line, which found that the launch of the iconic handset in India had "none of the mass hysteria" that accompanied its debut in the US, Europe and other parts of Asia in July. Priced at $700-$800 in India, or twice the monthly salary of a white collar middle manager, the iPhone response was predicted . Still, it was an "enthusiastic reception," and for those who can afford it, the phone gives them bragging rights in a country where mobile phones are still seen as "symbols of status and success," and where the phone has already enjoyed a strong run in the black market. As 14 year-old high school student Rudra Khurana, standing in line with his father, said, "I can't wait to show it off at school, it's way better than having a PlayStation." — Orange Poland Dials Up Some Actors: Meanwhile, operator Orange isn't taking any chances with its launch of the iPhone in Poland. There were worries that hefty data charges would dampen interest, so Orange, admits a spokesman to Reuters have hired actors to stand in line at their stores. He said: "We have these fake queues at front of 20 stores around the country to drum up interest in the iPhone." T-Mobile, the other operator selling iPhones in Poland, meanwhile have no lines yet at their stores. — O2 UK Sells Out Online: In the UK, however, O2, Apple's exclusive operator partner, reported on its web site today that it has sold out of the handsets on their online stores, and has limited availability at its retail stores. It also referred people to Carphone Warehouse, the only phone retailer to sell the iPhone and said it expected to get more stock in on a weekly basis. Social Media Deals Report: This 199-page report, filled with charts and data, examines the categories, number...
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  • Ogo-Maker IXI Mobile Cuts Staff By 25 Percent; Abandons U.S. Market

    Belmont, Calif.-based IXI Mobile, which makes Ogo mobile devices, has cut 40 employees or 25 percent of its staff and is closing facilities to save money, San Francisco Business Times reports . The company lost $21.5 million a year ago and was able to cut its second quarter loss to $11.4 million, but sales are dropping at a good clip, and one customer made up 69 percent the company's entire sales in the latest quarter. Last week the company's sales staff was cut from 21 people to nine. Gideon Barak, its executive co-chairman, and CEO Amit Haller, were fired and CFO Lihi Segal quit. Israel Frieder has been named chairman and CEO and Motti Gill is replacing Segal. At the close of the most recent quarter, IXI's accumulated deficit peaked to $180.2 million. Back in 2004, IXI made a deal with AT&T ( NYSE: T ) Wireless to sell Ogo, a quirky mobile device termed a 'Personal Mobile Gateway,' which was geared towards teens for IMing, emailing and surfing the Web. But AT&T Wireless never sold many and discontinued the device soon after. Last week IXI decided to essentially abandon any business dealings in the U.S., and focus exclusively abroad. Related AT&T Wireless Preps New IM Device, Service Messaging Solutions Company IXI Mobile Secures $20-Million Financing Social Media Deals Report: This 199-page report, filled with charts and data, examines the categories, number and size of VC and M&A deal in social media from 2007 through 2008. Visit the ContentNext Reports page
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