Wireless

Consumer demand for smartphones seems to be unstoppable.

In the third quarter, vendors shipped a record 43.3 million devices, up 4.2 percent from last year's third quarter and up 3.2 percent from this year's second quarter, says a report released Thursday by market researcher IDC.

(Credit: IDC)

Among smartphone vendors, Nokia still enjoys the greatest market share, according to IDC, with a 37.9 percent slice for the third quarter. ... Read more

In the battle between LTE and WiMax for wireless broadband, LTE may have just gotten another boost.

A group of leading telecom service and equipment providers, including AT&T, Verizon, Nokia, and Samsung, announced a new standard Thursday for delivering compatible voice and messaging services using Long Term Evolution (LTE) networks.

The standard, dubbed the One Voice initiative, offers a set of technical functionalities that telecommunication companies can use in their LTE services and products to provide both voice and Short Message Services (SMS).

The group of companies setting up One Voice (which also includes LTE proponents Orange, Telefonica, TeliaSonera, Vodafone, Alcatel-Lucent, Ericsson, Nokia Siemens Networks, and Sony Ericsson), see the standard as a way to provide interoperability for broadband voice and SMS services. The goal is to give telecom providers and manufacturers a convenient technical profile for working with each other and save customers from wrestling with different and conflicting LTE technologies.

LTE has been fine at supporting data, which uses IP-based packet switching. But it's faced challenges trying to incorporate traditional circuit-based switching voice and SMS services onto IP-based networks. One Voice is the group's attempt to resolve that issue.

The new specification will use existing functionality known as IP Multimedia Subsystem (IMS), which already defines how to provide data, voice, and other content over an IP-based network. IMS was established by the 3rd Generation Partnership Project (3GPP), a group comprised of telecom industry associations trying to set standards for 3G mobile networks.

"Open collaborative discussions have concluded that the IP Multimedia Subsystem-based solution as defined by 3GPP, is the most applicable approach to meeting the consumers' expectations," said One Group in a statement.

In recent years, LTE has been duking it out with WiMax to be crowned the upcoming broadband wireless standard. In one corner has been telecom giants like AT&T and Verizon, both of which have announced plans to deploy 4G wireless networks using LTE.

In the other corner has been Sprint, which is eyeing a rollout of its own 4G network using WiMax. Sprint owns a majority stake in WiMax provider Clearwire, a wholesale distributor of 4G services. Clearwire recently unveiled a huge WiMax testing sandbox in Silicon Valley where developers could play with the technology.

However, Clearwire has been waffling on the choice between LTE and WiMax. In a recent interview with Dow Jones Newswires, Clearwire CEO Bill Morrow said he would be willing to switch to LTE if helped the company.

The Samsung Jack.

(Credit: Samsung)

Fans of the Samsung Jack, I have some good news for you.

Samsung announced Wednesday that its Windows Mobile 6.5 upgrade is now available for the smartphone. The upgrade includes Windows Phone 6.5 Standard Edition and a handful of software enhancements. Major improvements include:

• Windows Marketplace for Mobile: Provides access to secure shopping. You can download the application instantly to the phone.
• Internet Explorer Mobile 6: It delivers the same Web-browsing capability as Internet Explorer for a desktop computer, including support for multimedia-rich content like Flash animation, YouTube, and social-networking sites like Facebook and MySpace.
• AT&T Wi-Fi integration: Samsung Jack users can now easily access more than 20,000 AT&T Wi-Fi hot spots in the U.S.
• Vlingo for Windows Phone: This voice-command feature lets you send text or e-mail messages, call friends, search the Web, open native applications, etc., just by speaking into the phone.

The upgrade requires a 32-bit Windows computer running either Windows Mobile Device Center 6.1 (for Windows Vista, 7) or ActiveSync 4.5 (for Windows XP). According to Samsung, the upgrade process takes between 5 and 10 minutes. Make sure you back up your phone data and sync your contacts with your computer before upgrading. The new firmware is available for free and can be downloaded from Samsung's Web site.

As Apple and Research In Motion have won a greater share in the Wi-Fi handset market over the past year, Nokia has lost share.

Though Nokia is still the leading vendor for dual-mode smartphones (Wi-Fi and cellular), its market share dropped to 35 percent in the second quarter, compared with 50 percent in the same period a year ago, according to a report released Monday from In-Stat.

The report "Wi-Fi in Mobile Phones: Dual Mode Becomes the In Thing" tracked the major Wi-Fi phone vendors, including Nokia, Apple, Research In Motion, HTC, and Samsung. Among those, Apple has enjoyed the greatest growth in market share, from 3 percent in the second quarter of 2008 to 20 percent in this year's second quarter.

Market share for both RIM and Samsung has also weakened the past few quarters, though less so than Nokia's. RIM's 15.7 percent chunk of the market for the second quarter of the year was down from its first-quarter high of 17.6 percent. Samsung's share has been relatively flat but usually dips a bit from the first to the second quarter, notes In-Stat.

In sheer unit volume, Nokia has done well the past few quarters, with 9.3 million Wi-Fi handsets shipped in the second quarter of the year compared with Apple's 5.2 million shipments. However, Nokia's shipments have dropped since the first quarter of 2008 when it saw 12 million units fly out the door. Over the same period, Apple, RIM, and HTC have seen their shipments grow.

As the No. 2 Wi-Fi handset vendor, Apple has also outsold third-place RIM in dual-mode phone shipments, says In-Stat. Though RIM still has a larger market presence, not all of its Blackberry devices include Wi-Fi. HTC and Samsung rounded out In-Stat's list as the fourth and fifth top Wi-Fi handset vendors, respectively.

(Credit: In-Stat)

The report also detailed the growth of the Wi-Fi smartphone market overall. The industry shipped 37 million handsets in 2007, and 103 million units in 2008. That rise is because of several factors, notes In-Stat, including greater functionality, lower prices, and carrier promotions. Initially targeted to the business market, smartphones are also now an entrenched hit with consumers, which In-Stat attributes to the success of the iPhone.

Wi-Fi handset shipments are expected to rise just 25 percent to 128.4 million units for 2009. That compares with a nearly 180 percent jump in 2008.

But In-Stat sees gains ahead. By 2010, the growth rate is likely to climb to 43 percent. Though that rate may not be sustainable, it should remain strong in the coming years. Wi-Fi will also become more prevalent in mobile phones. This year, 11.5 percent of handsets include Wi-Fi; by 2012, that figure will grow to 25 percent, predicts In-Stat.

To compile the report, In-Stat relied on its own data as well as interviews with Wi-Fi equipment vendors.

The cell phone sales slump may soon be over.

The global cell phone industry captured mild gains in the third quarter, with total shipments reaching 287.1 million units, according to a report released Friday from IDC. That number marked a 6 percent decline from the same quarter in 2008 but a 5.6 percent jump over 2009's second quarter.

With the third-quarter figures, the mobile phone business is likely showing the first signs of a rebound since the recession, according to IDC's "Worldwide Mobile Phone Tracker." During the third quarter, the industry pushed older devices at lower prices, leading to greater demand and higher volume, said IDC.

Another report released Friday, this one conducted by Strategy Analytics, offered similar findings and forecasts for the cell phone trade. The report, called "Q3 2009 Global Handset Market Share Update," pegged cell phone shipments for the third quarter at 291 million, slightly higher than IDC's number.

Since the rate of decline was slower than in the previous quarter, Strategy Analytics expects the industry to see positive growth in the fourth quarter as the recession winds down.

"We forecast 300 million handsets to be shipped worldwide in Q4 2009, growing 3 percent from 294 million units in Q4 2008," said Strategy Analytics Director Neil Mawston in a statement. "We believe this will be the first time the industry has returned to positive growth since Q3 2008, signaling an end to the handset recession after four quarters of decline. Consumers and handset vendors are gradually regaining a little confidence."

(Credit: Strategy Analytics)

In North America, the U.S. enjoyed solid results in the third quarter, with smartphones and prepaid handsets driving growth. But the Canadian market showed a downturn for the third straight quarter due to a weak economy and sluggish demand for traditional mobile phones.

Latin America's third-quarter recovery was also less than stellar, hit by weak consumer demand and a decrease in cell phone subsidies. The industry suffered in Asia/Pacific as well, with China, India, and Indonesia seeing slight declines, though demand for smartphones remained strong.

The brightest spot was in Western Europe, where third-quarter sales of traditional mobile phones and smartphones grew over both the second quarter and the third quarter of 2008.

"Although some regions are still reeling from problems associated with the economic crisis, the third quarter served to cleanse the channel while providing the signs of stability necessary for additional improvement in the fourth quarter," says Will Stofega, research manager of IDC's mobile devices team, in a statement.

IDC also reported on the quarterly activity of key mobile phone makers.

Nokia continued to struggle, hit by a 20 percent decline in sales for the third quarter. As part of one strategy to stem the tide, the company kept busy with several acquisitions, including Dopplr, Cellity, and part of Plum Ventures, a developer of social networks.

Samsung fared considerably better. The company hit a new quarterly record by shipping more than 60 million cell phones in the third quarter, thanks to demand for both touch-screen and QWERTY messaging devices. During the quarter, Samsung grabbed a 21 percent share of the market, said Strategy Analytics.

LG Electronics also hit a new mark, shipping 30 million units for the quarter. But a paucity of smartphones and prepaid handsets kept the company from benefiting from those segments.

Though Motorola slipped in its ranking among cell phone makers, the company trimmed its operating losses through a restructuring program. Shifting its focus away from traditional cell phones to smartphones, Motorola has high hopes for its new Droid phone, due to hit Verizon stores next week.

Strategy Analytics also tracked Apple's stellar third quarter, reporting a solid 7.4 million iPhones sold worldwide and a record 2.5 percent market share.

Samsung announced its second Google Android Phone, the Samsung Moment at the CTIA Fall Show.

(Credit: Marguerite Reardon/CNET)

SAN DIEGO--After two years of waiting, Google Android phones are finally hitting the market en masse.

In the past couple of months, nine devices using Google's mobile operating system have been announced, including the Motorola Cliq, which goes on sale in November, and the new Samsung Moment, which was announced Wednesday at the CTIA Fall 2009 trade show here. The pipeline is full of more Android devices, some of which have been confirmed and some that are still rumored to be in development.

"We are seeing a lot of interest in Android here," Kim Titus, a spokesman for Samsung, said Wednesday at the CTIA trade show, where the company is showing off its two Google Android handsets--the Samsung Moment and the Samsung Behold II. "I think these devices have an opportunity to become strong cross-over devices appealing both to business customers as well as to consumers and prosumers."

U.S. wireless operators are also jumping on the Google Android bandwagon. So far, T-Mobile USA, the smallest of the four nationwide carriers, has been the only U.S. wireless operator to offer Android devices. Once the Motorola Cliq and the Samsung Bold II launch, T-Mobile will be offering four different Google Android devices on its network.

But T-Mobile won't be the only Android carrier in the U.S. for much longer. Starting next week, Sprint Nextel will introduce its first Android phone, the HTC Hero. And a couple of weeks later on November 1, it will begin selling the newly announced Samsung Moment.

Verizon Wireless, the nation's largest wireless operator, will also be getting two new Google Android phones in the coming weeks. Verizon executives wouldn't provide specifics about the devices, but one of the devices is expected to be from Motorola. Verizon and Google said Tuesday that they will be working closely to introduce new Google Android phones.

Even AT&T, the second largest wireless provider in the U.S. and the exclusive U.S. carrier for the iPhone, is expected to have a Google Android phone soon. On Wednesday, the Wall Street Journal published a report stating that AT&T will be offering Dell's soon-to-be announced Google Android phone.

Device makers see Android as their biggest hope to compete against Apple's iPhone and Research in Motion's BlackBerry devices in the smartphone market. Both Apple and RIM develop their own software that is proprietary to their homegrown hardware.

The Samsung Moment up close at the CTIA Fall 2009 Show.

(Credit: Marguerite Reardon/CNET)

Like the Google Android operating system, Microsoft's Windows Mobile platform can also be used on different hardware. But as Microsoft struggles to keep pace with the rapidly changing mobile market, some device makers, such as Motorola, are gravitating toward Android. This is not to say that Microsoft is out of the game. In fact, the company just announced Windows Mobile 6.5 this week at CTIA, but experts, such as CNET's own Bonnie Cha, believe the upgrade is incremental with a bigger overhaul of the software not expected until next year.

Meanwhile, momentum is growing for Google Android phones.

Google unveiled its Android open development operating system in the fall of 2007. It took a year before the first Android phone, the HTC G1 sold by T-Mobile, was introduced. Many industry watchers had expected other handset makers to start announcing their own Android devices in February 2009 at the GSMA World Congress trade show in Barcelona. But the show came and went with few mentions of Android.

Later that spring, people were expecting Android announcements at the CTIA's spring trade show in Las Vegas. But device makers kept mum. In June, T-Mobile USA and HTC introduced the second Android handset into the U.S. market, the MyTouch. This phone was supposed to be a more refined version of the G1 and was designed to appeal to the mainstream wireless consumer.

Now as Android is about to hit its second birthday, the much anticipated flood of Android device announcements is beginning. Manufacturers, such as Samsung, Motorola, LG and HTC are announcing multiple Google Android devices. Motorola's co-CEO Sanjay Jha said this week that he expects his company to introduce "multiple tens of products" using the Android operating system.

Even phone makers Sony Ericsson and Nokia, which historically have built phones using the Symbian operating system, are rumored to be working on Android handsets. The operating system has even appealed to companies not traditionally in the cell phone business, such as laptop makers Lenovo and Dell and Chinese telecom equipment maker Huawei.

While Google Android may give device makers, such as Samsung and Motorola, a way to compete with the iPhone, it could be difficult for them to differentiate their products. So far, the Android devices that have been announced look very similar. All of them sport a touch screen that takes much of the face of the phone. Some, like the Motorola Cliq and the Samsung Moment, also have QWERTY keypads that slides out for consumers who like the feel of real keys.

Samsung's Titus said there are subtle differences in the hardware. For example, the Samsung Moment uses a bright OLED screen that makes images sharper and colors more vibrant. The screen is also designed to be more energy efficient. And the Moment uses much faster processors that most other cell phones. But he conceded that because all the devices use a touch screen that they look very much alike.

"When you have a screen that takes up so much of the landscape, it's not surprising that they look somewhat similar," he said.

Since the Android platform is completely open, the real customization will likely be software based. For example, the Samsung Moment, which will be sold on Sprint's network, comes preloaded with applications and features specific to Sprint's network. These applications include Sprint's navigation service and applications for NFL and Nascar, two organizations which have special relationships with Sprint.

Motorola has also customized the user interface for its Cliq phone and it has introduced Motoblur, a social-networking-optimized version of the user interface. Motorola executives told developers at its conference this week that it expects some but not all of its new Android phones to come with Motoblur installed.

While handset makers and wireless operators may be tempted to further customize the Android software, doing so is risky since the promise of an operating system such as Android is to provide developers with an easy and open way to develop applications that can be downloaded across multiple devices.

So far developers have already created more than 10,000 applications for Google Android devices. These apps can be accessed through the Google Android Market. Big developers, such as Facebook, have already begun developing Android specific applications. And at its developer conference, Motorola announced a series of new apps available for the new Cliq, including Accuweather, the Barnes & Noble eReader, MySpace, and QuickOffice, the company said.

But as new devices are introduced on different carrier networks, it will be interesting to see if these applications in the Android Market will work across all the different hardware. If they do, they could drive more Android device development, which could lead to the Android mobile platform actually living up to the hype that was promised nearly two years ago. And if they don't, then Android will likely become just another mobile operating system that further fragments the market.

NEW YORK--Green is the new black in wireless as companies like Sprint Nextel and Samsung announce new products and programs geared toward environmental sustainability.

Samsung Reclaim

(Credit: Sprint Nextel)

At a press event Thursday at the Cooper-Hewitt National Design Museum here, the companies announced a new eco-friendly device called the Reclaim and an overall strategy to green the wireless market.

The news comes as consumers are increasingly buying products and services based on environmental sustainability. From energy-saving light bulbs to hybrid cars and now environmentally-friendly cell phones, green is all the rage.

For Sprint, which has been plagued by a poor customer service reputation for the past couple of years, the move toward becoming more green is seen as a way to help revive its brand as a company that is socially conscious and environmentally aware.

"There are many customers who care very much about the environment," said David Owens, Sprint's director of customer acquisitions. "These are customers who buy products and services from companies they feel are good companies with good sustainable products. So we think that people will come to Sprint because of that. And then we hope the other improvements we've made in our network reliability, device line-up, and customer service will keep them with us."

"We really are a different company than we were 18 months ago, but there's been a bit of a perception gap between," he added. "And we're trying to change that."

According to the Natural Resources Defense Council, more than 100 million cell phones are tossed every year in the United States alone. These devices have the potential to leak mercury, cadmium, arsenic and other substances into water streams if they're thrown in the trash and end up in city landfills.

All the major wireless operators have had a recycling program for years. Verizon Wireless has a program that allows people to take their old cell phones and donate them to HopeLine, a resource for victims of domestic abuse, or other charities. AT&T has a recycling program that offers refurbished phones to soldiers serving in the military. AT&T has also announced a major commitment to using alternative-fuel vehicles.

But now Sprint says it wants to be a leader on the environment. It announced Thursday that it plans by 2017 to be recycling or reclaiming 90 percent of its devices that will be in the market. Sprint's collection rate today is about 35 percent, which is higher than the industry average.

The company has also committed itself to reducing its own greenhouse gas emissions by 15 percent by 2017 and to also use renewable energy for about 10 percent of its energy consumption by that time as well. Currently, about 90 percent of the power used at the company's headquarters in Overland Park, Kansas comes from renewable energy sources like wind.

Also as part of this agenda to make the earth a better place, the company has adopted a set of minimum environmental standards for devices it sells for its network.

Owens said the Samsung Reclaim, the device announced Thursday, is the first handset to exceed these requirements and the first to be highlighted as part of Sprint's "green" agenda. But he said it will not be the last. In fact, all devices sold by Sprint going forward will meet the new requirements and the company plans to sell other devices from other manufacturers that exceed the guidelines starting next year, he said.

"If this was an announcement about a single device that is eco-friendly, then it wouldn't really be that interesting," he said. "What we are really saying with this device is that it's just the beginning."

One of the biggest requirements for Sprint's new environmentally friendly devices is recyclability. The Samsung Reclaim does a very good job of hitting this mark, Owens said. The device itself is 80 percent recyclable. About 40 percent of the device's outer casing is made using an eco-friendly bioplastic, which is derived from corn. The device is also free of many harmful components such as polyvinyl chloride (PVC), phthalates, and almost all brominated flame retardants (BFR).

The Reclaim also comes with an energy-efficient charger that is Energy Star rated and consumes 12 times less power than Energy Star standards for standby power consumption. And it's equipped with an alert light that lets users know when the phone is fully charged.

Additionally, the device packaging is green. The box and phone tray are made from recycled material. Sprint has also done away with a bulky user manual and instead is offering a link to a full user manual online. And a soy-based print was used for any printed material that does come with the phone and for the ink used to label the box. While reducing the bulk of the packaging is good by itself, Sprint executives say that it also helps cut down on shipping costs, which ultimately helps reduce the green house gas emissions.

Samsung isn't the only cell phone manufactures with environmentally friendly products. Motorola's W233 Renew handset is made of a plastic casing from recycled water bottles. It's being sold by T-Mobile USA. And in June, Sony Ericsson announced two new eco-friendly phones. Nokia has also shown off prototypes of eco-friendly devices.

What makes the Samsung Reclaim somewhat unique is that customers buying it won't have to sacrifice features to be green. And they won't have to pay an arm and a leg to buy a phone that is supposedly less harmful to the environment.

Some of the advanced features included on the phone are 3G wireless network access, GPS and location-based services, access to corporate and Web-based e-mail, and one-click access to Web sites like Facebook and Twitter. These features and the slide out QWERTY keypad make it a good crossover device for consumers who may not need the power of a smartphone but want some of the basic features available via a smarpthone. And at $50 with a two-year contract, the Reclaim is priced right for the average consumer.

By contrast, Motorola's Renew is a basic bare-bones cell phone with no extra bells and whistles. This fact alone limits the number of customers interested in the device since users will have to sacrifice features that are increasingly becoming commonplace in other popular phones on the market.

"Dan (Hesse, Sprint's CEO) wanted to make sure that this device was priced for the masses," Owens said. "It wouldn't have much impact on the market if it didn't offer the features customers want or if it was priced too high."

Like Sprint, Samsung also sees itself as a leader in the green wireless movement. The company on Thursday said it plans to spend $4.3 billion over the next four years on environmental management to ensure that its products and its business practices including manufacturing are less harmful to the environment. As part of this effort, the company has pledged that 100 percent of its devices manufactured by 2013 will exceed eco-friendly standards set by environmental groups.

"Samsung has had a strategy to improve the environmental impact of our products and our company for more than 20 years," said Omar Khan, senior vice president of strategy and product management for Samsung Mobile. "So this is not a new focus for us."

Khan said the company has already done an extensive amount of research to ensure that the materials and processes the company uses to create more sustainable products are also not harmful to the environment. And he said that manufacturing the Reclaim, which uses bioplastics, reduces the carbon footprint for manufacturing devices by 40 percent compared to manufacturing phones using traditional petroleum plastics.

"It's very important for us to analyze the entire manufacturing and sustainability of a product to ensure that the process in general is healthier for the environment than the traditional way of doing things," he said.

No U.S. carrier has been announced for the Jet.

(Credit: Samsung)

At an event in Manhattan Monday, Samsung unveiled its new Jet smartphone, which features a fast 800MHz processor and Samsung's proprietary OS that includes its Dolphin Web browser. Alas, the Jet won't be flying into the U.S. anytime soon, though its designation as a UTMS phone leaves AT&T as its most probable destination if it does hit these shores. All that said, it is available for the rest of the world later this year.

Unlike the Omnia 2, which was also announced at the event, Samsung did have the Jet on hand for reporters to play with. Several remarked that the touch screen seemed quite responsive despite being resisitive. But there was some disappointment that the phone didn't seem even zippier with that 800MHz processor (until now, smartphone processors have tended to top out at 600MHz). However, Samsung reps said the software wasn't final and was still being tweaked. (It was also impossible to test the Dolphin browser because there was no network connection).

All in all, the look and feel of the Jet was appealing. It's smaller than the iPhone and is more on par with the size of the Palm Pre. However, we're just not sure how appealing a proprietary OS is at this point when you have an open OS like Android sitting out there.

Samsung Jet smartphone

Here are the Jet's specs:

Samsung Jitterbug Dial is affected by a recall.

(Credit: CNET.com)

Samsung has just issued a recall for all Jitterbug phones sold after March 1, 2008. The Jitterbug phones, as you might recall, are simple clamshells designed for seniors, mostly for emergency purposes. Apparently some of these affected phones can sometimes fail to connect to 911 services when outside of a defined calling area, which is definitely a problem for a phone that's designed to assist the elderly in case of emergencies. Both models of the Jitterbug are affected by the voluntary recall, the Jitterbug Dial and the Jitterbug OneTouch, respectively.

Jitterbug has said that this does not affect basic cell phone services, and its 160,000 or so customers can still make and answer calls, as well as to 911 services, as long as they have a cell signal. This software problem happens only when the phones are roaming outside of their service areas. Still, we would definitely encourage you to either visit a designated Samsung service center or send the phone directly to Samsung for a software upgrade.

Customers who are affected by the recall will receive a letter in the mail as well as a prepaid envelope to send the phone back. Samsung promises to return the phone in about a week.

(Via Phone Scoop)