Square Expands To Larger San Francisco Headquarters, New Offices In NYC And Waterloo, Canada

Square

Mobile payments company Square is announcing today the opening of a larger, expanded San Francisco-based headquarters. In addition, the company announced plans for new offices in both New York and Kitchener-Waterloo, Canada — a location that could help the company take advantage of recently laid off employees from beleaguered Waterloo-based company Blackberry which saw massive layoffs just last month.

Square moved into its new corporate headquarters at 1455 Market Street in San Francisco last week, it says, and as of today, the offices are open to visitors. The office is more than 150,000 square feet, which is three times the size of the company’s previous space in the San Francisco Chronicle building. Meanwhile, the number of worldwide employees have doubled year-over-year, going from approximately 300 in 2012 to nearly 600 at present, says Square.

The growth has led Square to seek out new office space outside the Bay Area, in locations that are both strategic for Square’s growth as well as areas where engineering talent can be found. In New York, where the expansion news had leaked out to Buzzfeed in August, the company has signed a lease for an office in the SoHo area, and plans to triple its engineering presence there within one year. The Canadian office – Square’s first permanent office in the country – will open in 2014.

Square also has offices in Atlanta and Tokyo, the company notes.

Square Wanted To Be A New York Company

A few weeks ago, Square CEO Jack Dorsey hosted a roundtable at Columbia University to weigh in on recent developments in smartphone tech, Square’s future, and specifically New York as a suitable spot for startup growth.

At the time, he noted that Square Wallet in particular would play a crucial role in the company’s growth. As with all new payment schemes, however, Dorsey said he believes that ushering in a new sort of consumer behavior will take a broad stretch of time.

“We believe we can shorten that time frame significantly with Square Wallet,” said Dorsey.

He also explained that the direction of Square Wallet is in line with the direction of all technology, in that technology is slowly fading to the background and pushing focus on the people using it. “With Square Wallet, you walk up to the counter and confirm your name and you’re done,” said Dorsey. “You’re paying with who you are, and all you need is you.”

Where outside innovations are concerned, Dorsey said he believes that Apple’s new fingerprint reader is a slight boon to the evolution of payments on mobile. “Anytime there is better protection on the forefront, to even enter the device — people have a lot of sensitive information on their phones — that will help with changing behavior towards payments,” he said.

However, Dorsey doesn’t believe that the implementation of finger-print-level security is squarely focused on payments. Rather, building security into the phone is there to protect the entire package, not just to facilitate or protect a single part of the phone.

Dorsey also pre-announced the NY expansions then, revealing that Square will be growing the New York offices by three times by the end of the year, a plan he calls “aggressive.” He noted also that he felt that Square belongs in New York for a number of reasons.

“We actually tried to start the company in New York almost five years ago, but we weren’t able to hire the engineers and designers we needed to at the time,” said Dorsey.

In his perspective, New York had more of a marketing problem than a talent shortage, as it seemed that engineers and designers weren’t meeting in a single place on a regular basis. In other words, there was a lack of community. Luckily for New York, Dorsey says that isn’t a problem anymore, which is a theme we’ve seen play out elsewhere.

For example, Bonobos moved its team to New York from San Francisco in March.

“This city has something very different from Silicon Valley,” said Dorsey. “New Yorkers are facing different issues, and the people in New York are actually living the problems we are trying to fix.”

Dorsey wasn’t entirely clear on the type of hires he’s looking for to fill out the rapidly expanding SoHo office in New York, but he did mention that the company will be “heavily investing” in bringing more women on board as they offer a “different perspective” for Square.

Nexus 5 innards spilled with extended LG document leak

This weekend a document was spilled in part through the sharing platform Scribd, showing off the LG-made Nexus 5 in part. This document was lost for a day or two, thanking in part a couple of 404-ed webpage sources, but today we’ve been passed a collection of images and snaps from another internal document from […]

Analyst: Both iPhone 5s And 5c Outselling The Samsung Galaxy S4 At AT&T And Sprint

iphone5s-iphone5c

Apple’s new iPhone strategy appears to be paying healthy dividends for the company, according to a new research note from analyst firm Canaccord Genuity. The iPhone 5s is outselling the older Samsung Galaxy S4 at all four major U.S. retailers according to the firm’s findings, but the surprising twist is that the iPhone 5c is outselling the Samsung flagship rival at both AT&T and Sprint, too.

Early reports had suggested, as Fortune notes, that the iPhone 5c might not be selling quite as briskly as the 5s. The 5s is likely still outselling the cheaper device, but reports of lots of stock for the 5c may have had much more to do with it being well-supplied than with any significant lack of consumer interest, based on these figures. Samsung managed to retain second place at both Verizon and T-Mobile with the Galaxy S4 despite Apple’s iPhone launch, due in part to price cuts, according to Canaccord.

Despite hanging on to those positions, the bottom line here is very promising for Apple, which has shown that it can put forth a strong showing not just with a top-tier device, but also with a lower cost option which retains most of the internal tech of the last generation iPhone with a cosmetic update that likely actually results in lower costs to manufacture. So not only is Apple probably selling more of these compared to previous last-gen offerings, like the iPhone 4s when the 5 remained on the market, it could be clearing greater profit on each sale, too.

These are early numbers from a single source, covering only the U.S., but they indicated along with Apple’s record-breaking first weekend sales that the iPhone 5c strategy is really working well for Apple at the outset. If this continues to be the case, and has similar effects around the world in other key markets, I wouldn’t be surprised to see Apple adopt similar tactics across its other product lines, too, including the iPad and possibly the Mac.

NTT Docomo Finally Gets The iPhone, But Subscribers Still Flee Due To Low Stock

iphone 5s and iphone 5c

Japanese carrier NTT Docomo has revealed that it experienced a record monthly drop in subscribers for September, which is somewhat surprising given that the company was the lone remaining major Japanese carrier without the iPhone on offer until the release of the iPhone 5s and 5c, also in September. The mobile operator blames the iPhone as the reason behind the dip, however, in a twist that shows that when it comes to iPhone, customers are looking for immediate satisfaction.

Docomo blamed a drop of 66,800 subscribers during September to limited stock of new iPhone devices, according to a report from Reuters in Tokyo today, which contrasts considerably with what rivals KDDI and SoftBank saw. Both of those carriers received net subscriber additions in September thanks to the new iPhone’s launch, something Docomo ascribes to them having plenty of iPhone hardware on hand to meet demand.

Despite this setback, Docomo will probably eventually see a net benefit from having the iPhone. Using the U.S. situation as an example, it took a long time for AT&T’s competitors to start to win back the subscribers they’d slowly shed to that U.S. carrier after it held the iPhone exclusive contract for years. Low stock out of the gate for Docomo vs. both KDDI and SoftBank suggests that perhaps the two existing players got preference as to early shipments, or it’s possible that Docomo underestimated demand for Apple’s iPhone and as a result put in low initial orders.

There’s a larger point to be made here about the iPhone and its effects on carrier fortunes: This is definitely a device that people are willing to jump fences for. The example here proves that customers weren’t willing to wait even so much as a few weeks to get their hands on the device on a network they’re already used to when it’s readily available elsewhere. Of course, the ultimate fear for mobile operators is that they become just another interchangeable dumb pipe, with the device driving buyer network decisions, and it looks like that could be exactly what’s happening in the Japanese market, at least.

LG’s New Nexus Phone Gets Detailed In Leaked Service Manual

nexus5manual

There has been no shortage of leaks that claim to show off Google’s next Nexus smartphone (including this not-so-subtle nod from Google itself) over the past weeks and months, but we may have just hit the mother lode this weekend. The folks at Android Police have gotten their hands on a hefty, near-final draft of a 281-page service manual for the forthcoming device, which still technically bears the LG D821 model number.

Really though, LG isn’t fooling anyone here. The document is chock full of diagrams and images (some of the device in various states of disassembly) that depict a very familiar-looking phone sporting some Nexus 7-like branding on its rear end. An earlier FCC filing already revealed some of the juicy details — the inclusion of a 4.95-inch 1080p IPS screen and a 2.3GHz Qualcomm Snapdragon 800 with 2GB of RAM — but this newly leaked manual manages to shine a little extra light (not to mention extra credibility) on those earlier reports.

The new Nexus will likely be available in 16 or 32GB variants, and will feature an LTE radio and an 8-megapixel rear camera with optical image stabilization (there’s no mention of that crazy Nikon tech, though). NFC, wireless charging, and that lovely little notification light are back, too, but don’t expect a huge boost in longevity — it’s going to pack a sealed 2,300mAh battery, up slightly from the 2100mAh cell that powered last year’s Nexus 4. That spec sheet should sound familiar to people who took notice of what happened with the Nexus 4. Just as that device was built from the foundation laid by the LG Optimus G, the Nexus 5 (or whatever it’s going to be called) seems like a mildly revamped version of LG’s G2.

At this point I’d usually urge you to approach such leaks with caution, but it hardly seems necessary now. As much as I love my mental image of a lone prankster toiling into the wee hours of the morning on a meticulously crafted forgery, the sheer complexity and granularity of the information contained in this document makes that scenario an unlikely one. And the icing on the cake? LG asked Android Police to pull the offending document and images earlier today — AP complied with the request, but there’s no way to get the cat back into its bag now.

It’s hard to argue with the timing, too. The first anniversary of the Nexus 4’s unveiling is fast approaching, and as solid as the device was, it found itself being outclassed by a more powerful breed of smartphone within a matter of months. The Galaxy Nexus and the Nexus 4 made their official debuts in October 2011 and 2012 respectively, and now that we’ve got persistent rumors of a Google event scheduled for October 14 floating around, I’d wager all this cloak-and-dagger business should be dispensed with very shortly. Until then, feel free to dig around in the full document below for more technical tidbits — happy hunting!

LG D821



Samsung’s Galaxy Gear Ads Show A Dated Device, Not A Futuristic One

gear-power-rangers-wtf

Even Samsung thinks its Galaxy Gear is anachronistic – at least if the commercials are to be believed. New ads for the new Samsung Galaxy Gear that popped up on the company’s official YouTube page this weekend are supposed to be an exercise in wish-fulfillment, but they end up showing off a company and design mentality that’s been stuck in the same gear for 20 or 30 years.

As you can see, Samsung is pulling out nostalgia strings in these new ads, counting down the best sci-fi wrist-mounted communication tech from Star Trek, Knight Rider, The Jetsons and Might Morphin’ Power Rangers to remind us that we’ve always secretly wanted to talk into our wrists and be heard and understood by others. Except that what comes across isn’t how Samsung has finally been able to deliver this space-aged tech to a populace that’s been waiting for it for ages; instead, we see how dated this concept is, and how hilarious and awkward it looks with cheesy sets, bad special effects and costumes that definitely don’t scream ‘modern’ or ‘contemporary.’

By all accounts, the Galaxy Gear is a first attempt that pretty clearly misses the mark for what a smartwatch ultimately should be, and consumers don’t seem all that energized by the concept, at least not based on local evidence here in London. Per CNET UK editor Jason Jenkins:

And again later:

These ads do a good job of taking those of us old enough to remember the shows in them on a trip through memory lane, but in no way does that make me want to strap something to my wrist and start talking to it. And call me crazy, but I can pretty much guarantee that each of those devices depicted in these fictional TV shows got more than a day’s worth of use on a full battery charge, too.

CrunchWeek: Twitter’s S-1, The Silk Road Shutdown, And The Rumored Amazon Phone

crunchweek

So this is what CrunchWeek is like without adult supervision.

Leena Rao and Colleen Taylor, the show’s two regular hosts, were both out of town this week, but there was still plenty of news for TechCrunch writers — specifically Greg Kumparak, Alex Wilhelm, and me — to talk about. We weighed in on the anticipation around Twitter’s IPO filing (and what was revealed in its S-1 filing), the shutdown of anonymous Bitcoin marketplace Silk Road, and reports that Amazon is developing its own smartphones (one of them with a whopping four cameras).

By the way, apologies for the occasional bursts of random background noise. I blame the gremlins hiding in the TCTV studio.

Google, SAP, Cisco & Samsung Among Potential Tech Buyers For Some Or All Of BlackBerry, Says Reuters

blackberry-q5-

Google, SAP and Cisco are among a number of technology companies interested in buying up portions — or all — of BlackBerry’s business, according to Reuters, which cites several sources close to the matter. BlackBerry has also apparently asked for preliminary expressions from Intel, LG and Samsung, by early next week. Portions of the business of most interest to potential technology buyers are BlackBerry’s secure server network and patent portfolio, according to the sources.

None of the companies named by Reuters provided comment on its report.

Other tech companies, including Microsoft, Huawei and Lenovo, are notably absent from the list of prospective buyers. Redmond unsurprisingly so; despite being previously linked with a possible BlackBerry bid, Microsoft is now tied up with its own $7.2 billion bid for Nokia’s Devices & Services business. Meanwhile Chinese telco Huawei has faced difficulties in the North American market over national security concerns about links to the Chinese military — likely making a bid for a company that supplies phones to government officials a difficult sell.

An enterprise-focused bidder — such as SAP or Cisco — might make the best fit for BlackBerry’s security-focused messaging handset business at this point, with the consumer smartphone marketplace now primarily centred on Android and iOS. That said, the BYOD trend has been steadily eroding BlackBerry’s enterprise reach, so even here its appeal is increasingly niche.  (Albeit, it does have its own mobile device management software that seeks to tap the BYOD trend, with the ability to manage iPhones, Android-powered devices and BlackBerrys).

Late last month, days before BlackBerry reported a $965 million quarterly loss (due mostly to a writedown on unsold Z10 devices), it signed a letter of intent to go private. Its largest shareholder, Fairfax Financial Holdings, is the prospective buyer, tabling a $4.7 billion bid for the company.

Going private also opens up the possibility that a new owner might look to break up the company and sell off its constituent parts, although Fairfax claims it has no plans to do so. But, according to Reuters, BlackBerry is actively shopping itself around to potential strategic buyers anyway — as an alternative to the Fairfax deal. That deal, which values the company at $9 per share, has faced some skepticism from financial analysts — who believe a $7 per share price is more realistic — which may explain why BlackBerry is apparently looking elsewhere now.

Technology buyers are not the only potential bidders for the BlackBerry pie, with private-equity firms also asking the company to provide additional financial details about its various business segments, according to two of Reuters’ sources. However they said BlackBerry is currently focused on taking bids from industry peers.

Despite Google et al apparently agreeing to talk, it’s unclear how much serious interest there is in buying BlackBerry or which, if any, parties will bid. Potential bidders are apparently proceeding with caution, given the level of uncertainty around BlackBerry’s business and questions over the future value of its business assets.

Google’s interest is likely to be in BlackBerry’s patent portfolio. Android has faced renewed legal attacks in recent weeks, with Nokia’s lawyers scoring a preliminary win against HTC‘s Android-powered One flagship device in the U.S. last week. Google’s 2011 acquisition of Motorola was also widely touted as a patent-focused purchase aimed at bolstering Android’s IP defences. So it’s due diligence for Mountain View to at least take a closer look at BlackBerry’s patents. Samsung may also be eyeing those.

However, Reuters notes that the value of BlackBerry’s patent portfolio and licensing agreements is diminishing rapidly — likely to halve over the next 18 months. Which may temper any interest there.

BlackBerry’s patents are estimated to be worth between $2 billion and $3 billion, and its security-focused messaging system services business is likely worth $3 billion to $4.5 billion. The company also has $3.1 billion in cash and investments — however with revenues sliding and more loss-making quarters looming, that cash is going to get eaten up pretty quickly. Reuters cites Bernstein analyst Pierre Ferragu’s prediction that the company will burn through almost $2 billion over the next year and a half.

Meanwhile, BlackBerry’s long-touted plan to extend the reach of its consumer mobile messaging service, BBM, to Android and iOS – perhaps with the hope of creating another business asset it could shop around to buyers – has stalled.

BBM was initially slated to launch on the new platforms globally late last month but the rollout was halted after a leaked version of the Android .apk overloaded its servers. The company has since said it remains committed to launching BBM on Android and iOS but given no new timeframe for when this will happen. In the event, it may be that BlackBerry’s bits get broken up and sold off before BBM is able to make the leap onto other platforms.

Filing Says Sleep- And Health-Tracking Startup Lark Is Raising Another $3.6M

lark-new-product

Lark, which launched a wearable silent alarm onstage at TechCrunch’s Disrupt conference back in 2010, has raised $3.1 million of an intended $3.6 million round of funding, according to a filing with the Securities and Exchange Commission.

I’ve emailed the company and its CEO Julia Hu for confirmation, and I’ll update this post if I hear back. The filing doesn’t specify the investors in the new round, but intriguingly, it does identify Weili Dai, president and co-founder of Marvell, as member of its board of directors.

Although Lark started out with a silent alarm, it expanded its product lineup to include a sleep coach product called Lark Pro and a more general device and app called Larklife. The company announced Larklife in October of 2012, and Hu described it to me as a way for folks who aren’t as serious about fitness or weight loss to track and get actionable recommendations about their diet, exercise, sleep, and more. Like Lark’s other devices, Larklife was sold in Apple’s retail stores (and elsewhere).

I actually tried the service out for a few months late last year and early this year. During that time, everyone kept asking me about the blue wristband (the look definitely wasn’t as subtle as, say, the Nike+ Fuel Band). I thought it had potential, but eventually I decided that it wasn’t providing enough value to justify the (minor) inconvenience — and, perhaps more damningly, the ridicule that it prompted from my roommate. In the months since, while I’ve seen an increasing number of people around San Francisco wearing some sort of fitness device, it usually isn’t the Larklife wristband.

Lark previously raised $1 million in funding from Lightspeed Venture Partners, CrunchFund (which, like TechCrunch, was founded by Michael Arrington), and others.

Now Availabe: GoPro Hero 3+, Libratone Loop, Windows 8.1 and More

Now Availabe: GoPro Hero 3+, Libratone Loop, Windows 8.1 and More

Hear that? It’s the weekend, barreling down the tracks of time. Let’s stop that metaphor right there before we all start reflecting on the meaning of existence, and instead focus on the gadgets that went on sale this week! From the new to the newly-revamped to the somewhat puzzling, this week brought plenty of gizmos to consider. Stop wasting your life and read on!

Read more…