It shipped smartphone 34.3 million units, boosted by sales of flagship phones the Ascend Mate 2 and the Ascend P7, it said on Tuesday. In the second quarter alone it shipped 20.6 million units, an 85% year-over-year increase.
Much of that growth is coming from emerging markets in the Middle East, Africa and Latin America, where its smartphone shipments are doubling or even tripling compared to the previous year, the company added.
Other Chinese vendors are also reporting booming smartphone sales, but Huawei ships a higher proportion of its production to foreign markets, said Melissa Chau, an analyst with research firm IDC.
“It has the most number of shipments outside of China, roughly 40%,” she estimated. “If you look at Lenovo, ZTE, or Xiaomi, they are nowhere near that.”
In this year’s second quarter, Huawei will hold on to its ranking as the world’s third-largest smartphone vendor, behind leader Samsung Electronics and second place Apple, Chau added.
In foreign markets, Huawei is driving growth by selling low-end models, while flagship products such as the Ascend P7 find most of their buyers in mainland China, Chau said.
Huawei has ambitions to rival Apple and Samsung in the smartphone arena, so is spending more on marketing and raising brand awareness. But its market share in this year’s first quarter was only 4.7%, still far away from second place Apple, which had a 15.2% share.
“They are making some progress, but they are still not anywhere near being a super top-tier player,” Chau said. Android smartphones are also becoming commoditized, which risks dampening Huawei’s attempts to stand out from the rest of the competition, she added.
Facebook has confirmed that it will be deleting the messaging feature from its mobile app over the next few days, and requiring people to use its standalone Messenger app instead.
The change follows through on a plan announced in April and for now affects Facebook’s mobile app on iOS and Android. You’ll be able to send and receive messages on the desktop as before.
“In the next few days, we’re continuing to notify more people that if they want to send and receive Facebook messages, they’ll need to download the Messenger app,” a Facebook spokeswoman said in an email.
The company’s goal is to make Messenger the best mobile service for messaging, she said, and avoid any confusion that might arise from having two mobile products for the same thing.
The move may also greatly increase the number of people who use Facebook Messenger.
CEO Mark Zuckerberg said on the company’s earnings call last week that Facebook was looking to turn Messenger into an important business.
Messenger has more than 200 million monthly active users — just under a fifth of Facebook’s total user base. As well as sending text messages, it can handle Internet-based voice calls, group chat, and exchanging photos and short videos.
Facebook started the switch to Messenger a few months ago in a handful of countries, mostly in Europe, and the results have been positive, it said.
Still, it’s unclear how the change will sit with people who’ve grown accustomed to using the main Facebook app for messaging. You’ll still be notified in the Facebook app when you receive a message, but you’ll have to open Messenger to view it and respond.
Facebook says the change will help improve the performance of both the apps over time. It’s already working to improve Messenger; the company recently hired former PayPal president David Marcus as part of a push to build new capabilities for Messenger, possibly including payments.
A bill that allows consumers to unlock their mobile phones for use on other carriers passed its last hurdle in Congress last week, opening the way for it to become law once it is signed by President Barack Obama.
Senate Bill 517 overturns a January 2013 decision by the Library of Congress that ruled the unlocking of phones by consumers fell afoul of the Digital Millennium Copyright Act (DMCA). It had previously been permitted under an exception to the anti-circumvention provisions of the DMCA, which are generally aimed at cracking of digital rights management technology.
Cellphones and smartphones are typically supplied to consumers with a software lock that restricts their use to a single wireless carrier. Removing that lock — the process of “unlocking” the phone — means it can be used on the networks of competing carriers. In the U.S., this is most often done with handsets that work on the AT&T or T-Mobile networks, which share a common technology, but is also popular with consumers who want to take their phones overseas and use foreign networks rather than roaming services.
The Unlocking Consumer Choice and Wireless Competition Act has made fast progress through Congress. It was passed by the Senate on July 16, just a week after it was passed by the Senate Judiciary Committee, and on Friday by unanimous vote in the House of Representatives. It now waits to be signed into law.
In addition to making the unlocking process legal under copyright law, the bill also directs the librarian of Congress to determine whether other portable devices with wireless capability, such as tablets, should be eligible for unlocking.
“It took 19 months of activism and advocacy, but we’re finally very close to consumers regaining the right to unlock the phones they’ve legally bought,” said Sina Khanifar, who organized an online petition that kicked off the push to have the Library of Congress decision overturned. The petition attracted more than 114,000 signatures on the White House’s “We The People” site.
“I’m looking forward to seeing this bill finally become law — it’s been a long road against powerful, entrenched interests — but it’s great to see citizen advocacy work,” he said in a statement.
In its complaint, Bose alleges that the “active noise cancellation” system in Beats Studio and Studio Wireless headphones infringes on five of its patents that relate to digital audio processing, compression and noise cancellation technology.
They are U.S. patents 6,717,537; 8,073,150; 8,073,151; 8,054,992; and 8,345,888.
In addition to the suit, which was filed in Delaware, the company also lodged a complaint with the U.S. International Trade Commission asking the trade court to ban Beats from importing the headphones into the U.S.
Companies are increasingly filing lawsuits with the ITC in addition to the domestic court system in the hopes an import injunction will provide extra leverage when it comes to negotiations over alleged infringement.
The lawsuit comes just under two months after the Apple deal was announced. The acquisition is expected to close by the end of September, and it’s unknown if the lawsuit could change that schedule or the acquisition price.
Apple and Beats did not immediately respond to requests for comment.
Amazon.com Inc will offer 3D printing services that allow customers to customize and build earrings, bobble head toys and other items from third-party vendors using a new personalization option on its website.
Most of the more than 200 items available on the company’s new 3D printed products store, which was rolled out on Monday, can be customized using a new feature that allows users to rotate and change the item they are viewing.
Before it is printed by one of Amazon’s sellers, users can customize a product like as a bobble head figure by changing its skin and eye color, hair style and outfit, Amazon said.
“The customization is something we’re keenly interested in,” said Petra Schindler-Carter, director for Amazon marketplace sales, speaking in an interview. “We’ll always look for new applications for that.”
Amazon, which has more than 240 million users, has expanded its marketplaces division to include new areas such as fine art and wine. It is part of Amazon’s larger investment into new areas like mobile services and original content that led to its larger-than-expected second-quarter loss last week.
The new printing option taps into a broader “Maker movement” among tech entrepreneurs in northern California, and to some extent Europe, that is focused on customizing 3D objects rather than development software or mobile applications.
3D printers have gained in popularity on Amazon Supply, a wholesale site for businesses. That interest led Amazon to offer customers an 3D print option, Schindler-Carter said.
The portable antenna connects to a smartphone via a Bluetooth Low Energy link. Once connected, users with either an iOS or Android app can then send text messages through the antenna. (The recipient must also have a goTenna, and consequently the product is sold in pairs.)
The device uses the 151MHz-154MHz frequencies, with range depending on location. In a densely populated place like Manhattan, that range could be less than a mile. In more open spaces, up to 50 miles is possible. The antenna, which takes a USB-delivered charge, will store messages and hold them until a connection can be made.
Businesses employ a range of backup communications technologies, including long-range satellite phones and ham radios, as well as shorter range walkie-talkies. The goTenna could serve as an alternative to a walkie-talkie — and even offers some advantages over other options. For example, its messages are encrypted and private, a separate device isn’t needed, and people can use the goTenna system with their smartphone interface.
The goTenna also has the ability to “shout” a message by delivering it to all goTenna users who have opted in to receive a broadcast.
“That fact that we are totally decentralized means that in many ways it can be a backup to your backup,” said goTenna CEO Daniela Perdomo, who co-founded the company with her brother, Jorge Perdomo, goTenna’s CTO.
In addition to using goTenna as an emergency tool, Perdomo said people could use the technology as a means of communicating while they’re traveling, when they’re taking part in outdoor recreation activities, or when they’re involved in any type of situation that requires private communication. The antenna uses a Lithium-ion battery and is estimated to last two to three days with normal use, or as long as 30 hours if it’s on continuously.
Perdomo said the outages created by Hurricane Sandy in 2012 prompted her to imagine ways smartphones could be made to directly communicate with other phones.
The goTenna will ship in late fall, but a pair of the devices can be preordered for $149.99.
Top executives at Dell and BlackBerry Ltd scoffed at the threat posed by the alliance, arguing the tie-up is unlikely to derail the efforts of their own companies to re-invent themselves.
“I do not think that we take the Apple-IBM tie-up terribly seriously. I think it just made a good press release,” John Swainson, who heads Dell’s global software business, said in an interview with Reuters in Toronto last week.
PC maker Dell and smartphone maker BlackBerry are in the midst of reshaping their companies around software and services, as the needs of their big corporate clients morph.
Swainson, who spent over two decades in senior roles at IBM, said, “I have some trouble understanding how IBM reps are going to really help Apple very much in terms of introducing devices into their accounts. I mean candidly, they weren’t very good at doing it when it was IBM-logoed products, so I do not get how introducing Apple-logoed stuff is going to be much better.”
While conceding that Apple products hold more allure, Swainson said they lack the depth of security features that many large business clients like banks covet.
IBM and Apple could not immediately be reached for comment.
BlackBerry Chief Executive John Chen similarly downplayed the threat of the alliance in an interview with the Financial Times, likening the tie-up to when “two elephants start dancing.”
Faced with mounting pressure from competitors, AT&T has unbundled service and device charges, and cut its family data plan and shared value plan prices as it tries to attract customers in a nearly saturated market.
“What we saw happen throughout the second quarter were very aggressive promotions by our competitors but all the while our churn decreased,” Ralph de la Vega, chief executive of AT&T mobility, told Reuters.
“We are confident that what we saw in Q2 was part of the transition we had to make to go from service to equipment revenue in NEXT,” he said, referring to a pricing plan that allows customers to pay directly for their devices in exchange for lower service pricing.
The plan has resulted in a lower average revenue per user, but higher equipment revenue, as customers take on the majority of the burden of paying for their devices.
Wireless service revenue decreased 1.4 percent in the second quarter, while equipment revenue grew 44.8 percent.
AT&T expects two-thirds of its customers to be on the plan by the end of the year.
“AT&T has quite aggressively moved its existing base of customers in contract to the new plan. It is a fairly predictable shift and over time it should be a positive one for AT&T, but it has an unpleasant short-term impact on results, said Jan Dawson, chief analyst at Jackdaw Research.”
Chief Financial Officer John Stephens said on a conference call with analysts that Brazil’s antitrust regulator has approved the company’s $48.5 billion bid for DirecTV, which has a significant foothold in Latin America. The deal has been reviewed by state regulators but is under review by the U.S. Department of Justice and Federal Communications Commission.
The company maintained its free cash flow guidance of around $11 billion for 2014, exceeding the $9.6 billion it needs to meet its dividend target, which some investors have worried could be unsustainable.
The No. 2 U.S. mobile provider said on Wednesday that excluding items it earned 62 cents per share, one penny less than Wall Street expectations, according to Thomson Reuters .
Finland, Australia, Japan, Sweden, Denmark, South Korea and the U.S. had wireless broadband penetration of more than 100 percent as of December 2013, the Organization for Economic Cooperation and Development said Tuesday. That means there was more than one wireless broadband subscription per person, usually because consumers have more than one mobile device that can go online. The U.S. just barely crossed the bar, while Finland led the group with more than 123 percent penetration.
Across all 37 OECD countries, wireless broadband penetration rose to 72.4 percent as total subscriptions grew 14.6 percent. The group spans North America, Australia, New Zealand, and much of Europe, as well as Japan, South Korea, Turkey, Israel, Mexico and Chile. It’s sometimes treated as a barometer of the developed world.
Wired broadband subscriptions also grew in 2013, reaching an average of 27 percent penetration. That means there was just over one wired subscription per four people: Wired broadband services, such as cable and DSL (digital subscriber line), typically are shared. Switzerland led in that category with 44.9 percent penetration, followed by the Netherlands and Denmark. The U.S. had just under 30 wired subscriptions per 100 people, while Turkey came in last with just over 11.
DSL still makes up a majority of wired broadband subscriptions, at 51.5 percent, followed by cable with 31.2 percent. Fiber-optic grew to a 16.7 percent share, gradually replacing DSL services. Fiber more than doubled its share of the market in the U.K. and also gained strongly in Spain, Turkey and France. While those countries still have relatively low fiber penetration, Japan and Korea continued to lead the OECD for that technology. Nearly 70 percent of all wired broadband in Japan goes over fiber, and almost 65 percent in Korea.
The OECD has compiled some of its broadband statistics on a portal page. For all the technologies it tracks, the group uses a generous definition of broadband as a service capable of at least 256K bits per second downstream.
Sony Corp said that it has plans to invest 35 billion yen ($345 million) to increase production of image sensors for smartphones and tablets, as the company courts handset makers to get more orders for front-facing camera sensors, used to take selfies.
The Japanese firm said it will increase production of stacked CMOS sensors at two factories on the southern Japanese island of Kyushu, while completing work on a factory in northwestern Japan it bought from Renesas Electronics Corp for a total investment of 35 billion yen.
Sony, which currently supplies image sensors for the main camera in Apple Inc’s iPhone said the investment will allow it to raise production by 13 percent to 68,000 wafers a month by August 2015, a step closer to its mid-term goal of 75,000.
Imaging sensors are an area of strength for Sony, which leads the market ahead of Omnivision Technologies Inc, whose sensors are mostly used in front-facing smartphone modules that typically have lower specifications than the main rear camera.
Sony told Reuters in March that it was looking to supply more sensors for front-facing cameras as smartphone makers were looking to improve their quality in response to consumers taking more ‘selfies’, or self-portraits, as well as video calls.
Of the total investment, 9 billion yen will be spent this year, which will come out of the 65 billion yen capex budget for semiconductors announced in May. The remaining 26 billion yen will be spent in the first half of the fiscal year starting next March.
The dominant search company was among 60 entities that attended a meeting on May 12 to discuss a project to replace or supplement as many as 10,000 pay phones around the city. The list came to light in a Bloomberg News article. Other participants included Samsung, IBM, Cisco Systems, Verizon Wireless, Cablevision and Time Warner Cable.
Responses to the “request for proposals” (RFP) from vendors were due Monday. Google, or any other participant in the May 12 meeting, may have pulled out of the process before filing one. Google did not immediately respond to a request for comment.
But it seems likely the company will at least submit a plan, given the opportunity to blanket much of New York’s streetscape with Wi-Fi. Despite some false starts and headaches in free public Wi-Fi in the past, Google looks more serious than ever about providing new forms of Internet access. It’s selling gigabit-speed service via fiber in Provo, Utah, and Kansas City, and plans to expand that service to Austin, Texas. A Google request for information sent to 34 other prospective Google Fiber cities suggested the company is looking at adding a Wi-Fi component to that service, too. Far outside major cities, its balloon-based Project Loon is being tested in licensed frequencies sometimes used for LTE cellular networks.
The New York project would be vast and potentially lucrative, as well as high profile. There are currently more than 7,000 pay-phone sites spread across all five boroughs of the city, and about 4,000 of them carry advertising on the sides. The winning bidder for the upgrade project would share ad revenue with the city, which says it would pay them at least US$17.5 million in compensation.
Six-year-old Flurry uses analytics to help target ads at consumers by monitoring activity on more than half a million apps on some 1.4 billion mobile devices around the world, Yahoo said in a statement.
The startup provides information to help marketers and brands more easily reach their desired audiences, Yahoo said.
Yahoo did not cite a price tag, but a source familiar with the matter said the Internet company is paying several hundred million dollars. Tech blog re/code earlier reported that rough amount.
Flurry will operate much as before after the acquisition closes, and its team will remain in their current locations, Yahoo added.
Yahoo is trying to revitalize a stagnant online advertising business as Chief Executive Marissa Mayer marks her second anniversary at the Internet company.
The former Google executive has revamped many of Yahoo’s Web products but its ad sales are still weak while rivals such as Google and Facebook continue to post strong, double-digit revenue growth.
Like its rivals, it has been investing in its mobile advertising platform, as users increasingly access the Internet from smartphones and tablets. Its mobile advertising revenue more than doubled in the second quarter.
But mobile advertising typically commands lower rates than online. Revenue in Yahoo’s display advertising business decreased 8 percent to $436 million in the second quarter.
The Mi 4 has a 5 inch, 1080p screen and a Qualcomm Inc Snapdragon 801 2.5 Ghz processor, said Chief Executive Lei Jun at a launch event in Beijing.
But sheathed in iPhone-like metal sides, the Mi 4′s similarities to Apple’s smartphone drew murmurs from the crowd of ‘iPhone’ when showcased by Lei.
Founded in 2010 by Lei, Xiaomi seeks to cut costs by eschewing brick-and-mortar stores in favor of web-based distribution and word-of-mouth marketing.
Xiaomi became the world’s sixth-largest smartphone vendor in the first quarter of 2014, according to data firm Canalys, after repeatedly doubling its sales. The company was valued at $10 billion last year.
Xiaomi sold 18.7 mln smartphones in 2013 and on Tuesday maintained a 60 million sales target for 2014. For comparison, Huawei Technologies Co Ltd has said it is targeting 80 million smartphone sales for the year.
The latest phone was unveiled at a glitzy launch event at the National Convention Center in Beijing, where Lei Jun and Vice President Hugo Barra – a former Google executive – posed for photos with a winding queue of fans decked in Xiaomi-branded red T-shirts.
Barra told Reuters in an interview this month that the company was actively targeting the Indian market.
There were 632 million Internet users in China in June, according to the government-linked China Internet Network Information Center (CNNIC).
Although China has long reigned as the country with the world’s largest Internet population, the services are still struggling to take off in the rural areas, where about 450 million people never go online, said the CNNIC in its bi-annual report.
Total Internet penetration in China is at 46.9 percent. This is far lower than the U.S, which has a penetration rate of 87 percent, according to Internet World Stats.
Many of these non-Internet users in China have low education levels, and have little need to surf the Web, the research group added. To increase adoption, the CNNIC recommended that the country focus on teaching rural elementary students Internet skills.
The slowing growth in Internet usage in China follows a rapid rise in the Internet population there, from just 94 million over a decade ago. Most of the growth has taken place in the country’s urban areas, where the Internet market has begun to mature.
In June, China had 527 million users who went online with mobile phones, which have now overtaken PCs, including both notebooks and desktops, as the most popular way to reach the Internet, the CNNIC said.
Online messaging, search engines, and news are the country’s top Internet services. But social networking sites are facing a decline in popularity, with their user numbers falling by 7.4 percent to 257 million in the last six months. The sites are struggling to innovate, and meet the demands of users, CNNIC said in its report.
The UK Government isn’t doing enough to warn about the risks of cybercrime on a mass level, security firm Kaspersky has claimed.
Speaking at a company roundtable event at the firm’s European hub in London on Thursday, Kaspersky security researcher David Emm said isn’t doing as much as it could be to educate people about cyber security.
“I’d like to see the government doing more to get the message out to mainstream citizens and individuals because that’s the bone in which the industry is growing; the individuals with ideas,” Emm said
“If you look at it, the recent Cyber Street Wise campaign aside, I don’t think the government is doing very much in terms of mainstream messaging and I would certainly like to see it do more.”
Emm used the example of major UK marketing campaigns promoting the dangers of drink driving as an ideal model because they have been drilled into us over the years.
“As parents, we’ve this body of common sense, such as drinks driving, and it’s drip, drip, drip, over the years that has achieved that and I think we need to get to a point where we have some body of online common sense in which business people can draw upon; there’s definitely a role for education.”
Barclay’s bank, which was also present at the roundtable, agreed with Emm.
“The government really needs to recognise this is a serious issue – if you’re bright enough to set up your own business, you’re bright enough to protect yourself,” added the firm’s MD of fraud prevention Alex Grant.
Emm concluded by saying that the government’s Cyber Street Wise campaign that was launched in January was good enough to make people aware of the risks of cybercrime in the metropolitan areas. However, he said he’d like to see the government focus more on regional areas as people in sparsely populated areas weren’t as aware of it.
Kaspersky’s roundtable took place as part of the firm’s launch of a report that found small businesses in the UK are “woefully unprepared” for an IT security breach, despite relying increasingly on mobile devices and storing critical information on computers.
The study found that nearly a third, or 31 percent, of small businesses would not know what to do if they had an IT security breach tomorrow, with four in ten saying that they would struggle to recover all data lost and a quarter admitting they would be unable to recover any.