Friday, August 31, 2012

Romney Campaign Fundraises for Success With Square

In a sign that Mitt Romney's campaign is serious about digital innovation in politics, it used this past week's Republican National Convention to do a major roll out of its branded version of Square, the mobile credit card processing app and iPhone/iPad/Android accessory already popular with small businesses which the campaign is using for fundraising.

[More from Mashable: Pro Football Is Most-Followed Sport on Mobile Devices [INFOGRAPHIC]]

Square-carrying Romney staff and volunteers were in full force during this past week's Republican National Convention, taking donations and processing payments for Republican swag.

While the Romney campaign won't be releasing any precise numbers about how much they've raised with Square until after the election, one staffer at a convention campaign store told Mashable that the readers had been 'very, very successful.'

[More from Mashable: 4 Mobile Apps to Simplify Your Job Search]

It's not just Romney employees that were equipped with the lego-sized card readers: the candidate's crew showed up to the convention with 5,000 of them to give to supporters in the hopes they'll go off and use them to collect donations for the Romney campaign from their friends and family.



Zac Moffatt, Romney's digital director, told Mashable that having supporters use Square to do fundraising for the campaign is one way his team can engage voters with technology, a core element of his digital strategy.

When asked if Square readers were too technical for most people, a member of Romney's campaign said that 'it's about as complicated to use as any other smartphone app, and only people that already have a smartphone will be grabbing them.'

The campaign has a proprietary Square app and branded attachments complete with the new Romney logo. The campaign has to report the name, address and other information about any donor to the Federal Elections Commission, the same as with any other donation received by the campaign. Square takes less than 3% of every donation in fees.

While the Romney campaign didn't give away all 5,000 Square units at the convention, the leftovers were sent to Romney's campaign offices across the country Friday morning for other supporters and staff to use. Romney supporters can also get a free reader by signing up online.

Both the Romney and Obama campaigns have been experimenting with the idea of using Square since January.

What other mobile technology should politicians be using? Share your ideas in the comments.

[wp_scm_mashable_rnc]

Image Credit: Alex Fitzpatrick

This story originally published on Mashable here.



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Thursday, August 30, 2012

Rappers lead underground monitors at Angola polls

Through an unmarked door, down a passageway and behind a padlocked metal gate lies a room littered with cell phones that is the nerve centre of an underground effort by Angolan rappers to monitor Friday's vote.

'If they knew we were here, tonight they will be here' to shut us down, said Massilon Chindombe, a 31-year-old IT student working on the campaign.

In this room young activists are receiving phone calls, text messages and emails from frustrated voters reporting irregularities in the general elections.

Their complaints are compiled on a website, www.eleicoesangola2012.com, so the public can read them and pressure authorities into redressing them.

'Most of the complaints we've been getting are people who've registered in certain places and are being told to go and vote... in places as far away as a thousand kilometres,' said Luaty Beirao, a rapper who's the driving force behind the project.

'The political parties, they all set up their own information centres,' he said. 'What we're doing here is creating an impartial civil society platform.'

'In our opinion it makes it more credible that it's the civil society putting the word out there rather than the interested parties.'

Beirao, also known by his hip-hop name Ikonoklasta, writes lyrics that take jabs at the government of President Jose Eduardo dos Santos and the glaring inequalities of Angolan society.

On March 7, 2011, he went a step further. Beirao and other members of his group organised a street protest with hundreds of young people in downtown Luanda -- an unprecedented display of defiance in this tightly controlled country.

More protests followed, always quickly dispersed by police, often with violence and intimidation that has been denounced by Human Rights Watch. Two of the activists have been missing since May, the group says.

Ten years ago Angola ended 41 years of conflict, after a liberation struggle that turned into a civil war after independence from Portugal in 1975.

Dos Santos and his People's Movement for the Liberation of Angola (MPLA) claim credit for bringing peace and ushering in an oil-driven economic boom.

The emergence of the young protesters clearly unsettled the government, but has also forced Angolans to take a harder look at their society.

'The MPLA was already in power when I was born. Now I'm 29 and it's still there. We live in a fake democracy,' said Casimiro Carbono, another rapper in the group, whose lyrics tackle corruption, the lack of freedoms, and social inequalities.

'How can we talk about developing the country when the same group of people hold all the power?' he said.

They expect 40 people in their command centre Friday to field complaints from voters. The activists come from across Luanda. Some are pop stars, some students. Some studied abroad and brought back social media savvy that they're putting to use in their activism.

Their style and their demands echo the Arab Spring protesters, although they don't have the same reach or organisation in society.

The frequent clashes with police have driven them underground, operating at a secret location, and using cell phones to turn ordinary voters into election monitors by giving voice to their experiences.

'We started something, maybe, and now it's sprouting all over,' said Beirao, whose father was once a top MPLA official who headed the president's foundation.

'People are fed up, and they were fed up for a long time, they just didn't have the guts to take a step further.'

'Now they are doing it. Somehow the role we play is setting an example that, we have a right to do it, let's do it regardless of the consequences.'



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Exclusive: Amazon teams with Nokia, snubs Google for maps - sources

SAN FRANCISCO (Reuters) - Amazon.com Inc's new Kindle Fire will have mapping services via a tie-up with Nokia Oyj, according to two people familiar with the situation, filling a gap in the tablet's capabilities while snubbing Google Inc's popular service.

The world's largest Internet retailer, which says its nine-month old Kindle Fire now accounts for one in five U.S. tablet sales, has teamed up with Nokia on mapping, the two people told Reuters.

Amazon will release at least one new version of the Kindle Fire next Thursday.

Amazon will also add location capabilities to the new Kindle Fire, which requires either a GPS chip or a process known as WiFi triangulation, the people said on condition of anonymity because they were not authorized to speak ahead of Thursday's launch event.

Mapping services, which are popular features on tablets, typically include street maps, information about local businesses and sometimes traffic status. They can also support navigation instructions and third-party applications that depend on location information, such as travel services.

Location capabilities mark the location of tablet and smart phone users.

Google Inc's Nexus 7 tablet, which competes directly with the Kindle Fire, comes with GPS receiver chips to support location and mapping functions.

The first Kindle Fire launched last year and at $199 costs half the price of the entry-level Apple Inc iPad, helping it rapidly gain consumer acceptance. On Thursday, Amazon said its Kindle Fires had completely sold out.

Analysts say the 7-inch device helps drive sales of digital media such as ebooks and music, which in turn propels core retail growth for the company.

Amazon may unveil larger versions of the Fire on Thursday in Los Angeles, analysts and media say, which will compete more directly with the iPad.

Although the Kindle now runs on an early version of Google's Android, which Amazon developed into its own operating system, it does not integrate Google Maps into the device. That means users had to access Google Maps via a Web browser, or download map apps from third-party developers.

A Nokia spokesman declined to comment and an Amazon spokeswoman did not respond to requests for comment.

GOING NATIVE

Shares of the Internet retailer closed down 0.4 percent at $246.22 on Thursday, after hitting a record high of $250 earlier following the announcement that it had run out of Kindle Fires.

Cooperating with Nokia may help Amazon develop integrated, or 'native,' mapping functionality for the Kindle Fire without relying on Google Maps. Nokia is one of the world's largest mapping companies, through its 2007 acquisition of Navteq.

Apple took a similar step earlier this year, when it dropped Google Maps in favor of its own mapping features for its next mobile operating system, known as iOS 6. As part of the switch, Apple signed a global licensing deal with TomTom NV, another leading mapping company, for its map content and related information.

In July, Amazon agreed to buy mapping startup UpNext, which specializes in detailed 3D maps of cities and some sporting stadiums.

(Reporting By Alistair Barr; Editing by Edwin Chan and Bernard Orr)



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Top 5 makers of tablets, led by Apple and iPad

Apple extended its dominance in tablet computers in the second quarter, shipping nearly seven out of every 10 tablets, according to research firm IHS iSuppli. Other tablet makers include Amazon.com Inc., which said Thursday that it had sold out of the Kindle Fire amid expectations of a new model soon.

A new iPad model came out a few weeks before the April-June quarter began. Apple's 69.6 percent share in the April-June quarter is up from about 58 percent in the first quarter. It's the highest since the first quarter of last year, when Apple had 70 percent in a market with fewer competitors then.

Here are the top five manufacturers of tablets in the second quarter, as released by IHS iSuppli:

Apple Inc., maker of the iPad, 17 million shipped worldwide, 69.6 percent share

Samsung Electronics Co., maker of Galaxy line, 2.3 million, 9.2 percent.

Amazon.com Inc., maker of Kindle Fire, 1 million, 4.2 percent

AsusTek Computer Inc., maker of Transformer line, 688,000, 2.8 percent

Barnes & Noble Inc., maker of Nook Tablet, 459,000, 1.9 percent

Other, 3 million, 12.3 percent

Source: IHS iSuppli



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Amazon Kindle Fire sold out as new model expected

NEW YORK (AP) - Amazon.com Inc. says it has sold out of its Kindle Fire tablet computer amid expectations of a new model for the holiday season.

The Internet retailer has a major press conference scheduled for next Thursday in Santa Monica, Calif. It's widely expected to reveal a new model of the Fire there, so Thursday's announcement that the first model is 'sold out' suggests that Amazon halted production a while ago to retool for a new model.

Amazon launched the $199 tablet last November. It was the first Kindle with a color screen and the ability to run third-party applications, placing it in competition with Apple Inc.'s iPad, at half the price of the cheapest iPad.

Amazon doesn't say how many Fires it has sold, but says it captured 22 percent of U.S. tablet sales over nine months. That would make it the second-most popular tablet, after the iPad. Tom Mainelli at research firm IDC said that figure matches his estimate of 6.7 million Fires sold, all in the U.S.

The Fire, which is about half the size of the iPad, could face a tougher challenge this holiday season. Many analysts expect Apple to introduce a smaller, cheaper iPad to take on the threat of the Kindle Fire and reach buyers who can't afford a full-sized iPad. In addition, Google just launched its own Kindle-sized tablet, the Nexus 7, and is selling it for $199.

Amazon kept the price of the Kindle Fire low by keeping it small, stripping it of features and taking a small or zero profit margin. Its strategy is to make the Fire a means for people to buy more e-books, music and movie downloads from the Amazon store, which is intimately linked to the device. That's a contrast to the strategy of Apple, which sees content sales as a sideline and wants to make a profit on every device sold.

Apple has sold more than 84 million iPads since its debut in 2010, contributing to strong quarterly earnings and a market valuation that has exceeded $625 billion - the highest ever for a public company. The iPad 2, released in March 2011, sells for $399. The newest models, out this past March, sell for $499 to $829, depending on the amount of storage and wireless capabilities.

Amazon itself was the main outlet for the Kindle Fire. Its website now directs customers to used Fires available from other merchants. Staples stores recently sold it for $179. It wasn't immediately known whether some stores still had it on shelves.

Amazon could update the rest of its Kindle line at next week's event, too. The current models were launched a year ago. In the intervening time, competitor Barnes & Noble Inc. has launched a Nook e-reader with a built-in screen illuminator for reading in the dark.

ABI Research said Thursday that sales of dedicated e-readers, like the non-Fire, black-and-white Kindles, peaked last year. It expects worldwide sales of e-readers at 11 million in 2012, down from 15 million in 2011.

The research firm expects tablets to outsell e-readers 9 to 1 this year, despite costing four or five time as much. Still, e-readers won't go away completely, ABI analyst Joshua Flood said.

'We believe there will always be a niche market for the dedicated reading device for voracious readers, business travelers, and educational segments, particularly ones that are low-priced,' Flood said.

Shares of Amazon, which is based in Seattle, fell $1.40, or 0.6 percent, to $245.72 in afternoon trading Thursday.



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Amazon says Kindle Fire is 'sold out'

NEW YORK (AP) - Amazon.com Inc. quenched the Kindle Fire on Thursday, saying its first tablet computer is now 'sold out.'

The Internet retailer has a major press conference scheduled for next Thursday in Santa Monica, Calif. It's widely expected to reveal a new model of the Fire there, so the announcement that the first model is 'sold out' suggests that Amazon halted production a while ago to retool for a new model.

Seattle-based Amazon launched the $199 tablet last November. It was the first Kindle with a color screen and the ability to run third-party applications, placing it in competition with Apple Inc.'s iPad, at half the price of the cheapest iPad.

Amazon doesn't say how many Fires it has sold, but says it captured 22 percent of U.S. tablet sales over nine months. That would make it the second-most popular tablet, after the iPad. Based on iPad sales reported by Apple, Fire sales can be estimated at somewhere around 5 million units.

Separately, ABI Research said Thursday that sales of dedicated e-readers, like the non-Fire, black-and-white Kindles, peaked last year. It expects worldwide sales of e-readers at 11 million in 2012, down from 15 million in 2011.

The research firm expects tablets to outsell e-readers nine to one this year, despite costing four or five time as much. Still, e-readers won't go away completely, ABI analyst Joshua Flood said.

'We believe there will always be a niche market for the dedicated reading device for voracious readers, business travelers, and educational segments, particularly ones that are low-priced,' Flood said.

Amazon could update the rest of its Kindle line at next week's event, too. The current models were launched a year ago. In the intervening time, competitor Barnes & Noble Inc. has launched a Nook e-reader with a built-in screen illuminator for reading in the dark.

Amazon itself was the main outlet for the Kindle Fire. However, Staples stores recently sold it for $179.



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Amazon says Kindle Fire has 22 percent of U.S. market, is sold out

(Reuters) - Amazon.com Inc said on Thursday that its Kindle Fire tablet accounts for 22 percent of U.S. tablet sales and that the device is sold out.

The tablet hit stores last November at a cost well below that of Apple Inc's market-leading iPad.

Amazon is holding a press event next week in Santa Monica, California, fueling speculation it will launch new tablet devices.

Since the Kindle Fire launch last year, Google Inc has introduced a seven-inch tablet called Nexus 7, which has been selling well. Barnes & Noble Inc's Nook Tablet, introduced last autumn, has also been popular.

Amazon said its Kindle Fire is sold out, but its statement did not say when the device would be back in stock, nor how many Amazon has sold.

Since the launch of the tablet last year, Amazon's top-selling products have all been digital products such as music, videos and movies, Amazon said.

(Reporting by Phil Wahba in New York; Editing by Gerald E. McCormick)



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Sony CEO says Vita gaming device performs near expectations

BERLIN (Reuters) - Sony Chief Executive Kazuo Hirai signalled on Thursday some softness in sales of new gaming device Vita, but said overall it performed near expectations.

Vita hit the stores earlier this year and is the latest in a long line of mobile gaming gadgets in the spirit of Nintendo's Game Boy and Atari's Lynx.

The device has met scepticism among some analysts who doubt whether there is a place for such a device in a market which is increasingly dominated by games played on smartphones and tablets.

'Worldwide, the Vita is pretty much along where we would expect it to be, maybe trending behind in certain territories,' Hirai told Reuters on the sidelines of IFA, Europe's biggest consumer trade show, held in Berlin.

He declined to disclose where sales were lagging.

Taking the helm at Sony in April, Hirai vowed to revive the fortunes of the maker of the Walkman music player, after years of competition from foreign rivals overturned its dominance in consumer electronics.

Hirai said the group was ahead of plan in turning its loss-making TV business into the black.

He has announced cost cuts, including slashing 10,000 jobs, and plans to sell off some business.

Hirai said it was already in talks with several potential buyers for its chemicals business, which makes material used in its consumer electronic products and employs several thousands of staff. He declined to elaborate.

(Reporting by Harro ten Wolde and Tarmo Virki; Editing by David Holmes)



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Wednesday, August 29, 2012

Having Trouble Sleeping? Your Tablet or Smartphone Could Be to Blame



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TiVo revenue gets Virgin Media boost; shares rise

(Reuters) - TiVo Inc reported better-than-expected quarterly results as it saw higher sales of its trademark digital video recorders at customer Virgin Media Inc , sending its shares up 5 percent in extended trade.

While TiVo continues to sell its set-top boxes, it also licenses its digital video recording technology to cable operators such as Virgin, Charter, DirecTV , Ono, RCN and Suddenlink.

'The number of TiVo subscriptions across the globe grew 41 percent year-over-year this quarter, highlighted by continued success at Virgin Media, which recently reached one million TiVo subscriptions,' Chief Executive Tom Rogers said in a statement.

Rogers said Virgin Media contributes the highest number of subscribers to TiVo. Out of a total of 2.7 million subscribers, Virgin Media's share is about 1 million subscribers.

Total subscriptions grew by 230,000 in the second quarter.

TiVo owns hundreds of patents and regularly sues other companies to protect its intellectual property. A good chunk of its revenue comes from litigation settlements.

Billionaire Charlie Ergen-led Dish Network Corp and EchoStar Corp in May agreed to pay TiVo $500 million to settle a patent dispute.

TiVo has been facing rising legal costs as it fights patent lawsuits against Verizon Communications Inc , Motorola Mobility Inc and Time Warner Cable related to video recording technology.

'In the second quarter, litigation cost was about $12.5 million,' Rogers told Reuters. 'With Motorola, Cisco, Time Warner and Verizon litigations moving forward, those expenses will remain heavy.'

The company is preparing to go to trial in October against Verizon.

Verizon, which originally filed six patent claims, recently pulled a fifth patent from its case against TiVo.

'I think once they have the Verizon litigation behind them, they may end up having somewhat lower legal expenses. The biggest period of expenses is right before trial, and we're in there right now,' MDC Financial Research analyst Michael Cohen said.

TiVo may also look to settle with Verizon before trial as it did with Verizon's rival AT&T Inc in January, when the wireless operator agreed to pay TiVo at least $215 million as well as monthly licensing fees.

Analyst Cohen said any settlement with Verizon could be in the range of $250 million to $400 million.

TiVo expects a net loss in the range of $27 million to $29 million for the third quarter.

Analysts were expecting a net loss of $20.7 million, according to Thomson Reuters I/B/E/S.

Revenue in the second quarter at TiVo rose 7 percent to $65.3 million.

Net loss widened to $27.7 million, or 23 cents per share, in the second quarter, from $19.6 million, or 17 cents per share, a year earlier.

Analysts on average had expected a loss of 24 cents per share on revenue of $54.3 million.

Shares of TiVo were up at $9.80 in extended trade. They closed at $9.36 on the Nasdaq on Wednesday.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Sriraj Kalluvila)



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Tivo revenue rises on higher Virgin Media subscriptions

(Reuters) - Tivo Inc reported better-than-expected quarterly results on higher subscriptions of its trademark digital video recorders at Virgin Media Inc , sending Tivo's shares up as much as 5 percent in extended trading.

While TiVo continues to sell its set-top boxes, it also licenses its digital video recording technology to cable operators such as Virgin, Charter, DirecTV , Ono, RCN and Suddenlink.

'The number of Tivo subscriptions across the globe grew 41 percent year-over-year this quarter, highlighted by continued success at Virgin Media, which recently reached one million TiVo subscriptions,' Chief Executive Tom Rogers said in a statement.

Virgin Media reported Tivo subscriber additions of 261,700 for its June quarter.

Rogers said Virgin Media contributes the highest number of subscribers to Tivo.

Total subscriptions grew by 230,000 in the second quarter.

Tivo expects a net loss in the range of $27 million to $29 million for the third quarter.

Analysts were expecting a net loss of $20.7 million, according to Thomson Reuters I/B/E/S.

Revenue in the second quarter at Tivo rose 7 percent to $65.3 million.

Net loss widened to $27.7 million, or 23 cents per share, in the second quarter, from $19.6 million, or 17 cents per share, a year earlier.

Analysts on average had expected a loss of 24 cents per share on revenue of $54.3 million.

Shares of Tivo were up at $9.79 in extended trade. They closed at $9.36 on the Nasdaq on Wednesday.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Sriraj Kalluvila)



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Sony launches Xperia tablet in push for mobile success

(Reuters) - Sony Corp released an upgraded version of its Android tablet on Wednesday, branding its rival to Apple Inc's iPad and Samsung Electronics' Galaxy as 'Xperia' in a bid to unify its mobile devices under one name.

Sony has identified its mobile devices unit, which also makes Xperia smartphones, as one of its key units as it tries to overcome losses from televisions that contributed to an overall record net loss of 455 billion yen ($5.8 billion) in the year ended March 31.

Featuring a 9.4 inch screen and loaded with the Android 4.0 operating system, the Xperia is the second tablet from Sony, which released its first models in April last year.

At the time, Sony said it wanted to claim second spot in the increasingly competitive tablet market ahead of Samsung, but failed to ignite enough consumer interest in the devices.

The iconic Japanese consumer electronics brand also wants to boost sales of digital cameras and games consoles, while nurturing new businesses including medical devices.

Though more powerful than its predecessors, the new tablet from Sony also faces a more crowded marketplace. In June, Microsoft Corp introduced its first tablet, dubbed Surface.

Signs of a turnaround for Sony are yet to emerge.

On August 2 it cut its full-year operating profit forecast to 130 billion yen from 180 billion, and slashed its combined sales target for Vita and PSP handheld games consoles to 12 million from 16 million.

The Xperia tablet will retail in the U.S. from September 7, costing $399 for a 16 gigabyte version and $599 for a 64 gigabyte model, the company said in a press release. Like Microsoft's device it is also available with a keyboard that doubles as a cover, for which consumers will be asked to pay an addition $99.99.

(Reporting by Tim Kelly in TOKYO; Editing by Daniel Magnowski)



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Next-Gen Fitness Gadgets Will Sync to Bluetooth-Enabled Devices

The next generation of sports and fitness gadgets and apps will be able to sync with a wider variety of devices -- from smartphones, tablets, laptops and even TVs -- anything that's Bluetooth enabled. The Bluetooth Special Interest Group (SIG), that manages the Bluetooth technology, has set standards for the next generation of fitness gadgets. Since manufactures will now use standards-based protocols for their products, rather than develop proprietary solutions and forge partnerships, fitness gadget makers can create products that are more likely to sync with the Bluetooth-enabled gadgets in your home.

[More from Mashable: You Can Control This Multicolored Light Bulb From Your Smartphone [VIDEO]]

Up until now, products such as Nike+ iPod only connected to select Apple devices, but with these new standards fitness gadgets will become much more device agnostic.

SEE ALSO: Ace Your Workout With This Bluetooth Wristband [REVIEW]


[More from Mashable: Check Out Microsoft's Brilliant Keyboard for Windows 8 Tablets [VIDEO]]

Now, companies can quickly implement the latest tools for measuring speed and cadence for running and cycling activities to their fitness gadget using Bluetooth.

'The Running S&C and Cycling S&C profiles unlock these sensors, allowing companies to build products that can connect with the tens of millions of Bluetooth Smart Ready devices already in the market, and the hundreds of millions on the way in the coming quarters,' said Suke Jawanda, chief marketing officer, Bluetooth SIG.

In the SIG press release, ABI Research, Inc. forecasts shipments of Bluetooth enabled sports and fitness devices will grow ten-fold from 2011 to 2016, totaling 278 million and representing more than 60% of the total available market.

Do you own a fitness gadget or app? Would it be better if it was Bluetooth enabled? Tell us in the comments.

Photo courtesy of iStockphoto, diego_cervo

[Via: Engadget]

This story originally published on Mashable here.



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Kids Go Gaga Over Tablets [INFOGRAPHIC]

We know the iPad has become a major hit with adult tech consumers since Steve Jobs first introduced the gadget back in 2010. But did you know tablets have scored big points with kids as well? Humans are becoming familiar with digital technology and devices earlier than ever. In fact, more than half of children between the ages of five and eight have already used tablets to play or learn, according to some research. For kids between the ages of six and 12, the iPad was the most coveted gadget last Christmas. Tablets are permeating family life, too; in households that own a device, kids 12 and under get their hands on it more often than not.

[More from Mashable: So You Want to Be an App Developer? Here's How [INFOGRAPHIC]]

The iPad, especially, is becoming prevalent in American education. More than 1.5 million are currently in use by students, and schools bought some 47,000 in the first month-and-a-half after its release. There are currently more than 20,000 apps meant for education, and 80% of learning apps in the App Store target kids. Some studies even show that students who have access to iPads do better in school than kids who don't.

All this information comes from creative media agency MDG Advertising, which pulled research from sources, including CNN, The Wall Street Journal, MarketWatch and others to produce the following infographic. Check it out below for the fuller picture.

[More from Mashable: 20 TV Shows With the Most Social Media Buzz This Week]

How old should kids be before they are allowed to use tablets and other digital gadgets? Share your opinion in the comments.



Thumbnail image courtesy of iStockphoto, LeicaFoto

This story originally published on Mashable here.



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Tuesday, August 28, 2012

Apple's victory means soul-searching for Samsung

SEOUL, South Korea (AP) - A U.S. jury's $1 billion verdict against Samsung for what rival Apple claimed was the illegal copying of its iPhone and iPad designs signals a turning point for the South Korean electronics giant known for its prowess in adapting the innovations of others and nimbly executing production.

The verdict not only jolted the world of global gadgetry but also likely sparked some soul-searching in Suwon, South Korea, where the family-run Samsung conglomerate is based.

The world's top seller of smartphones finds itself in the post-iPhone reality, where the decades-long practice of industry mimicry now can mean a bruising legal challenge.

And so Samsung finds itself in a position of having to recreate itself as an innovator, not an imitator. But the switch, experts say, will be much more challenging and time-consuming than the shortcuts Samsung used to take.

'The case shows that Samsung is still inadequate in soft(ware) area, such as designs and patents,' M.S. Hwang, a Hong Kong-based analyst at Samsung Securities, said in a commentary.

Samsung Electronics Co. has a top-heavy command structure that centers on the founding family. At the apex is 70-year-old Lee Kun-hee, who inherited the mantle from his father, Samsung founder Lee Byung-chull, in 1987.

The strict hierarchy has enabled speedy and bold investment and swift execution. That, plus the ability to build on the innovations of others, like Sony Corp. - has helped Samsung become the world's largest maker of televisions, memory chips, liquid crystal display panels and now smartphones.

Its path is reminiscent of many Japanese companies, like Canon Inc. and Nikon Corp., which started out by copying European designs and then became innovators and pace-setters in the 1960s and 70s.

'It is impossible to be an innovator from the beginning,' said Chang Sea-jin, a professor at National University of Singapore. 'If you don't have a technology, imitating more advanced companies is the easiest way to catch up.'

Samsung has long been regarded as a 'fast follower' - imitating or licensing technologies and then competing by lowering costs, improving quality and adding functions.

It overcame its belated entry into the memory chip business in 1983 with efficient mass production and investments. Today, Samsung supplies about 30 percent of the chips that go into electronic gadgets.

In the early 2000s, Samsung claimed leadership in the global television industry.

But when Apple released its cutting-edge iPhone in 2007, Samsung employees were likely too pressed to catch up to scrutinize possible patent encroachments. South Korea's idea of intellectual property is also less strict than that in the U.S., Chang said, and speedy execution is highly valued at Samsung.

Still, Samsung outsold Apple this year in smartphones by offering more variety, including low-end phones for price-conscious consumers.

Last Friday, a jury in San Jose, California, ruled that Samsung went too far in copying the iPhone and the iPad. It awarded Apple $1.05 billion, while a judge considers whether to ban sales of eight Samsung products in the U.S. Samsung has vowed to appeal.

Samsung's stocks plunged 7.5 percent in Seoul on the first trading day after the verdict, costing $12 billion in market value. Samsung has vowed to appeal, but unsuccessful legal battles against Apple in a host of other countries means that Samsung has few choices other than to create its own design identity.

In the past few years, Samsung has been investing in design, not only in mobile phones, but also in televisions and home appliances. But the results were not near the level of revolutionizing the look and feel of a consumer electronics product or the way consumers interact with technology.

Bill Fischer, a professor at International Institute for Management Development in Lausanne, Switzerland, says Samsung still has not breached the divide between itself and consumer electronics companies such as Apple and Sony.

'They tend to take bigger risks regarding products brought to market, and they try to become creators of revolutionary new technologies,' such as iPods, smartphones and Sony's Walkman music player, Fischer said in an email to The Associated Press. 'This is a different mentality.'

The choices that Samsung has made so far 'are not choices conducive to growing the sort of design and customer-centricity that has long made Apple unique,' he said.

That does not necessarily mean that Samsung must become another Apple. Samsung, which supplies mobile processors that work as a brain in the iPhone and the iPad, as well as displays and memory chips to Apple, reaches far and deep into the areas that Apple does not - especially in electronics hardware manufacturing.

'Innovation does not necessarily mean an entire change. Doing better than the present and doing better than others are also innovation,' said Lee Myoung-woo, who once led Samsung's consumer electronics businesses in the U.S. and is a professor at Hanyang University in Seoul.

'Even if other companies are not breaking away too far from the rules that Apple made with the iPhone, other companies can come up with product innovation in the areas that Apple didn't see,' Lee said.

He cited the Galaxy Note as an example, a smartphone with an overblown screen that became popular.



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Barnes & Noble taps Britain's John Lewis for Nook push

(Reuters) - Barnes & Noble Inc said on Tuesday that John Lewis , Britain's biggest department store group, will be its first partner in the push to sell its Nook electronic readers in Britain.

John Lewis will be the first retailer outside the United States to sell the U.S. bookstore chain's Nook devices, which compete primarily with Amazon.com Inc's Kindle and Apple Inc's iPad. John Lewis will sell the devices at each of its 37 British stores.

Barnes & Noble said last week it would bring the Nook devices to Britain, in its first international foray, but did not identify its local partners.

While the popular Nook has allowed Barnes & Noble to garner between 25 percent and 30 percent of the U.S. e-books market, the device faces fierce competition from Kindle. Last week, the bookstore chain said sales of its Nook devices fell in its most recent quarter, hurt in part by price cuts.

(Reporting By Phil Wahba; Editing by Jeffrey Benkoe)



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FAA to Reassess Use of Portable Electronics on Planes

With the growing use of smartphones, tablets and other gadgets, the Federal Aviation Administration is launching a study into the use of portable electronics on planes, and whether they can be used safely during flights.

[More from Mashable: Airliner's Close Call Blamed on Pilot's Texting [VIDEO]]

The FAA, a U.S. agency that governs aviation safety, announced Monday that it is forming a 'government-industry group' to assess current policies and procedures surrounding portable electronics.

Before passengers can use them at certain times during a flight, aircraft operators must ensure that radio frequency interference from the devices don't cause safety risks, according to current FAA regulations.

[More from Mashable: Airplanes Can Now Take Off and Land With GPS. Will Flights Be Faster?]

'With so many different types of devices available, we recognize that this is an issue of consumer interest,' Ray LaHood, U.S. Secretary of Transportation, said in a release. 'Safety is our highest priority, and we must set appropriate standards as we help the industry consider when passengers can use the latest technologies safely during a flight.'

SEE ALSO: FAA Says it Will Finally Consider Updating List of Approved Electronics


The study group will look at the testing methods that aircraft operators use to see which devices passengers can use safely on-board, and when they can use them, among other issues. However, they will not consider airborne use of cell phones during flights. The group, which includes representatives from the mobile and aviation manufacturing industries, as well as pilots, flight attendants and passengers, will then provide recommendations to the FAA.

The Associated Press reported that it will take until at least next March for a recommendation, and perhaps longer for actual changes to happen. It's been six years since the FAA launched its last study, according to the New York Times.

While the agency wants to ensure that planes are protected from interference, it is open to loosening regulations around electronics, said Michael Huerta, acting FAA administrator.

'We're looking for information to help air carriers and operators decide if they can allow more widespread use of electronic devices in today's aircraft.'

Do you want less restrictions on your electronics during flights? Tell us in the comments below.

Image courtesy of egmTacahopeful, Flickr

This story originally published on Mashable here.



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Monday, August 27, 2012

Samsung to Announce Android-Powered Galaxy S Camera This Week [REPORT]

While Apple gets ready to ban Samsung's Galaxy S II smartphone, rumor has it the company plans to launch a new member of the Galaxy line this week: a digital camera.

[More from Mashable: These Apple Products Have Samsung Parts]

Samsung will be debuting its new Android-powered smart camera at IFA, an electronics trade show in Berlin, according to website GSM Arena

The camera is rumored to come with a 16-megapixel sensor, and run on Android 4.0 (Ice Cream Sandwich). It's also expected to sport a 4.8-inch screen, borrowing from another popular member of the Galaxy line of devices: the Galaxy S III.

[More from Mashable: Apple vs. Samsung Continued: Why This War is Far From Over]

The camera is also tapped to have an integrated cellular connection for uploading pictures to networks like Facebook and Instagram while you're on the go, but won't likely be voice-capable.

Samsung isn't the only company to launch a smart camera. Nikon rrecently announced its own Android-powered camera: the Coolpix S800c. While it runs the much older Android 2.3., Nikon's camera has full access to the Google Play marketplace, so you can run any apps that are compatible with the older OS. It will be available in September.

Polaroid also unveiled an Android-powered camera at the Consumer Electronics Show in January; but it has yet to get an official release date.

What do you think of smart cameras? What apps would you like to run on a camera? Let us know in the comments.

[via GSMArena]

This story originally published on Mashable here.



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Regulators to study rules for electronics on planes

(Reuters) - The U.S. will take a look at the rules governing which electronic devices travelers can use during flights to help airlines decide if they should allow wider use of the gadgets, the Federal Aviation Administration said on Monday.

A group that will be formed this fall will study the testing methods airline operators use to decide which new devices passengers can safely use and when, as well as other issues, the FAA said in a statement.

Airlines often tell travelers not to use iPods, laptops and other devices while planes are taking off and landing.

Under current rules, aircraft operators must determine that personal electronics do not cause dangerous radio frequency interference in order to approve them for use during flights.

The study group will not consider allowing cell phone calls during flights, according to the statement.

'We're looking for information to help air carriers and operators decide if they can allow more widespread use of electronic devices in today's aircraft,' acting FAA Administrator Michael Huerta said.

'We also want solid safety data to make sure tomorrow's aircraft designs are protected from interference,' he said.

The group will meet for six months and will include representatives from the mobile technology and aviation manufacturing industries, pilot and flight attendant groups, airlines and passenger associations. It will report its findings to the FAA, the agency said.

(Reporting By Emily Stephenson; editing by Andrew Hay)



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Wall Street finishes flat but Apple reaches another high

NEW YORK (Reuters) - Shares of Apple climbed to another record on Monday, keeping the Nasdaq index afloat in the lowest trading volume of the year, with investors looking ahead to a key speech by Federal Reserve Chairman Ben Bernanke on Friday.

Apple Inc hit an all-time high of $680.87 during the day after the iPad maker won a $1 billion judgment in a patent lawsuit against Samsung Electronics <005930.KS>. The Korean company said it would contest the verdict. Apple, the world's most valuable company, ended up 1.9 percent at $676.68.

The verdict on Friday jolted shares of Google Inc , as the case could change the dynamics of the mobile device market. Companies using Google's Android system may have to consider design changes. Google shares declined 1.4 percent to $669.22.

Beyond the notable moves of those tech giants, investors mostly cooled their heels before Bernanke's remarks to central bankers at Jackson Hole, Wyoming, on Friday.

Data showed volume was 4.46 billion shares traded on the New York Stock Exchange, the Nasdaq and the Amex. The year-to-date average is about 6.6 billion.

Expectations are for Fed action of some kind next month, but Bernanke is likely to keep markets guessing about the timing of another round of bond purchases.

'The big upswing in the equity market that we've seen is based on the belief the Fed is going to do something and that Bernanke is going to say sooner rather than later that he's willing to commit to further easing,' said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.

'But I don't think he's got the policy support within the Fed to do that, so the markets are set for some more correction here.'

The Dow Jones industrial average <.DJI> was down 33.30 points, or 0.25 percent, at 13,124.67. The Standard & Poor's 500 Index <.SPX> was down 0.69 points, or 0.05 percent, at 1,410.44. The Nasdaq Composite Index <.IXIC> was up 3.40 points, or 0.11 percent, at 3,073.19.

Stocks have rallied in recent weeks on growing expectations for a third round of quantitative easing from the Fed, as well as possible action from the European Central Bank. News from Jackson Hole could determine whether the rally that took the S&P index to four-year highs will be sustained.

The S&P 500 has been unable to stay above the April high of 1,422.38, which is seen as a key resistance point, the index finds support at the 1,400 level.

Investors will be faced with other potentially market-moving events in the next few weeks.

The European Central Bank will meet on September 6 and is expected to take some action to support the region's sputtering economy and tackle the debt crisis.

Germany's constitutional court is expected to rule on the legality of the euro zone bailout fund on September 12.

The Dow was led down by shares of IBM Corp , which agreed to buy Kenexa Corp for $1.3 billion. IBM shares were off 1.1 percent at $195.69. Shares of Kenexa were up 41.4 percent at $45.79.

In other deal news, car rental firm Hertz Global Holdings said it would buy smaller rival Dollar Thrifty Automotive Group for about $2.3 billion, ending years of an on-off takeover battle.

Shares of Hertz climbed 8.1 percent to $14.21 while Dollar Thrifty gained 7.5 percent to $87.08.

Hudson City Bancorp Inc's stock jumped 15.7 percent to $7.45 after the company agreed to be acquired by M&T Bank Corp for $3.7 billion in cash and stock. M&T shares advanced 4.6 percent to $89.82.

Decliners outpaced advancers on the NYSE by about 15 to 14 while on the Nasdaq declining stocks were about even with advancing ones.

(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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Wall Street flat, Apple hits record high

NEW YORK (Reuters) - U.S. stocks were barely changed in light volume on Monday as investors waited for signs from central banks about stimulating the weak economy, though Apple's shares hit a record high after a major court victory.

Apple Inc rose 2 percent to $676.56 after the iPad maker won a $1 billion judgment in a patent lawsuit against Samsung Electronics <005930.KS>. Samsung of South Korea said it would contest the verdict. Earlier, Apple hit an all-time high of $680.87.

Investors are looking ahead to Federal Reserve Chairman Ben Bernanke's speech to a meeting of central bankers at Jackson Hole, Wyoming, on Friday.

Bernanke is likely to keep markets guessing about the timing of another round of bond purchases when he speaks, but he is likely to sustain expectations for action of some kind next month.

Stocks have rallied in recent weeks on growing expectations for a third round of quantitative easing from the Fed, as well as possible action from the European Central Bank. News from Jackson Hole could determine whether the rally that took the S&P index to four-year highs will be sustained.

'Today reflects more what we don't know than what we do know,' said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York.

'The debate is intense. There's a question of what Bernanke will say, what will they do and what impact...it will have. Those are all unanswered questions.'

Investors will face other potentially market-moving events in the next few weeks.

The European Central Bank will meet on September 6 and is expected to take some action to support the region's sputtering economy and tackle the debt crisis.

Germany's constitutional court is expected to rule on the legality of the euro zone bailout fund on September 12.

The Dow was down slightly, led by shares of IBM Corp , which agreed to buy Kenexa Corp for $1.3 billion. IBM shares were off 0.9 percent at $195.91.

The Dow Jones industrial average <.DJI> was down 4.88 points, or 0.04 percent, at 13,153.09. The Standard & Poor's 500 Index <.SPX> was up 2.45 points, or 0.17 percent, at 1,413.58. The Nasdaq Composite Index <.IXIC> was up 8.45 points, or 0.28 percent, at 3,078.24.

The S&P 500 has been unable to stay above the April high of 1,422.38, which is seen as a key resistance point, the index finds support at the 1,400 level.

Trading volume is expected to be extremely light before the Jackson Hole meeting at the end of the week. Many market participants are out before the Labor Day holiday on September 3. Last week's volume was among the lowest of the year.

In merger news, car rental firm Hertz Global Holdings said it would buy smaller rival Dollar Thrifty Automotive Group for about $2.3 billion, ending years of an on-off takeover battle.

Shares of Hertz climbed 8.7 percent to $14.29 while Dollar Thrifty gained 7.5 percent to $87.05.

(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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RIM shares rise following setback for Samsung, Android

TORONTO (Reuters) - Shares of Research In Motion Ltd rose more than 4 percent early on Monday after iPhone maker Apple Inc won a crucial victory in a patent dispute with Samsung that could disrupt the balance of power in the ultra-competitive smartphone sector.

Apple was awarded $1.05 billion in damages by a U.S. jury on Friday after they found that Samsung Electronics Co Ltd <005930.KS> had copied important features of the iPhone and iPad. The verdict could lead to an outright ban on sales of products made by the world's largest smartphone maker.

The ruling is a major setback for Samsung and other device makers like it that use Google Inc's Android operating system, which powers the vast majority of smartphones sold across the globe.

The ruling gives a big boost to Apple, but it also potentially benefits BlackBerry maker RIM and Nokia . RIM uses its own operating system and is preparing for the launch of its next generation of devices powered by the new BlackBerry 10, or BB10, operating system in early 2013.

Both RIM and Nokia, which is the largest producer of Windows phones that run on software created by Microsoft Corp , have struggled against Samsung's Android-powered devices that have taken the market by storm.

'A slowdown in Android activity due to patent uncertainty and possible injunctions could open a window of opportunity for the coming Windows 8 and BlackBerry 10 platforms,' said Baird Equity analyst William Power in a note to clients.

'Any negative repercussions for Android could be construed as directionally positive for Nokia and RIM, though both still face an uphill battle in our judgment,' he said.

Shares of RIM, which rose more than 4 percent at open on Monday, were up 2.3 percent at $7.10 at 1010 EDT on the Nasdaq, while its Canadian-listed shares were up 2 percent at C$7.02.

(Reporting by Euan Rocha; Editing by Frank McGurty)



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Analysis: Friend and foe; Samsung, Apple won't want to damage parts deal

SEOUL (Reuters) - While Samsung Electronics is reeling from a patent pounding by its smartphone rival Apple Inc, this is unlikely to damage the other part of their relationship - where Samsung is the sole supplier of Apple-designed chips that power the iPhone and iPad.

At an emergency meeting in Seoul early on Sunday following the damning U.S. legal defeat, the South Korean group's post mortem was led by vice chairman Choi Gee-sung and the head of the mobile business JK Shin, rather than by CEO Kwon Oh-hyun, whose primary role is in charge of the components business.

The clear message from Samsung is that a strict internal firewall between its handset business and its components operations remains intact.

While it plans to appeal the U.S. verdict, and a damages bill for $1.05 billion for copying critical features of Apple's popular mobile devices - a sum that could be trebled - Samsung will not want to put at risk its Apple supply contract which is worth billions of dollars.

As well as being the only supplier of micro processors for the iPhone and iPad, Samsung also supplies DRAM and NAND-type memory chips and flat screens used in the popular Apple gadgets. Samsung products comprise 26 percent of the component cost of the iPhone, Samsung's lead counsel Charles Verhoeven was quoted as saying in the media.

Samsung's component sales could hit $13 billion next year and bring in $2.2 billion in operating profit, according to a recent estimate by Morgan Stanley. That's nearly 8 percent of estimated group operating profit for next year.

TOO IMPORTANT

Experts and analysts said the symbiotic business relationship between Samsung and Apple is too important for either to put at risk.

'Apple needs Samsung to make the iPhone and iPad. Period. Samsung is the sole supplier of Apple's processing chips and without Samsung, they can't make these products,' said James Song, an analyst at KDB Daewoo Securities in Seoul. 'Samsung might be considering lots of options to leverage its components business' importance and pressure Apple, and Apple could be also well aware of this.'

With that in mind, Samsung had sought to resolve the patent dispute with Apple - which Apple first brought up shortly after Samsung launched its first Galaxy model in 2010 - through negotiation rather than in the courtroom.

'We initially proposed to negotiate with Apple instead of going to court, as they had been one of our most important customers,' Samsung said in an internal memo sent to employees and released to the media on Monday. 'However, Apple pressed on with a lawsuit, and we have had little choice but to counter sue.'

While Samsung has been found to have copied innovative features of the iPhone and iPad, the Korean group's lawyers have emphasized that its own innovative components and wireless technology patents, which the U.S. jury ruled that Apple did not violate, made Apple's products a reality.

'Apple isn't that stupid (to risk its Samsung parts deal). Apple's agreements with Samsung will ensure that Samsung has no choice but to comply and supply,' Florian Mueller, an intellectual property consultant, posted on his blog.

'Also, Samsung's other customers would lose faith if it turned out unreliable. And since Apple threatened Samsung with litigation two years ago, it's had plenty of time to identify alternatives.'

SHARP SELL-OFF

Samsung itself shrugged off market concerns that its component contracts were at risk due to the litigation. Samsung shares tumbled more than 7 percent on Monday, wiping $12 billion off its market value.

'(The) supply contract remains a separate issue from the litigation and there'll be no change to it going forward,' said an executive who took part in Sunday's meeting, which was not attended Jay Y. Lee, chief operating offer and heir apparent to Samsung Chairman Lee Kun-hee, according to the executive.

Kwon was promoted to CEO in June, with JK Shin and BK Yoon leading the telecommunications and consumer electronics divisions respectively so as to avoid potential conflicts of interest, as Samsung supplies parts to its main rivals such as Apple, Nokia, HTC Corp and Sony Corp.

As demand for mobile gadgets has soared, Samsung announced just last week a $4 billion investment to boost output at its U.S. chip plant, where it makes chips for the iPhone and iPad. That comes on top of $2 billion of spending Samsung unveiled two months ago to build a new chip plant and the conversion of existing chip lines to make logic chips to power mobile gadgets.

SUPPLY CHAIN

Apple has been looking to spread its supply chain to reduce its reliance on Samsung. The U.S. firm frequently faces a supply crunch when a new product is launched, triggering a consumer stampede that drives demand far in excess of supply and production capability.

Earlier this year, a source told Reuters that Japan's Elpida Memory Inc was selling more than half of its mobile DRAM chips to Apple.

Samsung mainly competes with Toshiba Corp and Korean rival SK Hynix in supplying memory chips for Apple, and LG Display in flat-screen panels.

Samsung has around 70 percent global market share in mobile DRAMs, but Apple sources only 40 percent of its mobile DRAM chip requirement from Samsung, a boon to the likes of Elpida and SK Hynix, analysts say.

Shares in LG Display, which is widely speculated to supply a new and thinner panel for the next iPhone, jumped more than 4 percent on Monday. SK Hynix slipped 0.5 percent in a flat market.

'For its part, Samsung is also diversifying its customer base to reduce its reliance to Apple - adding new ones like Qualcomm, and that'll prove to be a good strategy longer term as Apple component margins are generally low due to its huge bargaining power,' said Daewoo's Song.

'Other suppliers may benefit from a worsening Apple/Samsung relationship in the short term, but in terms of margins, I'm doubtful they can make good money from any Apple cookie crumbs that Samsung throws away.'

(Reporting by Miyoung Kim; Editing by Ian Geoghegan)



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Nokia jumps on hopes it can cash in on Samsung setback

HELSINKI (Reuters) - Shares in mobile phone firm Nokia leapt 10 percent on Monday on hopes it can benefit from a setback to rival Samsung, which has lost a high-profile court case to Apple that could lead to an injunction against some of its products.

A U.S. jury found South Korea's Samsung Electronics copied critical features of Apple's hugely popular iPhone and iPad and awarded the U.S. company $1.05 billion in damages.

'In addition to Apple, we name Microsoft and Nokia as the main beneficiaries from this outcome,' said Nordea analyst Sami Sarkamies.

Shares in Nokia were 10.2 percent higher at 2.746 euros by 0835 GMT. Microsoft's European-listed shares were 1.6 percent higher.

Nokia and its software partner Microsoft have been struggling to win ground from Samsung's Android-powered smartphones which lead the market.

Google's Android is used in around 65 percent of smartphones sold globally, with Samsung the biggest maker of Android phones.

Nokia has been fighting for survival after losing vast ground to Apple and Samsung. In 2011 it forged a software alliance with Microsoft, which had also fallen behind in smartphone software.

Nokia is now the largest maker of Windows Phones, but the market share of the software has stayed at below 5 percent.

'We think that the real winner hear will be Microsoft and the Windows Phone ecosystem,' Nomura analysts said in a note.

'As Android and Apple tear each other apart, Microsoft has been waiting in the wings and is in a very good position to move in and entice users to switch from Android to Microsoft, as we have already seen that user loyalty is low,' they said.

Nokia is expected to launch its first smartphones using a new version of Windows Phone software at an industry event in early September.

(Reporting by Tarmo Virki; Editing by David Holmes and Mark Potter)



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Sunday, August 26, 2012

Samsung Elec loses $12 billion market value after Apple's legal victory

SEOUL (Reuters) - Samsung Electronics shares tumbled more than 7 percent on Monday, wiping $12 billion off the South Korean giant's market value, as Apple Inc's sweeping legal victory in their U.S. patent battle raised concerns about its smartphone business - its biggest cash cow.

A U.S. jury found Samsung had copied critical features of the hugely popular iPhone and iPad and awarded Apple $1.05 billion in damages in the most closely watched patent trial in years.

Shares in Samsung - the world's biggest technology firm by revenue - tumbled as much as 7.5 percent, its biggest daily percentage drop in nearly four years, to 1.183 million won ($1,000), versus a 0.5 percent drop in the broader market.

Trading volume was heavy, more than doubling the last week's daily average by early Monday trade.

'An adjustment in the next few days is unavoidable as the damage amount was much bigger than market expectations, and there are further uncertainties such as the possibility of a sales ban,' said John Park, an analyst at Daishin Securities.

Analysts estimate Samsung's earnings will be reduced by 4 percent this year due to increased patent-related provisioning.

The jury at a federal court in San Jose, California, found on Friday that Samsung infringed on six of seven Apple patents. The verdict, which came after less than three days of jury deliberations, could lead to an outright ban on sales of key Samsung products and will likely solidify Apple's dominance of the exploding mobile computing market.

EYES ON GALAXY S III

Apple plans to file for a sales injunction against Samsung, its lawyers said, and the judge in the case set a hearing date for September 20.

Top executives at Samsung, led by vice chairman Choi Gee-sung and head of its mobile division JK Shin, held an emergency meeting on Sunday.

The biggest concern for Samsung remains whether its latest flagship product the Galaxy S III, which was not included in the case, will be also targeted by Apple and included in the list of products banned in the U.S. market. The model is Samsung's best selling smartphone, with sales topping 10 million since its late May debut.

But Samsung's skill as a 'fast executioner' - quick to match others' innovations - would likely mean tweaked, non-patent infringing devices would be on the market soon after any ban came into place, analysts said.

'The ruling is a costly lesson for Samsung - but also an opportunity for a true alternative to Apple's well-known hardware with more innovative thinking and imaginative products ahead,' Morgan Stanley analysts said in a note.

'There are more ways to build a touch screen smartphone and thanks to its fast execution capability, Samsung could quickly work around design changes, upgrading models and introducing new technology such as flexible displays, Galaxy S III and Galaxy Note to differentiate its devices from Apple.'

Samsung was disappointed by the verdict and plans to keep the legal fight to have its claims accepted, according to internal memo sent to its employees, that was seen by Reuters.

'We've sought to settle this through negotiations, as Apple is our customer but had no choice but to counter sue,' the memo said. 'There's no firm in history which has sustained growth by trying to stifle competition with legal fights on patents, rather than fairly compete with innovation in the market place.' ($1 = 1134.0500 Korean won)

(Additional reporting by Joyce Lee; Editing by Alex Richardson)



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With Samsung win on Galaxy Tab, judge may reconsider U.S. ban

(Reuters) - Apple Inc's legal victory on Friday over Korean rival Samsung Electronics Co Ltd was crushing but for one key front in its global smartphone and tablet patent war: Samsung's Galaxy Tab 10.1.

The jury in San Jose, California federal court awarded the iPhone and iPad maker $1.05 billion in damages and said Samsung had copied critical features in the U.S. company's products.

However, it declined to side with Apple on one patent, covering design elements on the iPad. That put the jury directly at odds with the judge in the case who, only two months earlier, had sided with Apple over allegations the Galaxy Tab 10.1 tablet ripped off Apple's design.

U.S. District Judge Lucy Koh issued a pretrial order barring Samsung from selling the Galaxy Tab 10.1 in the United States.

Samsung is expected to file within days to dissolve that injunction against its tablet, a person close to the case said on Sunday. Representatives for Apple and Samsung could not be reached immediately for comment.

Samsung's Galaxy touch screen tablets, powered by Google's Android operating system, are considered by some industry experts to be the main rival among larger tablets to the iPad, although they are currently a distant second to Apple's device.

Normally, when a preliminary injunction based on one patent becomes inconsistent with a subsequent verdict, the party subject to the injunction asks the court to lift it, said Mark McKenna, a professor at the University of Notre Dame's Law School.

Yet while the jury absolved Samsung on allegations the Galaxy Tab violated Apple's design patent, it did say the device infringed some of Apple's software patents. That could complicate Samsung's pitch, McKenna said.

'If Samsung or Google could design around those patents, use features that didn't infringe, then they could sell the devices without violating the injunction,' McKenna said.

Additionally, Koh can overrule the jury's decision and issue a verdict saying the Galaxy Tab infringed Apple's design patent.

'Judge Koh appears to be of the mindset that the accused Samsung tablet easily meets the 'substantially the same' infringement standard -- so much so that the facts lead to one and only one conclusion -- infringement,' said Christopher Carani, a partner at Chicago-based intellectual property law firm McAndrews, Held & Malloy.

'Thus, Apple has a greater chance than usual to succeed in convincing Judge Koh to play this extraordinary trump card.'

If the sales ban is ultimately dissolved, Samsung could go after Apple for damages for the wrongful imposition of the injunction, legal experts said.

Samsung, which has various tablet line-ups with different sizes from 7 inches to 10.1 inches, introduced the Galaxy Tab 10.1 in June last year and recently unveiled an upgraded version, the Galaxy Tab 10.1 II.

The company said that Koh's injunction would not affect the updated Tab 10.1 II.

The case in U.S. District Court, Northern District of California, is Apple Inc v. Samsung Electronics Co Ltd et al, 11-1846.

(Reporting By Basil Katz in New York and Dan Levine in Oakland, California; Editing by Paul Tait)



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Apple jurors grappled with complex patent issues

SAN JOSE, Calif. (AP) - The youngest juror, a 24-year-old whose favorite court attire was T-shirts bearing names of rock bands, chose a Beatles sweat-shirt for Friday's dramatic unveiling of the $1.05 billion verdict in favor of computer titan Apple Inc. One of the oldest was a retired electrical engineer who, as foreman, signed the unanimous verdict that Samsung Electronics Co. copied Apple's patented technology for the iPhone and iPad. Among the other seven jurors were a homemaker, a bicycle shop manager and a U.S. Navy veteran.

The decision Friday by this panel of people from many walks of Silicon Valley life was one that experts say could dramatically alter the future of computer tablet and phone design if the verdict stands. But the case also is part of a trend that has accompanied an explosion in the number of patent infringement cases, especially in the technology sector.

Increasingly these highly complex disputes are being decided by juries, rather than judges, and the juries tend to issue more generous awards for patent violations.

That has companies on the receiving end of successful patent infringement lawsuits crying foul and calling for reform in the patent system, but it also has some legal experts questioning whether ordinary citizens should be rendering verdicts and fixing damages in such high stakes, highly technical cases.

'That's a great question ... and it's the subject of a fair amount of current debate,' said Notre Dame University law professor Mark McKenna.

Deliberations in the Apple versus Samsung battle here were far more challenging than most. The jury was confronted with hundreds of questions on a 20-page verdict form that was more complicated than a U.S. tax return. They had in the jury room more than two dozen electronic devices at issue, 12 patents to decipher and 109-pages of instructions from the judge on rendering a verdict.

'This case is unmanageable for a jury,' Robin Feldman, an intellectual property professor at the University of California Hastings Law School, said before the verdict. 'There are more than 100 pages of jury instructions. I don't give that much reading to my law students. They can't possible digest it.'

'The trial is evidence of a patent system that is out of control,' Feldman said. 'No matter what happens in this trial, I think people will need to step back and ask whether we've gone too far in the intellectual property system.'

Apple filed suit in April 2011, accusing Samsung of essentially selling illegal knockoffs of its popular iPhones and iPads. Apple demanded $2.5 billion in damages and an order barring U.S. sales of the Samsung products in question. Samsung countered with its own claims, accusing Apple of using wireless technology it owned.

The jury rejected Samsung's claims and refused to award Apple the maximum amount demanded, finding that fewer Samsung products violated Apple's patent than alleged.

The jury arrived at its verdict after less than three days of deliberations, far swifter than many experts thought in view of the many complex issues.

The foreman, Velvin Hogan, a 67-year-old electrical engineer, told the San Jose Mercury News (http://bit.ly/NvhnQD) on Saturday that the panel was methodical. 'We didn't whiz through this,' said Hogan, who relied on his own experience patenting inventions. 'We took it very seriously.'

Hogan, who does not own Apple products, said the first task was to determine if Apple's patents were valid. Using his own experience getting a patent, Hogan said he had a revelation on first night of deliberations while watching television. 'I was thinking about the patents, and thought, 'If this were my patent, could I defend it?' ' Hogan recalled. 'Once I answered that question as yes, it changed how I looked at things.'

The jury did not completely grant Apple's demand for at least $2.5 billion, Hogan said, but they 'wanted to send a message to the industry at large that patent infringing is not the right thing to do, not just Samsung.'

Although the jurors all promised to weigh the evidence fairly, jury consultant Ellen Brickman said Samsung started out the underdog for several reasons. Apple is based just 10 miles from the courthouse, jurors have a predisposition to side with patent holders and Samsung is a foreign-based company fighting a domestic outfit during tough economic times.

Finally, she noted that many Americans view Apple and its late founder Steve Jobs as legendary innovators. .'Apple changed the world when it came to computers. Apple changed the world when it came to phones,' she said.

Samsung has vowed to fight the case all the way to the U.S. Supreme Court. It will first ask the trial judge to toss the verdict. Failing that, Samsung will appeal to the Court of Appeals for the Federal Circuit in Washington D.C., a specialized court that hears nearly all patent appeals.

Apple itself benefited from a judge last year reversing a jury's verdict in a patent trial in Tyler, Texas. A jury had awarded software company Mirror Worlds $625.5 million after concluding Apple infringed three patents related to how documents are displayed on computer screens.

'Mirror Worlds may have painted an appealing picture for the jury, but it failed to lay a solid foundation sufficient to support important elements it was required to establish under the law,' U.S. District Judge Leonard Davis wrote in April 2011 in tossing out the jury's verdict.

The number of jury trials, as opposed to 'bench' trials presided over exclusively by a judge, has greatly increased in the last 20 years, a 2011 PriceWaterhouseCoopers study concluded. It found that only 14 percent of patent trials were held before juries in 1980, 25 percent in 1990 and nearly 60 percent since 2000.

The consultants attributed that dramatic rise in part to a tendency of juries to award higher damages than judges. The average jury award was a little more than $10 million during the last decade while the average award after a bench trial was barely more than $1 million.

The number of patent suits in the technology sector has soared in recent years.

PriceWaterhouseCoopers reported that 182 lawsuits were filed between 2006 and 2010 involving patents in 'computer hardware/electronics, software and telecommunications.' That was an increase from 77 filed during the previous five years.

Losing companies often appeal to the Court of Appeals for the Federal Circuit, which received 432 cases from the federal district courts in the 12-month period ending March 2011. The court reported that it reversed 19 percent of those cases, without differentiating between bench trials versus jury trials.

'The purpose of the patent system is to encourage innovation, but the system is still too often exploited in pursuit of other goals,' Steven Zipperstein, the chief legal officer of Blackberry phone maker Research in Motion, said in a statement earlier this month. '...This case clearly highlights the significant need for continuing policy reform to help reduce the amount of resources wasted on unwarranted patent litigation.'

Zipperstein was responding to U.S. District Judge James Ware tossing out a $147.2 million jury verdict against the Ontario, Canada-based Blackberry maker after a month-long patent trial in San Francisco.

The judge said the 'clear weight of the evidence' couldn't support the jury's verdict that RIM used the patented technology of New Jersey-based software maker Mformation Technologies.

7/87/8-

AP video journalist Haven Daley contributed to this report from Palo Alto, Calif

.



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Apple 'to unveil mini iPad in October'

Apple will unveil a new, smaller version of its wildly popular iPad in October after the release of the latest version of its iPhone next month, the All Things Digital website reported Sunday.

'First comes the latest iteration of the tech giant's hugely popular smartphone, which will be unveiled at an as yet unannounced event on September 12,' the website said.

'Only after the next-generation iPhone is out the door and on sale will Apple announce the smaller iPad it's been working on,' it said.

'That device, which is expected to have a display of less than eight inches (20 centimeters), will be uncrated at a second special event, which sources say is currently scheduled for October.'

The 10-inch iPad has long dominated the tablet market, but faces a growing challenge from smaller models like Amazon's Kindle Fire, the Google Nexus 7 and the Samsung Galaxy.

Apple is expected to launch the miniature iPad later this year, with analysts saying it could allow the California-based company to again best its global rivals despite the death last year of visionary founder Steve Jobs.



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Saturday, August 25, 2012

US braces for holiday clash of tech giants

It's beginning to look a lot like a big season in the United States for mobile gadgets, with the still-rumored launch by Apple in September of a new iPhone, expected to ignite fresh growth in the smartphone market in the US and worldwide.

Apple is also widely expected to unveil a new tablet computer that will be a smaller version of the hot-selling iPad.

But other big tech firms are not sitting idle.

Microsoft is launching its new Surface tablet in late October, and will be pushing hard to sell Windows-powered smartphones. Google has already launched its own branded tablet and smartphone selling alongside other devices powered by its Android system from makers including Samsung.

And many analysts expect Amazon to unveil at least one updated model of its Kindle Fire tablet computer at a news conference September 6.

'This season is going to be exciting,' said Rob Enderle, a technology analyst and consultant with the Enderle Group.

'This is the first time Apple has faced competition on a number of critical fronts. And it's the first time competition is coming from Google directly.'

Enderle said he expects Microsoft to spend $1 billion on marketing for its new devices and its Windows 8 platform.

'So the conflict in the fourth quarter is going to be legendary,' Enderle said.

'And it's an election year, so we are going to be awash in ads for voting and ads for buying.'

US consumers appear to be ready to shop.

The Consumer Electronics Association projects record sales of electronics of $206 billion this year, the first time above the $200 billion mark.

Tablet sales along are expected to reach $29.1 billion, up 83 percent, the association said.

'Tablets are the fastest-growing product category in the history of the consumer electronics industry, and sales will continue to increase as more products hit the market,' said Steve Koenig, CEA's director of industry analysis.

US smartphone sales will total $33.7 billion in 2012, for more than 108 million units, according to the group.

Analyst Colin Gillis at BGC Partners said he sees 'feverish' anticipation for the new iPhone, and predicts Apple will sell 10 million of the new phones at the launch and 14 million iPads in the fourth quarter.

Ramon Llamas, an analyst with research firm IDC, said Apple remains the company to watch in the mobile sector because of its rabid customer loyalty and ability to command premium prices.

'Every year when the iPhone is released it should become a national holiday because of all the hype, all the long lines,' he said.

But he said there is strong potential for growth from the new Windows-powered phones expected from Nokia and others.

'I don't think the platform has been widely evangelized, but I like it,' he said.

Sarah Rotman Epps at Forrester Research said Microsoft has been losing ground by being late to the party, and will cede more customers with its relatively late release of Windows 8 on October 26.

'Every day Windows 8 is not in the market, Microsoft is losing opportunity with consumers,' she said.

She noted that at the start of 2011, Windows was the preferred operating system for consumers but that has slipped as Google's Android and Apple's iOS dominate the market for mobile devices.

'Microsoft is rapidly losing mindshare among consumers, but once it hits the market, we do think it will gain traction,' she said.

Jack Gold of the consultancy J. Gold Associates said Samsung, the biggest maker of Android phones also expected to launch Windows-based devices, 'is going to continue to be the market leader in smartphones' because of its 'huge momentum.'

Gold said the new competitive landscape may be good for consumers, possibly bringing down prices.

'I think there is going to be tremendous pressure on Apple to lower their prices,' he said.

'Apple has the high end of the market but that only works when they have a huge advantage.'

One problem for Apple is that rivals such as Google and Amazon are subsidizing their devices to drive consumers to their content -- books, music, film and shopping.

Some analysts say the $200 Kindle Fire and Google Nexus tablets are sold at a loss.

'Apple will have to respond,' Gold said.

Notably absent in the final months of the year will be BlackBerry maker Research in Motion, which delayed its new platform expected to challenge the market leaders until early 2013.

Gold said that 'it's never good to be three or six months late,' although the delay may mean 'they won't have to compete with everyone else and can get visibility.'



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