In the first five months of 2015, publishers’ revenues from e-books sales fell 10 per cent to $610.8 million, according to the Association of American Publishers, compared to a 2.3 per cent drop in print book sales in the fiction, nonfiction and religious categories (that the industry calls trade books.)
Anyone with common sense will tell you that the reason ebook sales are falling is because greedy publishers jacked up the price until people failed to see the point of ebooks. Ebook prices have risen and serious readers still prefer the tactile pleasure of a physical book and will choose that over a digital book for the same price.
Ebooks generated 24.9 per cent of publisher revenues between January and May, down from a peak of 26.5 per cent in the year earlier period.
Barnes & Noble reporting slight gains in comparable sales in its core book selling business after years of declines that had led many to wonder whether the largest remaining bookstore chain might suffer the same fate as Borders, which went out of business four years ago.
On the e-reader front, about 12 million devices industries wide were sold last year, down 40% from the nearly 20 million sold in 2011.
The Mate S, launched on the sidelines of Europe’s biggest consumer electronics show, IFA, in Berlin, has a 5.5-inch display, a 13 mega pixel rear camera and fingerprint security. Huawei says it is one of the first smartphones to include a Force Touch display, which can distinguish between a light tap and deep press, enabling access to more functions just by pressing harder.
Huawei became the world’s third-biggest smartphone company by sales last month, according to research firm Gartner, overtaking Chinese rival Lenovo, and aims to become the first Chinese firm to sell more than 100 million smartphones this year.
But it is still far behind Samsung, which had 21.9 percent of the market in the second quarter, and Apple, on 14.6 percent. Huawei’s share rose to 7.8 percent from 5.4 percent in the first quarter.
Huawei’s Mate S phone will retail for 649 euros ($732) — comparable to some higher-end Apple iPhone 6 series models — with a premium version for 748 euros, the Chinese company said.
“Huawei aspires to be the next Samsung, successful with both premium design and by shipping large numbers of smartphone models,” said IHS analyst Ian Fogg, who expects Huawei to ship about 109 million smartphones this year.
“2015′s Huawei smartphone launches show the company is finally coming close to meeting these market goals which Huawei set some years ago.”
The top of the smartphone market is a tough environment, as Samsung has experienced. While it remains the world’s biggest smartphone maker, Apple is reaping most of the rewards. The U.S. company is estimated by some analysts to earn 90 percent or more of the industry’s profits.
Huawei has its roots in telecoms equipment gear where it competes with the likes of Ericsson and Nokia, but it has invested heavily in consumer devices in recent years.
Its Mate S will be available in more than 30 countries including China, Germany, Israel,Japan, France, Germany and Spain and can be pre-ordered in Western Europe from Sept. 15.
The European Commission will launch a study in September of the ride-hailing app Uber in an effort to resolve legal disputes that have pitted the U.S. start-up against conventional taxis across Europe, three people familiar with the matter said on Friday.
Since opening in Paris in 2011, San Francisco-based Uber has run into vehement opposition from taxi drivers, who complain it competes unfairly by bypassing local laws on licensing and safety.
Uber has responded by submitting complaints to the European Commission against German and Spanish court bans, as well as a new French law on taxis.
The study will attempt to determine the legal instruments Brussels might use to decide whether Uber is a transport service or just a digital service, an EU official said.
Uber argues it is a digital platform that connects willing drivers with customers. Being considered a transport service might make it subject to stricter rules on licensing, insurance and safety.
The study will review the regulatory regimes for taxi services in all member states and assess if an EU-wide framework is needed. Currently, taxis and vehicle-with-chauffeur services are regulated at a national level.
“This investigation appears to indicate that the European Commission believes that the manner in which the taxi and private hire sectors are currently regulated in some member states is dysfunctional and is no longer fit for purpose, not to mention new barriers to entry for innovative, technology-based services such as ridesharing,” an Uber spokeswoman said.
The study will run in parallel with a case at the European Union’s top court that could set a precedent for legal battles across the continent. However, it is likely the European Court of Justice will rule before the completion of the study, expected around June next year. In the meantime, the Commission will also continue assessing the complaints against France,Germany and Spain. In May, the Commission asked France for more information on its new taxi law, which Uber says favors regular taxis at its expense.
The Commission has previously said it welcomes innovative services such as Uber as part of the so-called sharing economy - where individuals are put in touch with others offering services, such as travel or accommodation.
The app, named Livetext, is video calling with a twist: there’s no audio. To communicate, users type texts and emojis that are overlaid onto the screen during the call.
The app’s format might sound restricting, but Yahoo says Livetext will help users to communicate more freely. The lack of audio, the company says, removes inhibitions that people might feel when they otherwise receive video calls in public.
“We wanted to bridge the gap between the simplicity and ease of texting, with the live feeling of calling,” said Adam Cahan, senior vice president of video, design and emerging products at Yahoo, during the app’s unveiling at an event in New York on Wednesday that was webcast.
Livetext was developed from scratch at Yahoo. Its development was aided by Yahoo’s acquisition last year of mobile messaging app MessageMe, the company said Wednesday. It’s yet another messaging app in a sea of competitors like Snapchat, WhatsApp and Facebook Messenger.
Still, Livetext is the latest attempt by Yahoo to provide a messaging app that resonates with users. It became available to download for free on Thursday for iOS and Android, in the U.S., U.K, Canada, Ireland, Germany, France, Hong Kong and Taiwan. Users will be able to text in English, French, German and Chinese using the app.
The app streams video only when two people are connected through the app at the same time. Users can search for friends in the app through their Livetext user name, or through the contacts list on their phone.
There is no time limit on calls placed through the app, and no way to save or archive the sessions. The video quality will depend on the strength of the data connection, although connections at 3G and above should suffice, Yahoo said.
It’s available on Android and the desktop, but not on iOS.
Wal-Mart Stores Inc acquired full ownership of Chinese e-commerce firm Yihaodian.com, buying out the 49 percent stake that it did not already own to accelerate its push online, the U.S. retail giant announced.
The investment will help Wal-Mart target China’s fast-growing online market at a time when largely brick and mortar retailers are feeling the pinch of competition from online rivals and a slowing of the world’s second-largest economy.
Wal-Mart’s move also comes after China said last month it will allow full foreign ownership of some e-commerce businesses, with the goal of encouraging foreign investment and the development and competitiveness of the sector.
“[Yihaodian's] local experience, combined with Walmart’s global sourcing and our strong local retail presence and supply chain will allow us to deliver low prices on the products customers need in new and exciting ways,” Neil Ashe, head of Wal-Mart’s e-commerce division, said in a statement.
Wal-Mart, the world’s largest retailer, added the purchase of the stake would help accelerate its e-commerce business in China and boost coordination between its physical and online stores. It did not disclose the price paid for the stake, which was bought from former executives and financial services group Ping An.
Wal-Mart’s Asia head Scott Price told Reuters earlier this year that online retail was important to help tap China’s younger generations and that the firm would increasingly look to weave together its online and offline presence in the market.
Wal-Mart, France’s Carrefour SA and Britain’s Tesco PLC have all seen sales growth slip over the last five years in China, losing market share to local rivals, according to consumer analytics firm Kantar Worldpanel.
The U.S. retailer also announced on Thursday that company insider Wang Lu will take the helm at Yihaodian. The e-commerce firm’s CEO and Chairman had quit earlier this month “to pursue their next venture”.
Amazon.com Inc will rollout its business loan program for small sellers later this year in eight new places including China, where credit is becoming a key factor in competing for new vendors and grabbing market share.
Until now, the e-retailer has offered the service only in the United States and Japan. Amazon Lending, founded in 2012, now plans to offer short-term working capital loans in other countries where it operates a third-party, seller-run marketplace business, the head of Amazon Marketplace, Peter Faricy, told Reuters.
The countries are Canada, China, France, Germany, India, Italy, Spain and the United Kingdom.
The service is on an invite-only basis and is not open to all sellers on Amazon’s platform.
Other large retailers including eBay Inc’s PayPal and Alibaba Group Holdings, which run third-party marketplaces, are also turning to credit to boost their vendor base.
Some lending industry officials who help lenders assess credit risk say these retailers are taking on risky loans because they don’t know the shape of the credit market in which the sellers are operating.
Small businesses have high failure rates, especially in China and India, added William Black, a former U.S. banking regulator and professor of Economics and Law at the University of Missouri.
Amazon said it can safely offer loans based on internal data and because it takes loan payments out of the sales proceeds it pays sellers.
PayPal spokesman Josh Criscoe said eBay merchants who use PayPal are eligible for the working capital loans and credit is offered to only those customers that have a strong PayPal sales history. PayPal has provided more than $500 million in capital since September 2013, with an average loan disbursement of $2 million per day.
A spokeswoman for Alibaba’s financial services arm Ant Financial, which offers these loans, said credit is offered to Taobao, Tmall merchants and other small business owners who meet certain conditions. The company also offers such loans to customers in some countries like the United States and Britain.
Europe’s Airbus Group will develop and construct approximately 900 satellites for privately owned OneWeb Ltd, which plans to offer high-speed, space-based Internet access to billions of people worldwide, according to company officials.
About 700 of the satellites, each of which will weigh less than 330 pounds (150 kg), will be launched into orbit around Earth beginning in 2018. The rest will stay on the ground until replacements are needed, said OneWeb, based in Britain’s Channel Islands.
Bankrolled in part by Richard Branson’s London-based Virgin Group and chipmaker Qualcomm Inc, the project will cost between $1.5 billion and $2 billion, OneWeb founder and Chief Executive Officer Greg Wyler said.
Airbus Defense and Space will build the first 10 spacecraft at its Toulouse, France, facility, before shifting production to an undisclosed site in the United States, Airbus said.
Several other companies were vying for the spacecraft contract, including Thales Alenia Space, Space Systems/Loral, Lockheed Martin Corp’s Space Systems and OHB of Germany, the industry trade journal Aviation Week and Space Technology reported.
Some of OneWeb’s satellites will be flown by Branson’s space company, Virgin Galactic, which is developing a low-cost, small satellite launcher as well as a suborbital passenger spaceship.
Wyler declined to disclose how much Virgin and Qualcomm are investing in the project. As part of the deal, unveiled in January, Branson and Qualcomm Executive Chairman Paul Jacobs joined OneWeb’s board of directors.
Before starting OneWeb, Wyler co-founded satellite venture, O3b Networks, and briefly worked at Google Inc on another project to beam Internet access from space. Wyler leftGoogle in 2014 to work on his own satellite project, named WorldVu, which later became OneWeb.
Nokia Oyj is holding talks on acquiring smaller telecom equipment maker Alcatel-Lucent, a deal that would combine the industry’s two weakest players but could pose challenges in cutting costs and overcoming political opposition.
In a joint announcement, the Finnish and French companies said they were in “advanced discussions” on a “full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent.” The two, which have been seen as a possible combination for the last several years, cautioned that the discussions could still fall apart.
Shares in Alcatel, a group worth about 11 billion euros based on Monday’s closing share price, rose 12.6 percent on Tuesday morning. Shares in Nokia, worth about 29 billion euros, dropped 6.6 percent.
The pair are a good fit in terms of products and geographies, and bulking up would help them cut costs as they try to catch up with leaders Sweden’s Ericsson and China’s Huawei. Nokia would expand its presence in the key United States market where Alcatel-Lucent is a major supplier to operators AT&T and Verizon.
But the track record of mergers in the industry is spotty, in part because of the difficulties of cutting costs in a R&D intensive business where companies cannot simply drop products that global telecom operators rely on.
The last round, which gave birth to Alcatel-Lucent and combined Nokia’s networks business with Siemens about a decade ago, saw both firms destroy value and lose market share as rivals went on the attack while they were busy integrating the businesses.
The French government may also step in to protect jobs in what is seen as a critical sector for the national economy.
A person at the Economy Ministry said the government wanted more information about the rationale behind the deal and whether it could create a European champion, as well as the impact on French employees.
Nokia is mulling over the idea of selling its maps business known as HERE, a source familiar with the matter said late last week, pushing up shares in the Finnish company as well as its network gear rival Alcatel-Lucent.
After the exit from handsets, analysts have seen little synergies between the map unit and Nokia’s mainstay network gear business. Nokia has hired a financial adviser to explore a sale of the unit, the source added.
Bloomberg first reported news of the sale on Friday.
A Nokia spokeswoman declined to comment.
Shares in Nokia closed 5.57 percent higher while those in France’s Alcatel-Lucent closed 4.82 percent higher. The two companies have reportedly held on and off merger talks in recent years.
Shares in Dutch navigation company TomTom surged more than 11 percent after the news broke.
“We have estimated that HERE’s value is around 3.3-4.8 billion euros, and in a possible deal the price should be more than that,” Inderes Equity Research said on its Twitter account.
Nokia sold its once-dominant phone handset business to Microsoft last year, leaving it with its core network equipment business, HERE as well as its patent division.
HERE last year had net sales of around 969 million euros with an operating profit of 31 million euros. The unit has signed several orders from the car industry recently.
In 11 of the 12 countries surveyed as part of a report published by Microsoft, respondents said that technology’s effect on privacy was mostly negative. Most concerned were people in Japan and France, where 68 percent of the respondents thought technology has had a mostly negative impact on privacy.
A majority want better legal protections and say the rights of Internet users should be governed by local laws irrespective of where companies are based.
Internet users in India, Indonesia and Russia were the least concerned, according to the survey. In general, those in developing countries were less bothered.
Surveys like this one should always be looked at with a healthy dose of skepticism. But there is little doubt that people are wary of how their personal data is used by companies and governments, according to John Phelan, communications officer at European consumer organization BEUC.
That people shouldn’t take privacy for granted has been highlighted on several occasions in just the last week.
Shortly after the horrific Paris shootings, British Prime Minister David Cameron was criticized for saying that authorities should have the means to read all encrypted traffic.
Also, U.S. mobile operator Verizon Wireless found itself in hot water over the way one of its advertising partners used the Unique Identifier Headers Verizon embeds in its customers’ Internet traffic to recreate tracking cookies that had been deleted by users. Online advertising company Turn defended its practises, but still said on Friday it would stop using the method by next month.
Worries about privacy aren’t likely to subside anytime soon, with more devices becoming connected as part of the expected Internet of Things boom.
The “Views from Around the Globe: 2nd Annual Poll on How Personal Technology is Changing our Lives” survey queried 12,002 Internet users in the U.S., China, India, Brazil, Indonesia, South Africa, South Korea, Russia, Germany, Turkey, Japan and France.
A year ago, LTE-Advanced was only available in South Korea, but it’s now available in 31 countries (including Australia, France, Germany, U.K. and the U.S.) and more are on the way, according to industry organization GSA (Global mobile Suppliers Association).
“There is a lot of activity at the moment,” said Alan Hadden, president at GSA.
LTE-Advanced is a collection of different technologies, but the one mobile operators are implementing first is called carrier aggregation. It lets operators treat up to three radio channels in different frequency bands as if they were one and send data to users at higher speeds.
Bandwidths at up to 300Mbps are possible, though not all LTE-Advanced networks and devices can muster that. For example, Apple’s new iPhones use a version of carrier aggregation that tops out at 150Mbps, and not all operators have the spectrum to offer that.
However, regardless of which version of LTE-Advanced a network or device supports, the technology offers users higher speeds than ever before.
Chances are greater that you’ll get access to LTE-Advanced if you live in a big city. For example, U.S. operator AT&T has so far upgraded its network in Los Angeles, San Francisco, San Diego, Miami, Honolulu, Chicago, Oklahoma City, Dallas and Houston.
The technology has been held back due to a lack of supporting devices, but that will change this year thanks to a greater variety of modems from Qualcomm and Intel.
Mobile messaging platform WhatsApp has amassed more than 700 million monthly active users and appears to be on track to reach 1 billion in about a year, a target Facebook set when it acquired the company in 2014.
The announcement comes about 11 months after Facebook acquired the app for $16 billion, a move that reflected the importance that Facebook places on mobile users.
The latest WhatsApp milestone is significant because it also highlights the recent rise of messaging apps as a more popular and economical option than SMS text messaging, which has suffered declines of nearly 5% in countries such as the U.K. In France operators saw SMS traffic on Jan. 1 decline by 10% to 20% compared to last year, while the use of MMS, messaging apps and other data traffic rose, according to local media.
“We’re thrilled to share that WhatsApp has more than 700 million monthly active users,” CEO and co-founder Jan Koum wrote in a post on Facebook. “Additionally, every day our users now send over 30 billion messages.”
Facebook’s acquisition of WhatsApp received European regulatory approval in October following a U.S. nod in April. At its close, the deal was worth about $21.8 billion due to Facebook stock gains.
When the acquisition was announced in February 2014, WhatsApp had over 450 million monthly users, 70% of whom accessed the app on a daily basis.
WhatsApp has been steadily growing by about 25 million users per month. Itannounced April 22 that it had passed the half-billion mark, with new users in countries including Brazil, India, Mexico and Russia. In December 2013 it had 400 million users.
WhatsApp’s growth pace suggests it will reach 1 billion about a year from now, in December or January. When the acquisition was announced, Facebook CEO Mark Zuckerberg expressed hopes that WhatsApp would hit that threshold.
Google is reportedly looking to save itself from the worst excesses of a US antitrust case concerning the Android operating system.
Google has some experience of antitrust cases and we imagine that it would be very easy to grow to dislike them.
Reuters reports that Google would like to avoid the antitrust investigation over Android, and has already attempted to get the courts to join it in this sentiment.
Two smartphone users have raised the case against the firm because they feel that home-grown Google-developed apps are given preferential treatment at the expense of competing apps from companies like Samsung and Microsoft when it comes to placement on the operating system.
We have asked Google if it would like to comment on the progress of the class action suit, but the firm has so far declined. It has reportedly argued that its operating system does not limit the choice presented to consumers.
This has led to talk of an enforced breakup at the European regulatory level, and just recently the European Parliament voted in favor of dismantling the Google business.
Google declined to comment on that vote, but the talk was that high ups at the firm were “furious”, which is to say pretty angry indeed.
Amazon, which had been in discussions with Simon & Schuster since July over pricing, confirmed the deal first reported by the Business Insider news blog that the two had reached an agreement.
Amazon had been locked in a months-long standoff with publisher Hachette Book Group, the fourth-largest U.S. book publisher owned by France’s Lagardere, over digital book pricing. That has led to numerous issues for authors.
Industry experts had expected other publishers eventually to be drawn into negotiations as well, as the Internet retailer tries to set new benchmarks for the e-book market.
Negotiations with Simon & Schuster took about three weeks and closed two months before Amazon’s contract expired, according to Business Insider.
Simon & Schuster made its original offer and an agreement was reached after a few changes by Amazon, the source told Business Insider.
The move by Groupe BPCE, France’s second largest bank by customers, coincides with Twitter’s own foray into the world of online payments as the social network seeks new sources of revenue beyond advertising.
Twitter is racing other tech giants Apple and Facebook to get a foothold in new payment services for mobile phones or apps. They are collaborating and, in some cases, competing with banks and credit card issuers that have run the business for decades.
The bank said last month it was prepared to offer simple person-to-person money transfers via Twitter to French consumers, regardless of what bank they use, and without requiring the sender know the recipient’s banking details.
“(S-Money) offers Twitter users in France a new way to send each other money, irrespective of their bank and without having to enter the beneficiary’s bank details, with a simple tweet,” Nicolas Chatillon, chief executive of S-Money, BPCE’s mobile payments unit, said in the statement.
Payment by tweets will be managed via the bank’s S-Money service, which allows money transfers via text message and relies on the credit-card industry’s data security standards.
BPCE and Twitter declined to provide further details ahead of a news conference in Paris later today to unveil the service.
Last month, Twitter started trials of its own new service, dubbed “Twitter Buy”, to allow consumers to find and buy products on its social network.
The service embeds a “Twitter Buy” button inside tweets posted by more than two dozen stores, music artists and non-profits. Burberry, Home Depot, and musicians such as Pharrell and Megadeth are among the early vendors.
Twitter’s role to date has been to connect customers rather than processing payments or checking their identities.