Europe overtakes US as top PC market: survey

Global shipments of personal computers rose 15.3 percent in 2005 with Dell extending its lead over Hewlett-Packard and Europe overtaking the United States as the largest market, a survey showed on Thursday.

Reuters reports in The New York Times (19 January) that worldwide sales of personal computers (PCs) rose to 218.5 million units in 2005 from 189.5 million in 2004, according to preliminary data from market research group Gartner.

Shipments in Europe, Middle East and Africa grew 17.1 percent to 72.7 million units, overtaking the United States which grew 7.5 percent to 67 million. In 2004, the United States still slightly exceeded Europe, both regions taking about 62 million units.

According to Reuters, the fastest growth in 2005 was in Asia Pacific and Latin America where units sales increased 26 percent to 42.8 million and 14.7 million respectively.

Dell continued to grow more than the industry average, as its worldwide PC shipments grew 18.6 percent in 2005. Its global market share ended at 16.8 percent, up from 16.4 percent.

``However, Dell's worldwide growth rate started to slow down in the second half of 2005. During the fourth quarter, Dell's growth slightly exceeded the worldwide average, and it gained more from overseas markets,'' Gartner said in a statement.

The Reuters report says that according to Gartner, global number two Hewlett-Packard lost a little bit of ground to its closest rivals as its market share slipped to 14.5 percent in 2005 from 14.6 percent in 2004.

Third placed Lenovo from China, which took over IBM's PC operations, increased its market share to 6.9 percent from 6.8 percent, and Acer from Taiwan expanded to 4.6 percent market share from 3.4 percent in 2004.

Fujitsu and Fujitsu-Siemens remained steady at 3.8 percent, and were overtaken by Acer.

The Reuters report says that in the United States, fourth-quarter results confirmed that the US professional market replacement cycle has peaked.

In general, shipments of portable computers were growing fast and desktop computers were not, and Gartner said many shipped PCs were still sitting in warehouses.

Gartner said: ``Concerns over inventory continue to exist. With the exception of Hewlett-Packard, all the vendors increased their average days of inventory over 2004, rising for some of them by more than a third.

{mospagebreaktitle=Apple profits rise}Apple profits rise

Benefiting from brisk holiday sales of iPod music players, Apple Computer has just reported that its profit nearly doubled in the first quarter. But its outlook for the second quarter fell well below Wall Street's expectations, causing its stock to fall as much as 7 percent in after-hours trading.

The New York Times reports (19 January) that Apple's report came after disappointing forecasts from Intel and Yahoo on Tuesday sent the technology sector into a sell-off that continued into Wednesday. EBay's outlook, announced late Wednesday, also fell short of expectations, and its after-hours trading suffered.

Bucking the trend in technology stocks, Advanced Micro Devices, the No. 2 chip maker after Intel, soared almost 11 percent in extended trading after it far surpassed analysts' forecasts with its fourth-quarter results.

The newspaper said that Apple investors were not satisfied after the company said net income for the first quarter, ended 31 Dec. increased to US$565 million, or 65 cents a share, a 95 percent increase over the same quarter a year ago when net income was US$295 million, or 35 cents a share.

The company had revenue of us$5.75 billion in the first quarter, a figure that Steven P. Jobs, the chief executive, had already revealed last week at the annual Macworld Expo in San Francisco. That is a 64 percent increase over the first quarter of 2004, when the company posted revenue of us$3.5 billion. The first quarter included 14 weeks, rather than the usual 13.

{mospagebreaktitle=Report: China internet population hits 111m}China internet population hits 111m

China's internet population, already the world's second largest after the United States, has risen to 111 million, state media reported.

The Associated Press reports in The New York Times (18 January) that the number of Chinese using the internet grew by 17 million from the same time last year, the reports said, citing figures released by the official China Internet Network Information Centre.

The agency said the number of people with broadband internet access rose by more than 50 percent to 64 million over the past year.

According to the AP report, the statistics showed a wide gap between internet use in China's cities and rural areas, the reports said. They said only 2.6 percent of people in the countryside are online, compared with 17 percent in cities.

AP says that China encourages internet use for education and business but tries to block its use to spread opposition to communist rule. The government blocks access to foreign web sites deemed subversive or pornographic and has arrested dozens of people in a crackdown on sexually oriented online material.

{mospagebreaktitle=Survey finds Google is strong in China}Survey finds Google is strong in China

A survey of Chinese Web surfers found US-based search giant Google in an unexpectedly strong position to challenge domestic rival Baidu.com, according to results released Wednesday.

The Associated Press reports in The New York Times (18 January) that Google came in first in 11 of 13 categories in the survey of 1,200 internet users, said Keynote Systems, a California-based firm that studies consumer data for online firms.

According to the study, that was despite Baidu's widespread popularity in its Chinese home market, where it is the preferred search engine for 48 percent of users, according to Chinese government data cited by Keynote.

AP reports that the survey covered Chinese-language search sites run by Google; Baidu; Yahoo's Chinese partner, Alibaba.com, and the Chinese firm Sohu.com.

Google is a latecomer to China, the world's second-largest internet market after the United States, with more than 111 million people online as of the end of 2005.

The AP report says that competitors in China's fast-growing search industry face unusual challenges in dealing with a language based on pictographic characters and distinctive consumer demands.

{mospagebreaktitle=Hackers attack UK student's web site}Hackers attack UK student's web site

A web site that earned an enterprising British student US$1 million suffered a crippling attack by ransom-seeking hackers.

The Associated Press reports in The New York Times (18 January) that Alex Tew, 21, said Wednesday that his Million Dollar Homepage was targeted after he publicised how it had helped him raise money for his university studies.

Tew had sold 10,000 small squares of advertising space on the web site for US$100 each, achieving his target in four months. His initiative spawned several copycat sites.

But Tew said that on 7 Jan., he received a threat from an organiSation calling itself ''The Dark Group,'' demanding that he pay them $50,000 within 72 hours or face having his site taken down.

AP reports that Tew said he did not reply to the e-mail and had no intention of paying.

Tew ignored the threat. Hackers then initiated a so-called distributed denial of service, in which attackers take command of third-party computers, through a virus or other security vulnerability, and instruct them to send junk data to the target site, overwhelming servers and causing the site to crash or perform poorly.

AP reports that Tew said the site now works normally.

{mospagebreaktitle=US state: computer, tv makers start bearing cost of recycling}US state: computer, tv makers start bearing cost of recycling 

In the US Maine became the country's first state to require manufacturers to pay the entire cost of recycling old televisions and computer monitors when a state law went into effect on Wednesday.

The New York Times reports (19 January) that under the law, passed in 2004, consumers bring old televisions and monitors to a transfer station, which takes the products to one of five state-approved recycling centers. The devices are then separated by manufacturer and recycled. The center bills the company for the cost.

The law was a response to a debate over how to dispose of electronic waste and who should pay for it. A push for a national law failed a few years ago, and states have since taken the lead. Three, including Maine, have enacted laws.

The newspaper says that California places a surcharge of US$6 to US$10 on new products at the time of purchase; the money goes to a state recycling program. In Maryland, manufacturers pay a fee each year to help cover recycling; the money helps provide grants to cities and towns.

Washington State is considering a law similar to Maine's. At least 20 states are exploring the issue.

According to the NYT.,before the law went into effect in Maine, consumers paid municipalities US$15 to US$50 to dispose of each TV or monitor. Residents will now pay only a fee of US$2 an item for transportation to the recycling center. The state will ban electronic equipment from landfills starting in July.

In Maine, Hewlett-Packard supported the state's approach while other companies preferred a law like California's.

The estimated cost to companies is in the tens of thousands of dollars. Products of companies that no longer exist are recycled by others based on market share.

The newspaper says that companies worry that the state will not be able to enforce the law, giving an advantage to those that do not pay their bills or cannot be found.

{mospagebreaktitle=RIM: BlackBerry shutdown may hurt US}RIM: BlackBerry shutdown may hurt US

Research In Motion says its BlackBerry e-mail device is so critical that a court-ordered shutdown of US service could threaten public safety and business productivity.

The Associated Press reports in The New York Times (18 January) that the Canadian company is trying to avoid a possible injunction, the result of a long-running infringement case won by NTP., a tiny patent-holding firm.

In a filing Tuesday in federal court, RIM argued that there is ''exceptional public interest'' in keeping BlackBerries beeping. And the idea of exempting government and emergency users from an injunction -- which NTP has suggested -- would result in errors, RIM said.

AP reports that in a filing of its own Tuesday, NTP asked US District Judge James R. Spencer for a permanent injunction. The company noted that RIM users have plenty of alternatives, and it would give them 30 days to make their moves.

The injunction, NTP said, would end widespread infringement of its patents by RIM and its corporate customers.

The AP report said that RIM's filing included supportive comments by emergency, government and business leaders. In fact, RIM said it believes the federal government is the single largest user of BlackBerry devices.

{mospagebreaktitle=Konica Minolta pulls plug on camera, film business}Konica Minolta pulls plug on camera, film business

Japan's Konica Minolta Holdings said on Thursday it would withdraw from the camera and color film businesses, marking the end to one of the best known brands in the photography world.

Reuters reported ion The New York Times (19 January) that as part of the surprise move, Konica Minolta said it would sell a portion of its digital single lens reflex (SLR) camera assets to Sony for an undisclosed sum and cease production of compact cameras by March.

The company said it would stop making photographic film and color paper by March 2007, pulling out of a market shrinking more than 20 percent a year due to the spread of digital cameras, which don't use film to store images.

According to the newspaper, the world's third-largest maker of camera film after Eastman Kodak and Fuji Photo Film had said in November that it would slash its loss-making camera and film operations, but not completely shut them down.

Konica Minolta said in November it expected to post a group net loss of 47 billion yen (US$407.9 million) in the year to March as it took a charge of 90 billion yen to rationaliSe production, write down assets and cut jobs in its camera and film division.

But the decision to completely pull the plug on the business caught analysts and archrival Fuji Photo off guard.

The Reuters report says that Konica Minolta, created in August 2003 through the merger of Konica and Minolta, has a long history in the camera and film markets, producing Japan's first photographic paper in 1903 and the country's first color film in 1940.

Following the news, Fuji Photo issued a press release saying it would continue making traditional camera film, although analysts said Fuji could be pressured to downsize its business.

Konica Minolta also said it would stop production of minilabs, machines installed in photo shops and retailers for developing and printing photos, by March. Other makers include Fuji Photo, Kodak and Noritsu Koki Noritsu will take over maintenance and service of Konica Minolta's minilabs, Reuters reported.

Reuters says that Sony and Konica Minolta formed an agreement in July to jointly develop digital SLR cameras, which are generally more expensive and offer better performance than point-and-shoot compact models, and typically use interchangeable lenses.

{mospagebreaktitle=Four bids to build cellphones network for in NY subway}Four bids to build cellphones network for in NY subway
 
In New York, the Metropolitan Transportation Authority has received four bids, including one from an alliance of the US's four largest wireless carriers, for the work of installing cellphone service in all 277 underground subway stations, a major undertaking that could transform the riding habits of New Yorkers.

The New York Times reports (19 January) that the project is highly unusual, because the authority does not plan to spend a penny. It wants the winning bidder to design, install, operate and maintain a wireless network that will link the underground stations, which make up nearly 60 percent of the system's 468 stations, and serve customers of any cellphone carrier.

The deadline for proposals, originally 12 Oct., was extended three times because of questions and concerns from the prospective bidders. Two of the four proposals have been confirmed by the bidders; the authority confirmed that there were four bids but would not identify them.

According to the newspaper, the bid likely to attract considerable attention because of the size of the companies was one by Cingular Wireless, the nation's largest carrier, joined by Verizon Wireless, Sprint Nextel and T-Mobile. A Cingular spokesman, Clay Owen, confirmed the bid, but would not share details.

{mospagebreaktitle=EBay profit rises 36%; shares fall}EBay profit rises 36%; shares fall

EBay, the online marketplace, has posted strong quarterly results but disappointed Wall Street by failing to raise its 2006 outlook, and its shares fell as much as 5.7 percent in after-hours trading.

Reuters reports in The New York Times (19 January) that fourth-quarter profit rose 36 percent and per-share earnings exceeded analysts' average forecast, but the outlook for 2006 remained below the average Wall Street estimate.

The earnings report coincided with an announcement that eBay was planning a new service that would add shopping features more like those of rivals like Amazon.com.

The Reuters/NYT report said that EBay said fourth-quarter profit rose to US$279.2 million, or 20 cents a share - beating analysts' average forecast by 2 cents - from US$205.4 million, or 15 cents a share, a year earlier.

Net revenue rose 42 percent to US$1.33 billion as eBay showed accelerating revenue growth in its two largest markets, the United States and Germany, and better-than-expected revenue growth in two recent acquisitions, Skype and Shopping.com.

Despite a bullish outlook for 2006, the company said it was not changing its October forecast that revenue would increase to US$5.7 billion to US$5.9 billion in 2006, with profit of 96 cents to US$1.01 a share.

Earlier Wednesday, Bill Cobb, president of eBay North America, said in a memo to eBay users that a new service, to be called eBay Express, would be introduced this spring to attract buyers "who prefer a more conventional e-commerce shopping experience."

It will add a shopping-cart feature permitting buyers to select multiple items from one or more sellers and pay for them all at once by credit card or eBay's payment service, PayPal.

{mospagebreaktitle=Disney looks beyond iTunes for on-demand Ventures}Disney looks beyond iTunes for on-demand Ventures

The Walt Disney Co. has sold 1.5 million digital downloads of such TV titles as ``Lost,'' ''Desperate Housewives'' and ``Kim Possible'' through Apple's iTunes store, and is seeking iTunes competitors to further such distribution, an executive said Wednesday.

Reuters reports in The New York Times (19 January) that while the iTunes initiative ``has not been a giant mover in terms of the bottom line,'' the Disney executive said, it is ``an important catalyst for where the business is going.''

Disney will remain ``platform agnostic,'' demanding only that potential partners provide a ``quality consumer experience and requisite intellectual property protection.''

Reuters reports that the executive said that Disney-owned TV shows -- ``Lost'' and ''Housewives'' in particular -- would add US$1 billion to the company's operating profit during the next five years via syndication.