Wireless

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.

(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.

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.

MOUNTAIN VIEW, Calif.--Google's Andy Rubin, head of the company's Android development, would like to clear something up: Google is not in the phone-making business.

Don't expect to see Google-developed hardware competing with the Motorola Droid anytime soon.

(Credit: Motorola)

Last week TheStreet.com reported that Google had plans to sell a Google-developed phone at retail this year, bypassing carriers with its own Android implementation. But Rubin, vice president of engineering for Android at Google, scoffed at the notion that the company would "compete with its customers" by releasing its own phone.

"We're not making hardware," Rubin said. "We're enabling other people to build hardware."

Now, Google has played a role in designing phones that have emerged with Android, such as the G1. For example, Google advocated the infamous hinge design on the G1 based on its desire to offer a phone with a five-row keyboard, Rubin said. That design was not popular with reviewers, however, and Rubin joked that perhaps that's why Google shouldn't make its own hardware.

But pushing for a design feature is a far cry from designing an entire phone, contracting with a manufacturing partner to build it, and working the distribution channels to get it to market. That would be "a fundamental shift" in Google's business model, Rubin said, and one the company does not seem prepared to make at this time.

Rumors of a so-called "Gphone" date back years, long before Google formally announced Android in November 2007. But Google's strategy to date has been a somewhat traditional volume licensing play, working with hardware and carrier partners to spread Android far and wide as the mobile operating system of choice, rather than following Apple's lead with a complete hardware and software design like the iPhone.

Almost two years later, the software is rounding into form with the release of several phones this year along with the pending release of the Motorola Droid, which runs Android 2.0 on Verizon's network.

Corrected at 5:50 p.m. PDT with Rubin's correct title.

Initial response to the new Motorola Droid smartphone on the Verizon Wireless network have been very good, thanks in large part to the updated Android 2.0 operating system.

A look at how multiple accounts are handled in the contact list of an Android 2.0 phone.

(Credit: Google)

The new updated version of the open-source operating system offers new Android phones a series of enhancements as well as improved performance. The updated software is being credited with enabling many of the cool new features, such as the updated version of the Google Maps service, which allows for voice command turn-by-turn directions.

The Motorola Droid for Verizon will be the first device that will use the new software. Sprint Nextel and T-Mobile USA will also be selling Android devices this holiday season, but neither carrier has announced a device that will use the updated version of the operating system.

But that doesn't mean that the Droid will be the only device running the 2.0 software this year. A Google representative said it's very likely at least one other phone will be introduced that uses the new version of the open source operating system.

One of the features that the updated software has added allows for the integration of multiple social-networking and e-mail accounts into the phone's contact list. This means that contact and calendar information can be synced with Microsoft Exchange e-mail services and also other Web e-mail accounts, as well as, social-networking sites like Facebook.

The new version of the software has support for Microsoft Exchange, which is a huge deal because it means that corporate users can sync their work e-mail with their phones. A search function was added to the SMS and MMS messaging feature. The software has also been updated to support a camera that includes a built-in flash, digital zoom, scene mode, white balance, color effect, and macro focus.

A look at a user's combined email on the updated Android 2.0 operating system.

(Credit: Google)

The new software has also improved the virtual keyboard layout to make it easier to hit the right keys as well as improved the typing speed. The 2.0 version of software supports an enhanced browser that allows users to directly tap the address bar for instant searches and navigation. It allows bookmarks with Web page thumbnails. It offers double-tap zoom. And there is full HTML5 support, which among other things allows for geolocation applications to be developed to provide location information about the device.

Overall the new improvements to the software should make the Android devices operate much faster than the previous generation of software. A Google representative said the software is backwards compatible with older versions of Google Android hardware. But it is up the carriers whether or not they allow users to upgrade their devices to the new operating system. And the carriers will be controlling the timing of these upgrades.

As for the new Android devices coming from Sprint Nextel and T-Mobile, they won't likely immediately have the Android 2.0 operating system, but it's likely these devices, along with new Android phones will come with the new version of the OS.

A Sprint representative said that traditionally the company pushes out or allows users to upgrade software when it's made available.

T-Mobile, which was the first carrier to offer an Android phone, will have four Google Android phones available for the holidays. Two are available today: the original T-Mobile G1, which launched in October of last year, and the T-Mobile myTouch 3G, which went on sale this summer and is available now for $149.99. T-Mobile is adding two more devices to line-up in time for the holidays: the Motorola Cliq which goes on sale November 2, and the Samsung Behold II, which does not yet have a launch date but will be available before Christmas.

As of November 1, Sprint will have two Android-powered devices as part of its lineup: the HTC Hero and the Samsung Moment, which costs $180 with a $50 mail-in rebate and a two-year Sprint contract.

Motorola Droid hands-on photos

NEW YORK--Verizon Wireless customers will soon be able to get their hands on the much anticipated Google Android phone called the Droid.

The companies officially unveiled the device at an event here. Like most smartphones of its class, the phone will cost $199 with a two-year contract. And it will be available to consumers starting November 6. Customers can pre-register for the device now. John Stratton, executive vice president and chief marketing officer for Verizon Wireless, said at the event that the device could be pre-ordered, but Verizon's public relations team said he mispoke, and users can simply put their name on a list to get more information about the device.

The Motorola Droid

(Credit: Motorola)

The device offers voice-activated search that allows users to speak a query and the Google-powered search engine will deliver Web results or results from the device such as contacts, music, and photos. The voice search also works with the new turn-by-turn directions for Google Maps. It allows users to view geographic information, such as My Maps, Wikipedia entries, and transit lines on the map.

Stratton said he had used the navigation service just yesterday on a trip to Arkansas. He said he simply spoke "gas station" into the phone and it quickly found nearby gas stations. When he clicked on one of them, it activated the turn-by-turn directions and he was given spoken directions right from the phone.

While the new Droid is loaded with lots of cool Android apps and has access to the more than 10,000 applications available in the Android Market, it does not have many of Verizon's branded services. For example, Verizon's VCast music service is missing in this version. But Stratton said that will be added eventually. And the phone does not have Verizon's VZ Navigator, since it comes bundled with the Google Android navigation.

The good news is that some of the services, such as navigation that Verizon charges for on devices running VZNavigator, will be free to users of the Droid.

In terms of the specifications, they are exactly what had been expected thanks to multiple leaks about the product. ... Read more

One App Store to rule them all?

(Credit: Apple)

Apple has an app store, of course. So does Microsoft. Google has two, one for Android and now one for Wave. In fact, it's hard to find anyone who doesn't have an app store these days.

We're swimming in app stores. Or drowning.

I'm serious. At the Symbian conference in London on Tuesday, I attended a panel that was overrun with app stores. Nokia, Symbian, GetJar, Sony Ericsson, Handmark, and Handango were all promoting their respective app stores, each talking about how great theirs is.

They're probably right. They probably are all great. But how am I, as a lay consumer, going to figure out which one to use?

More particularly, how will developers decide which platforms to target?

After all, everyone wants to be a platform these days. Does that mean that no one is?

Developers may be spoiled for choice, but "choice" in this case may not be what they want. Developers need to feed their families and will follow the money. Money is more easily made when choice is manageable (which is a euphemism for "limited").

This means we'll see plenty of application developers remain with Apple (though it's debatable whether the iPhone is the land of milk and honey for anyone but Apple), but we'll also continue to see a stampede to Google Android.

At present, every other mobile platform is playing for third place, but this could change: Symbian, as a foundation, is in a good position to launch an effective challenge to both Apple and Google if it can get its marketing and execution right.

Outside of mobile, it's unclear what role app stores will play. It's nice that Google Wave is getting an app store, but it's just one more "forge" among many. Every vendor (my employer, included) seems to feel an irresistible urge to create a forge/app store where third-party developers can "add value" to their "platforms."

Do we really need these? Or do we need more general repositories like Google Code and SourceForge?

I wish I had a definitive answer. I'm just not sure that these competing app stores do anything more than appeal to vendor vanity, and they could end up causing customer confusion.

As a consumer, I don't want to have to think about sorting among competing app stores. I just want applications.

Presumably, if I use a Sony Ericsson phone, I'll automatically find myself within its app store (unless my wireless provider doesn't slot me into its app store first, that is). But if that's the case, what's the point of making a big deal over a glorified catalog of applications that work with my given device/software/etc.?

It strikes me that app stores, like the cloud, are simply a way to dress up old ideas. If they help to organize potential buyers and sellers of software, great. But I still think I'd prefer meta-repositories of applications, similar to SourceForge, than individual application repositories for every single device or piece of software that I happen to buy.

How about you?