After four years of double- and triple-digit growth, worldwide tablet shipments this year will grow by just 6.5% over last year, according to IDC. The research firm had previously forecast 12.1% growth.
The tablet market is maturing and long-term trends are becoming clearer, said Jean Philippe Bouchard, research director for tablets.
More money is being spent on cheap laptops, smartphones or wearables, and people are keeping tablets longer than expected, Bouchard said.
“We originally thought the [ownership cycle] was two years. We realized it was closer to three years,” he said.
In addition, users aren’t discarding older tablets and are instead handing them down to their kids.
Meanwhile, laptop prices are also coming down fast, and putting pricing pressure on tablets, especially in Europe, Bouchard said.
In the last month a plethora of sub-$250 tablets running Microsoft Windows 8.1 with Bing started shipping. Microsoft is helping PC makers build cheap laptops to battle threats from Chromebooks, Android and iOS and is offering the OS royalty free.
Interest is swaying in the direction of smaller-screen tablets, and those looking for larger screens are moving to laptops, Bouchard said.
“As you move up in screen size, you move towards productivity. The keyboard is becoming more important,” Bouchard said.
Tablet shipments will continue to grow in emerging markets, at a 12% rate, driven by small screen, low-cost tablets from Chinese companies. Shipments in mature markets, where buyers are moving to larger-screen devices, remain flat.
Buyers are increasingly considering wearables and smartphones versus tablets, but more data generated by small-screen devices could ultimately help tablet shipments, Bouchard said.
“Long to medium term, it’s a positive thing, it creates a halo effect, it will generate more data, and you’ll need more screen to visualize the data,” Bouchard said.
IDC’s tablet forecast also accounts for 2-in-1 devices, which can be used as laptops or tablets.
HP is recalling LS-15 AC power cords used with HP and Compaq branded laptops. The company is recalling about 5.6 million power cords in the U.S. and 446,000 units in Canada.
The cord pulls out of one end of the AC adapter. It came with laptops and accessories sold between September 2010 through June 2012, HP said on its power cord recall website.
There have been 29 reports of power cords overheating and melting, which led to claims for minor burns and property damage, HP and the U.S. Consumer Product Safety Commission said in a statement.
Customers are eligible for a replacement at no cost. The power cords are black and can be identified by the tag LS-15, which is on the AC adapter.
Customers can call 1-877- 219-6676, or visit HP’s website for the replacement.
First there was the iPad at around 10 inches and then there was the iPad Mini that is closer to 8 inches. Now Apple Inc is gearing up to roll out a larger, 12.9-inch version of its once dominant iPad for 2015, with production set to begin in the first quarter of next year, Bloomberg cited people with knowledge of the matter as saying on Tuesday.
The report comes as Apple struggles with declining sales of its tablets, which are faltering as people replace iPads less frequently than expected and larger smartphones made by Samsung Electronics Co Ltd and other rivals have taken a bite out of its sales.
Apple has been working with its suppliers for over a year on larger touch-screen devices, Bloomberg cited the sources as saying.
It is expected to introduce larger versions of its 4-inch iPhone next month, although the company has not publicized plans for its most important device.
Apple was not immediately available for comment.
Apple has agreed to replace some iPhone 5 batteries free of charge, claiming that “a very small percentage” of the smartphones needed to be charged more often and that those charges were quickly exhausted.
The program, which was announced last week, only in a support document published on Apple’s website, offered free battery replacements for iPhone 5 devices that “suddenly experience shorter battery life or need to be charged more frequently.”
According to Apple, the affected phones were sold between September 2012 and January 2013, and “fall within a limited serial number range.” The Cupertino, Calif. company also said that only “a very small percentage” of iPhone 5 devices were impacted.
Computerworld‘s experience was different. Out of an admittedly small sample — three iPhone 5 phones bought during the stretch in question, each several weeks apart — two were eligible for the battery replacement. Neither of the two that qualified, however, had required more charging than was normal for a nearly-two-year-old iPhone, nor did their batteries drain any faster than the third, ineligible, device.
Apple started selling the iPhone 5 on Sept. 21, 2012. It retired the model last year when it was replaced by the iPhone 5S and 5C.
This was not the first time that Apple has dealt with iPhone battery issues. In October 2013, the company confirmed that it was contacting a “very limited” number of iPhone 5S owners and offering them a replacement phone.
In both 2009 and 2011, iPhone users also reported battery-draining problems with their iPhone 3GS and iPhone 4S devices, respectively.
Customers can check their iPhone 5 for battery replacement eligibility onApple’s website by entering their device’s serial number. That can be found under Settings/General/About.
Until Friday, Aug. 29, the replacement deal will be available only in the U.S. and China; on that date, other countries will come online.
Australian airlines Qantas Airways Ltd and Virgin Australia Holdings Ltd said passengers may use mobile phones and tablets during their flights, after a regulator relaxed a ban on electronic devices on planes.
The airlines said they would begin allowing passengers to use personal electronic devices for the duration of their flight after Australia’s Civil Aviation Safety Authority followed a similar ruling from the U.S. Federal Aviation Administration in 2013.
The Australian airlines will hope giving customers almost continuous access to personal devices will increase their appeal as they engage in a price war with each other and other market participants. Currently, passengers are forced to switch off devices until the plane reaches cruising altitude.
The two domestic rivals are expected to post annual net losses later this week.
“We’re delighted to give Qantas customers the freedom and flexibility to use their personal electronic devices from the moment they board the plane until they disembark,” Qantas Domestic chief executive officer Lyell Strambi said in a statement.
Virgin Australia chief customer officer Mark Hassell said the high number of passengers who travel with a smartphone or tablet shows “how valuable gate-to-gate access is to their overall travel experience”.
Amazon.com Inc has acquired live-streaming gamingnetwork Twitch Interactive for about $970 million in cash, reflecting Chief Executive Officer Jeff Bezos’ vision to transform Amazon into an Internet destination beyond its roots in retail operations.
The deal, jointly announced by the two companies, is the largest deal in Amazon’s 20-year history and will help the U.S. e-commerce company vie with Apple Inc and Google Inc in the fast-growing world of online gaming, which accounts for more than 75 percent of all mobile app sales.
The acquisition involves some retention agreements that push the deal over $1 billion, a source close to the deal told Reuters.
“Twitch will further push Amazon into the gaming community while also helping it with video and advertising,” Macquarie Research analyst Ben Schachter said in a note.
Twitch’s format, which lets viewers message players and each other during live play, is garnering interest as one of the fastest-growing segments of digital video streaming, which in turn is attracting more and more advertising dollars.
The deal, expected to close in the second half of the year, is an unusual step for Amazon, which tends to build from within or make smaller acquisitions. Tech rival Google was earlier in talks to buy Twitch, which launched slightly more than three years ago, one person briefed on the deal said.
Neither Amazon nor Twitch would discuss how the deal came together or comment on Google’s interest.
In an interview, Twitch Chief Executive Officer Emmett Shear said the startup contacted Amazon because its deep pockets and ad sales expertise would allow the startup to pursue its strategic objectives more quickly.
“The reason why we reached out to Amazon, the reason I thought working for Amazon, having Twitch being a part of Amazon, would be a great idea for us (because) they would give us the resources to pursue these things that we honestly already want to pursue and they’d let us do it faster,” Shear said.
It’s unknown whether Microsoft discounted the Surface 2 to clear inventory before it discontinues the tablet, in preparation for a successor, or simply to move a slow-selling product.
A clue may be in the length of the limited-time sale: Microsoft said that the reduced prices were good from Aug. 24 to Sept. 27, or “while supplies last,” and set the maximum number of devices per customer at a generous five.
Intriguingly, Microsoft is to host a press event on Sept. 30 to unveil the next edition of Windows, code named “Threshold” but perhaps officially to be called “Windows 9.” Rumors have circulated that Windows RT will also be revamped to drop the desktop mode and/or to add support for the pen bundled with the Surface Pro 3.
If those claims are accurate, the Sept. 30 event would be a perfect time to tout a revamped Windows RT and unveil replacements for the Surface 2.
Microsoft cut prices by $100 for each of the three Surface 2 models it sells: two Wi-Fi only tablets with 32GB or 64GB of storage, and a 64GB device that can connect to a cellular data network at LTE speeds.
The lowest-priced 32GB Surface 2 is now priced at $349, a 22% discount, while the 64GB tablet now costs $449, an 18% reduction. The sole LTE model, now $579, received a 15% price cut.
Microsoft’s Surface 2 is powered by Windows RT 8.1, the touch-centric, tile-interface that runs only “Modern,” nee “Metro,” apps. Windows RT cannot handle legacy Windows applications.
The Surface 2 was the follow-up to the disastrous Surface RT, the tablet which sold in such small volume — and which Microsoft built in such large numbers — that the company was forced to take a $900 million write-off in mid-2013.
Although the Surface Pro 2, which went on sale alongside the Surface 2 in October 2013, was updated to the Surface Pro 3 in May of this year, the Surface 2 has not been refreshed since its launch.
At its new price, the 32GB Surface 2, which boasts a 10.6-in. display, costs less than Apple’s entry-level 16GB iPad Mini with a 7.9-in. Retina-quality screen. That iPad Mini lists at $399.
Microsoft is selling the re-priced Surface 2 on its online store.
Oregon is so unhappy with the performance of the website that Oracle built for its Obamacare rollout it is suing and it is not mincing its words.
Oracle billed hundreds of millions of dollars to build the site and when it did not work Oracle sued Oregon for $23 million more for its work.
Oregon Governor John Kitzhaber in May “asked the state attorney general to take legal action against” Oracle to get its money.
The complaint from the state of Oregon is vicious. It said that over the last three years, Oracle has presented the State and Cover Oregon with some $240,280,008 in false claims under those contracts.
It called Oracle “racketeering activity” that has cost the State and Cover Oregon hundreds of millions of dollars.
Ellen Rosenblum, the Attorney General for the State of Oregon, along with the State and Cover Oregon, brings this lawsuit to recover losses to the State and Cover Oregon caused by Oracle’s fraud, racketeering, false claims, and broken contracts.
Oracle couldn’t show a working website by September 2013 and the state realised that, according to the complaint, “Oracle’s assurances were worthless.”
To make matters worse a former Oracle employee told the State that it had been sold a lie.
Apparently Oracle cobbled together collection of products which it called the “Oracle Solution” was not flexible, was not integrated, and most importantly, did not work “out-of-the-box.”
Tablets with low-resolution screens are already selling for $45 on Amazon, many of which have single- or dual-core processors from a Chinese chip company called Allwinner.
But the prices could fall under $35 when Allwinner ships its “fully formed” quad-core A33 chip for only $4, said analyst firm Linley Group in a newsletter this week.
The chip’s quad-core processors will deliver better performance than older chips, and be capable of supporting 1280 x 800 displays, the analyst group said. The chip is based on ARM’s Cortex-A7 design and has a Mali-400MP2 GPU, which is capable of rendering high-definition video.
The cheap tablets will likely come from no-name vendors in China, and won’t offer the bells and whistles of Samsung or Apple tablets, but they could increase price pressure on brand names like HP and Acer, which have entry-level tablets priced around $100.
They’ll be most suited to first-time buyers or users who aren’t picky about hardware or software but certainly not power users, said Jim McGregor, principal analyst at Tirias Research. That’s because they’ll likely have limited memory, storage and fewer ports than more expensive devices.
“Users eventually will move up in performance,” McGregor said.
The tablets would almost be disposable items, said Nathan Brookwood, principal analyst at Insight 64.
And they could be here soon.
Mass production of the chip has already begun and prototype tablets have already been built.
A lot would come from Shenzhen, China, where a bulk of the device development is taking place, said Brookwood.
“This Shenzhen ecosystem, it’s absolutely scary what they are doing,” he said. “They operate on very thin margins. The kind of margins that no U.S. vendor can think about running on.”
The no-name tablets usually don’t come with customer support, and some may not have the Google Play store.
Norwegian software maker Opera inked a deal to take over the browser building unit of Microsoft’s Nokia cellular phone unit and reported second-quarter earnings above expectations on Thursday, sending it shares sharply higher.
“We have signed a strategic licensing deal with Microsoft. We are basically taking over the browser building department in Nokia,” Opera Chief Executive Lars Boilsesen said. “This means that Opera Mini will become the default browser for Microsoft’s feature phone product lines and the Asha phones product lines.”
The deal will be profitable from the start, he added.
“All the current user base will be encouraged to upgrade to Opera Mini and all the new phones will come with Opera Mini pre-installed as a default browser. This is a great deal for us. We have dreamed of this for more than 10 years.”
In a separate statement, Opera said the licensing agreement applies to mobile phones based on the Series 30+, Series 40 and Asha software platforms.
“As part of the agreement, people who use the current browser for these phones, Xpress, will be encouraged to upgrade to the latest Opera Mini browser. Factory-new devices will have Opera Mini pre-installed.”
HP has seen its revenue grow for the first time in three years to $27.58bn, helped by stronger than expected growth of its PC division, which grew 12 percent year on year.
The revenue rise was up from the $27.23bn the company made in Q3 2013, and up from $27.31bn in the same period last year.
Despite this growth, profits fell in Q3 2014, dipping under the $1bn mark to $985m. This is down from $1.39bn in the same period last year and $1.27bn in the previous quarter.
HP reported that its Personal Systems Group, which sells PCs, notebooks and workstations, saw revenues rise by 12 percent to $8.65bn. Consumer sales were up eight percent and business sales up 14 percent. Profit in the group was four percent of the total revenue.
CEO Meg Whitman was upbeat on this “excellent performance of the Personal Systems Group, noting that several factors were driving this uptick in sales.
“The Windows XP expiration has contributed to our growth. Although we believe we’re now through much of that benefit,” she said.
“However, our product line-up, driven by products like our EliteBook Series and our x360 convertible notebook, is the strongest we’ve had in years and we continue to see customers looking to refresh their ageing installed base.”
HP’s Enterprise Group division, covering areas such as networks and servers saw revenue rise by two percent.
However, all other units saw revenues fall. Printing was down four percent, enterprise services fell by six percent, software dropped by five percent, and financial services were down three percent.
Whitman touted HP’s recent unveiling of its new technology called The Machine as part of its efforts to conquer the software marketing around new areas such as big data.
“We rolled out our vision for what we call The Machine, a new computing platform for the Big Data era. The Machine has become a rallying cry across HP and frankly around the industry for the reinvention of how we compute,” she said.
Overall Whitman said that while the results were pleasing the company still had much to do to become a leaner, more productive outfit that the one she inherited a few years ago.
“Turnarounds are not linear and we face some tough comparisons in the fourth quarter, but overall I continue to be very encouraged by the progress we’re making.”
Cox Communications Inc. is not interested in merging with wireless carrier T-Mobile US Inc or rival cable providers, according to Cox President Pat Esser, dispelling rumors recently swirling about the private company.
“We’re not in any discussions to buy T-Mobile,” Esser told Reuters. “I don’t see a movement inside of our company that we feel like we have to pony up or match up with a wireless company.”
Asked whether Cox, the third-largest U.S. cable and broadband company, was considering a merger with one of its smaller cable rivals, such as Charter Communications Inc or perennial takeover target Cablevision Systems Corp, Esser said family-owned Cox was not looking to become a publicly traded company.
“I would never say we’ll never be public in the future. But right now where the family’s at, where [parent company] Cox Enterprises is at, they like being private,” Esser said. “We have a very, very healthy balance sheet, we have a lot of capacity and we can do most of that inside of our current balance sheet and still remain private.”
Continuing a year marked by a whirlwind of dealmaking among telecom companies, sources told Reuters earlier this month that Iliad, a French telecom firm, was in talks with U.S. satellite and cable operators Cox, Charter and Dish Networks Corp regarding a potential joint bid for U.S. wireless carrier T-Mobile.
Esser said that instead, he saw the future of Cox Communications in wi-fi offerings and connectivity services, such as home security.
“Wireless use of broadband is growing but it’s not through traditional cellular services, it’s wi-fi. Wi-fi is exploding,” Esser said. “Wi-fi is the future … Connected homes are the future.”
Sprint Corp unveiled a new pricing plan that gives customers 20 gigabytes of data and up to 10 lines for $100, doubling its data offerings, the latest in a series of cuts and promotions that is re-shaping the wireless industry.
Sprint’s chairman, business tycoon Masayoshi Son, is betting new prices will revive a carrier hampered by an expensive network overhaul and rising competition.
“The message is simple: We are back in the game. We are going to offer most competitive value for American consumers,” Marcelo Claure, Sprint’s newly appointed chief executive told Reuters in an interview.
The company will release new plans for individuals later this week.
The announcement marks the first move for the new CEO, who last week said cutting prices would be his top priority.
The move comes after Verizon slashed prices for its unlimited talk and text plan and T-Mobile expanded its family plan to 6 lines and could signal more price cuts ahead for the industry as a whole.
Sprint is going it alone after scuttling a months-long effort to pursue a merger with No. 4 U.S. cellular provider T-Mobile US Inc.
Last year, an aggressive campaign by T-Mobile to address subscriber frustrations and lower prices sparked a domino effect that caused the U.S. top four carriers to restructure pricing plans and cut rates to lure customers in a nearly saturated market.
But analysts worry the industry’s latest discount spree could increase pressure on already tight margins and rattle dividends.
While top carriers and Verizon have largely been able to mitigate the impact of T-Mobile’s discounts on their subscriber base, they would likely have to respond to price cuts at Sprint with steep discounts of their own to keep subscribers from migrating, analysts said.
“We will see a trickle down in pricing concessions across the industry. This is the start of a price war many anticipated would be coming,” said Angelo Zino, analyst at S&P Capital IQ.
New pricing plans that charge customers separately for the cost of their devices have somewhat offset price cuts this year, Zino said, but if the discounts continue, they could pose a long-term threat to the dividends.
The company reported Thursday that its net profit reached $214 million, while quarterly revenue increased 18 percent year-over-year to $10.4 billion.
Although better known as a PC maker, Lenovo has been making major gains selling mobile handsets in its home market of China. It is now the country’s largest smartphone vendor with a 12.5% share of the market, according to research firm IDC.
The second quarter was the first time Lenovo smartphones outsold its PCs, with 15.8 million units, the company reported on Thursday.
Lenovo’s handsets still aren’t making as much money as PCs. Almost half its revenue came from selling laptops, while its mobile devices division, which includes tablets, accounted for only 15% of its total revenue in the quarter.
The company’s PC business has in the past been helped by its huge presence in its home market of China. But in the second quarter, Lenovo reported that it was also making gains in PC sales to Europe, the Middle East, and Africa.
In those markets, the company’s revenue reached $2.8 billion, up from $1.9 billion a year ago.
Lenovo, which currently ranks as the number one PC vendor in the world, is trying to expand in servers and mobile devices. Earlier this year, the company announced it would acquire Google’s Motorola Mobility, and IBM’s x86 server business.
Lenovo is still working with regulators to get approval for those deals.
Social and mobile game company King Digital Entertainment Plc lowered its 2014 forecast after reporting lower-than-expected second-quarter revenue on Tuesday, as gamers continued to abandon its “Candy Crush Saga” game.
King also announced a $150 million special dividend, or 46.9 cents per share, payable to shareholders of record on Sept. 30. Its shares, however, slipped 22 percent in after-hours trading after closing at $18.20 on the New York Stock Exchange.
The company, which went public in March, said it has reduced its 2014 forecast and expects gross bookings in the range of $2.25 billion to $2.35 billion from its previous estimate of $2.55 billion to $2.65 billion.
“We have seen a step down in monetization in the latter part of Q2 and so we have adapted the view forward,” Chief Executive Officer Riccardo Zacconi said in an interview.
Investors have worried that unless King delivers a set of consistent and long-lasting hits, apart from “Candy Crush Saga,” it might suffer the same fate as “Farmville” maker Zynga Inc and “Angry Birds” developer Rovio Corp, which are struggling to retain players.
King’s second quarter gross bookings, an indicator of future revenue, was $611 million, up 27 percent from the year-ago period, but less than the last quarter when it reported gross bookings of $641.1 million.
King has yet to see its other titles such as “Farm Heroes Saga” and “Bubble Witch 2 Saga” fully offset user losses of its “Candy Crush Saga” puzzler game that accounted for about 60 percent of second-quarter gross bookings.
“We expect ‘Candy Crush’ will decline, but have a very strong tail and a long tail,” Chief Financial Officer Hope Cochran said in an interview. “We will be launching the ‘Candy Crush’ sister title in Q4, which will give more longevity to that title.”