CardStar Launches iPad App, Coupons

Tue, 08/31/2010 - 01:36 by Greg Sterling

Mobile loyalty platform CardStar launched an iPad app. It expands the functionality of the company's earlier iPhone app (and other smartphones) by adding coupons and deals that are tied to users' registered loyalty cards. In other words you see the deals for the companies whose cards/programs you've registered on the app. 

Here are the features of the new iPad app:

• Scissor-Free Coupon Clipping & Hassle-Free Redemption – To select a coupon, drag and drop it onto the corresponding merchant’s digital loyalty card inside of CardStar for iPad. To redeem saved coupons, simply use the loyalty card at checkout
• Retailer & Manufacturer Coupons – CardStar currently partners with numerous retailers and coupon providers, including Zavers, to provide a wide range of saving opportunities.
• Personalization – CardStar helps avoid information overload by only sending coupons for retailers saved in a user’s CardStar card catalog.
• Filtering – CardStar offers filters so users can easily see coupons they’ve previously selected or search for those from specific brands.
• Social Sharing – Coupons can be e-mailed to friends and family through the app and users can also automatically check in through Foursquare at checkout.

One of the nice things about the new app is that offers saved on the iPad are in the "cloud." So they're automatically logged on the iPhone and other smartphone apps.

People obviously aren't going to bring the iPad to the point of sale. But they can browse deals on the couch and associate them with their registered loyalty cards. By using the iPhone, Android, BlackBerry apps at the POS, users automatically get the benefit of the coupons previously "clipped" on the iPad accordingly. 

In addition, one spouse can clip coupons on the iPad and the other one can use the CardStar smartphone app and get the benefit of those coupons at the POS without any knowledge of the spouse's prior iPad clipping activity. 

Adding coupons (tied to loyalty cards) is a logical move for CardStar, whose iPad app becomes something analogous to the Sunday circulars. And the automatic linkage of the deals to the loyalty card/account offers a "closed loop" to merchants. CardStar told me that they're were going to greatly expand the variety and range of coupons offered. However I believe offers presented will remain largely "personalized" via the filter of existing loyalty memberships.

CardStar is compiling some fantastic data on user behavior that it can use in a variety of ways to be determined. The company says it's had two million downloads since launch in 2009 and currently has 700,000 active mobile users. 

See our earlier posts on CardStar:

• CardStar Lets You Check-in at Checkout
• CardStar Gains Small Investment from Verizon
• Cardstar: Mobile Loyalty and Much More

Intuit GoPayment Adds Smartphone Credit Card Swiping

Thu, 08/26/2010 - 05:21 by Greg Sterling

Mobile consumer payment solutions are starting to emerge and proliferate. The flip side of that development is small business smartphone-based credit card acceptance and processing. Many people are familiar with Square and its smarpthone credit-card swiping hardware. This enables anyone -- SMB or consumer -- to easily accept a credit card on the spot with a smartphone.

Intuit has a small business payments platform (GoPayment) that integrates with QuickBooks. It's really a PayPal competitor. The product has been in the market for a year. Fees are $12.95 a month, plus a 1.7% to 3.7% commission and $0.30 to $0.34 per transaction fee. Now Intuit has teamed up with Mophie to offer an intelligent case (and software) that enables the iPhone -- like Square -- to swipe a credit card. (Previously credit card numbers were manually keyed in.)

Per the release:

The speedy new Intuit Merchant Account application process is designed to let small business owners easily and quickly apply and be approved to start processing credit cards. A user can apply from the GoPayment App, online or by calling Intuit right from their iPhone.

By adding the sleek, clip-on mophie marketplace card reader, merchants can save time by securely swiping credit cards instead of entering numbers by hand. After swiping the card, data is immediately encrypted using Intuit’s industry-standard security methods.

Customers authorize the payment by signing their name on the iPhone touch screen. The merchant can then send them an e-mail or text receipt. GoPayment processes the credit card within seconds and funds are deposited into the businesses’ bank account.

Square doesn't require monthly fees but takes a higher percentage of the transaction than Intuit GoPayment. The decision of which system to use will be driven by the volume of credit cards being processed and the average transaction values. QuickBooks integration may also be determinative for some. 

Nokia Buys Analytics Firm Motally

Fri, 08/20/2010 - 07:46 by Greg Sterling

As is being widely reported, Nokia has bought San Francisco-based mobile analytics firm Motally. According to the press release:

Nokia (NYSE: NOK) today announced it has signed an agreement to acquire Motally Inc., a privately-held US-based company. Motally's mobile analytics service offers in-application tracking and reporting, and is designed to enable developers and publishers to optimize the development of their mobile applications through increased understanding of how users engage. The service offering is planned to be adapted for Qt, Symbian, Meego and Java developers, and Nokia plans to continue serving Motally's existing customer base.

"The acquisition underpins Nokia's drive to deliver in-application and mobile web browsing analytics to Ovi's growing, global eco-system of developers and publishers, enabling partners to better connect with their customers and optimize and monetize their offering," said Marco Argenti, Vice President, Media, Nokia.

This appears to be a pretty straightforward effort to bring analytics to the Ovi store for developers. The company offers both mobile Web and app analytics.

Terms of the deal were not disclosed. Motally was founded in 2008 and has eight employees. 

Millennial: Android Passes RIM, iPhone Still on Top

Wed, 08/18/2010 - 11:49 by Greg Sterling

Millennial's July data were released earlier this morning. They reflect what's been broadly reported elsewhere: continued growth of Android (and the iPad). Here are the headlines:

• Android grew 47% month-over-month. Since January Android has grown 690%.
• Android also officially became the number two OS on the Millennial network (surpassing RIM)
• Apple ad requests increased 24% month-over-month, but are actually down 15% since January; iPad ad requests grew 327% month-over-month.
• Smartphones and connected devices increased their impression share 7%, and now represent 68% of the total impression share.

Basically, the story is that Android is now a rapidly gaining number two to the iPhone's number one on the Millennial network.

RIM has grown both in terms of representation on the network and in terms of developer involvement, but the news that Android has passed it is more confirmation that the company is in an increasingly challenging competitive position.

And now for the graphics: 

 

Verizon Pad Coming Soon, How Cheap Will It Be?

Wed, 08/18/2010 - 08:59 by Greg Sterling

There's a report out this morning that Verizon will be launching an iPad competitor in the form of an HTC built Android Tablet on November 26 in the US market. It will likely be the first genuine iPad competitor to hit.

As with Android (vs. iPhone) in general it will likely not be as polished as the iPad -- though here Flash availability may be a differentiator -- but it will likely be pretty strong or "good enough" for many people -- especially if it's cheap. 

The key issue will be cost. Here's what we said not long ago about the question of iPad challengers and pricing:

There is unlikely to be any single Android tablet that "wins" in terms of overall user experience and quality vs. the iPad -- though flash may play a larger differentiating role on tablets than it has one smartphones.

But price will be a significant factor in buying behavior, as it always is.

The market has been established by the iPad, now it's "safe" for competitors to ape the iPad but at lower price points. And if those devices are "good enough" the lower prices will be persuasive to many consumers who don't want to pay more than $500 for a device that isn't a full computer replacement. 

Verizon might totally subsidize it in exchange for a two-year data agreement or there might be a couple of price points tied to memory and/or the existence of a data contract. But you can bet that the price will seek to undercut the iPad by a significant margin. 

Related: Verizon is going to make FIOS TV available via the iPad . . . and presumably this Android tablet. 

Would a Verizon iPhone Slow Android's Rise?

Mon, 08/16/2010 - 14:34 by Greg Sterling

The answer is yes and no. First Android is available across major carriers and so has diverisified distribution. But there is sufficient empricial reason to believe that some number of would-be Droid buyers would opt for a Verizon iPhone instead.

As many have already reported, a July survey of 1,000 US mobile users from Morpace found that 51% of current Verizon customers would consider buying an iPhone if/when it comes to Verizon (now speculated to be January, 2011).

That's a very significant number considering Verizon has more than 80 million subscribers in the US. The survey also reports that some number of AT&T subscribers would switch to Verizon if the iPhone were available there. 

• It would provide for access to millions more mobile users for the iPhone and its apps
• It would stop Verizon from funding Droid brand building anti-iPhone bashing media campaigns

The value of the latter should not be underestimated either. Before Verizon there was no "Droid" and Verizon has spent millions promoting the platform as a worthy alternative to AT&T and the iPhone. We'll see if the Verizon iPhone actually happens in January. If it does I suspect it would be a "material" development for the US market. Given Android's momentum (see below), Apple should be interested in getting the iPhone to as many carriers as possible:

As a final note, one interesting question to ask of Android buyers is: what phone are you not buying because you bought an Android handset (iPhone, RIM, WinMo)?  In my case it's the iPhone.

The Americanization of Nokia

Mon, 08/16/2010 - 07:07 by Greg Sterling

An article in today's NY Times discusses three how three Americans are now in key positions at Nokia: Mary T. McDowell, Jo Harlow and Richard Green. In particular the piece focuses on McDowell, Nokia's "chief development officer." The idea is that these and perhaps other Americans to come will help revive Nokia's high-end smartphone business especially in the US.

Nokia is still by far the dominant OEM globally but has a declining share in the US market. Along those lines, here's a statement in the piece, attributed to McDowell, that's not entirely accurate in my opinion:

She added that Nokia’s problems in the United States stemmed from its failure to work closely with U.S. mobile operators to tailor devices to their needs, rather than from any shortcomings in the phones themselves. 

Nokia's failure to work with carriers is perhaps one of the critical explanatory variables behind its current US predicament. However the user experience is definitely part of the challenge Nokia faces in the US.

Unless the company makes super-affordable, "good enough" smartphones and/or dramatically improves its user experience overall Nokia won't see any gains in the US. Around the world, especially in developing countries, it's a very different story; Nokia dominates.

Yet Android poses a serious threat to Nokia in those developing markets over time. Nokia has been almost exclusively focused on finding an "answer to the iPhone." But as I've argued before it's really Android that Nokia should worry about globally. 

I would argue that the US market is an important market to Nokia not because of revenues but because it's now the smartphone leader and much of the "coverage" is driven by what's happening here. There's more symbolic value here for Nokia in succeeding or failing.

Nokia's failures in the US may also reveal "cultural" issues within the company that need to be addressed. It may be something of a useful mirror that Nokia should use to diagnose those internal questions and problems. I'm not sure that simply having Americans in key positions is the answer. 

After all, Microsoft, which faces its own significant hurdles in the mobile market, is an American company. 

iPad Metrics: Users & Ad Performance

Fri, 08/06/2010 - 08:33 by Greg Sterling

These numbers were previously released but I thought it would be interesting to present them together. Below are Nielsen data regarding iPad ownership demographics and Mobclix data about engagement ad ad performance on the iPad.

iPad users appear comparable in age ranges, though perhaps slightly younger, than the iPhone population. They're more affluent than iPhone users however. Nielsen says the "sweet spot" for the iPad is "affluent 25 to 36 year olds."

Interestingly, 51% of iPad users responding to the Nielsen survey did not own an iPhone. I fall into that category as well. 

 

According to Mobclix, rich media/video ads on the iPad have a 10.7X higher CTR than "standard" display on the iPad. In addition, iPad apps generate a 5X eCPM vs. the iPhone.   

It's clear that the iPad audience is desirable for brand marketers and that users are much more engaged with media and ads on the iPad than on smartphones or the iPhone. 

New Torch Illustrates BlackBerry Keyboard and Brand Dilemma

Thu, 08/05/2010 - 04:41 by Greg Sterling

To me the new BlackBerry Torch looks something like the Palm Pre, with its portrait-slider design. It offers a physical keyboard and an a touch-screen keypad as well. I see the dual-keypad design as a metaphor for the dilemma RIM faces around issues of brand identity, the physical keyboard and user loyalty.

By all accounts the touch-screen only BlackBerry Storm was a flop in terms of design and sales. The absence of a physical keyboard is part of the story of why the device failed. The dual-keypad Torch, by contrast, has received largely positive mentions, including a mostly positive review from the Wall Street Journal's Walt Mossberg today:

I’ve been testing the new Torch with BlackBerry 6, and I view it as a big improvement over earlier, stodgy BlackBerry models. It might help stem the urge to switch to iPhone and Android, and even steal some users from those and other platforms, especially as the company brings out additional models that use the new software. And it shows that, contrary to some recent speculation, RIM is hardly dead or dying. In fact, the new phone and software are just the start of its plan to revitalize the BlackBerry franchise.

The Torch is not likely to win tons of new BlackBerry users but it may preserve loyalty in the face of growing Android and iPhone interest among BlackBerry users. Recent Nielsen survey data (confirmed by other, similar surveys) shows BlackBerry user loyalty (42%) far below that of the iPhone (89%) and Android devices (72%). 

A critical article in CNN anecdotally identifies the chief source of the BlackBerry franchise and appeal -- its keyboard:

Despite the fact that the BlackBerry isn't hip, high-tech or cheaper than its main competitors, the phones are still the most popular (or at least the most common) in the U.S. market, and they're growing internationally.

So why do so many people still tolerate these phones?

It turns out, according to a handful of interviews with BlackBerry users, there are three basic reasons: People are addicted to the click-clacking keyboard; they love the blinking red light on the top, which alerts users to new messages; and many just happen to have the phone because it's required for work.

The article continues: 

The details of how the BlackBerry keyboard feels are what make it addictive, said Nan Palmero, a writer for another fan site, BlackBerryCool.com.

"They really go to great lengths to raise plastic in certain ways on the keys," he said of the tactile keyboard's design. "They kind of describe it as guitar frets: Your hand naturally knows where to go and where to be."

The corporate bias in favor of RIM devices will fade over time; it already is as the iPhone gains Fourtune 500 acceptance. The intrinsic appeal of the BlackBerry lies in the keyboard; that's the brand. Accordingly, to the extent that RIM builds touch-screen only devices (like the Storm) it's likely to fail or see lackluster sales. But it must equally address the touch-screen trend promoted by its chief rivals.

It has done that with the dual-keypad approach seen in the Torch. 

Another wrinkle is that RIM devices typically have a "portrait" orientation. While the Storm could be rotated to landscape mode that's the only RIM handset that did, though the Torch may as well. Thus the physical keyboard and, to a lesser degree, the portrait orientation represent challenges or design constraints that RIM must contend with as it competes in an increasingly fierce smartphone handset market. 

Of course RIM could come out with a new breakthrough device that renders all this meaningless but that's not likely in the immediate future. 

Android a Massive Success for Google

Thu, 08/05/2010 - 04:12 by Greg Sterling

There are some people who still don't recognize how successful Android is for Google. Even some financial analysts scratch their heads because Google is not making direct revenue from Android. Google is snidely still referred to as a "one trick pony" regularly. I don't agree but even if it is, it's a pretty good trick. 

At the "Techonomy" conference in Lake Tahoe, California yesterday Google CEO Eric Schmidt said that 200,000 new Android devices are being sold (or activated depending on the report) each day -- a million a week. Only a few months ago that number was smaller by half.

It has been estimated -- though I believe this is not entirely accurate -- that Google's mobile search share in the US is almost 100%. Even if the number is 10 or 15 points less it's still dramatic.

Google doesn't break out how much revenue it generates from mobile search but it's starting to show up. And Schmidt casually said the other week (according to the WSJ) that ultimately Android-generated mobile revenue might become a $10 billion business for Google. 

“If we have a billion people using Android, you think we can’t make money from that?” Schmidt asked rhetorically. All it would take, he said, is $10 per user per year. Among other things, Google might earn such sums from selling access to digital content from newspapers.

It's a forgone conclusion that mobile search will at some point in the next 5-7 years match or exceed query volumes coming from the PC. That will happen much sooner in developing countries that lack the PC infrastructure of the West.

Google has positioned itself already to "own" that market, as the chart above indicates. And notwithstanding some substitution of Google here and there on Android devices (Motorola-Bing in China or Baidu, AT&T-Yahoo in the US), almost every Android device sold is a Google search device. 

It's very clear that in only two years Android has become Google's second most successful product after PC search. One could even characterize Android's success as "radical." Over the long term, it threatens Nokia in developing countries and the combined iPhone-Android juggernaut is beginning to threaten RIM in the US and Europe. 

Survey: iPhone 4 Satisfaction High, AT&T the 'Achilles Heel'

Wed, 08/04/2010 - 10:37 by Greg Sterling

ChangeWave has released some US based iPhone 4 customer satisfaction research. The bottom line is that iPhone 4 has very high satisfaction scores -- the screen resolution is the most liked feature -- though not as high as its immediate predecessor the 3GS.

Some people are complaining about the antenna (24%) but it's the minority -- though a substantial minority. The biggest sources of dissatisfaction appear to continue to be related to AT&T and its network.

Here are a few of the charts that illustrate these points: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interestingly, FaceTime is low on the list of features that people really like; Apple is really selling FaceTime as a differentiator vs. other smartphones. Also "faster web browsing" doesn't really seem to rate highly. Yet iPhone 4 is much faster than 3G and noiceably faster than 3GS. 

In terms of dislikes . . . 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In case it wasn't already crystal clear to Apple, for myriad reasons the company needs to open up iPhone availability to other carriers.

Compare Nielsen's recent satisfaction data for the top three smartphone platforms in the US market: 

New Report Confirms Android Sales Momentum

Wed, 08/04/2010 - 09:55 by Greg Sterling

Confirming earlier data, the NPD Group said today that Android is outselling the iPhone:

For the first time since the fourth quarter (Q4) of 2007, RIM fell to second position, as Android took the lead among operating systems in handsets sold to U.S. consumers. NPD’s latest wireless market research reveals that Android accounted for 33 percent of all smartphones purchased in Q2, ahead of RIM (28 percent) and Apple (22 percent).

Based on U.S. consumer purchases of mobile phones in Q2, the top 5 Android smartphones were as follows:

1. Motorola Droid
2. HTC Droid Incredible
3. HTC EVO 4G
4. HTC Hero
5. HTC Droid Eris

Earlier Nielsen reported that in the first half of this year Android handsets had outsold Apple's iPhone. However, in the market as a whole the iPhone still has 2X share of the US smartphone market vs. Android devices.

That share probably goes up if all iOS devices (iPod Touch, iPad) are factored in. 

If Android maintains sales momentum like this it will eventually (2011) capture market share and move into second position after RIM, which just introduced a new OS (6) and device (Torch) to blunt the rise of Android and the iPhone. It's not clear, however, it will succeed. 

See also: Will New, More Complicated Dataplans Cost Smartphones the Market Majority?

Correction: iPhone Has 2X Android's Share in US

Mon, 08/02/2010 - 23:13 by Greg Sterling

Based on a third party report of unreleased Nielsen mobile marketshare data this morning, I incorrectly described what the data reported. So did almost everybody else.

The original GigaOM discussion of the Nielsen data is technically correct -- it refers to sales rather than overall market share -- but it failed to provide context and all the relevant data. I was also swept up in what seemed like a dramatic 10 point gain in Android's market share. 

The headline asserted that Android had surpassed the iPhone in the US. But that's not what the data actually show it turns out. The accurate statement is that in the last six months Nielsen says that Android handsets have taken a greater share of all smartphones sold in the US than the iPhone. However the iPhone still has considerably more share in the US market than Android.

Nielsen later in the day posted with more context. The first chart below is reflective of the overall market: Android has 13%, while the iPhone has 28% share -- more than double. 

The chart below is the one that made its appearance this morning and caused the problem. It focuses not on the entire market but only on "recent acquirers." The chart is somewhat misleading because in the absence of the one above it appears to be a snapshot of the overall distribution of handset marketshare (notwithstanding the slide title). 

I hadn't seen the first chart until this evening.

What we take away from this is what we already know: Apple has saturated its single carrier market (AT&T), while Android, with multiple handsets and carriers, is gaining momentum. Again, the iPhone's market share is more than double Android's but more recently Android handsets appear to be outselling the iPhone. 

The most important datapoint released by Nielsen however is that smartphones now represent 25% of the total US handset market. That's a psychologically significant milestone. The next one is 50%, which Nielsen projects will happen in Q2 next year. I'm skeptical it will be quite that soon but we're definitely on our way. 

 

Report: Android on a Tear, Passes iPhone in US

Mon, 08/02/2010 - 07:37 by Greg Sterling

With multiple handset OEMs and multiple carriers the "Android army" of devices has reportedly overtaken the iPhone in terms of market share in the US smartphone market according to Nielsen (via GigaOm). The data show the following Q2 (survey based) US smartphone market share distribution:

• RIM: 33%
• Android: 27%
• iPhone: 23% 
• Windows Mobile: 11%
• Combined others: 6% 

The Nielsen data reflect that Android's share in Q1 was 17%, which would mean an amazing 10 point leap in a single quarter.

We may see some sort of Apple push-back on or attempted spin of this data. For context and comparison purposes, here are Gartner global smartphone data share figures for Q1, 2010:

The Nielsen data, however, continue to show greater loyalty among iPhone owners vs. Android and other handset types: 

Android has clearly emerged as a viable alternative to the iPhone in the US, which remains locked up with AT&T so to speak -- a strategic blunder by Apple that has now apparently cost the company some of its credibility and potentially its mindshare in the smartphone segment. While Android continues to be not as "elegant" or polished as the iPhone (it isn't), it's much more widely available and for a large number of people a perfectly acceptable alternative.

___

Related: Android smart phone shipments grow 886% year-on-year in Q2 2010

Sprint Expands 4G Net, Offers Second Handset

Mon, 08/02/2010 - 05:20 by Greg Sterling

Sprint in the US is introducing its second "4G" handset, the Samsung Epic. It's an Android device, of course, with full slide-out keyboard and a built-in Swype keypad. It also has an HD camcorder.

The phone is reportedly a version of the Samsung Galaxy handset. 

Simultaneously Sprint announced the expansion of its 4G network to more secondary markets, including several in California, Florida, Delaware and Michigan. There are now almost 50 metro markets covered by the Sprint/Clear network, though some of the major markets are still missing (i.e., San Francisco, New York, Boston, LA). 

I've now used the Sprint 4G network several times in the Bay Area, Seattle and Chicago. In my experience on my Android EVO the speed difference from 3G is barely noticeable and the battery drain effect is, by contrast, quite dramatic. 

Sprint Q2: Thank You Android Evo

Wed, 07/28/2010 - 08:28 by Greg Sterling

Sprint enjoyed its first subscriber gains (as opposed to expected losses) in roughly three years. The company announced Q2 revenues of $8.0 billion. According the press release, Sprint gained 111,000 net subscribers driven largely by Android and the EVO in particular. There were also improved churn and increased customer satisfaction:

Sprint gained a total of approximately 111,000 net subscribers in the quarter. Demand for smartphones like HTC EVO(TM) 4G and BlackBerry^(R) Curve(TM) - combined with Sprint's best ever postpaid churn of 1.85 percent - led to positive net postpaid subscriber growth of 136,000 on the CDMA network and 285,000 for the Sprint brand, and best ever year-over-year quarterly net postpaid subscriber loss improvement of 763,000. The company achieved its best year-over-year quarterly improvement in postpaid gross subscriber additions in more than five years. 

Sprint also said that its WiMax 4G network is available "in 43 markets serving approximately 51 million people."

The company now has 48.2 million customers:

This includes 33.2 million postpaid subscribers (26.2 million via the Sprint brand on CDMA, 6.4 million on iDEN, and 517,000 Power Source users who utilize both networks), 11.2 million prepaid subscribers (5.2 million on iDEN and6.0 million onCDMA) and approximately 3.8 million wholesale and affiliate subscribers, all of whom utilize our CDMA network.

Sprint's 4G network will not remain a competitive differentiator or marketing vehicle for long, as T-Mobile, Verizon and AT&T all roll out faster networks. With Sprint's position seemingly improving, however, T-Mobile appears to be the clearly weaker of the the two weaker carriers. Yet that could change quickly.

T-Mobile is rumored to be the hypothetical recipient of the iPhone in Q3 (we'll see). If that were in fact the case in fact it would be a huge boost for the number four US carrier. 

Verizon Becoming Synonymous with Android

Mon, 07/26/2010 - 08:45 by Greg Sterling

The allure of the iPhone at AT&T peaked and this past quarter. Verizon signed up more subscribers than its main rival: 665K vs. 496K.

And while talk of a Verizon iPhone continues it appears somewhat less likely than it did just a short time ago. In addition the carrier's Droid campaign is all about bashing the iPhone ("Droid Does" [i.e., the iPhone doesn't]).

This past weekend I was at a mall in Los Angeles and went in to the Verizon store to observe and play with the Droid X (impressive large screen but generally felt "insubstantial"). Verizon is very aggressively associating its brand with Droid handsets and has eclipsed T-mobile USA, which once positioned itself as the Android carrier. Given that history it's ironic that T-Mobile may become the first carrier beyond AT&T to get the iPhone. 

Verizon's focus on and marketing on behalf of Android is bad for RIM/BlackBerry and other handset OEMs. RIM in particular will suffer from the "second class status" it now occupies in the carrier's positioning. While RIM doesn't rely on one carrier -- it's broadly available from all the major carriers -- Verizon is the largest and most important. Bing, which struck a major "default search" deal with Verizon (except on Droids), also suffers by extension.

As an aside, as RIM rolls out BlackBerry OS 6 and more iPhone and Android-like touchscreen handsets (I assume), it risks straying from its "franchise" -- the text-friendly keypad. This is the dilemma for the Waterloo, Ontario-based company. 

I also observed the lonely Palm display in the Verizon store. Unless or until HP adds more handsets or revamps the software (which they've said they're going to do) Palm remains dormant. 

Making the iPhone available to Verizon is the shrewdest thing that Apple could do to blunt Android's rise and competitive challenge. But because of the investment that Verizon has made in "Droid" (and being anti-Apple) if Apple were to make the iPhone available it might be difficult for the carrier to accept the offer. 

____

Related: BlackBerry’s Era May Be Ending

 

Apple Continues Momentum with Giant Revenues

Tue, 07/20/2010 - 12:59 by Greg Sterling

Apple posted impressive quarterly results and "record revenue" for its third fiscal quarter. The company announced revenue of $15.7 billion and net profit of $3.25 billion. This compares to revenue of $9.73 billion a year ago. 

Hardware sales were as follows:

• 3.47 million Macs, "representing a new quarterly record and a 33 percent unit increase over the year-ago quarter."
• 8.4 million iPhones, "representing 61 percent unit growth over the year-ago quarter."
• 9.41 million iPods during the quarter, "representing an eight percent unit decline from the year-ago quarter."
• 3.27 million iPads, but we knew that. 

Apple slightly beats consensus estimates on unit sales it appears and, revenue-wise, strongly exceeded expectations.

Read more on Techmeme.