Wireless

In the battle of the open-source mobile platforms, developers have at least two choices: Google Android, which is open source but (relatively) closed development, or Symbian, which is open source...once it gets around to releasing the full source code.

Guess which one is winning?

You can't code me, but at least you can buy me.

(Credit: Google)

Gartner expects Android to become the second-most popular mobile platform within the next few years as it continues to gobble up Symbian's declining market share.

But why?

Symbian has been dismissive of Google Android, as well as smaller upstarts like the LiMo Foundation, arguing that the latter is overly focused on middleware for wireless operators and the former is fake open source with more hype than substance.

All of which might be true, but the reality is that it seems to be working for Android. Google has been signing new handset manufacturers at a frenetic pace, while Symbian has been holding steady with Nokia...and that's about it.

Despite Symbian announcing new handsets, Google is actually shipping Android. There's a big difference between marketing and reality. Google Android offers the latter.

For all the buzz that Android gets from developers, its success owes more to handset manufacturers than to open-source developers. Handset manufacturers and wireless carriers are hungry for alternatives to surging Apple and declining Microsoft. And while others may not be seeing source code in copious amounts, handset manufacturers are apparently getting their fill.

More than this, though, Google gives them a safe, consumer-friendly brand. Symbian does not.

This is the reason Google Android is winning. It's not about developers--at least, not yet. Neither Symbian nor Android really offers developers open communities and open code.

No, the difference today is brand. Google has it. Symbian does not, and that's despite decade-long dominance of the mobile market.

Symbian still has a ways to go. It has a weak user interface (UI) that is supposed to get better, but that describes much that is wrong with Symbian today. Everything (source code, revamped UI, and resumption of market dominance) is always spoken of in the future tense.

Meanwhile, Google Android rolls on--not because it out open-sources Symbian, but rather because it out-executes it.

Windows Mobile lost 28 percent of its smartphone market share between last year's third quarter and this year's third quarter, according to market researcher Gartner.

Figures released Thursday by Gartner show that Microsoft's mobile OS had 11 percent of the global smartphone market in Q3 2008. A year later, it had 7.9 percent. Meanwhile, the iPhone's share rose from 12.9 percent to 17.1 percent, and Research In Motion's share jumped from 16 percent to 20.8 percent.

Symbian's share fell from 49.7 percent to 44.6 percent over the same period--a 10 percent drop.

Read more of "Windows Mobile loses nearly a third of market share" at ZDNet UK.

After a string of weak quarters, mobile phone maker HTC is eyeing more of the same for the current quarter but is hoping for better results next year.

The Taiwan-based company expects sales for the fourth quarter to drop to between 40 billion and 42 billion Taiwan dollars (between $1.23 billion and $1.3 billion), around 15 percent lower than in last year's fourth quarter.

Competition from other smartphones, especially the iPhone 3GS released this summer, has tempered demand for HTC's products, which include the Hero, Droid Eris, Tilt 2, MyTouch 3G, Snap, and Ozone.

HTC's (from left) Hero, Droid Eris, Tilt 2, and Pure.

(Credit: HTC)

Prices on smartphones have also dropped this year and are likely to continue to fall, putting further pressure on HTC, which trails the market in fourth place behind Nokia, Apple, and Research In Motion.

The company's third quarter continued its down streak, with full results reported earlier this week. For the quarter the ended September 30, HTC watched its sales drop 10 percent to 34.01 billion Taiwan dollars from last year's third quarter. Earnings fell 18.5 percent to 5.7 billion Taiwan dollars.

In a conference call this week, HTC outlined its current business and forecast for the near term. The U.S. market for HTC 's Android smartphones has enjoyed strong growth, the company said, but European sales remain sluggish due to a lack of brand awareness.

Market researcher IDC recently reported that HTC sold 2.4 million smartphones in the third quarter, a gain of 14.7 percent over last year's third quarter. But Android sales for that quarter were lower than expected, mostly due to tougher competition from other manufacturers and are likely to stay down in the fourth quarter.

The company has been striving to increase consumer awareness of its brand in both the U.S. and Europe, a goal it plans to push further next year by boosting its marketing budget.

For the holiday-shopping season, HTC will be trying to grab more shelf space and sales for its new Android Hero smartphone, released last month. Beyond that, the company is looking for strong sales volume from its overall line of Android smartphones, including the G1, Magic, Tattoo, and the new Droid Eris.

Despite its new focus on Google's Android operating system, HTC said that its Windows Mobile phones remain vital products. The company still ships more Windows Mobile smartphones than any other manufacturer and is looking to enhance their performance and touch capabilities in the near term. Hitting U.S. shores next year will be the new HD2 Windows Mobile smartphone, which has already had positive reviews.

(Credit: Marguerite Reardon/CNET)

Early indications suggest that the Motorola Droid could be the breakout hit phone of the holiday season.

You might not have guessed it from the lack of long lines this past weekend, but analysts believe that Verizon is seeing strong sales of the Motorola Droid. The device went on sale on Friday across the country. And unlike other big launches for phones such as Apple's iPhone or even the Palm Pre, retailers had plenty of devices in stock, and customers didn't have to stand in long lines to get their phones.

Neither Verizon nor Motorola is providing exact sales figures, but David Samberg, a spokesman for Verizon, said sales were very strong over the weekend, with a steady stream of customers Friday, Saturday, and Sunday. Store representatives in Manhattan confirmed this, with one sales associate telling me on Monday afternoon that there had been a steady stream of customers in the store all weekend and even through Monday.

Analysts also believe that the phone is selling well. Mark McKechnie, an analyst at Broadpoint AmTech, who covers Motorola, checked with a small sample of Verizon retailers around the country and said in a research note on Monday that he is encouraged by the anecdotal reports.

"While it is early, and the sample size is small, we are encouraged by our findings," he said.

McKechnie estimates that Verizon had about 200,000 phones in retail channels for the launch, with many stores in larger metropolitan markets, such as New York and Los Angeles, getting about 300 devices. Stores in cities such as San Francisco got more than a 100 devices, and retailers in smaller cities got between 25 and 40 devices each.

Locations were stocked well enough that there were no reports of any stores that were completely sold out. An employee at the Verizon Wireless store on West 34th Street in New York said his store had gotten about 500 Motorola Droids and HTC Android Eris phones for Friday. The store didn't sell out of either phone, but much of its stock is now gone.

That said, the store employee, who didn't want his name used, said his store did sell out of the $29.99 Droid docking station, which charges the device. As of Monday, the company still hadn't restocked its supply of that accessory.

McKechnie reported in his research note that the Droid outsold the HTC Eris, which also went on sale Friday. And checks with Verizon stores in Manhattan back up this claim. While there were plenty of customers looking at the HTC Android Eris in the Verizon stores I visited Monday afternoon, most people said they planned to buy the Droid. The main reasons were the device's higher-resolution screen, better camera, faster processor, and latest Android software.

Still, plenty of customers noted that they preferred the look of the HTC Eris over that of the Droid.

Verizon's marketing may also be paying off. Verizon is spending more money on the Droid advertising campaign than it has on any other device launch. At least one customer at the West 34th Street said Verizon's advertisements had convinced him to get the Droid instead of Apple's iPhone, which runs on AT&T's network.

"I was considering the iPhone," said Henry Goodison of the Bronx borough. "But I saw a commercial about AT&T's 3G coverage. It said, 'Here is AT&T's 3G coverage, and here is ours.' And I thought it would be better to have Verizon, if I travel to another state, where AT&T doesn't have 3G coverage."

AT&T is actually suing Verizon Wireless over this commercial, asserting that Verizon's advertisement is misleading consumers. Verizon dismisses this claim as untrue.

Big lines didn't form outside most Verizon Wireless stores the day the new Droid hit the market.

(Credit: Marguerite Reardon/CNET)

NEW YORK--The new Motorola Droid got a sleepy reception on Friday morning when it officially went on sale across the country in Verizon Wireless stores starting at 7 a.m. in some places.

From New York to San Francisco, most stores around the country had few if any lines when doors opened Friday morning. There was a handful of people waiting outside at the Verizon Wireless store on West 34th Street here in Manhattan. And about 20 people waited in line outside a store here on Sixth Avenue, as well as at one in Clifton, N.J., Verizon officials said.

CNET reporters in San Francisco reported they saw only about 15 customers lined up for the device before a Verizon Wireless store opened there Friday.

The scene was somewhat more lively last night, when Verizon Wireless opened its West 34th Street in New York City from midnight to 2 a.m. About 100 eager Droid customers were in line when the store opened last night. Verizon spokesman David Samberg said the company sold 85 Droids in the first 45 minutes the store was open on Thursday night.

But even though the Droid didn't stir enough enthusiasm to get people to stand outside on a cold November morning, there appeared to be a steady stream of customers in several Verizon Wireless stores. Many customers were interested in the Droid, while some were checking out the new HTC Android Eris, which also went on sale Friday.

Lines are overrated
Samberg said that a lack of a long line or shortage of devices is actually a good thing. And he urged people to not prejudge the phone's success on that alone.

I'm sure you've heard of Apple's App Store for the iPhone. But have you ever heard of an independent mobile app store called GetJar?

No? Well, that's not surprising. The tiny company now based in Silicon Valley has done virtually no marketing. And yet in the nearly five years it's been around, the company has managed to build the second largest application store front for mobile phones in the world, likely making it the biggest mobile app store you've never heard of.

The privately held Getjar claims it has nearly 57,000 applications in its store, making it second only to Apple in terms of total applications. Apple just announced this week that it now has more than 100,000 applications in its store.

Google's Android Market, which launched earlier this year has more than 10,000 applications. Research in Motion's BlackBerry App World has just more than 2,000 applications available today, according to estimates.

Since Getjar's virtual store went live in early 2005, about 650 million applications have been downloaded. And momentum has been growing. For the month of October, Getjar executives say the company saw its users download 55 million applications, which is a 267 percent increase over the same month a year ago when 15 million mobile applications were downloaded. And the company says that it has more than 300,000 registered developers uploading applications to its site.

Meanwhile, Apple's much-hyped and heavily marketed iTunes App Store, which is nearly twice the size of Getjar, as of September had more than 2 billion app downloads since the store was launched in July 2008. And executives at Apple recently said the company had 125,000 developers on its roster. By comparison, the Android Market has had an estimated 40 million downloads since it went live earlier this year.

GetJar got its start not as an application store but as a beta testing Web site for mobile developers. GetJar founder and CEO Ilja Laurs had started the site to allow developers a way to test their applications on a variety of handsets.

"Originally, we were trying to help developers who couldn't get access to certain phones for testing," he said. "But then developers came to us and asked if they could use the site to also distribute their applications."

And so the GetJar application store was born in early 2005. At first, the site attracted mostly hard-core mobile application fans. But over the years, word of the site has spread, and users all over the world come to GetJar to download different applications.

Unlike most of the other application stores that have been announced recently, GetJar's store offers mobile applications for almost any phone.

"With the GetJar store, consumers don't have to worry about whether they have an Android phone or a Java phone," said Patrick Mork, vice president of marketing for GetJar. "They don't need to know which model Nokia they have. We take the fragmentation out of the equation by auto-detecting what apps can run on which phones and offering consumers those applications."

The way it works is that GetJar is able to detect the type of phone a wireless subscriber is using when they connect to the GetJar mobile Web site. It can also detect the type of phone used from the regular Web site using a wireless subscriber's phone number.

A screen shot of a GetJar download page for the Facebook shortcut link.

(Credit: GetJar)

Based on this information, GetJar is able to direct app shoppers to the applications that will work on their phones.

"If there is a BlackBerry app available and you are using a BlackBerry you will get that application," Mork said. "But if you're on a feature phone, you'll likely get a shortcut link."

This is yet another important differentiator for GetJar. Unlike device or operating system specific app stores, such as Apple's App Store or Android Market, GetJar also provides millions of consumers using basic feature phones an app-like experience, even if a specific application hasn't been developed for their particular phone.

For example, GetJar has worked with Facebook to provide a downloadable shortcut link that leads to the Facebook mobile Web site for wireless subscribers who are not using a smartphone for which a special Facebook application has been developed.

While the link is not really a native application for that specific device, the link appears on the phone's menu and provides access via the phone's browser to a mobile Web site. For consumers, the experience is very similar to that of a native application that has been downloaded to a smartphone.

"Facebook didn't have a strategy for developing applications for Motorola Razrs and Samsung Instincts" Mork said. "So they teamed up with us to get around that problem by providing short cut links. It's really not an app. But the beauty of it is that it allows any company to play in the app game from a shortcut."

And for brands, such as Facebook, the shortcut increases their mobile presence. Before it started working with GetJar, Facebook would get between 100,000 and 150,000 downloads per week from its mobile site. After the shortcut, links were available on the GetJar site and on Facebook's site, Facebook started to see 1.5 million mobile downloads per week, Mork said.

But GetJar does have some limitations. One major limitation for consumers in the U.S. is that GetJar cannot offer applications to most phones operating on Verizon Wireless's network. The reason is that Verizon uses a closed platform called BREW on many of its phones. And there is no way for third-party application developers to create applications for these devices without going through Verizon's BREW approval process. But BREW is a legacy platform for Verizon, and newer smartphones on Verizon, such as BlackBerry devices and the new Android phones, will be able to access applications from GetJar.

GetJar also doesn't explicitly serve apps to iPhone users, again because the iPhone platform is closed. But iPhone users can use the GetJar store to discover new applications and GetJar can redirect those users to the Apple App Store, where they can download the applications.

Yet another limitation is that GetJar does not offer developers the ability to charge for applications. The company has not yet figured out how to bill for these applications. Instead, application developers can monetize their applications by incorporating advertising into the application or using the app on GetJar to up-sell consumers to a more robust application in a different application store.

But GetJar does allow developers to promote their applications, and the company has developed a marketplace so that developers can bid for top promotional spots on the Web site. GetJar gets paid based on how many users download these applications. Most other application stores today do not offer developers a way to promote their applications, which makes it difficult for smaller developers to get their applications noticed.

While there is no question that Apple dominates the mobile application market today, Mork admits that Apple's push into applications has been a boon for GetJar, and likely for other app stores.

"It's undeniable that Apple has had a positive effect on our business, especially in the U.S.," he said. "But we don't really compete with Apple. Still, it's clear that the mass market is just starting to catch on. And that is largely thanks to the success of Apple and its App Store."

NEW YORK--More than a hundred people were lined up at midnight outside a Verizon Wireless store in midtown Manhattan to be among the first people to buy the new Motorola Droid.

More than a hundred people showed up at a Verizon Wireless store in New York City at midnight to buy the new Motorola Droid Thursday night.

(Credit: Marguerite Reardon/CNET)

About 65 eager shoppers lined the south side of West 34th Street across from Macy's in Manhattan at 11:30 p.m. Thursday waiting for the store to open. Verizon opened the store from midnight to 2 a.m. to give people in the Big Apple a head start on the morning cell phone rush. By midnight, when the doors officially opened, about 100 people stood in line as Verizon officials ushered in customers 25 at a time.

Once inside the store, about 13 sales representatives and another four or five device specialists milled around, helping customers and demonstrating the phone's features. Representative were also helping customers transfer contacts to their new phone.

Verizon Wireless spokesman David Samberg said he felt confident that Verizon would be able to meet customer demand for the new Droid in New York City. The 34th Street store alone had at least 500 Droids as well as some HTC Android Eris phones, and Samberg said he expects anyone wanting to buy a Droid on Friday in New York City will be able to get one.

"Five hundred phones is a lot of phones to sell in one day," he said.

Most people standing in line for the new Motorola Droid are long time, loyal Verizon Wireless customers.

(Credit: Marguerite Reardon/CNET)

Most of the people standing in line at midnight for a Droid were loyal Verizon Wireless customers. Geoffrey Aravallis, who stopped to pick up his Droid on his way home from a dance club in the city, said he has been a Verizon Wireless customer for nine years.

He said he had been tempted to switch to AT&T for the iPhone but didn't because he felt Verizon has a better network than AT&T. Now that the Droid is out, he is glad he waited.

"I use Gmail and all kinds of Google services, so it's nice to be able to have all that on my phone," he said. "And the Droid is much more open than the iPhone."

Gabrielle Dahms admitted she had also been tempted to get the iPhone. But she had heard terrible things about AT&T's network and was leery about making the switch. Instead, she decided to wait for the Droid.

"It has all the features I like on the iPhone," she said. "Plus it has a real keyboard, which sold me."

Many people have been comparing the new Droid to the iPhone, and some have even called the new device the true iPhone killer. But judging from the people I talked with who were buying the Droid, it looks like it might be more of a BlackBerry killer.

Dahms and her boyfriend, Will Welch, had been BlackBerry Curve users. Welch said he had tried the BlackBerry Storm last year when it first came out, but he didn't like it. He also thought the iPhone was cool, but was unwilling to switch carriers for it. And he said he would have probably upgraded to the BlackBerry Tour if the Droid hadn't come along.

The Droid will hit store shelves nationally starting at 7 a.m. Friday in many stores around the country. CNET News will be covering the launch, so stay tuned for updates.

With the Moto Cliq, it matters what's inside.

(Credit: Motorola Cliq)

On Call runs every two weeks, alternating between answering reader questions and discussing hot topics in the cell phone world.

In the age of iPhone, Google Android, and Palm WebOS, a funny thing has happened on the way to the cell phone store. Though handset design has long been the focus of cell phone development, hardware manufacturers appear to be shifting their attention. Software is now taking center stage as companies struggle to distinguish their touch-screen devices from their competitors, and companies aren't being shy about this new focus.

The shift really hit home in September when we met with Motorola following the introduction of its Android-powered Cliq. As my colleague Tom Krazit wrote at the time, Moto CEO Sanjay Jha was clear that his company is resting its comeback attempt on its signature MotoBlur software. Jha characterized MotoBlur as more than software, but also as "emblematic of the shift towards software and the Internet as the main features in a modern mobile phone."

From a company that developed some of the most iconic cell phones in history (hello, Moto Razr and Startac), Jha's words were surprising. Software has always been a part of phones, but it has rarely defined them. Unless you were a smartphone buyer deciding between Windows Mobile and BlackBerry, most customers bought a phone and used the manufacturer's standard operating system without a thought. Sure, more savvy users had their strong preferences, and Verizon tried an abysmal standardized interface on its handsets, but elements like thin designs, colored faceplates, and messaging keyboards got the most attention.

Xperia X10

(Credit: Sony Ericsson)

Sony Ericsson has released details and a video of its upcoming Xperia X10 smartphone based on Google's Android operating system.

The X10, which had been code-named Rachel, has a 1GHz Snapdragon processor, which should make this one of the fastest Android phones yet. The phone will sport version 1.6 of Android--aka Donut--and it will run applications from the Android Market and Sony Ericsson's PlayNow arena. The device will also feature an 8-megapixel camera, with autofocus and an LED photo light.

Expect to see the Xperia X10 in stores in the first quarter of 2010. Meanwhile, here's a video that Sony Ericsson posted Monday.

Read more of "Sony Ericsson Xperia X10 hands-on photos: Hello, Rachel" at Crave UK.