Apple riding high on video, PC expectations

Shares of Apple Computer this week jumped to a record high as investors made bets on growth in its digital music and video businesses, analysts said.

Reuters reports in The New York Times (2 November) that shares of Apple, maker of the market-leading iPod digital music player and Macintosh computers, hit an intersession high of UIS$60 on Wednesday and were up 4 percent to US$59.82 in afternoon trade on the Nasdaq.

Apple dominates the digital music business it helped establish and its growth appears to be accelerating amid concern that industry sales are less than robust.

Reuters reports that, in July, the company said it sold around 1.5 million songs per day. Based on recent comments from Apple Chief Executive Steve Jobs, Wu estimated that Apple was selling about 1.8 million songs per day in September.

According to Reuters in the NYT report, compounding confidence was Apple's announcement earlier this week that its iTunes online service sold 1 million videos in less than 20 days. The company recently released a new iPod that can play video on its 2.5-inch color screen.

Apple's PC business is also growing faster than the overall market, says Reuters,quoting
analysts who said the upward momentum in Apple's stock may be a result of investor movement into names already showing good results with credible prospects of growth.

{mospagebreaktitle=Nokia gloomy about N - Gage}Nokia gloomy about N - Gage

The world's biggest mobile phone maker, Nokia, said on Wednesday it is unhappy with the sales of its N-Gage gaming device and will bring the games to other phones to get enough scale.

Reuters reports in The New York Times (2 November) that Nokia offered N-Gage to consumers in 2002, in a portable gaming market which was then dominated by the GameBoy from Nintendo of Japan, vowing to sell 6 million units in the first three years. It only managed to sell 2 million.

The company said it will now bring the games that were developed for N-Gage to the new N-series phones it launched earlier this year. The Finnish mobile company announced three new models in the series earlier on Wednesday, bringing the total to six.

The move would boost the potential market for the games, a key factor for developers who need to choose which device offers the best chance for sales of their games software.

According to Reuters, Nintendo and Nokia have seen formidable new competition from Sony's new PlayStation Portable (PSP). Sony expects to have shipped 13 million PSPs in its fiscal year to March 2006.

Nokia's Chief Executive Jorma Ollila said earlier on Wednesday he expects the world market for smartphones to double next year to 100 million units and market researcher Canalys measured sales of 13 million units in the third quarter of 2005. Nokia had 55 percent of that market, reports Reuters in the NYT.

{mospagebreaktitle=Survey: one in five teens have own blogs}Survey: one in five teens have own blogs

A survey in the US reveals that nearly three in five school-age teens with internet access have created online content, including web pages with artwork, photos and stories -- and about a fifth have their own blogs, which also allow friends and other readers to create feedback postings.

The Associated Press reports (2 November) that those are some of the findings from a survey of 12- to 17-year-olds conducted by the Pew Internet and American Life Project.

The survey also found that older school-age girls with online access were most likely to keep a blog. About a quarter of girls, ages 15 to 17, did so, compared with 15 percent of boys in that age group.

According to AP,. Pew says that among adults, about 7 percent of internet users have created their own blogs, or online diaries. And while 26 percent of adults say they read blogs, 38 percent of young people with online access said they do so.

Researchers note that the main reason teens are drawn to blogs is a wish to keep in touch with one another.

{mospagebreaktitle=Group: US spending on online content up}Group: US spending on online content up

Driven largely by the growth in legal music services, US spending on online content grew 16 percent to nearly $1 billion in the first half of the year.

The Associated Press reports in The New York Times (3 November) that spending was at US$853 million in the first six months of 2004, according to the Online Publishers Association.

AP says its study also finds that spending in entertainment and lifestyles services has surpassed the previous leader, personals and dating. People spent 45 percent more on music and other entertainment, compared with a 7.6 percent growth in finding love.

Much of that results from increased availability of high-speed Internet connections.

The study was based on tracking by comScore Networks and excludes some types of content including pornography, gambling and software.

AP reports that, although the study did not break out figures for music, researchers credited that for most of the growth in entertainment. In that category, single-purchase sales -- a song, an album -- reached US$115 million in the first half, compared with US$126 million for all of last year. Subscriptions still dominate, accounting for 57 percent of entertainment spending.

Business and investment services registered a modest gain after five consecutive quarters of decline, while spending on news services dropped 14 percent, AP reports.

{mospagebreaktitle=Nokia launches 3 new multimedia handsets}Nokia launches 3 new multimedia handsets

Nokia, the world's top mobile phone maker, has this week launched three new multimedia handsets that let users watch TV, play music and swap content between electronic devices at home.

The Associated Press reports (3 November) that the new phones, including Nokia's first consumer-oriented handset with Wi-Fi wireless internet connectivity, are the latest products in Nokia's push to make advanced handsets that converge mobile phone, broadcasting and Internet technologies.

''We expect the market for convergence devices to double to 100 million units in 2006,'' Chief Executive Jorma Ollila said.

AP says the new handsets were unveiled at a conference in Barcelona, Spain. They are expected to be available in stores in the first half of next year with prices ranging from US$480 to US$720.

The N80 features Wi-Fi connectivity for fast internet browsing, as well as new technology that allows it to be used as a remote control for wireless swapping of content between compatible computers, audio equipment and TVs.

The AP/NYT report adds that the phone also is built to let calls be routed over Wi-Fi as an inexpensive alternative to traditional cellular networks. But that feature won't be available until next year, when Nokia expects to partner with a provider of software for internet calls.

Nokia competitors Motorola and Samsung Electronics already have unveiled Wi-Fi phone, AP reports in the NYT.

{mospagebreaktitle=Vodafone to increase Vodacom stake}Vodafone to increase Vodacom stake

Vodafone is to increase its stake in South African operator Vodacom to 50 per cent, according to reports, in a deal that will see it invest a further £1.35bn (around R16bn) in the company.

The Register reports (3 November) that the UK-based operator has said that it would buy up the shares of holding company VenFin for R47.25 each, around 30 per cent above market value. VenFin currently holds a 15 per cent stake in Vodacom. Vodafone then plans to sell off the company's other assets.

The remainder of the Vodacom shares are held by Telkom, the South African fixed line operator.

According to The Register, Vodafone appears to be concentrating its energies on emerging, rather than saturated, markets. Some 57 per cent of the South African population currently owns a mobile phone, making it a much more attractive growth prospect than, for example, Sweden, where Vodafone this week sold its operation to Norway's Telnor.

And last week, Vodafone spent £820m on a 10 per cent stake in Bharti, India's largest mobile phone operator.

{mospagebreaktitle=Sanyo pitches 'ready to use' rechargeable batteries}Sanyo pitches 'ready to use' rechargeable batteries

Sanyo will this month start selling a rechargeable battery that doesn't lose its charge if it's left unused, the company has said.

The Register reports (3 November) that the battery, dubbed 'Eneloop', is derived from a standard NiMH cell. However, like non-rechargeable batteries, Eneloops don't lose their charge over short periods of time. That, said Sanyo, will allow them to be delivered to the consumer fully charged and ready to use.

According to The Register, Sanyo hasn't eliminated the NiMH self-discharge cycle, just reduced it significantly. It claimed that a battery left unused for a year would contain 85 per cent of a full charge. Standard NiMH batteries would have long lost all their charge by that time.

Sanyo also said the batteries are fully recyclable once they've reached the end of their lives. The manufacturer said the cells will last for 1,000 recharge cycles, with negligible loss of capacity over that period thanks to only a "minor" memory effect - the process by which a rechargeable battery loses capacity when it's recharged, reports The Register.

{mospagebreaktitle=Booming 3G demand lifts Qualcomm}Booming 3G demand lifts Qualcomm

The Register reports (3 November) that 3G networks might not be the money-spinner the carriers once hoped, but they're bringing increasing cheer to Qualcomm investors with each quarter.

According to the publication, Qualcomm provides chipsets for its own flavor of 3G and receives a royalty on each W-CDMA phone sold, whether or not they include Qualcomm silicon. W-CDMA is the flavor of 3G favored by GSM carriers in Europe and Asia.

Yesterday the San Diego company reported a Q4 profit of US$538m, up 40 per cent year-on-year.

The Register says that average selling prices have declined slightly from US$212 to US$206, but this is offset by a growth in shipments of 3G phones: Qualcomm estimates it will sell 51 to 53 million in the current quarter, up from 40 million a year ago.

Qualcomm sees 262 million CDMA units being shipped in calendar year 2006, with 86 million of those being W-CDMA For the full year, Qualcomm recorded a profit of US$2.14 billion on sales of US$5.67 billion, up 25 per cent and 16 per cent respectively. Qualcomm spent $1 billion on R&D in the full year, up 40 per cent.

{mospagebreaktitle=Staff cuts and accelerated spin-out for Novell}Staff cuts and accelerated spin-out for Novell

Novell is axing 600 staff and accelerating plans to spin out its consulting business in an attempt to cut costs and return to growth.

The Register reports (3 November) that the company said Wednesday it is cutting more than 10 per cent of positions while focusing on Linux, open source, identity and resource management in a restructuring geared towards cutting US$110 million from Novell's operating costs.

According to the publication, Novell's board has also authorised Citigoup Corporate and Investment Banking to "explore strategic alternatives" for Novell's Celerent consulting subsidiary.

Celerant is a US$150 million annual business consulting unit perhaps best known as Cambridge Technology Partners, the company that Novell acquired in 2001 and was headed by Novell's current chief executive Jack Messman. Messman took over as Novell CEO from Eric Schmidt.

Novell already planned to spinout Celerant, but only when market and "other" considerations were appropriate, says The Register.

{mospagebreaktitle=PC recycling to boom}PC recycling to boom

With the number of installed PCs worldwide fast approaching 800 million, IDC expects the PC recycling market to grow to meet disposal regulations.

The Register reports (2 November) that the research firm estimates there were 749 million installed computers around the world in 2004. With the market showing no signs of slowing, and companies around the world routinely involved in upgrading their systems, IDC expects the PC recycling and refurbishing industry to expand and create a new market.

According to The Register, the majority of companies do not yet include asset disposition in their PC ownership cost analysis, according to IDC, which indicated that less than 37 per cent of enterprises of all sizes have a formal PC recycling and end-of-life policy.

The need to safely dispose of the millions of PCs and related peripheral devices that reach the end of their working lives every year requires action from lawmakers and governments, IDC said.

{mospagebreaktitle=Samsung: no plans to open online music biz}Samsung: no plans to open online music biz

Contrary to reports last week, Samsung Electronics has no plans to enter the online music business with a system similar to Apple Computer's iTunes service, an executive said Thursday.

''We are not at all interested in a music service ourselves,'' Choi Gee-sung, president of Samsung's digital media business told reporters.

The Associated Press reports in The New York Times (2 November) that South Korean media earlier this week quoted Choi as saying the company planned such a service, remarks later confirmed by the company.

Choi on Thursday said there had been a misunderstanding of comments he made to Korean reporters late last week.

AP reports that Apple dominates the online music business with its hot-selling iPod digital music player and iTunes service, which allows users to pay for songs and download them. The company introduced a new iPod in October that is capable of playing everything from TV shows to music videos.

Software giant Microsoft and others have struggled to match Apple's success with its iPod player and music service.

{mospagebreaktitle=Google offers index of public domain works}Google offers index of public domain works

Google's internet-leading search engine is this week to begin serving up the entire contents of books and government documents that aren't entangled in a copyright battle over how much material can be scanned and indexed from five major libraries.

The Associated Press reports in The New York Times (3 November) that the list of Google's so-called ''public domain'' works -- volumes no longer protected by copyright -- include Henry James novels, Civil War histories, Congressional acts and biographies of wealthy New Yorkers.

Google said the material, available at https://www.print.google.com, represents the first large batch of public domain books and documents to be indexed in its search engine since the Mountain View-based company announced an ambitious library-scanning project late last year.

According to AP., the program is designed to make more library material available through a few clicks of a computer mouse and attract more people to click on the highly profitable ads that Google displays on its web site.

During the next several years, says AP.,Google wants to create digital versions of millions of books stacked in the New York Public Library and four university libraries -- Stanford, Harvard, Michigan and Oxford.

Google declined to disclose how many books have been scanned from the libraries so far. The project is expected to require years to complete.

However, AP reports that a bitter copyright dispute is threatening to crimp Google's plans. The Authors Guild and five major publishers are suing to prevent Google from scanning copyrighted material in the libraries without explicit permission. Because it plans to show only snippets from copyrighted books, Google argues its scanning project constitutes ''fair use'' of the material.

{mospagebreaktitle=Yahoo Redesigns Its Online Mapping Service}Yahoo Redesigns Its Online Mapping Service

Yahoo has redesigned its online maps to make it easier to get driving directions to multiple destinations and find local merchants -- the latest move in the company's duel with internet powerhouse, Google.

The Associated Press reports in The New York Times (3 November) that the company planned to unveil its latest mapping improvements Wednesday, less than a month after Google upgraded its maps service. Yahoo's service will be available on a test basis.

According to AP.,Yahoo is matching some of Google's features, such as the ability to scroll across a map without reloading a web page, as well as introducing tools that haven't been available previously on the internet.

The innovations include the ability to obtain driving directions to several different city locations and have all the routes simultaneously displayed on the same Web page.

Like Google, Yahoo also is including user reviews and phone numbers of local merchants located near the site of the mapping request.

AP says that online mapping has become a prime battleground because it's one of the most used features on the web. The recent improvements made by Yahoo and Google have increased the competitive pressure on AOL's Mapquest, the longtime leader in internet maps.

{mospagebreaktitle=Sony unit to distribute software patch}Sony unit to distribute software patch

After a chorus of criticism, Sony's music division said Wednesday it is distributing a free software patch to reveal hidden files that automatically installed to hard drives when some of its music CDs were played on personal computers.

The offending technology was designed to thwart music piracy.

The Associated Press rerports in The New York Times (2 November) that Sony BMG Music Entertainment and its partner, UK-based First 4 Internet, said they decided to offer the patch as a precaution, not because of any security vulnerability, which some critics had alleged.

AP says The controversy started Monday after Windows expert Mark Russinovich posted a web log report on how he found hidden files on his PC after playing a Van Zant CD. He also said it disabled his CD drive after he tried to manually remove it.

Russinovich made the discovery while running a program he had written for uncovering file-cloaking ''RootKits.'' In this case, the Sony program hid the antipiracy software from view. Similar technology also has been used by virus and worm writers to conceal their code, says AP.

A firestorm quickly erupted over what appeared to be an attempt by the music company to retain control over its intellectual property by secretly installing hidden software on the PCs of unsuspecting customers, according to AP in the NYT report.

According to AP, making matters worse, Sony did not disclose exactly what it was doing in its license agreement, Russinovich said. It only mentions that proprietary software to enable copy protection would be installed. The software affects only PCs running the Windows operating system.

{mospagebreaktitle='Exploratory' talks on AOL future, says Time Warner}'Exploratory' talks on AOL future, says Time Warner

Time Warner has confirmed that it is holding "exploratory" talks with a number of operators over the future of its AOL internet division.

The Register reports (3 November) that Time Warner chief executive Dick Parsons admitted that the internet giant was "holding exploratory discussions with a number of strategic partners" concerning a "range of potential strategic relationships and transactions".

Which, according to The Register, merely confirms the buzz of the last couple of months that has linked Yahoo!, Microsoft, Google and cableco Comcast with AOL.

The Register says that Parsons' admission comes as Time Warner published its Q3 results for the three months to September and showed yet more disappointing news for AOL. Revenues were down US$100 million (5 per cent) to US$2 billion as the ISP continued to see subscription revenue fall.

According to the publication, punters are still leaving the ISP in their droves. In the three months to September 678,000 US net users jumped ship taking the total number of punters to 20.1 million - down 2.6 milion compared to this time last year.

While in Europe, AOL lost almost 100,000 punters over the summer - down 170,000 on the year - taking total numbers in the UK, France and Germany to 6.1 million.

Despite the fall in revenues operating income rose US$41 million , or 16 per cent, to US$302 million.