Hardware

Nokia Wants to Emphasize LBS As Differentiator

Nokia spent over $8 billion for Navteq so it should want to leverage LBS. According to the WSJ:

Nokia Corp. is striving to integrate location-based functionalities with other services and social applications available through its handsets, Chief Executive Officer Olli-Pekka Kallasvuo said Wednesday.

"The phone knows where you are. It might know where you're going or what you're going to do," said Kallasvuo at the All Things Digital conference in Carlsbad, California.

However Nokia won't have any real advantage with LBS given the general emphasis on location across mobile platforms. So it won't materialize as a differentiator in fact. At the D event Kallasvuo also demonstrated the N97, not yet in the US market. Here's how Barrons summarized the demo:

He’s going to do a Demo of their newest handheld computer, the N97, not in the marketplace yet, but coming soon. Will be in the U.S. 5MP autofocus camera. Home screen has collection of widgets. With weather info. Uses GPS to pick out where it is. Facebook feed real time. Email. AP news ticker. Widgets on the Ovi store, their version of the App Stpre. Can post photos, tag them, upload them to Facebook or Twitter or Flickr. Has 32 GB internal, plus micro SD card. Plays MP3s, AAC music tracks. Stereo speakers. Has built in FM transmitter, so works on any radio. In email, there is text to speech. Can read one email, or all of them. Also speech to text to respond. Maps functionality includes 3D, and turn by turn directions. Ovi store will recommend appropriate applications based on relevancy from data on SIM card. Twitter client. And full QWERTY physical keyboard. Browser plays Flash natively on the Web. Can play video in most formats. Can do video chat, with video camera on the front.

Here's our earlier post on the N97

Despite the fact that Nokia is the leading handset maker in the world and continues to enjoy strength in markets outside the US it's in trouble. A range of rivals continue to attack its position with increasing success. It has talked about re-entering the US market with cheap smartphones (not the N97) and that's a good strategy in my view. By contrast the N97 is not a low-end device; the unsubsidized price is apparently a whopping €550 ($695).

Unless carriers are willing to subsidize the N97 and bring the cost down to less than $200 it won't have a chance regardless of its features and capabilities. 

Palm Pre Coming to Verizon

Verizon has announced that it will be selling the Palm Pre within the "next six months." The company also said that the BlackBerry Storm 2 will be released in a similar time frame. This is bad news for Sprint and takes some of the wind out of the carrier's promotional sails (and perhaps Pre sales too).

Boy Genius Report has some first "hands on" impressions of the Pre (which are mixed). 

Like others at the Google developer event yesterday I got my hands on an HTC "Magic," coming to T-Mobile in the US later this year (the company gave them away). It's currently available through Vodafone in the UK. The Magic has a virtual keyboard, which isn't as good as the iPhone's. However the phone is otherwise impressive. Here's a more complete review from PC World

Meanwhile Google's Andy Rubin has said that by the end of this year there will be 18 and possibly 20 Android handsets in the market globally. According to Google there are almost 5,000 Android apps (compared with nearly 50K on the iPhone). 

AdMob: Comparing Smartphone Share with Web Usage

The latest Mobile Metrics report from AdMob (reflecting usage across its network) features a comparison of smartphone handset share vs mobile Internet browsing and usage. Here are the top-level data:

  • While Gartner estimated global smartphone sales represented 12% of total device sales in 2008, 35% of AdMob’s worldwide ad requests in April 2009 came from smartphones. This means that smartphones accounted for nearly 3 times more mobile Web usage than their device market share.
  • Smartphones running the Symbian, RIM, and Windows Mobile OS are the top 3 by handset sales; however, mobile Web usage on those devices lags their market share. The Symbian OS had 52% market share of handset sales, but generated only 36% share of mobile Web requests in April 2009.
  • The iPhone OS had 8% market share of handset sales in 2008, but generated 43% share of mobile Web requests in April 2009. Ad requests from applications contributed to this heavy usage.
  • Android also generated a higher percentage of mobile Web requests than its share of handsets sold. While Android had less than 1% of smartphones sold in 2008, it generated 3% of mobile Web usage.

In other words, the iPhone and Android represent much more mobile Internet activity on the AdMob network than their respective handset shares, while Symbian, RIM, and Windows Mobile under-index relative to their shares in the handset market.

Here are some of the charts in the report: 

Picture 2

Picture 3

The following includes HTML browsing (per Net Applications) from mobile handsets:

Picture 4

Putting aside the specific definitions of the categories in the chart above (Mobile Web vs. HTML), we can see how users are interacting with their devices and the mobile Internet. Clearly iPhone and Android owners are more engaged vs others. Some of this is self-selection and some of this is about the usability of the Internet on these devices. As an aside, it would be interesting to see the Storm broken out within the BlackBerry data to determine whether that device in particular was showing usage patterns different than other RIM handsets.

While the AdMob network is not synonymous with the mobile Internet it is directionally consistent with usage trends more broadly. 

The Rise of the Connected Tablets

Nokia's N810 Tablet was too expensive and ahead of its time. And from what I can tell the device was not a commercial success (I might be wrong). But a purported successor (the "Rover") may gain traction. We're entering an era of mobile tablets, or at least a period where consumers will have lots of options for mobile IP-connected devices. There are all kinds of rumors of Apple developing a tablet and Android tablet rumors abound as well. 

Mobile tablets will sit between smartphones and netbooks and may be sold like mobile phones with data contracts. This is the key: the connection. 

After the demise of my Windows Mobile phone, I opted for a cheap Sanyo candy bar phone (as I await the Pre) and an iPod Touch for mobile Internet access. I have to rely on WiFi, which isn't as much of a problem as I initially thought. But the two devices are acceptable to me and I don't have to deal with the problemmatic iPhone phone. 

As I wrote on Screenwerk in late 2006:

While there’s no single scenario for mobile, many people are operating under the assumption that people want an all-in-one device. Some people certainly do and will. But seeing the new Sony VAIO UX mobile PC made me think again about a “two device” world in which people use “Device A” for browsing the mobile Internet and a phone for conventional voice communication.

There’s something enormously challenging about getting the form factor right for an all-in-one device: the right-sized screen, a full keyboard, as well as a phone that works and is comfortable to use. There are probably a range of devices and mobile tablets coming (e.g., Sony Reader) that will be preferable as mobile Internet devices vs. a Treo or Blackberry. Some of them will undoubtedly be phones as well or have WiFi calling capabilities.

Tablets will be more like netbooks than smartphones in terms of the Internet experience. However tablets may bring the apps stores onto a larger screen (e.g., the rumored Apple tablet). The Nokia tablets are like big smartphones with a slide-out keyboard and will undoubtedly access the Ovi store. As an aside, it will be interesting to see how some of the next-generation tablets will address the keyboard/data entry challenge. Obviously they'll have touch screens. The Kindles for example have a physical keyboard on the device. 

All these devices will also operate as phones (via Skype or equivalents). These connected, non-smartphone devices are thus something of an unanticipated "end-around" around voice fees in some sense.

I suspect within three to five years the mobile market will look like this:

  • Conventional laptops with dongles (business owners will also have smartphones)
  • Netbooks sold like subsidized mobile phones (may replace conventional laptops for some business users)
  • Smartphones (business users and increasing numbers of consumers)
  • Tablets with mobile contracts (more expensive than netbooks)
  • Better feature phones that operate more like smartphones, with larger screens
  • Free or low-cost phones that offer a poor mobile Internet experience and are used for voice and SMS only

Sprint Plans to Sell Pre on Price of Data

Owning the iPhone is expensive and Sprint is planning to exploit its competitive advantage around data pricing (apparently) as one of the key marketing angles for the new Pre, due out June 6 in the US. As an aside, I'm generally annoyed by the faux shortages that Sprint hopes will boost demand and buzz for the device.

According to Engadget, which got a copy of an internal Sprint Pre launch guide the relative pricing of competitors' data plans is one of the key points. Of course Sprint has been pushing this angle more broadly for some time.

Pre launch doc

Source: Sprint/Engadget

The hardware and software comparison points in the table above (i.e., layered contacts, NASCAR content) are unlikely to win converts. Indeed the Pre may stop the post-paid subscriber bleeding (as will a Samsung Android phone expected later this year) but I don't believe you're going to see any big defection from AT&T and Verizon to Sprint to get the Pre. Sprint and Palm are hoping that such predictions are proven to be wrong. 

However the cost of data-plans will get attention and may be a successful hook for those contemplating upgrading from a feature phone and considering one of the other carriers for a G1 or iPhone. 

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Related: O2 will distribute the Pre in the UK. And the WebOS Palm EOS (Centro successor) is reportedly coming to AT&T in the second half of 2009. Getting this device to market quickly will help Palm if early Pre sales fail to live up to the hype.

Scoot Launches iPhone App in UK

UK directory and local search site Scoot, which embraced Twitter recently on behalf of its local advertisers, has added an iPhone site. It uses icons and location-awareness to find the nearest business in the given category. From the release:

Scoot uses the iPhone’s GPS capability to locate the user, then find the nearest cafe, bank, restaurant, petrol station and much more. “It’s so quick and easy to use when you’re on the move”, said Sue Barnes, Scoot’s managing director. “There’s no need to type anything in: you just open the app and tap the relevant icon – cafe, for example. Scoot will then show your nearest cafes with name, address, phone number and distance from your current location.

The mobile user can tap the ‘More’ button on each business listed to see further information such as descriptions, opening times, payment methods, special offers/coupons, pictures and even videos. They can see the business on a map, get directions, click to call or view their website. Your browser may not support display of this image.

The application includes a number of standard icons as the default, representing some of the more popular business categories within the Scoot UK business directory. These include banks, cafes, car repairs, chemists, dentists, doctors, drinks, estate agents, food, hospitals, hotels, newsagents, petrol stations, post offices, supermarkets, special offers and favourites. However, the user can easily customise the application by using the simple on/off toggle button to add search icons for more categories or even their favourite brands. Scoot will be adding more categories and brands in future releases of the application.

scoot

Gartner: Smartphones Continue Their Climb

Earlier this week Gartner released its Q1 handset numbers. What they show is that conventional mobile phones are off almost 9% YoY and smartphones are up almost 13% YoY:

Worldwide mobile phone sales totalled 269.1 million units in the first quarter of 2009, a 8.6 per cent decrease from the first quarter of 2008, according to Gartner, Inc. Smartphone sales surpassed 36.4 million units, a 12.7 per cent increase from the same period last year.

Nokia continues to feel pressure and lose share in a much more competitive environment:

Global handset sales

 Picture 13

Smartphone sales

 Picture 14

Source: Gartner

If smartphones are 13% - 14% of the market today, we can expect them (depending on pricing) to become 20% - 25% in five or six years. That will mean much more mobile Internet engagment. But it also means that 75%+ of the market will still be on lower-end phones. Lots will happen in the next five years in the mobile market, including the introduction of new tablets, continued growth of netbooks and other IP-connected devices. So it's very difficult to predict mobile user behavior. 

But it's safe to say that most people will not be on these high end devices. Marketers and publishers should be mindful of that. 


Palm Pre Coming on June 6 for $199

So it's official: The Palm Pre will be available on June 6 and cost $199 with a two-year service agreement and rebate. Here's the Palm statement:

Sprint has announced today that the Palm Pre will be available on June 6. Sprint announced that it will be available nationwide in Sprint stores, as well as at Best Buy, Radio Shack, and select Wal-Mart stores. The webOS-based phone will retail for $199.99 (after rebate and service agreement).

The Palm Pre will provide access to all of the exclusive content on the Sprint Now Network, including Sprint Navigation, Sprint TV, and NASCAR Sprint Cup Mobile Live. More details about Sprint’s service plans and retail channels can be found on the company’s website.

There had been speculation that the Pre might be more aggessively priced to boost demand. But, disappointingly, not so. 

It's very unlikely that the Pre, despite its appeal and buzz, will win many converts to Sprint, which has been losing roughly a million subscribers a quarter. More likely it will prevent some defections to Verizon and AT&T. By contrast Sprint's pre-paid unit Boost Mobile's $50 unlimited plan has proven enormously successful and may be the growth engine for the company in the near term -- so much so that it's opening 50 new retail locations in 2009. 

With other carriers such as MetroPCS and Virgin Mobile trying to go head to head with Boost in pre-paid, that price war threatens to bleed over to the post-paid market. We can only hope so.

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Sprint is very bullish on the Pre:

“It’s the highest confidence I’ve ever had going into a device launch that this is going to be a blockbuster,” said Kevin Packingham, senior vice president for product and technology development at Sprint. He noted that he expects to know quickly whether the device has captured consumer enthusiasm. “I’m pretty sure we’ll know within the first week.”

For Sprint's sake -- but especially for Palm's -- I hope he's right that it will sell well. 

Netbooks, Smartphones and MiFi

What's very clear is that the Internet is fast being "mobilized." What's not as clear is how the various competing devices will fare over the long term. Right now both smartphones and netbooks are hot. Netbooks are slightly hotter than smartphones, because they seem really cheap by comparison to conventional laptops. And now netbooks are being sold like phones. 

Verizon joined AT&T recently in offering a smartphone-like deal to potential subscribers. It's selling the new HP Mini for $199 (after a rebate) with a two-year agreement that costs $40 per month for the IP connection. Yet RIM Co-CEO Jim Balsillie believes that despite the rise of netbooks smartphones will win because of their form factor: 

“Form factor is a personal preference but it’s got to be something that lasts the better part of the day and you can hold up to your ear and clip onto your belt,” he said  in response to our question about his vision for future products. “Those are a very tight systems constraints for a netbook.” 

And, if a phone’s dimensions seems too cramped for the increasingly sophisticated media, entertainment and business services offered, Balsillie said this: “If you want richer keyboards and richer displays you can just use peripherals and bluetooth.”

Along those lines, products like Redfly turn a smartphone into a CPU. Useful though it may be there's something that strikes me as awkward about the device. Admittedly, however, I haven't used one.

Then there's this related development: the personal WiFi node from Novatel Wireless, the MiFi. Unlike a dongle, it allows multiple devices to connect to the Internet. However, it costs $100 and $40 per mo (from Verizon). Consumers are not going to own smartphones, netbooks with plans and personal hotspots at the same time because of cost. They will be forced to make choices. 

Along those lines, we recently asked consumers whether they would prefer a smartphone or a netbook as their mobile Internet device (if the price were identical). Here's what they said: 

  • Smartphone 34%
  • Netbook 27%
  • Neither 13%
  • Unsure 26%

 As I've argued before, once the connectivity problem is solved then lots of new mobile Internet devices can come into being. 

Nokia's Way Back: Low-Cost Smartphones

Nokia wants to be a player in the US market again. However the handset OEM is facing fundamental challenges as it tries to get back in the game here. For example it doesn't having billing support from carriers for its Ovi apps store. Despite having potentially lots of apps, the absence of simplified billing will be an initial (if not long term) problem for Nokia.

Nokia will also be hard-pressed to compete at the high end of the smartphone market. The US market is now the most competitive in the world for smartphones and the dominance of RIM and the iPhone is not likely to be successfully challenged in the near term by Nokia. In addition, any smartphone costing more than $200 (with subsidy) is dead on arrival as a mainstream device. 

Price is a huge driver or barrier to adoption -- often unappreciated by those writing about mobile issues. 

What then can the company do? It can pump out low-end smartphones (or smartphone-like phones) that are inexpensive. Getting handsets into the hands of US users is the first order of business and right now the only way to do that is to offer phones that are priced around $100 or so. 

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Related: AT&T considering lower-cost iPhone plans

The Camera to Loom Larger As 'Search' Tool

Last week Google announced barcode scanning for products on Android phones (right now the G1 in the US and Magic in the UK):

After you've installed the application, go back to Product Search in your browser and tap on the 'Scan Barcode' button again. Select "Use by default for this action" and tap on the Barcode Scanner option. After the app opens, center the red line over the barcode and hold the phone steady. When the barcode is read successfully, you'll see a Google Product Search results page back in the browser.

This is not to be confused with ShopSavvy for Android, which also uses barcode scanning and offers local store inventory data. Barcode scanning apparently doesn't work right now on the iPhone because of the quality of the camera (at least that's my understanding).

One of the things that I've been thinking for a long time is that the camera will eventually be used as a "search" tool -- as a way to obtain information more quickly and directly than keying in queries or even using voice. It remains to be seen but movement is in the right direction; there remains a bunch of work to be done on "infrastructure" issues, regarding standardization and pre-installed software. 

But here are the forms camera-based search will eventually take: 

  • Conventional barcode scanning (as in the Google announcement)
  • QR codes (big in Japan, still uncertain future in North America)
  • Data retrived after image capture (e.g., movie poster)
  • Augmented reality (e.g., camera aimed at a building shows data on stores inside)

All of these leverage the camera's ability to take in information and then potentially deliver very exact or complete data on the back end, beyond what a user could independently get with a conventional search approach.

It's potentially quite compelling as a user experience and could trump conventional search in many different scenarios. But it also illustrates the larger point that "search" on mobile phones is going to be a multi-modal experience, rather than a uniform one as on the PC. In as few as five years we're simultaneously likely to have: 

  • PC-like search box with manual query entry
  • Voice search (yielding traditional results)
  • Social DA/answer engines (e.g., Vark, Twitter, ChaCha, kgb -- human powered)
  • Camera inputs: "point and search" and so on

The use cases will be both device specific and situational. One way to compete in mobile search is to push into these non-traditional realms more aggressively.

Survey: Half of Mobile Users Accessing Content Weekly

An online survey of 4,000 US mobile users (ages 12 to 64) conducted in January 2009, by Frank N. Magid Associates, found that 51% said they were accessing some type of mobile Internet content on a weekly basis. The study claims to be representative of the population as a whole. If so, that would mean roughly 135 million users in the US are going online at least weekly from their handsets.

In march comScore reported that more than 63 million people were using their handsets to go online at some point during a given month. Thus the Magid numbers emerge as the most aggressive in the market (if extrapolated to the larger mobile population).

Other findings from the Magid survey:

  • Mobile users are spending roughly the same amount of time per week with "content" compared with SMS usage and voice: 39 minutes a week vs. 38 minutes (SMS) and 44 minutes (Voice)
  • Content consumptions differs vary by age: 80% of mobile social networking done by those younger than age 34; news consumption on mobile handsets skews older.
  • Households earning more than $100,000 per year are more likely than others less wealthy to consume mobile content: 3X as likely to access business information and 2X as likely to consume news and/or online shopping on their phones.

Some of these findings are relatively obvious given that price is a big factor in mobile Internet access and usage, and online social networking is still skewed slightly younger. Here's the smartphone ownership breakdown according to their data . . .

Millenials (18% own smartphone)

  • Blackberry: 39%
  • iPhone: 20%
  • Sidekick: 15%
  • Treo: 12%
  • Blackjack: 10%
  • LG enV: 9%
  • T-Mobile Wing: 5%
  • Nokia N95: 4%
  • Helio Ocean: 4%
  • Other: 14%
  • Not sure: 7%

Gen X-ers (10% own smartphone)

  • Blackberry: 40%
  • iPhone: 11%
  • Sidekick: 5%
  • Treo: 8%
  • Blackjack: 3%
  • LG enV: 3%
  • T-Mobile Wing: 3%
  • Nokia N95: 3%
  • Other: 19%
  • Not sure: 13%

Boomers (8% own smartphone)

  • Blackberry: 39%
  • iPhone: 10%
  • Treo: 10%
  • Sidekick: 10%
  • LG enV: 3%
  • T-Mobile Wing: 3%
  • Nokia N95: 3%
  • Helio Ocean: 4%
  • Other: 19%
  • Not sure: 10%

Though the numbers aren't broken out in the release, price/cost and no perception of need are inhibitors. Lack of perceived need and cost uncertainty are the factors we've also found in our surveys regarding why people don't access the mobile Internet:

 Picture 4

Source: LMS/Opus Research (3/09)

Putting a Mic and Camera on the iPod Touch

Among the rumors circulating in the run up to Apple's developer conference in June, there are rumors that the iPod Touch will get a camera at some point in the near future (September). Even if Apple foolishly stays with AT&T exclusively in the US for iPhone distribution, I suspect a "back door" to expanded distribution will be in making the Touch and the iPhone barely distinguishable over time. 

There are roughly 17 million (or so) iPhones that have been sold on a global basis. But when the iPod Touch, which runs almost all the iPhone apps, is added in the number jumps to over 37 million. While some people see the iPod Touch as an iPod with apps, others (including me) see it as a stripped down iPhone without AT&T. You can buy an iPhone and use it exclusively as a WiFi device today but it costs hundreds more than buying the subsidized iPhone with an AT&T contract. 

The two principal user experience differences between the iPhone and the iPod Touch are: no camera and no mic (as well as no phone service) available to the latter. However, with an available mic-enabled headset or earphones, the Touch can become a phone via Skype, Fring or Truefone -- today. That assumes a WiFi connection of course. 

Though an embedded mic is not part of the rumors I suspect that will eventually come to the Touch as well. That would enable the device to function more natively like a phone and to take advantage of voice search apps that currently don't work on the Touch. 

As always these are rumors and we've got to wait to see what happens. However, I suspect the devices will almost converge in terms of their functionality over time, athough Apple will keep the products distinct in some ways to perserve a separate identity in the market.

Nielsen: Top Touchscreen Smartphones

Accoarding to Nielsen survey data captured from 1/09 to 3/09, (presented by Fierce Wireless), here are the top selling touch-screen smartphones in the US:

  1. iPhone (AT&T)
  2. LG Voyager (Verizon)
  3. LG Dare (Verizon)
  4. BlackBerry Storm (Verizon)
  5. LG Vu Series (AT&T)
  6. Samsung Behold (T-Mobile)
  7. Samsung Instinct (Sprint)
  8. HTC Touch Pro (Sprint)
  9. Centro (multiple operators)
  10. G1 (T-Mobile)

This is contradicted by NPD Group assertions that the BlackBerry Curve outsold the iPhone in Q1. The data above also suggest that iPhone sales would be much greater if it were available through other carriers -- Verizon in particular.

Kindle DX: Big Screen, Big Price

The new larger Kindle, the "Kindle DX" was introduced today. With its 9.7-inch display it accommodates a full 8 x 11 1/2 inch page and is directed primarily at the student text book market, although it can equally be used for books, periodicals and newspapers just like the smaller Kindle 2. The price is also quite a bit larger than the already pricey Kindle 2, $489.

Sprint is still in the background here, providing "free" wireless access to Amazon (and the Internet). According to Brad Stone who was at the unveiling and blogged the event:

Three newspapers will offer a reduced price on the Kindle DX in exchange for a long-term subscription: The New York Times, The Boston Globe and The Washington Post. These offers will be available starting this summer in areas where home delivery of those papers is not available.

Kindle vs. DX

Don't look for Kindle or DX to save the newspapers or magazines (especially magazines) because the cost of these devices is too high to "mainstream" them. I'm guessing a mainstream price point would be about $250 or less. Later this year Kindle will have more competitors and we'll see how those are priced. Cheaper e-readers will force Kindle to discount its devices. If Apple develops a larger iPod Touch or tablet we'll see what that looks like and how it's priced. And ultimately color screens will be required.

Regardless the "e-reader" tablet is here for the long term. Eventually it will join smartphones and netbooks as a mobile Internet access device. 

Will the iPhone Get 'Mac'd'?

One could credibly argue that Apple invented in the "personal computer" and even perfected it. But Apple saw rivals overtake it and dominate the PC market for years. Now driven in part by the "halo" of the iPod and iPhone more people are buying Macs but they still comprise a tiny share of the overall market.

The iPhone has been the breakthrough device that's redefined the smartphone category made 2008 truly the "year of mobile" -- at least for consumers. But in Q1, the iPhone saw BlackBerry overtake it to claim the number 1 smartphone spot in North America. This was driven in part by the availability of the BlackBerry from multiple carriers as well as some aggressive price incentives. 

According to NPD group here were the top selling smartphones in Q1:

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

The NPD numbers should convince Apple that if it doesn't want what happend in the PC market to happen in the smartphone market, it has to get out to other carriers. Beyond that, what's impressive in my mind is the success of the G1 given its limited availability. BlackBerry has a large, installed base who are upgrading to the OEM's newer phones. But the iPhone and G1 buyers are switching, seeking the better mobile Internet experience that both devices offer. 

Attack of the 'E-Readers'

Reportedly a new, larger-screen Kindle is coming very soon, perhaps this week. It will be out in front of several other e-readers slated for release later this year or early next year. According to the NY Times:

Now the recession-ravaged newspaper and magazine industries are hoping for their own knight in shining digital armor, in the form of portable reading devices with big screens.

Unlike tiny mobile phones and devices like the Kindle that are made to display text from books, these new gadgets, with screens roughly the size of a standard sheet of paper, could present much of the editorial and advertising content of traditional periodicals in generally the same format as they appear in print. And they might be a way to get readers to pay for those periodicals — something they have been reluctant to do on the Web.

Such e-reading devices are due in the next year from a range of companies, including the News Corporation, the magazine publisher Hearst and Plastic Logic, a well-financed start-up company that expects to start making digital newspaper readers by the end of the year at a plant in Dresden, Germany.

There will be two eventual requirements for all these devices: color screens and IP-connectivity. The Kindle has the latter, from Sprint, though few people use Kindle as an Internet device. I would imagine that eventually these e-readers will operate like mobile phones: buy the device and a contract for ongoing Internet access. However the pricing, connectivity and any related subsidies have to be determined as these devices become more mainstream. The netbook with mobile contract is probably the model however. 

The Times article is largely about the question of whether or not these larger format digital e-book readers will save newspapers and magazines and whether the subscription model will work in this context. However, I've long been fascinated by these kinds of devices as on-the-go Internet access tools. Because of their larger screens, there would be no distinction between the ads that appear, say, in the NY Times online and in the publication on one of these readers. 

The single difference -- although the PC will catch up -- is the precise location targeting that will be available to these devices given their mobile nature. 

Price will be a big determinant of success. And people will be forced to decide: smartphone, netbook and/or e-reader? (This is also not-to-mention any data plan charges that might be associated with the new readers.) Some people will have all these devices and some will be forced to choose because of budget constraints -- making the mobile world a permanently fragmented place when it comes to devices and platforms. 

Pre Is Just the Beginning of New Palm Devices

While we're still waiting for the Palm Pre to come out, apparently a second WebOS device at an anticipated lower cost (an unverified $99), the EOS/Pixie, is being reported. TechCrunch was the first to write about rumors of the device yesterday, but Engadget has more (potential) details and some specs.

This device is reportedly coming to AT&T and is something of a follow-up to the low-cost and popular Centro, which also sold for $99. If Palm's WebOS is that good and this EOS phone is that cheap ($99) it will fly off the shelves. It could also give some would-be Pre buyers pause perhaps as well. As always, however, the proof is in the touching.

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Related: Motorola is betting the farm on Android and will have a couple of devices out by year end apparently. As this BusinessWeek article makes clear however, if they're not hits Motorola's once-mightly but now troubled handset division will be all but done.

JD Power: iPhone Most 'Satisfying' Smartphone -- Again

In November, 2008 JD Power found that the iPhone was the highest rated smartphone in terms of customer satisfaction. In a repeat, the firm has released data showing that the iPhone is again the highest rated smartphone in the US market except in the battery life category.

Apple was followed in the smartphone category by LG and Samsung. LG was the highest rated OEM in the traditional handset category

smartphone ratings

Samsung Phone Is a 'Google Experience Device' After All

Samsung announced the Android-based I7500 this morning. Here are the specs:

Samsung I7500 comes with latest multimedia features. The large and vivid 3.2“AMOLED display ensures the brilliant representation of multimedia content and enjoyable full touch mobile experience. Along with supporting a 5-megapixel camera and various multimedia codec formats, the I7500also provides a long enough battery life (1500mAh) and generous memory capacity up to 40GB (Internal memory: 8GB, External memory: Up to 32GB) to enjoy all the applications and multimedia content. The phone also boasts its slim and compact design with mere 11.9mm thickness. 

Previously when Samsung said it would be making Android-based phones it said it would downplay the "Google experience" dimension of the phone:

Samsung also wanted to put its own spin on Android. Hong drew a distinction between devices built on the Android platform and "Google Experience" devices, which not only use Android but are also Google-centric, packed with the search giant's own applications. "Our commitment is more to the Android phone than the Google Experience device," [Won-Pyo Hong, executive vice president of global product] said. In other words, Samsung is doing plenty of customization work on top of the Android platform to make operators happy.

Yet in the announcement this morning the following copy prominently appears:

The Samsung I7500 offers users access to the full suite of Google services, including Google Search™, Google Maps™, Gmail™, YouTube™, Google Calendar™, and Google Talk™. The integrated GPS receiver enables the comprehensive use of Google Maps features, such as My Location, Google Latitude, Street View, local search and detailed route description. Hundreds of other applications are available in Android Market. For example, the application Wikitude, a mobile travel guide, allows consumers to access details of unknown sights via location-based Wikipedia articles.

That's a lot of Google for a purportedly non-Google experience device. It will launch in Europe in June. No word on if/when it will come to the US. However a Samsung Android phone will reportedly make its way into Sprint's line-up this year in the US.