Motorola Inc needs to spark some serious gadget lust next week when it unveils new phones to convince consumers and Wall Street that it's still a player in the global mobile industry, but the odds may be heavily stacked against it.
After losing market share for years, Motorola has made what is viewed as a make-or-break bet on Google Inc's Android mobile software, hoping the partnership with the giant Web company can help it win back customers.
Shares of the one-time market leader, now ranked fourth in global handset sales, jumped 11 percent earlier this week on investor hopes that the new phones could generate enough excitement to make Motorola's bat-wing logo famous again.
But while no one is expecting an iPhone-killer at the San Francisco unveiling on September 10, analysts say the risk is still that the new phones will not be unique enough to wow consumers, especially when other vendors also sell Android phones. "Early devices will not be significantly differentiated and could disappoint those playing the 9/10 launch," said Macquarie Research analyst Phil Cusick, who expects Motorola to display two new Android phones that day.
Motorola has given few details about the announcement, which will come during Co-Chief Executive Sanjay Jha's keynote at GigaOm's mobile conference. Jha first revealed his plans for creating Android phones in October.
He has said the new phones will be integrated with popular online social networks; but rivals such as Apple Inc, Research in Motion Ltd, HTC Corp and Palm Inc already have features for services like Facebook.
Shareholders have been impressed enough with Jha that they have more than doubled Motorola's share price since May. Still, the stock is down 70 percent from its 2006 peak of $26 and has been trading below $8 per share. "It's going to be extremely significant to the company's future," said Current Analysis analyst Avi Greengart. "If the phone does well, they live to fight another day."
Comparisons will inevitably be drawn to Palm's Pre phone unveiling, which was also seen as a last chance for that company. Pre reception was good and caused Palm's share price to quadruple, in part on the perception that the company has become a more attractive takeover target.
Should the initial reaction to Motorola's devices be as strong, the company could have a good chance of luring back consumers, investors and mobile service providers, analysts say.
PRETTY HARDWARE
Motorola turned to Google for phone software because its own strength has been in hardware. This was demonstrated by the Razr, whose slim form inspired imitations for two years before it started to fall out of favor in late 2006.
Analysts expect Motorola's new phones to have stylish enough hardware to secure distribution by mobile carriers, but the question is whether the software will be different enough to spur holiday season sales -- especially when the bar has been set very high by Apple's iPhone and the thousands of apps available for download from Apple's online store.
"Short-term, Motorola needs to win the purchase decision of specific carriers," Greengart said. "Long-term, they're going to need to do something more than selling pretty hardware running an operating system other competitors have access to."
Motorola's Jha has said several times that carriers were impressed with the Android phones. He told Reuters in a recent interview that he was encouraged when one operator executive told him "bat-wings are back."
Analysts expect Motorola Android phones to be sold by Verizon Wireless, owned by Verizon Communications Inc and Vodafone Group Plc, and by T-Mobile USA, owned by Deutsche Telekom AG. But Verizon said it is not involved in Motorola's announcement next week. T-Mobile said it will launch new Android phones this year but declined to give details.
Even if carriers did back the phone, some of Motorola's former shareholders say they would be wary of betting on the company unless it started to show sustainable improvements.
"I wouldn't touch the stock until they've launched three, four or five phones and they've gained market share for at least a year," said Jane Snorek, an analyst for First American Funds, which manages $35 billion in equities that used to include Motorola shares.
Deutsche Bank analyst Brian Modoff said he is impressed by Jha but agreed that investors should look beyond September 10. "If you get to several phones and they're all disappointing, then you have to start writing the obituary. I don't see that," said Modoff. He said he will focus on the reaction from young consumers who crave cool gadgets: "We'll see what the 20-year-olds think. That's what really matters."
Agencies
Monday, September 7, 2009
Battle hots up for T-Mobile bidding
MOBILE phone operators Vodafone and O2 are understood to be locked in a £3.5bn bid battle for rival T-Mobile UK.
Both Newbury-based Vodafone and O2 - which is owned by Telefonica Spain - are reported to have bid £3.5bn for the group which has been put up for sale by its German owner Deutsche Telekom.
T-Mobile has 16.6 million customers, so success for either group would make it the biggest mobile operator in the UK.
But there are concerns that T-Mobile UK could be withdrawn from sale altogether, as the offers, which were discussed by Deutsche Telekom's board at the end of last month, are below the expectations of the group's chief executive, Rene Obermann.
A sale at £3.5bn would lead to Deutsche Telekom having to make another writedown on the division after the group took a £1.6bn hit on the business in May, as a result of it losing customers to rivals and declining margins.
The auction is understood to be in its final stages and a decision is expected to be announced in the next few weeks.
If Vodafone was successful in its bid, the deal would boost its share of the UK mobile market to 40 per cent of revenues and a near 50 per cent share by customer numbers with 35 million subscribers enabling it to overtake O2 and regain its crown as the country's biggest mobile operator. O2 would see its market share jump to 43 per cent if it is successful, building on the increase seen following its exclusive deal with Apple to supply iPhone handsets.
Telefonica is said to be concerned that O2 would lose its market-leading position in the UK if Vodafone goes ahead with an offer. But both offers are conditional as any deal is likely to be scrutinised by telecoms regulator Ofcom.
Bankers are understood to have given T-Mobile UK a standalone value of £2.5bn, but this could rise by a further £1bn if it was combined with another operator.
Agencies
Both Newbury-based Vodafone and O2 - which is owned by Telefonica Spain - are reported to have bid £3.5bn for the group which has been put up for sale by its German owner Deutsche Telekom.
T-Mobile has 16.6 million customers, so success for either group would make it the biggest mobile operator in the UK.
But there are concerns that T-Mobile UK could be withdrawn from sale altogether, as the offers, which were discussed by Deutsche Telekom's board at the end of last month, are below the expectations of the group's chief executive, Rene Obermann.
A sale at £3.5bn would lead to Deutsche Telekom having to make another writedown on the division after the group took a £1.6bn hit on the business in May, as a result of it losing customers to rivals and declining margins.
The auction is understood to be in its final stages and a decision is expected to be announced in the next few weeks.
If Vodafone was successful in its bid, the deal would boost its share of the UK mobile market to 40 per cent of revenues and a near 50 per cent share by customer numbers with 35 million subscribers enabling it to overtake O2 and regain its crown as the country's biggest mobile operator. O2 would see its market share jump to 43 per cent if it is successful, building on the increase seen following its exclusive deal with Apple to supply iPhone handsets.
Telefonica is said to be concerned that O2 would lose its market-leading position in the UK if Vodafone goes ahead with an offer. But both offers are conditional as any deal is likely to be scrutinised by telecoms regulator Ofcom.
Bankers are understood to have given T-Mobile UK a standalone value of £2.5bn, but this could rise by a further £1bn if it was combined with another operator.
Agencies
Saturday, September 5, 2009
Can Mumbai, Bangalore emerge as the global capitals?
The Russian capital as well as Indian cities of Mumbai, Bangalore and Hyderabad have every chance of becoming global capitals on par with cities such as New York, London and Tokyo, according to the latest issue of Forbes magazine.
The influential publication assessed the rapidly changing forces driving the global economy, such as the inflow of capital and labour resources, and the pace of infrastructure development, and looked into the future, ranking the Russian capital alongside Shanghai, Beijing, Sao Paolo, Dubai and the Indian cities of Mumbai, Bangalore and Hyderabad.
"Fifteen years ago, Moscow was in the midst of a particularly grungy interlude, filled with stolid people waiting in lines for shoddy consumer goods. Today, its hotel accommodations - cheap if dinghy a quarter century ago - are among the world's most expensive.
Russia's huge energy industry, which dominates all of Europe, is the key factor driving the transformation," Forbes wrote.
The article, published Wednesday, notes that Moscow has had a radical makeover since the collapse of the Soviet Union. The city, where Moscow State University was the tallest building at 240 meters (787 feet), now has a host of skyscrapers including the three tallest buildings in Europe, the highest of which is still under construction.
"With a population of 10 million, Moscow is already Europe's most populous city and could get bigger yet, particularly if energy prices rise," the magazine said.
Although Forbes expects most global capitals of the future to be outside the Western Hemisphere, it includes Calgary in Canada, Perth in Western Australia and the Texan pair of Houston and Dallas in its list.
But the article does recognise that the current centers of financial and political influence - such as Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - will not fade into the background for some time to come.
Agencies
The influential publication assessed the rapidly changing forces driving the global economy, such as the inflow of capital and labour resources, and the pace of infrastructure development, and looked into the future, ranking the Russian capital alongside Shanghai, Beijing, Sao Paolo, Dubai and the Indian cities of Mumbai, Bangalore and Hyderabad.
"Fifteen years ago, Moscow was in the midst of a particularly grungy interlude, filled with stolid people waiting in lines for shoddy consumer goods. Today, its hotel accommodations - cheap if dinghy a quarter century ago - are among the world's most expensive.
Russia's huge energy industry, which dominates all of Europe, is the key factor driving the transformation," Forbes wrote.
The article, published Wednesday, notes that Moscow has had a radical makeover since the collapse of the Soviet Union. The city, where Moscow State University was the tallest building at 240 meters (787 feet), now has a host of skyscrapers including the three tallest buildings in Europe, the highest of which is still under construction.
"With a population of 10 million, Moscow is already Europe's most populous city and could get bigger yet, particularly if energy prices rise," the magazine said.
Although Forbes expects most global capitals of the future to be outside the Western Hemisphere, it includes Calgary in Canada, Perth in Western Australia and the Texan pair of Houston and Dallas in its list.
But the article does recognise that the current centers of financial and political influence - such as Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - will not fade into the background for some time to come.
Agencies
Mentors Murthy, Nilekani, Premji To Help IISc Students become entrepreneurs
Learning from mentors who change the way you live and think is the chance of a lifetime. Homi Bhabha, Vikram Sarabhai and Satish Dhawan did it in the past. Azim Premji, N R Narayana Murthy, Nandan Nilekani and C Ramadorai are doing it now. If you couldn’t spend time with greats of the past, how about taking lessons from legends of the present?
The IISc Alumni Association has come up with a cracker of an idea — it is setting up a ‘mentoring system’ in which great entrepreneurs (initially) will act as mentors or thinkers to students and research scholars, who wish to launch small firms or startups, or turn their research into technology and eventually take the entrepreneurial route in life.
The mentors will be from across the globe, including Bangalore, and will keep in touch with students identified and selected for mentoring.
The man behind the idea, Association president Dr K R Srinivasan, told TOI that “already a few top people” had agreed to be mentors. “They include people not associated with IISc but who can, and are, willing to make a contribution to IISc. They are people in the league of Narayana Murthy...”
Net connect
Srinivasan said a website will connect the mentor and student/ scholar in the first phase of interaction. “The website will have the mentor’s profile and expertise and the student’s request. A software will bring together the request and expertise to see if they match. If they do, then the mentor and student will get into live interaction. So interests of both have to match.”
The mentors will act as thinkers and shape the form and direction of a project that the student hopes to turn into a product or start-up company. “The mentors will take time out and be in personal touch with the student or mentee. They will make concrete suggestions, offer advice, show routes that could be taken. The system will be open to IISc and IIT students, initially. If it turns out positive and productive, it will be extended to engineering colleges too. We wish to leverage the strengths of alumni as well as non-alumni, who are genuinely interested in turning ideas into products of some sort,” Srinivasan said.
Infosys, Wipro and TCS are not just companies but stories of extraordinary entrepreneurship and creativity in an atmosphere of red tape, bureauracy, large-scale public lethargy and corruption. Some of the great space labs, like the ones at Ahmedabad, Thiruvananthapuram, Bangalore, Mumbai and Sriharikota, were creative battles against dormant mindsets. IISc Alumni Association hopes to replicate some of these stories.
Timesofindia.com
The IISc Alumni Association has come up with a cracker of an idea — it is setting up a ‘mentoring system’ in which great entrepreneurs (initially) will act as mentors or thinkers to students and research scholars, who wish to launch small firms or startups, or turn their research into technology and eventually take the entrepreneurial route in life.
The mentors will be from across the globe, including Bangalore, and will keep in touch with students identified and selected for mentoring.
The man behind the idea, Association president Dr K R Srinivasan, told TOI that “already a few top people” had agreed to be mentors. “They include people not associated with IISc but who can, and are, willing to make a contribution to IISc. They are people in the league of Narayana Murthy...”
Net connect
Srinivasan said a website will connect the mentor and student/ scholar in the first phase of interaction. “The website will have the mentor’s profile and expertise and the student’s request. A software will bring together the request and expertise to see if they match. If they do, then the mentor and student will get into live interaction. So interests of both have to match.”
The mentors will act as thinkers and shape the form and direction of a project that the student hopes to turn into a product or start-up company. “The mentors will take time out and be in personal touch with the student or mentee. They will make concrete suggestions, offer advice, show routes that could be taken. The system will be open to IISc and IIT students, initially. If it turns out positive and productive, it will be extended to engineering colleges too. We wish to leverage the strengths of alumni as well as non-alumni, who are genuinely interested in turning ideas into products of some sort,” Srinivasan said.
Infosys, Wipro and TCS are not just companies but stories of extraordinary entrepreneurship and creativity in an atmosphere of red tape, bureauracy, large-scale public lethargy and corruption. Some of the great space labs, like the ones at Ahmedabad, Thiruvananthapuram, Bangalore, Mumbai and Sriharikota, were creative battles against dormant mindsets. IISc Alumni Association hopes to replicate some of these stories.
Timesofindia.com
Friday, September 4, 2009
Can Yahoo take on Twitter with its new Meme?
After closing the social network platform SpotM, Yahoo has launched Meme, in English, to take on microblogging site Twitter. The company had launched this service in Spanish and Portuguese languages earlier this month.
Meme is currently in an invite-only mode, similar to few microblogging services like Tumblr, Twitter, Pownce and others. After creating the account, users get a blank blog for micro-sharing text, images, music, videos or mash up of all these things.
It also offers the facility to add new friends by searching the internet, which is quite similar to Tumblr and Twitter.
The company's previous efforts to capitalize on the social networking domain kept failing in spite of repeated attempts. The recently launched 'Know Your Mojo' also failed along with the Indian social network, SpotM, which was closed down less than a year after its launch.
Meme does not allow much in terms of customization. The users cannot customize the themes with background images and custom CSS to style the text, as this facility is available with Twitter and Tumblr. Both these services have a rich faux-cabulary, which defines how a person uses the service. Meme does not lend on a particular vocabulary. The setting panel has minimal options like Meme title, 100 character description, avatar/photo and notifications. It also shows the comments posted by the users recently.
Yahoo Meme can have a big advantage over Twitter in terms of reliability. Twitter's image has suffered for frequent service outages, with its "Fail Whale" graphic appearing whenever the site is overloaded, emerging as the company's unofficial logo.
Several technology sites like TechCrunch and paidContent are not pleased with Yahoo's move, they said, "Meme seems to lack in its features and in potential to surpass its competitors." They also pointed out that the company has a spotty record with Mash and SpotM.
Agencies
Meme is currently in an invite-only mode, similar to few microblogging services like Tumblr, Twitter, Pownce and others. After creating the account, users get a blank blog for micro-sharing text, images, music, videos or mash up of all these things.
It also offers the facility to add new friends by searching the internet, which is quite similar to Tumblr and Twitter.
The company's previous efforts to capitalize on the social networking domain kept failing in spite of repeated attempts. The recently launched 'Know Your Mojo' also failed along with the Indian social network, SpotM, which was closed down less than a year after its launch.
Meme does not allow much in terms of customization. The users cannot customize the themes with background images and custom CSS to style the text, as this facility is available with Twitter and Tumblr. Both these services have a rich faux-cabulary, which defines how a person uses the service. Meme does not lend on a particular vocabulary. The setting panel has minimal options like Meme title, 100 character description, avatar/photo and notifications. It also shows the comments posted by the users recently.
Yahoo Meme can have a big advantage over Twitter in terms of reliability. Twitter's image has suffered for frequent service outages, with its "Fail Whale" graphic appearing whenever the site is overloaded, emerging as the company's unofficial logo.
Several technology sites like TechCrunch and paidContent are not pleased with Yahoo's move, they said, "Meme seems to lack in its features and in potential to surpass its competitors." They also pointed out that the company has a spotty record with Mash and SpotM.
Agencies
Does TCS plan to hire 25,000 jobs globally?
In a move that could bring a smile to many faces, Tata Consultancy Services (TCS) has announced that it will hire 25,000 people globally in 2009, with 90 percent of them in India alone. Though the number is bigger when compared to the hiring these days, it is less than last year when TCS appointed around 35,000 people.
With this recruitment drive, TCS also plans to expand its presence into the tier-II cities in India. "We will be hiring 25,000 people this year, which means roughly 25 lakh square feet of work space required and, therefore, we need to grow outside the metros. Tier-II cities are our only focus for expansion in the country as the top rung are clogged and saturated," said Tanmoy Chakrabarty, Vice-President and Head of Government Industry Solutions unit at TCS.
Following this hiring spree, the total global manpower of TCS would go up to more than 1.8 lakh. This will put the IT services provider among large private Indian employers like Tata Steel, which has the total employee strength of two lakh. Going forward, the company, which has an estimated 32 percent market share, plans to cash in on the Indian government's plan to invest Rs. 40,000 crore on IT services.
Currently, 70 percent of the IT segment's revenue is from India, while the rest comes from the U.S., Latin America, Africa and South East Asian countries. However, the revenue contribution from Indian government businesses to the total company revenue of $6 billion is less than five percent, which the company intends to increase to more than 10 percent in the next three years.
Agencies
With this recruitment drive, TCS also plans to expand its presence into the tier-II cities in India. "We will be hiring 25,000 people this year, which means roughly 25 lakh square feet of work space required and, therefore, we need to grow outside the metros. Tier-II cities are our only focus for expansion in the country as the top rung are clogged and saturated," said Tanmoy Chakrabarty, Vice-President and Head of Government Industry Solutions unit at TCS.
Following this hiring spree, the total global manpower of TCS would go up to more than 1.8 lakh. This will put the IT services provider among large private Indian employers like Tata Steel, which has the total employee strength of two lakh. Going forward, the company, which has an estimated 32 percent market share, plans to cash in on the Indian government's plan to invest Rs. 40,000 crore on IT services.
Currently, 70 percent of the IT segment's revenue is from India, while the rest comes from the U.S., Latin America, Africa and South East Asian countries. However, the revenue contribution from Indian government businesses to the total company revenue of $6 billion is less than five percent, which the company intends to increase to more than 10 percent in the next three years.
Agencies
Thursday, September 3, 2009
Lavasa to be tranformed into e-City by Wipro
Lavasa and Wipro announced their partnership for planning, implementing and managing information and communication technology (ICT) services across Lavasa city.
Wipro will support the city in the areas of city management system & services, e-governance, ICT infrastructure and value-added services, including providing intelligent home solutions and digital lifestyle. The ICT services will include voice-video-data services to various businesses operating out of Lavasa city.
According to a company release, the strategic partnership will focus on providing integrated and effective solutions for enhancing IT operations within the hill city. It will identify governance services and operating models, and define processes for delivering good governance.
Wipro will also provide the necessary infrastructure support, including technology selection, supply, installation and management of platforms, networks, data center, etc.
The estimated revenues out of this partnership from Lavasa city's first town Dasve is about $100 million over the next 10 years.
Speaking on the occasion, Rajgopal Nogja, president, Lavasa Corporation, said, "For a completely new hill city like Lavasa, technology leadership is a key driver of city development and management. Wipro has proven expertise in innovative ICT solutions and this partnership will ensure a quantum leap in not only being technologically proactive, but also realizing our vision in becoming a completely e-governed city.
Through this partnership, Wipro will also design the detailed infrastructure for telecom services for governance, and also for the residents and visitors of Lavasa city. Wipro will provide telecom-based services that will facilitate smart homes, and buildings including integrated building management systems, physical security requirements and other on-demand services.
Agencies
Wipro will support the city in the areas of city management system & services, e-governance, ICT infrastructure and value-added services, including providing intelligent home solutions and digital lifestyle. The ICT services will include voice-video-data services to various businesses operating out of Lavasa city.
According to a company release, the strategic partnership will focus on providing integrated and effective solutions for enhancing IT operations within the hill city. It will identify governance services and operating models, and define processes for delivering good governance.
Wipro will also provide the necessary infrastructure support, including technology selection, supply, installation and management of platforms, networks, data center, etc.
The estimated revenues out of this partnership from Lavasa city's first town Dasve is about $100 million over the next 10 years.
Speaking on the occasion, Rajgopal Nogja, president, Lavasa Corporation, said, "For a completely new hill city like Lavasa, technology leadership is a key driver of city development and management. Wipro has proven expertise in innovative ICT solutions and this partnership will ensure a quantum leap in not only being technologically proactive, but also realizing our vision in becoming a completely e-governed city.
Through this partnership, Wipro will also design the detailed infrastructure for telecom services for governance, and also for the residents and visitors of Lavasa city. Wipro will provide telecom-based services that will facilitate smart homes, and buildings including integrated building management systems, physical security requirements and other on-demand services.
Agencies
Subscribe to:
Posts (Atom)