| By Kendra Srivastava | Sat Apr 16, 2011 8:00 am |
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Apple, Google and Amazon are competing for cloud services, while American Express and Google made a push into mobile payment systems, foreshadowing a future without credit cards.
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Apple, Google Neck and Neck
The competition between Apple and Google shows no sign of slowing down. Apple's growing market share in mobile ads will soon challenge Google's current 48 percent, Millennial Media reported Thursday. Google will remain ahead for the time being, riding the the Android surge, but Apple's top position in app revenue will likely draw more ads as developers favor the more lucrative platform.Challenging Apple for business customers, Google unveiled its "Google Apps Device Policy," which beefs up security by encrypting data and letting users find lost devices. Apple already offers such services and has a larger share of the enterprise market, but Google's new policy may help Andriod push into businesses.
But even as they battle each other, Apple and Google are both beating Nintendo and Sony with higher game sales on their mobile devices. Smartphone games cost much less than traditional hand-held games and are squeezing dedicated mobile game devices despite Sony and Nintendo’s best efforts, according to a survey by Flurry.
Three Companies Compete for Silver Lining in Cloud
In the race to dominate the cloud, or online computing and storage services, Apple beefed up hiring for cloud developers, signaling the company's readiness to compete with similar offering from Amazon, which lets users store music online and access it from any device.Also in the cloud race is Amazon, which insists its Cloud Drive is purely a storage service and therefore needs no licenses from the music industry to stream content to users.
Amazon defended this view to music industry representatives in a meeting on Thursday. The outcome of these talks could affect the future of cloud streaming services; Apple and Google, which aim to offer similar cloud services, will be watching closely.
With its eye on the cloud as well, Google acquired PushLife on Monday, hinting at future cloud music service ambitions. PushLife's technology could allow Android smartphone users to sync their music collections to other libraries and to store tunes on the cloud. It's rumored Google is already testing Google Music internally, a service that would rival Amazon's Cloud Drive and Apple's coming cloud offerings.
AmEx, Google Expand Mobile Payment Networks
American Express announced it has started developing payment systems for smartphones and other mobile devices. AmEx is now the chief investor in Payfone, suggesting the credit card company sees a future in mobile phone payments.Google is also experimenting with the mobile payment business. The company posted "smart" store stickers in four cities, letting users "check into" businesses with the wave of a phone.
This trial run may pave the way for Google to create an NFC-powered mobile payment system; it's already in talks with MasterCard and Citigroup to make this dream an eventual reality.
Government Gets Involved in Internet Privacy, Mobile Spectrum
The U.S. government sought both to regulate how companies user customer’s personal information and to open up mobile spectrum this week. Senators proposed a Privacy Protection Bill that would require Internet companies to seek permission before distributing personal information to outside parties. Microsoft, HP, eBay, and Intel praised the effort, while some consumer advocacy groups are still pushing for stronger privacy protection.This while the FCC is calling for more spectrum for mobile devices. The agency wants television broadcasters' spectrum to be auctioned off to companies like AT&T that a facing congested networks due to spectrum limitations.
New Mobile Phones on Market
Of the several new phones on the market this week, AT&T's LG Thrive is the first prepaid smartphone from the company. It could help AT&T after its loss of iPhone exclusivity to Verizon by luring customers who don't like long-term contracts.HTC also unveiled a new phone, the Sensation 4G for T-Mobile. The Sensation features a concave, scratch-resistant Gorilla Glass screen and an aluminum case which gives it the sleek appearance of worthy iPhone opponent.
Nokia's latest offerings, the E6 and X7 Symbian-based phones, may be the last of their kind before the company transitions to Microsoft’s Windows Phone platform.
And last but not least, Apple is expected to release a white iPhone later this month. It won't include new features aside from the color, but it may steer buyers away from Android phones while Apple readies its iPhone 5 for later this year.
Apple Sued by Angry Parents, Introduces IOS Updates and More
Apple was sued by angry parents over in-game iPhone purchases this week. Led by a man whose 9-year old racked up a bill for $200 worth of virtual goods, the suit alleges that Apple's in-app purchasing policies don’t stop children from abusing their parents' credit cards.Apple also released iOS update for the iPad, iPhone, and the latest generations of iPod Touch. The update fixes bugs and patches holes like frozen FaceTime screens and 3G connection issues. The next overhaul to come will be iOS 5, expected this fall.
Google's New Headaches
Google didn't have the best news week. On Friday, a problem in Skype for Android was discovered that could have allowed malware to steal personal information from unprotected smartphones, another ding in a string of security-flaw-related stories for the company.Google also faces problems in South Korea, where two search engines accuse Google of squeezing them out by making deals with phone makers to block the pre-installation of other search engines on Android handsets. This adds to Google's numerous antitrust investigations by various regulatory bodies, national and international.
If all this weren't enough, Google's profits fell short of expectations. Though up 18 percent, its investments, along with high operating costs, cut into profit margins more than investors would have liked.
Microsoft's Latest Misfortunes
Though it had promised updates to Windows Phone 7 in January, Microsoft is delaying the improvements because of hardware issues. Lagging in the smartphone game, Microsoft is trying to catch up both by marketing its own phone and also by partnering with Nokia to install Microsoft's OS on the Finnish company's mobile devices later this year.Microsoft also received bad press this week when a former employee was arrested for defrauding the company of $460,000. The FBI says Robert D. Curry took checks meant for Microsoft from Pentad Solutions and used them to buy a ski-vacation and invest in audio equipment, among other misuses of the funds.
AT&T, T-Mobile Merger Senate Hearing Scheduled
AT&T's planned $39 billion merger with T-Mobile, announced in March, will receive a Senate hearing next month. The Judiciary Committee will scrutinize the deal and decide whether it would make AT&T too powerful.AT&T says the merger will benefit customers by providing faster and wider network coverage; detractors say this combination will give AT&T and competitor Verizon a virtual duopoly on the mobile market.
HTC's Improved Sense Software May Help it Stand Out
HTC has improved its Sense user interface for its Android-based devices, in an effort to differentiate itself from other hardware companies on the market. The new software will allow users to take better photos, manage ringtone volume based on the phone's position, and use improved lockscreens, among other things.Motorola, Huawei End Courtroom Battle
Motorola and Chinese manufacturer Huawei dropped ongoing lawsuits on Wednesday, settling an intellectural property dispute and allegations of industrial espionage on undisclosed terms.Their battle highlights the prevalence of courtroom drama among technology companies: Motorola and Microsoft are suing each other while Nokia is suing Apple and Apple is suing Amazon.
Sprint's Music Plus Launched Tuesday
Sprint's new Music Plus, a service for Android phones, may face an uphill battle against competitors like iTunes and Amazon's Cloud Drive. With everyone trying to grab a piece of the online music industry, Music Plus is not alone and will need to differentiate itself to survive.T-Mobile's Rumored $60 Data Plan Never Arrives
T-Mobile leaked information about a possible $60 per month data plan that would have been unveiled on Thursday. But the plan never materialized, possibly because it was simply too good of a deal.Some wonder if such low-cost contracts will ever become available if T-Mobile merges with AT&T; this possibility seems unlikely given that AT&T will probably not adopt T-Mobile's cheaper pricing.
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