Business Tech

If the iPhone didn't finish off Windows Mobile in the smartphone market, the Motorola Droid may.

Windows Mobile is losing the last vestiges of its mojo--if it really had any to begin with--as the Droid and other phones based on the Android 2.0 operating system push the buzz meter needle into the red zone. Many in the media--which can play a big role in steering users to one technology platform or another--sense that Windows Mobile has now been relegated resolutely to has-been status.

Let's do a quick canvas of what some in the press are saying now that we're at the start of the Droid era. A post on SFGate.com (the Web site of the San Francisco Chronicle) is, like other commentary out there, clearly dismissive of Windows Mobile. "Curiously, Microsoft is nowhere to be seen in this battle royal," the author states, referring to the iPhone and Android.

And there's this more damning comment from a blog at SeattlePI.com. "Rarely mentioned, however, is another player in the mobile OS market--Microsoft. Why not? Because not many people in the smartphone world seem to really give a hoot about Windows Mobile anymore."

The litany of like articles is long. This post on PC World asks: "Has Microsoft Placed Its Last Mobile Bet?" The article cites research from Canalys showing Windows Mobile slipping from 13.9 percent of the worldwide smartphone market in 2002 to 9 percent in the second quarter of 2009.

The numbers are even less favorable in an accounting by ad service Admob, which compiles data on which operating systems are in use on mobile devices that access online ads. In August, according to AdMob, Windows Mobile had only a 4 percent share of the mobile OS market worldwide, down from 7 percent in February.

But getting back to my original premise of no mobile mojo for Windows. The fact is that consumers don't care about Windows on smartphones. In other words, while Windows seems to be a prerequisite for many consumers when buying a PC, it just doesn't come into play in a big way in a smartphone purchase.

This will have ramifications beyond Microsoft of course. Companies like Toshiba (and its attractive TG01 smartphone) will probably not be as successful on Windows Mobile as they would (will) be on Android 2.0. Or, at the very least, will not get the necessary buzz.

Then there's the Intel factor. Intel also wants to be a player, eventually, in the smartphone space. If it is indeed able to beat back Texas Instruments (whose chip is used in the Droid), Samsung (iPhone), Qualcomm (Blackberry), and Marvell, it probably won't do it by sticking to the tried-and-true "WinTel" combination that's been so outrageously successful in the PC space.

And Intel is chasing a fast-moving target. TI, and all the other ARM-based chip suppliers cited above, are slated to bring out dual-core designs that can hit speeds as high as 2GHz (think next-generation tablets and media pads). In other words, they'll also be able claim the coveted speed mantle on phones, such as the Droid, where Windows Mobile is no where in sight.

So the Droid may not be the iPhone killer but rather the Windows Mobile slayer. Microsoft, of course, will always have the unassailable PC franchise. But, wait, isn't Android coming to Netbooks next year? Maybe the real battle royal for Microsoft is yet to come.

It looks as though Microsoft may have a winner in Windows 7, at least in comparison to Vista.

The software giant saw relatively strong early adoption of Windows 7 in the 10 days since its official launch. According to Net Applications, more than 3 percent of PCs accessing the Web in the past two days have been doing so using the new operating system. Usage of the operating system has been growing strong in recent days, though Windows 7 already accounted for 2 percent of global Web traffic in the days ahead of its formal launch.

Judging by its initial sales, Windows 7 is certainly proving more popular than Vista. Microsoft sold 234 percent more boxed editions of Windows 7 than it did Vista in the initial releases of both products, according to research released by NPD Group.

In actual dollars, Windows 7 has also been more successful than Vista. However, early discounts on pre-sales copies and a lack of a promotional boost behind Windows 7 Ultimate led to revenues only 82 percent greater than those of Vista.
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New York antitrust suit accuses Intel of bribery

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T-Mobile experiencing widespread outage

The cellular carrier acknowledges problems affecting both its voice and data networks.
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AT&T vs. Verizon: There's a lawyer for that

AT&T is suing Verizon Wireless over its "There's a Map for That" ad campaign, stating that it misleads consumers about AT&T's network coverage.

Corporate bank accounts targeted in online fraud

Small and medium-size businesses, governments, and school districts are targets of online bank fraud involving malicious e-mails, key loggers, and money mules, FBI says.
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•  New Trojan encrypts files but leaves no ransom note
•  Hacker breaks into jailbroken iPhones, asks for $7

Barnes & Noble hit with suit over Nook

A Cupertino, Calif.-based start-up claims the bookseller misappropriated its trade secrets in its design of a similar e-reader.
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Microsoft gives the MSN butterfly a makeover

It's given a new look to both its home page and the MSN butterfly logo. The main page now has just half as many links, with more videos and photos.
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Mozilla: Firefox 3.6 won't be late

The first beta of Firefox 3.6 may have crossed the finish line weeks late, but Mozilla says the final version should still be done this year.
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Lack of global climate deal won't crush green tech

No matter what happens in Copenhagen next month, green-tech companies say industry and national governments will drive investment in the near term, an analysis shows.
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Mac game: Art project or malware?

Is the Lose/Lose game a legitimate art project, or should it be flagged as malware because it deletes files?

Virtual goods: Duping the masses?

When is ad not an ad? When it's an offer for something other than what you think you are signing up for.
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Beatles copyright case down a legal rabbit hole

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Microsoft released on Thursday a new position paper, "Privacy in the Cloud Computing Era: A Microsoft Perspective," that includes information about the remote storage and processing of personal information.

Privacy and security concerns continue to be a primary argument that cloud naysayers use against storing data and applications on the Internet. Big IT vendors and service providers like Microsoft and Hewlett-Packard will sooner or later be forced to take the cloud seriously or risk missing out on the whole next wave of IT consumption. And their large enterprise customers will expect them to offer cloud services with the appropriate levels of privacy and security measures in line with their business needs.

The interesting thing about this paper is that Microsoft takes surprisingly minimal responsibility for the data it will manage:

... Read more

Experts say Intel has been instrumental in driving down PC prices, one of the key indicators of competition and one charge New York's Attorney General cannot easily level against Intel in its antitrust lawsuit.

New York Attorney General Andrew M. Cuomo on Wednesday filed a federal lawsuit against Intel accusing it of paying computer makers rebates to illegally maintain its monopoly power and preventing AMD from gaining business with PC makers.

One of the operative charges in the complaint centers on prices. "Intel launched an illegal campaign to deprive AMD of distribution channels and consumers of product choice and lower prices," the complaint alleges.

Not so fast, say some experts. "Prices are falling, buyers are not complaining about Intel's loyalty discounts, and the lower prices produce obvious and immediate benefit for consumers," said Joshua D. Wright, professor at George Mason University School of Law, and a scholar in residence at the Federal Trade Commission until 2008.

"Given the intuitive and easy to grasp nature of the consumer benefits of discounting contracts in the Intel case, I suspect that judges will be less likely to condemn these practices without real proof of actual consumer harm. I'm skeptical that AMD, (New York), or the (Federal Trade Commission) will be able to produce that here," Wright said.

And prices continue to fall. One of the most recent examples of steep downward PC price pressure is ... Read more

Nvidia CEO Jen-Hsun Huang seemed unsurprised by allegations made Wednesday by New York's attorney general that Intel has illegally tried to maintain its monopoly.

"Where there's smoke there's probably fire. It blows my mind that's it's taken this long," Huang said in an interview Thursday, just after the graphics chipmaker posted solid fourth-quarter earnings. Nvidia competes with Intel in the PC graphics chip market.

"Even bribes and kickbacks can't stop somebody from buying our graphics processors," he said, referring to the allegations made in the lawsuit.

When contacted, Intel had no comment.

"Tactics good for AMD are tactics good for Nvidia," he added. "We have far superior products to Intel, that's how we survive by innovating far ahead of (Intel)."

Nvidia is locked in a legal battle with Intel, preventing Nvidia from making chipsets for Intel's "Nehalem" Core i series of chips--the lastest and greatest line of processors from Intel. Nvidia's Ion chipset--used in Apple MacBooks and Hewlett-Packard Netbooks, for example--has been very successful.

Huang also commented on the wave of next-generation tablets and media pads expected to hit the market next year, such as the rumored Apple tablet. Nvidia is already working with device makers who will use its Tegra chip in these designs next year.

"I think that's going to be the next big form factor," he said. "More and more people that use the iPhone would like to have a bigger iPhone. And the fact that 4g is coming--20 megabits per second. What can't you do. I think this (market) space is about to go nuts," he said.

"I really think we're on the cusp of our second personal computer revolution," he said.

MOUNTAIN VIEW, Calif.--Thunderbird 3, an update to the e-mail software that Mozilla hopes will give it some of the advantages its Firefox browser has enjoyed, is due to arrive in near-final form next week.

Mozilla Messaging plans to issue release candidate 1 of Thunderbird 3 as soon as Monday, with the final version expected later in November, the e-mail-focused subsidiary of the Mozilla Foundation said Thursday.

"We're down to the last few bugs," said Chief Executive David Ascher. "Feedback with the last beta was enthusiastic." Thunderbird 3 beta 4 can be downloaded for Windows, Mac, and Linux.

Thunderbird doesn't get as much attention as Firefox, the chief product of the Mozilla Foundation's other subsidiary. But with Thunderbird 3, Ascher and Mozilla Messaging are trying harder to take advantage of one technology that's helped the browser's fortunes: add-ons. They could be written for Thunderbird 2, but only with what Ascher termed an act of heroism; Thunderbird 3 makes add-ons much easier.

One area where add-ons show up is a new Thunderbird 3 feature, Google and Yahoo calendar functions in the software--using its built-in Firefox engine for handling Web pages, naturally.

"There are a bunch of actions that start in e-mail that really involve the Web," Ascher said. Another example he said Mozilla Messaging will write if some enterprising person doesn't do it first: an add-on to help people assess whether to follow a particular Twitter user who just signed up to follow you.

Another add-on that's already under way is Lightning, which parallels Outlook's calendar functions. A Thunderbird 3-compatible version should arrive about the same time, he said. Ultimately, Thunderbird should be able to integrate with either Lightning or Web-based calendars, including the automation of operations such as accepting event invitations.

Better search
The add-ons also dovetail with a significant new Thunderbird feature, improved search. With Thunderbird 2's folder-based search approach, people often didn't set up searches so they could find what they needed. With Thunderbird 3, it returns all results that match the text, not just what's in a particular folder.

"It's really important to search everywhere," Ascher said. As with Google, "You type a word, and you get results."

Of course that can retrieve a lot of unwanted results. So the search results page offers a variety of ways to winnow that search down--limiting it to particular people, to messages with a specific tag, or to a particular time frame selected from a timeline that presents messages using the search term.

These functions to refine the search, which Mozilla Messaging calls "facets," are another area where add-ons can help, Ascher said.

Also coming in Thunderbird 3 is a simpler start-up process. The software is set up in advance to automatically set up the increasingly complicated server configuration for various accounts. I tried it with Gmail, and it indeed was up and running in moments after I entered only my name, e-mail address, and password. The software comes with several profiles built in, and it makes intelligent guesses if it doesn't know, but people will be able to write their own modules that can be shared, too.

Another feature in the new version is the archive, a feature borrowed from Google's Gmail that's a kind of digital purgatory. E-mails sent to the archive are still available through search, but they don't clutter up the inbox. Folders are still available for those who want to file messages the traditional way.

"The original idea of e-mail, putting messages in folders one by one, was reasonable when we got ten messages a day. Now that we get a couple hundred or more, that's a huge burden," Ascher said. "We made archive really easy and complemented it with (an) easy-to-use search experience.

Streamlined interface
One big interface change is the addition of tabs. Mail accounts, folders, and individual messages can show as new tabs rather than new windows. It's one of a number of efforts to provide a more streamlined interface.

One other is moving some message-specific operations to the message window--reply, reply to a mailing list, forward, archive, and other options. Another: the main toolbar has been cleaned up so only essential actions show, though others can be added through customization. And people can be added to the address book with a single click of a star next to their names--not unlike Firefox 3.5's one-click bookmark operation.

Some routine tasks--labeling a message as junk, for example--are designed to be faster, he added.

"If you look at the number of seconds saved over the population of Thunderbird users, it tends to be several lifetimes per year," Ascher said.

With a project called Closure Tools, Google plans on Thursday to start helping developers who aspire to match the company's proficiency in creating Web sites and Web applications.

Google is a strong proponent of using JavaScript to write Web-based programs, part of its Web-centric ethos. Indeed, the company has pushed the language to its limits with services such as Gmail and Google Docs, and it developed its Chrome browser in part to enable JavaScript programs to run faster.

But writing, debugging, and optimizing heavy-duty JavaScript can be difficult--in part because a given JavaScript program sometimes works differently on different browsers. Google's open-source Closure Tools project is an attempt to help with some of these challenges.

The first in the suite of tools is the Closure Compiler, a software package designed to boil down a JavaScript program so it's smaller and runs faster. For example, a function named DisplayAddress() could be replaced with just a().

Along with the compiler come some extra tools that run in the Firefox browser. One, Closure Inspector, is an extension for Firefox's Firebug add-on designed to help programmers understand and debug the rewritten JavaScript--linking a() back to DisplayAddress(), for example. Another add-on for the Google Page Speed extension lets programmers see how much the compiler helped.

Google also plans to make the compiler available as a Web application hosted on its Google App Engine service.

The second element is called the Closure Library, a collection of prebuilt JavaScript code that lets programmers handle relatively sophisticated technology--arrays and string manipulation, for example.

Last are Closure Templates, more prewritten code to ease creation of JavaScript and HTML user interfaces.

In an earlier era, programming tools were expensive packages bought by a select few, but open-source software, new marketing strategies, and new business methods have made that approach the exception rather than the rule these days. Now programming tools are often a means to another end--encouraging programmers to produce the software that will make Windows or the Palm Pre useful and therefore popular, for example.

In Google's case, the objective is often to make the Web more popular because it sees more activity on the Web as corresponding directly with more activity on its revenue-generating search site. Among the high-profile projects to this end are Chrome, Chrome OS, and Android, all subsidized by Google's powerful search-advertising business.

One interesting contrast to Closure is another Google project called Google Web Toolkit. It's designed to accomplish some of the same goals as Closure, including paving over browser incompatibilities and producing high-performance JavaScript. But with GWT, coders write programs in Java that gets translated into JavaScript.

So one last question: why the name?

Google's reply: "Being a functional language, the concept of a function closure is fundamental to the JavaScript language."

Judging by its initial sales, Windows 7 is certainly proving more popular than Vista.

Credit: Microsoft

Microsoft sold 234 percent more boxed editions of Windows 7 than it did Vista in the initial releases of both products, according to research released Thursday by NPD Group.

In actual dollars, Windows 7 has also been more successful than Vista. However, early discounts on pre-sales copies and a lack of a promotional boost behind Windows 7 Ultimate led to revenues only 82 percent greater than those of Vista.

"Ultimate was a much bigger part of what Microsoft did with Vista, whereas this time I think they not only kept the price very high, but really kept the focus on the Premium product and the Premium three-pack," explained the author of the report, NPD's Stephen Baker, to CNET News. "Most of the promotional fire that they've put out there has been focused on those, for example, 'Buy a computer, get a $50 copy of Home Premium.' The pre-sales were all pretty much focused on Home Premium."

The numbers provided by NPD include both the initial sales of Windows 7 following its release on October 22 and pre-sales data from the discount program that Microsoft launched in July.

NPD declined to release actual sales figures for Windows 7, but the percentages help tell the story.

Web statistics firm Net Applications also found early adoption of Windows 7 to be strong.

Sales of PC hardware running the new OS didn't fare quite as well. Though growth in PC sales for the Windows 7 launch was at its highest level for the entire third quarter, it wasn't as strong as during the Vista launch, showing a 6 percent decrease from Vista's initial days.

A mixture of different factors affected the sales of Windows 7 PCs, notes Baker. Vista was launched in January, which traditionally offers a better sales environment than October. Also, the new OS was hurt by sales of PCs with older operating systems, which made up 20 percent of all sales during Windows 7 launch week. In contrast, PCs with older operating systems made up just 6 percent of all sales when Vista hit the market.

Baker doesn't think the current recession had a bearing on the lower PC sales for Windows 7's launch. "We've seen pretty strong sales growth on computers all year regardless of the recession," he said. "People have been buying more units of PCs all year than they had in 2008. At least from a unit perspective, we haven't really seen much impact on the consumer PC market from the recession."

After three quarters of losses, Lenovo has turned a profit again. The computer maker announced Thursday that its fiscal second-quarter earnings more than doubled to $53 million versus $23 million a year ago.

Profit for the quarter ended September blew way past estimates of only $24 million from analysts surveyed by Bloomberg.

Despite a 5.2 percent sales decline to $4.1 billion from $4.3 billion in the year-ago quarter, Lenovo achieved its profits through extensive cost cuts and a record leap in market share.

The company had previously kick-started a major restructuring program designed to trim expenses and streamline business operations. As a result, Lenovo was forced to lay off a sizable number of employees and take a one-time restructuring charge of $3 million in the second quarter. But the company now expects to save around $300 million annually.

During the quarter, Lenovo says it also saw its worldwide PC shipments surge 17 percent over the prior year, dramatically outpacing the industry average of only 2.3 percent.

"In the last quarter, our share in the global market climbed to a historic high and we returned to profit," said Lenovo CEO Yang Yuanqing in a statement. "At the same time, our expenses-to-revenue ratio improved notably, reaching the best level since the acquisition of IBM's PC division. These achievements bear witness to the clear strategies we set at the beginning of the year and our effective execution of those strategies."

Lenovo's quarterly results were powered by its notebooks, which contributed 63 percent to overall revenue. Though notebook sales dipped 1 percent from the prior year, shipments shot up 37 percent, compared with an industry average of 16 percent.

During the quarter, the company unveiled a few new products, including the IdeaPad U450p, a thin and light consumer laptop, and SimpleTap, an application to help users navigate the touchscreens on Windows 7-enabled machines like the ThinkPad X200 Tablet and ThinkPad T400s.

Desktop sales, however, fell 13 percent from the prior year's quarter, kicking in only 35 percent to Lenovo's overall revenue. Desktop shipments fell 2 percent, but outpaced the industry average of a 12 percent decline. The company said it has reacted to the PC market shift from desktops to laptops by introducing new entry-level low-cost desktops and revamping its product line for small and medium-sized businesses.

Lenovo enjoyed a stellar second quarter in its home base of China where sales jumped 9 percent to $2 billion. Shipments in the country jumped 28 percent compared with the average of only 0.1 percent. Already the leading PC vendor in China, the company boosted its market share there to 29.4 percent.

Earlier this year, Lenovo said that it would refocus its efforts on China and other emerging markets, a strategy that appears to have paid off.

"Our results are moving in the right direction and we are particularly pleased with our performance in China and in the transactional business model," said Lenovo Chairman Liu Chuanzhi in a statement.

The year had been a volatile one for Lenovo. The company was hit a string of quarterly losses, leading to the resignation of President and CEO William Amelio in February. Job cuts and the restructuring also took their toll.

But based on its second quarter, Lenovo is optimistic about the near term.

"In the coming quarters, we will continue to reinforce our leadership in China, improve the sustainability and profitability of mature markets, seize growth opportunities in emerging markets and our transactional business, continue to strengthen cost structure, and innovate with raising efficiency and customers' needs in mind," said Chuanzhi.