Sep 4

UTStarcom announced earlier today that it will sell its Personal Communications Division to a part of AIG Vantage Capital for approximately $240 million plus $50 million based on a three-year earn out provision. UTStarcom states in its news release that it is focusing more of its efforts on its core IP-based product offerings and the PCD business will be cordoned off as its own standalone company. The new company will be known as Personal Communications Devices (Still PCD, get it?) and will be taking over UTStarcom’s mobile device distribution, though UTStarcom’s handset business unit will continue to design and provide handsets and accessories for PCD to distribute. Sounds like consumers won’t see too much of a change as far as UTStarcom handsets go, but it’ll be interesting to see how the future of the company’s devices shape out now that the two divisions are separate.

(Credit:
UTStarcom)

UTStarcom

Aug 30

Well, here you go. Perry is one artist who gets it.

"File sharing is inevitable," says 23-year-old Katy Perry, a rising Internet music sensation.

Q: There used to be a time when artists looked down their noses at commercialism. They considered it selling out. You don’t seem to cater to that kind of thinking.
Perry: It’s never going to be like it was in ‘98. If you use your brain and think about yourself as an artist and a full package, there are so many other ways to create revenue, especially for me as a girl. I have a song out called “I Kissed a Girl” (which features a line about cherry-flavored ChapStick). If I want I could create a Katy Perry cherry ChapStick line…but I’m never going to hawk something that I don’t believe in.

Q: Does it bother you that you’re coming up in the music business at a time when revenues are disappearing?

Perry: For the music industry to avoid becoming a crumbling Babylon, the major labels have to figure out how to coexist with the Net. (File sharing) is inevitable. You just have to find new ways to sell music. The other day I saw some kids wearing bracelets with USB drives hanging from them. Inside was their digital music. You pull the (cap off the USB) and plug it into your computer, and you get the music and some artwork. I thought to myself I could make the coolest bracelets that could be in the shape of a heart and you break it apart to get the music. It could be another accessory you wear.

With her dazzling looks and saucy lyrics about smooching women, it’s tough thinking of Katy Perry as a geek.

(Credit:
Katyperry.com)

Q: You seem to really enjoy doing video blogs. Is that a marketing tool, or is it just a way to communicate with fans?
Perry: No, there isn’t anyone telling me ‘You must blog to sell records.’ I’m doing it alone and it’s cool because there isn’t anyone interrupting me, telling me where to stand, or to do this or that. Web blogging is just a great way to show people who you are. I know if I see a video, I get more invested in someone.

I’ve been through a lot of them and I’m amazed at the respect I’m receiving here.

In the past, lots of readers have commented in my stories that artists and labels have to come to grips with the fact that recorded music will never generate the mega millions it once did. And they should get about creating new business models built on digital technology before it’s too late.

Q: What do you think of the Internet, digital music, and all this futuristic stuff we’re seeing?
Perry: It’s so Blade Runner. I love living in the future, but I don’t know why we don’t have hovercrafts yet.

Q: In the digital age, artists like Trent Reznor and Radiohead are proving to some that we don’t need music labels. When are you going off on your own?
Perry: I think Radiohead has always been about the future, and have always said ‘We don’t give a f–k because we’re talented enough to do almost anything. But Nine Inch Nails (Reznor’s band) and Radiohead have solid fan bases and, for me, I’m a new artist and I appreciate the help I get from my amazing label (EMI’s Capitol Music Group). I don’t think all labels are the same.

Perry is the controversy-dogged pop singer who has owned the No. 1 spot on iTunes and Billboard’s “Hot 100″ for much of the past month. Her hit single, “I Kissed a Girl,” has alienated some moral groups as well as Fox News commentators on the way to selling nearly 1.5 million copies.

Perry knows plenty of people are resisting the massive sea change occurring in music. She, however, is determined to make the Web work for her.

CNET News spoke to her on Wednesday.

She is among the growing number of young performers who came up in the age of digital music and doesn’t know a world before the Web. At 23, Perry appeals to young and tech-savvy music fans. She was dropped from several music labels early in her career and acquired an education in music marketing from a digital-music hotbed. “I was like all the other people spinning demos on MySpace,” she said.

Nonetheless, the pop singer has immersed herself in digital music, video blogs, and more recently, the Internet-distribution strategies of Radiohead and Nine Inch Nails. “I’m Internet crazy,” she says.

Aug 20

Finally, the software lets people enter UPC bar codes of foods to build a database of things they like to eat and to learn about the nutritional value of what they’re consuming.

So far, WebDiet has added a quarter-million UPC codes into its system and expects to add more over time.

In the early going, the company is focusing on restaurants and restaurant chains with online menus. This means that some of the early restaurants in the system include fast-food chains like McDonald’s.

The first, called Mealsearch, is built to help people find healthy restaurant food no matter where they are.

For example, Gold said, McDonald’s will wrap a hamburger in lettuce instead of a bun for those looking for lower carb diets.

WebDiet’s new iPhone app searches for restaurants that meet certain dietary criteria. The service is expected to be available on additional mobile devices later this year.

And while it might be counter-intuitive to include fast-food, Gold, himself a vegan, said the idea is that even such restaurants have some items that are healthier than, say, a Big
Mac.

And as it grows, WebDiet is hoping to bring in revenue through commissions on orders placed at restaurants through a “buy now” system that lets people place advance orders. WebDiet will also collect revenue from some location-based ads that appear on people’s devices when they’re using the software.

It is designed to keep track of what people eat–so long as they are committed to entering that information on an ongoing basis–and will make meal suggestions based on what people have already eaten on a given day.

If you’ve got an
iPhone and a desire to maintain a healthier diet, the folks at a start-up called WebDiet may have your order.

The company’s new iPhone app has two major elements.

(Credit:
WebDiet)

The company, founded by Wendell Brown and Craig Gold, veterans of previous ventures like Teleo and eVoice, is expected to launch an iPhone app Monday at the DemoFall conference in San Diego. The app is designed to give people the information they need to eat better when they eat out.

According to Brown, it works by having people enter various dietary criteria that are important to them–such as being vegetarian, vegan, kosher, or wanting low- calorie or low-carb meals–and then combines that information with location-based data.

The service will be available initially for the iPhone but will also be coming to the BlackBerry, Nokia phones, and potentially Google’s Android down the line, Brown said.

The second major part of the service, which works in combination with Mealsearch, is a meal-by-meal guidance system, Brown said.

So, Brown said, if a person has a large lunch, the system will (politely) suggest a dinner lighter on calories.

And that’s precisely one of the points of the software: It aggregates and suggests off-the-menu options so that people can find food that meets their needs even at places they wouldn’t expect.

Aug 20

(Thanks to my friend Elf Sternberg for bringing the Times story to my attention, although I don’t think the story is anywhere near as significant as Elf does.)

The analyst business works the same way for all kinds of analysts– military, political, financial, and (as in my case) technology analysts.

Within any community of analysts, there will be some who can be bought, some who can be brainwashed, and some who can be bamboozled. Any given analyst will have some ability to think clearly and independently; each analyst decides whether to exercise that ability or simply regurgitate the spin offered by his or her sources.

The Times article claimed that the Pentagon’s influence turned these analysts into sock puppets, a claim supported by this quote from Robert S. Bevelacqua– a military analyst himself:

“It was them saying, ‘We need to stick our hands up your back and move your mouth for you.’”

The New York Times ran an article over the weekend (here) describing efforts by the Pentagon and the Bush Administration to influence the opinions of military analysts, primarily retired military officers, who contribute to coverage of the Iraq War and other topics by newspapers and TV news programs.

Analysts also bring in certain biases and preconceived ideas. I have my own, of course. I believe the companies I cover (or work for!) ought to do useful new work, respect the intellectual property of other companies, and deal honestly with its customers, partners, and competitors alike. I approve of technical monopolies– those created when a company is first to develop a technology– and I don’t approve of monopolies created by predatory trade practices. That still leaves room for plenty of hard competition, and I approve of that, too.

On the flight to Cuba, for much of the day at Guantánamo and on the flight home that night, Pentagon officials briefed the 10 or so analysts on their key messages — how much had been spent improving the facility, the abuse endured by guards, the extensive rights afforded detainees.

Ultimately it has to be up to the reader to critically evaluate every line of every news story. Readers shouldn’t assume analyst opinions are unbiased any more than they should assume that the facts in the story are complete or truly representative. But facts and opinions usually do have some basis in reality, and a critical reader can usually learn something about the truth of the matter in spite of all the biases that went into the story.

The Times article also suggests that it’s inappropriate for analysts to try to help their sources craft their public messages. Given that analysts are paid to have opinions, it should come as no surprise to the Times or anyone else that analysts like to share these opinions with everyone around them– sources as well as reporters. That’s the difference between analysts and reporters, after all; analysts are held to have enough relevant experience to justify having and expressing opinions. Reporters are not.

Does the New York Times really believe that this was inappropriate? The article doesn’t attempt to claim that these briefings, or the opinions later voiced by the analysts, were misleading or wrong. Apparently the Times believes it’s damning enough that the analysts accepted the Pentagon’s claims. But I have seen few if any cases of outright deception in my experience with analyst briefings (literally hundreds of them over the years). More commonly, spin is applied by withholding unfavorable facts and by withholding briefings from analysts who hold fixed and unfavorable opinions.

Sources– whether in the public or private sectors– have a very limited ability to influence these biases. Their best way to influence an analyst’s opinions is to make sure the analyst is aware of all the facts that are favorable to the source’s position. That’s what the Times says the Pentagon did in this case. For example, in attempting to counteract bad publicity generated by criticism of the Guantánamo facility by Amnesty International:

Now, the mere presence of such a quote from an analyst who was part of these Pentagon briefings should make it obvious to anyone that no amount of influence can turn every analyst into a puppet. The Times article was hopelessly, breathlessly hysterical over a simple fact of life… a fact that is familiar to everyone who deals with analysts in politics or the private sector.

A wise analyst is aware of these blind spots and simply refrains from offering opinions on them. For example, I doubt the Pentagon gave the analysts in the Times story any statistics on unauthorized corporal punishment of detainees by Guantánamo staff, and I doubt any of the analysts interpreted this lack of data as indicating such contact never happens. (I certainly have no idea whether it happens, so I’m not saying it does or doesn’t.)

And it usually doesn’t even matter what opinions an individual analyst holds. Reporters simply find analysts who will deliver the kinds of opinions they want. This “quote shopping” is inevitable and ubiquitous, and I’m not even going to say it’s wrong; reporters have to have this freedom. But it means that reporters– including David Barstow, who wrote this piece for the Times– are trying to influence their readers the same way this article claims the Pentagon is trying to influence military analysts. Barstow included dozens of quotes in his article to support his position, and only twice did he quote a military analyst defending his objectivity– although I’m pretty sure most would have done so if Barstow had given them the chance.

It’s certainly useful for the Times to periodically remind us all of how analysts develop their opinions, but it isn’t so useful to provide a view of the process that is as biased and misleading as this one.

(Credit:
US Department of Defense)

There are similar biases among military analysts. For example, some believe Islamic extremism and anti-American terrorism ought to be met with military force. Some believe the US ought to reserve the military option for more immediate or substantial strategic threats. I don’t even know any military analysts, but I can see their biases. Presumably military reporters at the New York Times see them too, and shouldn’t pretend otherwise.

Aug 20

The integration is something that Apple has lauded as an advantage it has over its competition for many. From the days of the
Mac and applications like iPhoto and iMovie, to the
iPod’s integration with iTunes and the music store, Apple has always tried to give users a simple way to interact with its hardware and software.

Apple’s
iPhone may not have the largest share of the smartphone market, but it certainly grabbed a hefty piece of the profits.

“Apple has the potential to become a de-facto standard of sorts in the consumer smartphone market, much like it became in the portable media player market with iPods, due in large part to its first mover advantage and tight software and hardware integration,” said Sacconaghi, in the AllThingsD post.

The iPhone’s popularity is evident in the company’s quarterly earnings posted on July 21. Apple reported selling 5.2 million iPhones, a 626 percent increase over the same period last year.

Sacconaghi goes on to talk about the advantages Apple has in the smartphone market, particularly the ecosystem it has developed in the App Store over the past year. Apple said in mid-July that it had 65,000 apps in the store and users had downloaded more than 1.5 billion apps in the first year the store was operational.

According to Bernstein Research analyst Toni Sacconaghi, who was quoted in an AllThingsD post, Apple managed to take 32 percent of the overall profits for the smartphone market. Sacconaghi also said in a research note to clients that Apple achieved that percentage of profit while only accounting for 8 percent of the industry’s revenue, according to the report.

Aug 20

Quite a kerfuffle has erupted over news in the last couple of days that Amazon is going to make print-on-demand (POD) publishers use Amazon’s own internal printing service if they want to sell their books on the site.

If you want lots more detail, here’s a lengthy article and plenty of links at Writers Weekly. I’m guessing that the blow-back has only just begun.

Cries of “monopoly” are ringing out, with Amazon getting compared to Microsoft and the tactic being called a “landgrab”.

Whether it rises to the level of being a true monopoly (and it’s still a bit unclear exactly what the details of the change are), it does make clear how Amazon has shifted from being just a retailer to taking on some aspects of being a publisher. In so doing it blurs what has traditionally been a distinction and in this particular case makes me worried about the chilling effect on the nascent POD market. With a major channel potentially effectively closed off, will the other popular players like Lulu and Blurb be able to survive, along with the budding authors they have helped bring to the public eye? These companies have relied on the prestige of being able to seamlessly get a book published on Amazon in order to attract authors. If that option is removed, their appeal would seem to be dramatically reduced for an author who wishes to sell more than a handful of copies.

Printing-on-demand has become a popular method for authors to bypass the large publishing houses with more niche or personal titles. And apparently the university presses have embraced it as well. So Amazon’s announcement has some fairly wide-reaching effects.

Aug 20

Though Samsung has previously discussed making OLED TVs, the company still has yet to release one. A year ago Toshiba also said it’s planning on investing in OLED panels. Sony is betting on OLED’s eventual domination of the display market, but it’s also heavily invested in LCD.

However, Panasonic, which owns the plasma TV market, doesn’t anticipate LCD or plasma TVs fading out anytime soon.

(Credit:
Michael Kanellos/CNET News.com)

The report quotes Samsung SDI’s VP of mobile display marketing, Woo-Jong Lee, who says that Samsung SDI will be able to produce 3 million panels in 2009, which is double what they can crank out now. Lee said the company anticipates doubling its capacity again by the close of 2010.

The liquid crystal display (LCD) industry probably doesn’t have much to worry about yet. OLED panels are incredibly expensive to produce right now, and, yes, they’re awfully pretty. (Sony’s 11-inch display achieves a 1 million-to-1 contrast ratio, which is by far the best available for a TV.) But even as production increases from one manufacturer, it doesn’t necessarily mean the prices will drop down to where flat panels have sunk. The 11-inch OLED TV from Sony costs $2,500. For that price you could also get a 50-inch Pioneer Kuro, generally regarded as the best plasma TV on the market.

Sony’s teased us for a bit with its impossibly thin, 11-inch organic light-emitting diode (OLED) TV, and finally brought it to the U.S. this year. Now it looks like there will be more to choose from in OLED TVs next year. Samsung SDI says that by 2009, not only will it have OLED panels for larger TVs, but also for monitors and notebook displays, according to a report in Digitimes.

OLED TVs on display at CES

Aug 20

For IBM, the joint nanotechnology lab is part of the company’s Big Green Innovations initiative to develop environmental technology.

Last November, OPEC members created a $750 million fund to do research on carbon capture and storage.

The oil minister of Saudi Arabia, Ali al-Nuaimi, told the French oil newsletter Petrostrategies that “one of the most important sources of energy to look at and to develop is solar energy,” according to an AFP report.

And the head of the Masdar Clean Tech Fund, based in Abu Dhabi, last month was named “Cleantech leader of the year,” at last week’s Cleantech Forum. The fund is behind Masdar City, which is being called the first sustainable city.

The lab is one of several indicators that oil-rich Middle East nations are moving rapidly into clean tech.

IBM and Saudi Arabia’s national research and development organization have created a joint nanotechnology lab to develop new technologies in solar power, seawater desalination, and recyclable materials.

An agreement to create the Nanotechnology Centre of Excellence, established by the King Abdulaziz City for Science and Technology and IBM Research, was signed last week in a ceremony in Riyadh.

Aug 20

When Samsung came out with the K5 in 2006, we were stoked to see an MP3 player with an unusual design trait: a nifty built-in speaker that flipped out from behind the device and propped the player up for optimal listening. It helped, too, that the K5 offered plenty of features and stellar audio quality, though we weren’t so keen on the super thick girth required to accommodate the speaker. Enter the S5, the K5’s slimmer successor that adds built-in Bluetooth to the mix. While the S5 suffers from a few minor drawbacks, such as a small screen and proprietary video support, it’s quite the worthy option for those with a penchant for top-notch audio quality and the capability to share tunes on the fly. Click the picture to launch the slide show, or click here to read the full review.

Samsung S5

Aug 20

(Credit:
HTC)

The following product is available:

On Sale Now: $154.99 - $211.25
View the latest prices for HTC Touch Dual (Unlocked)

While you’re out buying goods for your Memorial Day barbecue, why not swing by Best Buy and pick up a HTC Touch Dual? Yes, the Touch Dual will be available in stores and online starting this weekend for a nice chunk of change–$549 to be exact. First announced at CTIA 2008, the Touch Dual alleviates some of the text entry pains of the original HTC Touch by providing a slide-out SureType-like keypad. It will also be the first Windows Mobile 6.1 device available in the United States, and also features support for U.S. 3G bands (HSDPA 850/1900), Bluetooth, and a 2-megapixel camera. The HTC Touch Dual will be sold as an unlocked phone, so you can use with an AT&T and T-Mobile SIM cards.

HTC Touch Dual

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