Samsung Leaps Ahead of the Curve With New Galaxy Round

The fact that the Galaxy Round is curved doesn't mean that it's flexible or bendable -- at least not yet. "At present this is still a curved display on a rigid device," said Wayne Lam, senior analyst for mobile devices at IHS iSuppli. "To truly be bendable or flexible would require all the components inside to be bendable or flexible, and we're not really there yet."

Hard on the heels of LG's announcement earlier this week that it is planning flexible-display handsets of its own, Samsung Electronics on Wednesday announced the release of the Galaxy Round, which it says is the world's first smartphone featuring a curved screen.

New features enabled by the device's curved design include the "Roll Effect," which enables the user to check information such as the date, time, missed calls and battery easily when the home screen is off, and the "Gravity Effect" for creating visual interaction with the screen by tilting the device, Samsung said.

Both Samsung and LG also offer curved OLED, or organic light-emitting diode, technology in large-panel TVs, but now the South Korean companies are aiming to put the curve in users' hands.
The 5.7-inch Galaxy Round is now being rolled out in South Korea in "Luxury Brown," with more colors coming soon. Samsung has not given any indication so far on whether the device would be released in other markets, however.
Samsung did not respond to our request for further details.
'We're Not Really There Yet'
The fact that the Galaxy Round is curved doesn't mean that it's flexible or bendable -- at least not yet.
"At present this is still a curved display on a rigid device," said Wayne Lam, senior analyst for mobile devices at IHS iSuppli. "If you look at Samsung and LG, these are both display manufacturers, and overall this is more a way to feed development of flexible display technology, but it could be at least a decade before these devices are truly flexible.
"To truly be bendable or flexible would require all the components inside to be bendable or flexible, and we're not really there yet," Lam told TechNewsWorld.
Apart from its curved display, the Samsung Galaxy Round doesn't introduce any significant new hardware.
"There aren't any major component advancements beyond the curved screen, so this way it is really kind of model expansion of the Galaxy devices," said Chris Hazelton, research director for mobile and wireless at 451 Research. "They are using the Galaxy components where it makes sense. That is driven by cost. They aren't looking to develop too many components for this device."

A Showpiece Device

Instead, the Galaxy Round "is more of a showpiece for the company," Hazelton told TechNewsWorld. Samsung's display division "has created the ability to create the curved display, and it is using this product to show it off.
"They have the funding to deliver the technology even if it is just a marketing demonstration," Hazelton added. "It shows that they can provide curved displays for vendors."
Of course, the Galaxy Round will be available at retail, so it does go a step beyond the usual "proof of concept" stage. However, it isn't expected that this is a device for the masses.
"The market is pretty small, as people don't know what the benefits are," Ramon Llamas, research manager for the mobile phones team at IDC, told TechNewsWorld. "What we are seeing is that Samsung is flexing its R&D muscle."
Coming as it does so soon after LG's announcement, "this is really about the competition between the two companies," Llamas added.

'What Is a Smartphone'?

The curved display of this new handset is not without its benefits, however, even as questions remain as to who its target audience might be.
"One of the most interesting effects of providing a curve of the display is it shrinks the width," noted IHS iSuppli's Lam. "This is a 5.7-inch display, which can be larger to hold in the hand, so by bending the device it allows it to be held easier."
It can be a difficult form factor to get right, however.
"Not everything will be conforming to the curved screen," Lam explained. "So you have to think about what problem this is trying to solve. It isn't addressing anything anyone is asking for at this point, but this is really about trying to get it out there and stir up the conversation about the curve."
There's also the fact that when Samsung launched its first Galaxy Note, "it was a bit of head-scratcher at the time, as it sat between two categories," Hazelton suggested. "This new device could see the same fit. It points to the future of capabilities but it also speaks to the fact that it is hard to define what is a smartphone.
"These are not like laptops, where all the devices have the same form factor," added Hazelton. "There is a lot more variety among devices. Samsung deserves credit for taking this in a new direction." 

Qualcomm Executive Dismisses Apple's 64-Bit A7 Chip, Dislikes Google Glass

He said it brings nothing to the table at this point for consumers, but plans to release a 64-bit chip for Android/Windows Phones

A Qualcomm executive doesn't think Apple's new 64-bit A7 processor is a huge, necessary iPhone upgrade. In fact, he called it a "marketing gimmick."

Anand Chandrasekher -- senior vice president and chief marketing officer at Qualcomm -- said that Apple's 64-bit processor in the new iPhone 5S doesn't offer a big enough reason for consumers to upgrade.

"I know there's a lot of noise because Apple did [64-bit] on their A7," said Chandrasekher. "I think they are doing a marketing gimmick. There's zero benefit a consumer gets from that.

"Predominantly... you need it for memory addressability beyond 4GB. That's it. You don't really need it for performance, and the kinds of applications that 64-bit get used in mostly are large, server-class applications."

One key advantage of a 64-bit processor is more memory addressability, but the iPhone 5S has only 1GB of DRAM.

Chandrasekher said 64-bit chips aren't "relevant" in today's smartphones or tablets. Many have even said that the processor in Apple's new iPhone can't be credited entirely for performance boosts in benchmark tests.

Qualcomm provides its Snapdragon chips for Android and Windows Phone smartphones and tablets. It even plans to continue investing in chips made for Windows RT, which is a mobile version of Windows 8 that runs on ARM-based chips and has been criticized for failing to produce a full Windows 8 experience (it can't run legacy apps).

"We've been investing quite a bit into both Windows Phone and Windows RT. We're one of Microsoft's partners," said Chandrasekher. "We're optimistic in the way we invest in the marketplace, we're cautious of the outlook in terms of what the revenues might look like."

Qualcomm said it plans to offer a 64-bit processor in the future to keep up with chip designs and even cut manufacturing costs, but there's no set release date, and Qualcomm doesn't seem worried about it. In fact, the company is looking ahead to wearable technology and is focusing on the needs to power such devices -- but it's more interested in smart watches, not "out there" devices like Google Glass.

"Google Glass, I'm not a huge fan of that," said Chandrasekher. "That's a little harder to predict if that will be successful."

Apple released the iPhone 5S last month alongside the "budget" iPhone 5C. 
Source: TechWorld

Microsoft Investors Want Bill Gates to Resign From Post Amidst Windows 8 Woes

After successfully kicking Ballmer out, the sharks want more blood

While Microsoft Corp. (MSFT) was riding on an epic sales streak in the Windows 7 era, shareholder infelicity was slowly amounting as weak stock prices failed to reflect Microsoft's strong earnings.  Disruptive investor David Einhorn first called upon CEO Steve Ballmer to resign in early 2011.  At the time the board defended the boisterous Mr. Ballmer.  But then came Windows 8 and the biggest percentage drop in PC sales in history.  Now Mr. Ballmer is out, and that could be just the start.

Now three of Microsoft's top 20 investors have set their eyes on a new target -- William Henry "Bill" Gates III.  Since stepping down as CEO in Jan. 2000, Bill Gates -- who cofounded Microsoft in 1975 -- has continued to serve as Chairman of Microsoft's board.

The investors reportedly want a more radical departure from Microsoft's current path and are afraid Bill Gates could stand in their way.  They're particularly upset about Bill Gates being allowed to lead the committee that's hunting for Microsoft's next CEO.  Thus they're reportedly internally calling for Mr. Gates to resign as chairman of the board.

_{Three top shareholders reportedly want Bill Gates to resign early from his chairman position at Microsoft. [Image Source: Getty Images]}

While the investors represent only 5 percent of the total share pool, the attack on Mr. Gates is a sign that shareholder outrage has reached a new level.  Todd Lowenstein, a portfolio manager at HighMark Capital Management, did not disclose whether his hedge fund was part of the campaign against Mr. Gates, but at the very least he sounded quite supportive of it.  In a comment to Reuters he stated, "This is long overdue.  Replacing the old guard with some fresh eyes can provide the oxygen needed to properly evaluate their corporate strategy."

Other investors aren't so supportive of the attack on Mr. Gates' position of leadership.  Kim Caughey Forrest, senior analyst at Fort Pitt Capital Group -- another major shareholder -- comments, "I've thought that the company has been missing a technology visionary.  Bill (Gates) would fit the bill."

Fortune forecasts Microsoft to make $17B USD in profit this year, and calls it the world's 110th biggest company in terms of revenue -- up from 119th in 2012 on a profit of $22B USD.  But Microsoft's market capitalization (based on share prices) has fallen from first place in the world in 2000, to seventh place this year.  That's the same place as Microsoft occupied in 2008, but is down from the third place mark Microsoft managed to achieve in 2010 amid Windows 7's booming sales.

_{Mr. Gates' chosen CEO successor, Steve Ballmer, was recently driven out by the board.
[Image Source: Getty Images]}

Mr. Gates currently spends most of his time and effort on his $38B USD Bill and Melinda Gates Foundation.  Mr. Gates plans to donate his entire fortune to charity by the time he dies and has inspired other billionaires -- including Facebook, Inc. (FB) CEO and founder Mark Zuckerberg to do so as well.

The calls for Mr. Gates resignation come at a time whens his own ownership of Microsoft is waning.  Mr. Gates owned 49 percent of Microsoft shares when the company went public in 1986, but entered a plan to sell off his holdings on a pre-set basis, selling about 80 million shares a year.  Sales to date have reduced Mr. Gates' stake to 4.5 percent of current shares, or about $12.4B USD worth of stock.  The share sales plan will eliminate Mr. Gates' ownership entirely by 2018, at which point he would presumably step down as board chairman -- a spot reserved for a top investor.

Thus whether or not the angry shareholders get their wish, Mr. Gates will likely be leaving what is likely his final position at the company he cofounded within the next five years.

Source: Reuters

Windows 8.1 Available for Pre-Order

Windows Vista or XP users will need to purchase Windows 8 first

Not too long ago we mentioned that Windows 8.1 would be landing on October 18. All Windows 8 users will be able to download the update at no cost via the Windows Store on that day. However, if you haven't yet upgraded to Windows 8 you can now pre-order Windows 8.1.

Windows 8.1 brings with it several updates that users should appreciate, including a return of the Start button.

The update will also allow users to boot directly to the desktop, bypassing the “Tiles” interface. Microsoft reportedly made numerous other changes and upgrades to the operating system as well.

Users wanting to pre-order Windows 8.1 can do so now for $119.99. If you're running Windows XP or Windows Vista, you need to be aware that Microsoft says Windows 8.1 is not designed for installation on devices running either of those versions of the operating system.

People running Windows Vista or Windows XP have to purchase Windows 8 and get the upgrade Windows 8.1 at no cost. Windows 7 users can update directly to Windows 8.1.

Source: Microsoft

Nokia Looks to Ban HTC Androids From U.S.

Nokia looks to either score licensing fees, or force HTC onto Windows Phone

Microsoft Corp. (MSFT) is showing off a mean one-two punch against the smartphone market's top platform Google Inc.'s (GOOG) Android.  After pressuring most Android OEMs into lucrative long-term licensing deals which erase much of the OEMs' margins, and now its close partner Nokia  Oyj. (HEL:NOK1V) and is using patent lawsuits to deliver the second blow.

I. Microsoft Circumvents Licensing Deal Via Subsidiary Nokia

The first victim of this strategy is HTC Corp. (TPE:2498).  HTC signed a deal with Microsoft in 2010, reportedly paying Microsoft around $10 USD per Android smartphone it sells.  The deal grants HTC licenses to various Microsoft operating system and hardware patents that HTC's Android device might otherwise infringe upon.

Generally HTC has tried to play peacemaker when it's been dragged into court.  In November of last year it signed a 10-year licensing pact with Apple, Inc. (AAPL).  Earlier last year Apple had scored an import ban via the U.S. International Trade Commission, the nation's trade court.  The ban caused serious damage to HTC earnings, by worsening the Android phonemakers sales slump.

_{HTC continues to be bullied by Microsoft and Nokia. [Image Source: Reuters]}

While HTC has continued to struggle financially, one might think that it was safe from fresh patent litigation -- at least litigation from Apple and Microsoft, two of the smartphone war's primary drivers.  But if you thought that you would be wrong, as Nokia has secured a ban on much of HTC's smartphone line via a preliminary ruling by the ITC.

Since it has signed a licensing pact with HTC, Microsoft cannot directly sue it.  But in its recent complaint, Finnish phonemaker Nokia Oyj. is instead doing that work.

Nokia recent sold its devices unit to Microsoft, along with a 10-year patent licensing promise for $7.2B USD.  But Nokia Oyj. as a whole continues to exist in Finland and continues its anti-Android "license or be sued" patent campaign.

II. Nokia Started the Patent Wars, and it's Still Pushing Them

Nokia alleges that Qualcomm, Inc.'s (QCOM) radio circuitry inside the Snapdragon 600 (APQ8064) and other commonly used smartphone components violate dozens of patents (at one point the count was 50) owned by Nokia.  But rather than sue Qualcomm, et al., Nokia has decided to selectively target phonemakers that use the chips.

_{Nokia claims Qualcomm's Snapdragon 4 and other chips infringe on its IP.
[Image Source: Engadget]}

Nokia has long been at the forefront of the so-called "smartphone wars", an industry-wide patent suing frenzy that began in 2009.  Ironically Apple -- the other leading litigator -- was the first company to be sued back in 2009 when Nokia accused Apple of violating 10 of its patents.

Nokia also set the model that Apple and others would later follow by filing an ITC complaint requesting a ban on infringing products.  As virtually all smartphones are made in China, these import bans would effectively amount to sales bans.  The ITC approach is a particularly attractive one in the U.S. as elements of the 2006 Supreme Court ruling in eBay v. MercExchange [PDF] made it harder to secure more traditional federal court orders to ban products while pursuing infringement claims in the federal court system.

_{The ITC has become a popular route to product bans. [Image Source: Wikimedia Commons]}

Nokia's current complaint was filed in the U.S. District Court for the Southern District of California in May 2012 (Case 13-cv-01231-BEN-WMC) by the power law firm Neil Dymott Frank McFall & Trexler APLC [press release].  A separate ITC complaint was filed in parallel.  That complaint targeted a slew of devices that now comprise the older models in HTC's Android lineup including the HTC Amaze 4G, the Inspire 4G, Flyer, Jetstream, Radar 4G, Rezound and Sensation 4G.

_{The Sensation 4G}

The ITC complaint involved nine "non standards essential patents", of which two were singled out to aid in a final ruling. These were EP1133831/U.S. Patent No. 7,415,247 which covers a "Method and arrangement for transmitting and receiving RF signals through various radio interfaces of communication systems" (filed: 1999, granted: 2008) and EP0951138/U.S. Patent No. 6,373,260 which describes a "Method for attenuating spurious signals and receiver" (filed: 1999, granted: 2002).

III. License or be Sued -- Licensing? Nevermind, We'll Sue You Anyways

When Nokia's devices unit was acquired by Microsoft at the start of September -- some expected or hoped that Microsoft might drop the case out of respect for its licensing relationship with HTC.  While the deal did not give Microsoft ownership of Nokia’s intellectual property it did cement the pair's close "strategic relationship".

But Microsoft appears to have no voiced compunctions about its partner continuing to attack its licensees.

On Monday, Nokia was rewarded when Administrative Law Judge (ALJ) Thomas Pender ruled that HTC infringed on the Nokia patents and ordered a ban of the HTC One in a preliminary ruling.  Due to the government shutdown that ruling is currently unavailable.

Nokia spokesperson Mark Durrant told Reuters in an emailed statement, "Nokia is pleased that the initial determination of the ITC confirmed that HTC has infringed two of our patents."

The company is expected to push the ITC to also ban HTC's flagship One smartphone and other newer models, which also use Qualcomm chips.  A final ruling is expected in January, after which HTC has 90 days to respond or face a ban.  If the panel of three ALJs upholds the ruling that HTC infringed, its products could be banned from import by April 2014.

_{The HTC One could be banned by April 2014.}

Ultimately, Nokia seem unlikely to actually want to have to follow through on a product ban.  Rather the decision to continue with the complaint will likely look to force HTC (and others) to separately license Nokia's patent portfolio.

A spokesperson for HTC told The Wall Street Journal that HTC will "keep its alternative plans ready to ensure no business disruption."

It's unclear whether that plan involves switching the chips used in the smartphones, switching to Windows Phone, or offering to pay Nokia via a new licensing agreement.

IV.  Microsoft is on Pace to Milk $750M USD from Android in 2013

Microsoft already makes more than any other party that's sued Android phonemakers to force licensing. It's scooping an estimated $10 USD in pure profit off every HTC smartphone sold; versus a mere $3 to $4 USD that Apple is rumored to receive.  If Nokia could force HTC (and others) to pay an additional $10-15 USD per Android device to license its patent portfolio, it could essentially make it so phonemakers make no profit off the Android smartphones they sell.

This clever scheme would either pad Nokia's profits, or force phonemakers onto the only other mature third-party smartphone platform -- its partner Microsoft's Window Phone. HTC already makes Windows Phones, so the latter is a plausible possibility.

_{The HTC Windows Phone 8X}

Microsoft was reported some time ago to make more profit off Android licensing that Windows Phone, and given the influx of new high-profile licensees like Samsung and China's ZTE Corp. (SHE:000063).

Today nearly four out of five smartphones sold are Android phones, and Microsoft is getting a cut of every one of those devices.  Microsoft has estimated it will make $675M USD in royalties off Android smartphones in 2013.

Nokia is today profitable, but its sales aren't great.  It sold 5.6 million smartphones last quarter.  But HTC has fared even worse; it was rumored to have sold only 1 million units of its flagship HTC One smartphone as it missed Q2 earnings targets in July.  If Nokia can force licensing it could potentially score hundreds of millions in new licensing fees, just like its partner Microsoft.

_{Royalties are where the money's at for Microsoft and Nokia.
[Image Source: Life's Cheap Thrills]}

This is not the first major patent loss of 2013 for HTC.  In May it was discovered via teardowns that Geneva, Switzerland-based STMicroelectrics N.V. (EPA:STM) had apparently stolen the noise-cancelling dual-membrane mic technology Nokia licensed it to use in Lumia components.  HTC subsequently apologized, dropping the once-key feature, and managed to successfully avoid an import ban in Europe. Sources: ITC, Reuters, WSJ