U.N. World Report Picks Up Massive Growth in Mobile Phone Ownership

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According to a report this week from the United Nations, the number of mobile phone subscriptions throughout the world has quadrupled in the last seven years, from 1 billion in 2002 to 4.1 billion by December 2008.

That means that about 60% of the world’s population has signed up for a phone and had to endure the laborious task of listening to a telcom worker up-sell unnecessary features and extra plans. Hey it’s One World, right? We all get to feel the pain.

In the report, the U.N. notes that the majority of this growth is directly attributed to people in developing countries, who use phones as a more of a survival/functional tool. One of the big mobile applications during this time has been the use of money transfers services through phones, for people who don’t have bank accounts. For example, Nigerian and Kenyan companies recently announced they’d be expanding these services over the next year.

There are a few other interesting techy trends of note in the report. Internet use has more than doubled throughout the world, from 11% in 2002 to 23%, but that in developing countries, only one person out of twenty has access to the internet on average.

The report also found that despite the fact that ‘fixed’ or broadband internet connections offer the fastest web access, their generally more expensive rate has priced out, for now, about 80% of people who have internet access in developed countries. In developing countries, only 5% of people have broadband access to the net.

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Another interesting note to take from the report is that the huge growth in mobile phone use shows that higher-speed web access for mobiles is growing at a faster rate than regular high-speed access for anything else, like businesses or homes. What this means is that the device most people will likely use and rely on in the future will be the cell phone, above all else.

Lead Photo: MarkKelly/flickr

BlackBerry App Store Gets a Name

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BlackBerry maker Research In Motion’s online store for third party applications finally has a name but there’s still no sign of a launch date.

RIM will call its online applications store the BlackBerry App World. The site for developers will be updated tonight. There will also be a sign up page for users who want to be alerted when the store goes live.

The company has said earlier it plans to launch its app store in March. Developers have been allowed to offer submissions to the store since January. Last year, RIM participated in a $150 million fund to invest in mobile application developers who would create software for BlackBerry and other smartphone platforms.

Photo: (LymStylez/Flickr)

Newly Launched Nokia U.S. 5800 XpressMusic Phones Stumble

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The Nokia 5800 XpressMusic launched last week in the U.S. could have become a potential alternative to Apple’s iPhone, if only it had stayed on shelves long enough. After buyers reported crippling connectivity problems, Nokia has pulled the U.S. version of the phone off its shelves and is trying to find a quick fix to the complaints.

Nokia sells the 5800 phones for $400 as an unlocked and unsubsidized device in the U.S. and the phone is available only through the company’s stores.

"We have learned that some Nokia 5800 XpressMusic devices are having issues with 3G performance," said a Nokia spokesperson in a statement. "This is a very isolated problem concerning only the North American market and is not specific to any other region or country."

The problems come at a time when Nokia is struggling to expand its market share in the U.S. "For them to be having these kind of issues does not bode well," says Michael Gartenberg, vice president of strategy and analytics at market research firm Interpret. "This was a big product launch for them."

Nokia launched the 5800 Xpress phone in Europe last year to great success. The phone was billed as the company’s first touchscreen device for the mass market. It also includes free year long access to any music as part of the company’s ‘Comes With Music’ service. Barely weeks after its launch, Nokia said it sold 1 million 5800 XpressMusic phones.

In the U.S., the phone made its debut last week without any carrier support. But soon after, some users said they couldn’t get the phone to connect to AT&T’s 3G network. The 5800 logged on to the EDGE network without any reported problems.

Nokia’s decision to brave it alone in the U.S. is likely to now hurt the company, says Gartenberg. " Something like this underscores the importance of the carrier relationship with the handset vendor," he says. "If Nokia calls AT&T over 3G problems, it is not going to get a very quick response because this is not an officially supported handset."

Nokia claims only users in New York and Chicago are affected, while in Dallas and Miami, devices are reportedly working fine. Currently only European versions of the 5800 XpressMusic phones are available in Nokia stores.

The company is investigating to find a "quick remedy," says a Nokia spokesperson.

Meanwhile, a few users have also reportedly complained about problems with the earpiece that comes with the 5800 phone. Nokia did not acknowledge or comment on those complaints.

See also:
Nokia’s Upcoming Music Phone Takes a Shot at Apple

Photo: (Manu Contreras/Flickr)

LG Watch Phone to Cost $1500?

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Lucky Brits – already enjoying a crash in their currency alongside their truly terrible weather – are to be further shafted by Orange and LG. The mobile carrier has, according to Mobile Today, agreed to sell LGs watch phone for a staggering £1000, or around $1450. This means we’ll have to reclassify the Dick Tracey Special into our prestigious "Bling" category.

Oddly, the article goes on to say that "it will cost around £500 with an additional minimum line rental of £40 per month."

So which is it? £500 or £1000? To be honest, it makes little difference. Both are far too high. Look at the fuss about the iPhone, a device which cost $600 at launch, but which did a lot more than this wristwatch telephone. It’s not even flashy enough to attract the more moronic consumers, those who might drop $10,000 on a diamond studded collar for their chihuahua.

In fact, it looks a lot more like the kind of regular wristwatch our own hair-model and review guru Danny Dumas might buy. Our prediction? A solid gold, Swarowski-coated FAIL.

The LG watch phone gets £1,000 price tag [Mobile Today. Thanks, Johnny CA!]

Photo: Priya Ganapati

See Also:

LG’s Shiny See Through Cellphone

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Those of you above a certain age might remember a variant of the Game’n’Watch with a transparent screen. The LCD (non-lit) panel was mounted in an acrylic plate so you could play clunky versions of Mario and see what was going on behind it.

This was, of course, useless. At school we’d have to open our notebooks to a blank page and position it carefully behind the screen to be in with even the slightest chance of seeing the game. As a gimmick, though, it was amazing.

LG is hoping for similar "success" with its new GD900, a phone which is partially transparent. In this case, though, the screen has mercifully been spared and the see-thru treatment applied only to the slider keypad. It’s skinny, too, at just 13.4mm thick.

Other specs are, ahem, invisible, but we do know that the "sleek and polished silver body" (probably not real silver) will be joined by a matching Bluetooth headset. Hopefully, though, the hideous glass sculptures in the product shot will remain in LGs fevered, computer-generated imagination.

Product page [LG via Raw Feed]

Sprint Could Become Palm Pre’s Achilles Heel

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Palm may have gotten the design, operating system and marketing right with its much-anticipated new phone, the Palm Pre. But its decision to launch the Pre on Sprint’s network could prove to be the weak link in the chain.

Sprint said Thursday it lost 1.3 million subscribers in the fourth quarter and posted a loss of $1.62 billion. As the company bleeds money and users, the question is whether people will be willing to switch over from another carrier to go with Sprint, even if the carrier has one of the year’s most-hyped phones.

"They (Sprint) are the third place carrier, not doing well and losing customers left and right," says Jack Gold, president and principal analyst at consulting firm J. Gold Associates. "I don’t see a rush of people ditching Verizon and AT&T to go to them."  Users’ unwillingness to pay hefty cancellation fees to go to Sprint could also take a toll on Pre sales, he says.

For handset makers, the telecom service provider can be a powerful partner — or a heavy burden. Take Research In Motion’s BlackBerry Storm touchscreen phone. The device launched in November on Verizon Wireless’ network and met with some very harsh reviews. But two months later, Verizon announced it sold more than one million units of the phone. Verizon’s position as the largest cellphone service provider in the United States,
its strong promotion of the phone and the loyal BlackBerry fan base, contributed to the Storm’s success despite the many negative reviews of the device, said analysts.

Palm could do with that kind of muscle for the Pre. But it may not have had much of a choice but to partner with Sprint. Over the years, Palm and Sprint have built a symbiotic relationship; the $100 Palm Centro has had a successful run on Sprint. And now Sprint needs the Pre to lure customers.

It won’t be easy. The weak economy could rain on Palm and Sprint’s plans. "It’s the biggest problem in the short term for them," says Gold. "Are people going to pay the cancellation fee to go to Sprint?"

Sprint’s best hope for a switch is likely to be from current Palm users, such as Jim Egly. Egly, who works as a sales executives with a computer support firm, is a Centro user on Verizon. But he says he will consider a switch to Sprint just to get his hands on the Pre.

"Pre looks like such a sweet piece of technology," says Egly. "And I have a loyalty to Palm."

Also see:
6 Reasons Why the Palm Pre Is Special
Palm Unveils Its Long-Awaited Smartphone, the Pre
Video: Hands-On With the Palm Pre
New WebOS Is Palm’s Secret Sauce
Up Close and Personal With the Palm Pre

Photo: Jon Snyder/Wired.com

MWC 2009: Hands-on with the Obama Phone

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Bipartisan support is all well and good, but let’s be honest with ourselves: How many of us would trade it for a cheap, unauthorized cell phone bearing the likeness of our Commander-in-Chief? If you raised your hand, boy does Mi-Fone have the handset for you. The company created an Obama Phone for the African market, and immediately sold out of its sole run of 5,000.

Fortunately, the company had a model on hand at this year’s Mobile World Congress, and Sascha Segan had a chance to play with the device and take a couple of shots. The handset features a small color screen, a flashlight, an FM radio, and an Obama logo key.

He also spoke with Ken Yiptong, a representative from the company, who told him, “We did it for fun. I don’t want people to think we just want to make money on someone else’s name; it was just fun.”

Check out the full hands-on, over at PCMag.com.

Cellphone Makers Bet Big on App Stores

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BARCELONA — The world’s cellphone makers are showing off their newest products here this week, but hardware is not what’s foremost on their minds. It’s app stores.

Nokia’s Ovi and Microsoft’s Windows Marketplace join the iTunes App Store, the Google Android Market and PocketGear’s Symbian store (itself lined up alongside PocketGear’s own WinMo and Palm stores). The new stores, announced at the 2009 Mobile World Congress, have eclipsed the news we expected to hear, such as a GSM-flavored Palm Pre for the non-U.S. market, or an avalanche of Android phones. Neither has materialized.

The lure of app stores is clear. Money is part of it: Apple passes 70 percent of the ticket price for iPhone apps on to the developer. The remaining 30 percent stays in Cupertino to pay for bandwidth, account admin and, we presume, a little profit. But more important is the customer retention that these stores buy. Anyone with an iPhone will think twice about moving to another kind of phone if they have to re-buy all those applications. And that’s assuming that similar apps are even available.

Nokia knows this, and has adopted a similar developer-friendly model. Very similar, in fact: The Finnish company is offering the same 70/30 revenue split as Apple. Nokia will also take care of the payments, just like iTunes does, only in this case customers can choose not to leave their credit card details on the server, an option that could be attractive to the more paranoid user. And depending on carrier deals, you can even have the purchases added to your phone bill.

It looks like the strategy is working. Although Nokia wouldn’t provide numbers, senior communications boss Chris Morse says that "lots" of developers have already signed up.

Another major attraction of these stores is how easy they make it to sell cellphone apps. Until the iPhone came along, it was difficult to find, buy and install an application that wasn’t made available on a phone’s preprogrammed menus. It went like this: Find app (using Google). Find out who sells it. Buy it (entering your credit card details every time). Download to PC. Find cable or setup Bluetooth. Transfer from PC. Find in phone file browser. Install. Gah!

"It needs to be like TV [or] radio," says George Linardos, Nokia’s VP of media products. "You turn it on and it starts working." Linardos cited his wife, saying that any store gets around six seconds to prove itself before she switches off. That’s not much time.

In one important way, Nokia faces a bigger barrier than Apple. Apple’s App Store has to work only with the iPhone and iPod Touch. The Ovi Store has to work with countless models of Symbian S60 handsets, along with Nokia’s regular feature phones. But surprisingly, it does work: The Ovi back-end is intelligent enough  to present only applications that will work on your phone.

Nokia then throws movies and music into the mix. You can browse any content and download directly to your phone, but the Ovi store also offers recommendations. Linardos’ phone, for instance, knew he had flown to Barcelona from New York using the GPS unit, so the Ovi front page featured city guides, translation dictionaries and maps. Neat.

The last step is personal recommendation. If you choose to opt in, information about all your purchases is made available to your friends. So if I buy a game, it shows up in your feed and you can copy me. Simple, and socially buzzword-compliant, but in this case it seems to work.

The app store model is clearly a successful one, and something that actually benefits customers as much as the cellphone carriers. Only time will tell whether Nokia, Microsoft and the other new entrants into this field will match Apple’s success.

Product page [Ovi]

See Also:

Samsung ‘Beats’ Dead Horse with Gimmicky DJ Phones

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Barcelona –Samsung wants you to be a DJ. Among the many new phones announced at the Mobile world Congress come two music-mixing handsets, both called "Beat". The M6710 is more of a compromise, the kind of phone a web designer might use when he DJs part time at the weekends — it has just one wheel with which to scratch tunes, but has a rather useful slide-out number pad.

The hardcore Beat is the M7600 (above) which has the same 2.6" screen, 3MP camera and stereo speakers as its brother, but adds fake surround sound, GPS and an extra "wheel" for music control.

I tried this out. The speakers could be heard (just) above the din of the MWC show floor, and the touch screen controls easy to use. Hit the "scratch" mode and you can move you fingers on the tiny on-screen circle to move the needle in the groove.

That, at least, is the theory. In practice there is a tiny but noticeable delay between finger and sound, and the "scratch" sounds seem to be lame sound FX laid over the top. Of course, this is nothing more than a gimmick, sure to get boring after around five minutes. I was sick of it after 30 seconds, but I’m a cynical gadget blogger.

Press release [Samsung]

Mobile Industry (Minus Apple) Embraces Universal Phone Charger

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Several mobile phone companies on Tuesday announced a plan to adopt a
universal cellphone charger, making it possible, at long last, for consumers to get rid of the tangle of incompatible old chargers filling up the bottom drawer of their desks.

Spearheaded
by the Group Special Mobile Association (GSMA), the initiative involves
17 mobile companies, including Nokia, LG and AT&T committed to implementing Micro USB on all their
cellphones by Jan. 1, 2012. Once adopted, the standard would allow any phone to be charged with a standard USB cable, which could draw its power from a PC, laptop, or USB power adapter.

Conspicuously missing from the list
was Apple.

"Moving toward a universal
charger is a good thing considering the life of cellphones," said Casey
Harrell, a toxics campaigner with Greenpeace. "I don’t know why [Apple]
didn’t join, but a universal standard is not truly universal unless all
the big manufacturers are taking part."

USB is already fast becoming a de facto standard for charging a variety of devices, but many manufacturers use nonstandard mini-USB plugs. A standard would enable a single charger to power any compatible cellphone, as well as any other device (such as a camera or Bluetooth headset) that has a mini USB power port.

The initiative is aiming
to address the environmental impact of cellphone chargers in a number
of ways: 1.) Reducing the overall amount of cellphones produced by 50
percent; 2.) Decreasing the amount of waste produced by discarded,
useless cellphone chargers; and 3.) Cutting down on the energy and materials (including toxic chemicals) required to produce chargers by 51,000 tons.

For
consumers, the move would also reduce the overall cost of a handset,
since it would allow manufacturers to offer chargers as an optional
accessory.

Some of the participants include mobile giants Nokia,
LG and AT&T. Apple didn’t respond to phone calls for comment on its
absence from the list. But iFixIt’s Luke Soules, who disassembles Apple products, said the reason is likely tied to money.
He noted that Apple’s MacBooks utilize a MagSafe connector for charging
— a unique connection that third-party
accessory manufacturers cannot reproduce. He said Apple is likely embracing the
same strategy with iPhone connectors, which utilize a USB dock
connector, to continue to capitalize on charger products.

"It
doesn’t surprise me a bit," Soules said. "It sure seems that Apple is
trying to, if not make money off the AC adapters, at least prevent
anybody from making money off AC adapters. It seems to me they’re
trying to prevent others from sharing."

It’s worth noting, however, that several third-party manufacturers do sell
iPhone chargers, so Apple doesn’t have dominance in this
space. And Apple has been heavily marketing the "green" aspect of its
new products in the past year. Therefore, Apple could still feasibly
adopt the new universal charger standard.

However, joining the initiative wouldn’t be easy for Apple. Adopting
Micro USB would render iPhones incompatible with pre-existing speakers
and dock accessories, which would displease consumers. If
Apple were to participate in the near future, it would likely stick a
Micro USB port on an iPhone in addition to the dock connector — and
offer either charger as an optional accessory. Sounds a little
complicated, though, doesn’t it?

What do you think Apple should do? Vote in the poll below.

Apple absent from universal phone charger push [AppleInsider]

Photo: Otacon_85/Flickr