PC Sales Up, As Dell Slows: Report Gartner

PC Sales Up As Dell's Growth SlowsWorldwide shipments of PCs rose by 10.3 percent in the first quarter, with global shipments increasing to 50.4 million units, up from the 45.7 million PCs shifted during the same period a year ago.

The research by Gartner Inc echoes the general trend reported by its competitor International Data Corp, which reported a slightly higher growth figure of 10.9 percent.

Market leader Dell, saw its worldwide growth rate slip below 20 percent for the first time in 10 quarters, as US companies shelled out less than expected on PCs.

Dell’s 13.7 percent growth rate was still enough, however, to inch up its market share to 16.9 percent from 16.4 percent, with the company continuing to grow faster than competitors and the market in general.

The lack of sales in the US was made up by increased sales in Europe, the Middle East and Asia, with small businesses in Western Europe being the biggest contributor to the boost in shipments in the EMEA region.

PC Sales Up As Dell's Growth SlowsThe report notes that lower vendor prices and the strong Euro to the dollar exchange rate helped open up small business wallets over Europe.

With US corporations appearing to be at the tail end of their usual four-year replacement cycle, the report speculates that sales probably won’t pickup dramatically until around 2008.

The vast bulk of PC sales in 2004 – 69 percent – were by corporations, educational institutions, small and midsize businesses and the government with consumers buying the rest.

Notebook sales globally continued to be very strong with customers tempting by falling prices.

PC Sales Up As Dell's Growth SlowsIn the US market – the biggest in the world – Apple shimmied up to fifth position, elbowing Toshiba down a place.

As we reported last week, Apple had a bumper year, with shipments rising by more than 45 percent, driven by iMac and PowerBook sales. This success is reflected in the company’s increased market share, up to 3.7 percent from 2.6 percent a year ago.

Dell remains the biggest PC vendor in the world followed by, Hewlett-Packard, IBM, Fujitsu/Fujitsu Siemens and Acer.

In the US market, the big boys are Dell, HP, Gateway, IBM and Apple.

Karine Paoli, research director for IDC’s Personal Computing group, took a very deep breath and delivered this exceptionally long sentence : “If 2004 has been a strong year for the PC market, boosted by a rebound in commercial investment and portable adoption across EMEA, and if growth is expected to be softer this year, 2005 will remain buoyant, and highlight key transitions which will shape the market beyond 2006 – expansion of broadband and digital entertainment in homes, while businesses will look increasingly at mobility and wireless as part of their overall IT strategies.”

Gartner
International Data Corp report

Freedom2Surf Predicts 35% Increase In UK WiFi Hotspot Use In 2005

WiFi Report Predicts 35% Increase In WiFi Hotspot Use In 2005Despite being judged the fourth most digitally-savvy nation in Europe, it seems that 40% of the UK adult population don’t know their wi-fi from their waffles.

Research carried out by Freedom2Surf revealed that half of all women and one quarter of all men didn’t have the slightest clue what WiFi was, exposing a very strong gender, knowledge and awareness gap in the UK.

Not surprisingly, the kids were waaay down with that WiFi thang, with Freedom2Surf’s WiFi Report revealing that the 16-24yr old age group were well hip to the technology, with almost 30% connecting to the Internet via a WiFi hotspot more than once a week.

Looking at the amount of time people spent connected via WiFi, the report found that 40% of regular users spend 10 minutes a day on average connected to a hotspot, while a further 40% spend at least an hour in a single session.

Around 10 per cent of users surveyed connect three to four times a day for at least 20 minutes at a time.

The research discovered that WiFi usage is set to increase, with over a third (35%) saying that they expected to spend more time wirelessly connected in the coming year.

WiFi Report Predicts 35% Increase In WiFi Hotspot Use In 2005A smaller group (15%) expected their usage to increase dramatically in 2005, with the 16-24yr age group expected to increase its usage the most (52%) compared to 34 per cent of the 35-44 age group.

The biggest barrier preventing UK consumers connecting to hotspots was found to be the lack of regular access to a Wi-Fi enabled laptop (40%).

Cost was also perceived as a major factor, with 30% citing price as the biggest barrier.

Greater uptake has also been hampered by consumers expressing bafflement as to where hotspots are actually located along with the perceived complexity of set-up and payment for WiFi hotspot services.

Silver surfers (UK consumers aged 55+) were revealed as being the weakest Wi-Fi user group, with just 11 per cent of the old ‘uns having used a hotspot.

WiFi Report Predicts 35% Increase In WiFi Hotspot Use In 2005Geographically, London takes the honours as the King WiFi hotspot of the UK with a higher awareness and usage of WiFi (hardly surprising since there are more hotspots in London than anywhere else in the UK) whilst residents oop North in Yorkshire are the least Wi-Fi savvy.

Naturally, ISPs like Freedom2Surf don’t do surveys out of the goodness of their hearts, and predictably rounded off their report with a ten-ton size plug for their new low-cost Wi-Fi service, Freedom2Surf Hotspots.

The company will be partnering with BT Openzone to offer customers access to a network of 1,300 hotspots in the UK, with rates claimed to be “up to 50% lower than those offered by BT.”

These prices work out at 10p (€0.14/US$0.18) per minute (occasional use), £4.50 (€6.60/US$8.5)for a daily voucher (60 Minutes), £15 (€22/US$28) for a weekly voucher (5 hours) and £30 (€44/US$56) for a monthly voucher (20 hours). Payment can be bought on a Pay as You Go basis by purchasing vouchers with a credit card.

Compared to our American counterparts, these prices still seem outrageously steep to us, but Chris Panayis, managing director of Freedom2Surf, clearly doesn’t agree: “The use of WiFi hotspots is becoming increasingly mainstream particularly among the younger age group, and it is encouraging that many of the consumers we surveyed are planning to significantly increase their use of WiFi this year.

“With service providers like Freedom2Surf already acting to reduce the cost and complexity of connecting to WiFi hotspots, the next challenge for the industry is to boost awareness of where hotspots are located and continue to educate consumers on the flexibility that WiFi hotspots provide people who need to connect to the Internet on the move.”

Freedom2Surf

UK Online Broadband Now From £9.99

UK Online Offers £9.99 Broadband ServiceUK Online is hoping to bring broadband to the masses by smashing the price point for “entry-level” home broadband down to a wallet-untroubling £10 a month.

The Broadband 500 service will offer unlimited 512K broadband (yes, unlimited!) from just £9.99 ($18.95,/€14.55) per month to UK customers lucky enough to be in their catchment area.

The company has also reduced the price of its unlimited Broadband 2000 (2Mb) service, to £19.99 ($37.75/ €29.13) per month, with its Broadband 8000 (8Mb) service – the fastest home broadband service available in the UK – crashing down to an affordable £29.99 ($56.64/ €43.70) per month.

UK Online will be utilising Easynet’s Local Loop Unbundling (LLU) investment, to offer the new price points for 512K, 2Mb, and 8Mb broadband to users on its network of unbundled exchanges – adding up to over 4.4 million homes nationwide.

Chris Stening, General Manager of UK Online, said, “LLU enables us to offer more innovative products than our competitors. Our unique 8Mb service has led the way on speed and now we are leading the way on price.”

UK Online Offers £9.99 Broadband ServiceSurfers not used to this level of generosity may be wondering where the catch is, but we haven’t found it yet: we wrote to UK Online and they confirmed that both the Broadband 500 and Broadband 2000 are unlimited services with the Broadband 8000 offering an enormous 500GB monthly download allowance.

The spokeswoman also added that none of their current customers currently signed up to the package have come anywhere near that limit yet.

Suitably tempted, we headed off to their site faster than a crack-fuelled ferret up a drainpipe, only to discover that we weren’t in an “enabled” area.

This meant that the service would have to be delivered via BT’s network, pushing the prices up to £19.99 per month for the Broadband 500 per month and £29.99 per month for the Broadband 2000 – with no Broadband 8000 option.

UK Online

Cicero, Talktelecom Launch Business VoWiFi Service In UK

Business VoWiFi Service Launches In UKIrish VoIP solutions provider Cicero Networks has announced its first major telecom provider deal with Talktelecom Ltd, an independent, fully licensed General Telco Operator, based in Dublin.

The deal will give Talktelecom’s corporate customers access to Cicero’s mobile VoWiFi service to its corporate customers, following the completion of a two-month trial.

According to Cicero CEO Ross Brennan, the bulk of mobile calls are made from business premises by people plumping for convenience over cost (fixed-line costs are generally much cheaper than mobile rates)

Talktelecom hope that there’ll be healthy profits on the horizon to companies offering a mobile phone service using the global IP network

According to a study cited by Cicero, of the €0.75 (£0.51/US$0.96) cost of a three-minute cellular call, about €0.69 (£0.47/US$0.88) goes to the mobile operator and only about €0.6 (£0.41/US$0.77) to the fixed-line carrier. By contrast, the VoWiFi solution will deliver all of the €0.15 (£0.10/US$0.19) cost of the same three-minute call to the fixed-line provider, leaving room for both higher margins and cost savings for customers.

Talktelecom has deployed Cicero’s full package, consisting of three components; the Cicero Phone – a softphone client running on dual-mode GSM/Wi-Fi handsets – a Cicero Controller, handling call management, call routing, QoS, back-end authorization and authentication functions and billing data, and the Cicero Connect, gateway to the PSTN or other external network type.

Business VoWiFi Service Launches In UK“Cicero Networks’ integrated end-to-end solution has given us a fast time-to-market in delivering a truly innovative and cost-effective wireless voice service,” buzzworded Talktelecom CEO, Johathan Mills. “Cicero lets us grow our existing business and enter new markets while delivering a substantial return on investment in a short time,” he added.

“Talktelecom is pioneering the advancement of fixed-mobile convergence by offering its customers wireless voice services at fixed-line costs,” added Cicero’s Ross Brennan.

Talktelecom customers will be able to use the Cicero solution wherever a Wi-Fi connection is available, with the company increasing coverage through its recent partnership with The Cloud, managers of the UK’s largest wi-fi hotspot network.

Talktelecom
Cicero Networks Ltd

Jens MP-120: Better Than iPod shuffle?

Jens of Sweden Takes on the iPod Shuffle , MP120, MP400, MP 120, MP 400Jens of Sweden has unveiled its latest cool digital music player which they reckon will give iPod Shuffle a run for its money.

The midnight black, cigarette lighter-sized MP-120 music player can squeeze in 300 tracks (depending on track compression) and a features a USB 2.0 port.

It is available for SEK 1344 including VAT (US$194/£102/€148), which the cheeky Jens claims will undercut the iPod Shuffle by a massive one krona (£0.07/US$0.14/€0.11).

“Steve Jobs claims users prefer to be served random tracks than choose from among hundreds of their own tunes. We don’t agree which is why we offer a player, that besides random tracks, also allows users to see and choose exactly what they want to hear. Given today’s prices I’m convinced we can sell more MP-120 than iPod Shuffle in Sweden, despite Apple’s advertising budget,” says Jens of Sweden chief executive and founder Jens Nylander.

We admit we’re fans of Jens. We used to have a Jens MP-130 which we dearly loved – using it to listen to music, carry data and record interviews with broadcast-quality clarity. Everyone we showed it to was wowed by it and we would in turn enthuse about it at every opportunity. How many products can you say that about?

Then some low-life nicked it when we were at the AtHome conference in Nice at the end of last year. It broke our hearts. If this player is anything like as good as our dear MP-130, it’s going to be a contender.

The iPod shuffle has a fundamental weakness that Apple tried to turn around as a benefit. It has no display. In our experience, when you’re randomly listening to selection of tracks from a large music collection or a collection of podcasts, you want to know the name of the tracks you like and the ones you hate. The MP-120 has a display.

Jens of Sweden’s earlier MP-400 player was offered in seven colours – as well as 24-carat gold – and with the MP-120 model, it is taking customisation one step further by allowing customers to choose their own headphones.

The MP-120 can function as USB file storage memory, and also has an OLED screen and dictaphone.

It supports MP3, WMA, ASF, OGG Vorbis music files, and the built-in lithium battery should give users about 22 hours’ playing time.

While we don’t think Steve Jobs will be losing sleep over this, we think this will have a ready market with those who don’t want to conform to the Apple mentality.

The MP-120 is now available on Jens of Sweden’s Web site.

Jens of Sweden

‘Ultra Low Cost’ Mobile Handsets Announced by GSM Association

GSM Association announces 'Ultra Low Cost' handsetsIn response to demand from emerging markets the GSM Association (GSMA) is forging the way toward for a new ‘Ultra-Low Cost’ mobile handset market, producing sub-US$40 (Euro 31, £21) handsets. Some of the more cynical observers are wondering if this is an attempt to create a demand, or an early move to ensure a toehold in the potentially lucrative emerging market.

This initiative was kick-started by GSMA-commissioned research that identified handset cost as the single biggest barrier to mobile communications affordability in emerging markets.

Although we can’t help questioning the need to commission an entire study just to discover that ‘poor people can’t afford handsets’, the GSM Association aims to use the economies of scale of GSM to drive a new ‘Ultra-Low Cost’ market segment.

The GSMA brought together a group of its operator members that serve emerging markets to create critical mass through a special procurement initiative.

“One of our key goals as a global trade association is to help connect the ‘unconnected’ people of the World, a mission that is critical to the social and economic development of many emerging market countries,” said Craig Ehrlich, Chairman of the GSM Association. “By directly addressing the cost of handset ownership, we believe that we can unlock the new ‘Ultra-Low Cost’ market segment.”

The operators participating in this stage of the initiative are: AIS Telecom, Bharti Televentures, Globe Telecom, Maxis Mobile, Orascom, SingTel Mobile, Smart Communications, Telenor Mobile and Turkcell. Together, they represent significant presence in Eurasia, the Arab World and Latin America.

A handset specification and tender was issued to 18 different handset vendors, with Motorola’s family of products (built on its new, ultra-low cost C114 platform) being selected.

The handsets are optimised for their durability, long talk time, and design preferences of emerging markets and Motorola has committed to start delivering these products during the second quarter at a price point below $40 (ex factory) – with a strategic intent to work with GSMA members to develop follow-on products at sub $30 (Euro23.10, £15.89) price points.

Once shipments begin, the initial unit volume target for the first six months is a massive 6 million handsets, which equates to around 1 percent of the global handset market.

As economies of scale kick-in, this new market segment has the potential to add more than a 100 million new connections per year.

Motorola’s Chief Executive Officer, Ed Zander comes over all touchy-feely in the announcement:

“Connecting the unconnected with new Ultra-Low Cost, high quality, beautifully-designed handsets is a critical component of Motorola’s growth strategy – and it is the right thing for us to do as a good global citizen. We are delighted to have won the opportunity to seamlessly partner with the GSMA and member operators to deliver the magic of mobile communications to those who have never experienced it.”

(Note: Motorola had sales of US $31.3 billion (Euro24.1 billion, £16.5 billion), in 2004). GSM Association announces 'Ultra Low Cost' handsetsThe next stage of the project will see the project extended to other emerging market operators, while more vendors will be encouraged to supply terminals for this sizable segment.

According to GSMA estimates, in the region of 80 percent of the world’s population have wireless coverage but only 25 percent use mobile services.

By bridging the gap between supply and demand, the GSMA hopes to accelerate mobile penetration into a user segment currently seen as financially unrewarding.

“This announcement is just the beginning,” enthuses Conway, Chief Executive Officer of the GSMA .

“We also believe that the creation of the ‘Ultra-Low Cost’ market segment represents a significant step towards a sustainable business case for all players in the supply chain. Our mission is to aid economic and social development, by ensuring more people than ever before benefit from mobile communications.”

The mobile usage equation has three major elements: handset, service provision and regulatory / tax requirements.

While the GSMA is working with operators and vendors to address the first two, the third requires serious government support to lower taxes and regulatory requirements.

The GSMA will be reaching out to governments and regulators across emerging markets towards this goal.

GSM Association (GSMA)
Industry Comment (GSMWorld)

i-Mate Preloaded Skype on Smart Phones

iMate tie up with SkypeSkype has announced a partnership with i-mate, industry innovators of wireless device solutions.

i-mate will launch the first dual-mode wireless mobile handset preloaded with Skype software and demo it for the world at 3GSM in Cannes from Monday 14th February through Thursday 17th February.

The new i-mate PDA2K and PDA2 handsets will come preloaded with Skype’s award-winning software, allowing users to fire up Skype and get phonin’ as soon as they’ve wrenched the unit out of the box.

The handsets, expected to retail at a wallet-draining price of $850 (€660, £455), are enabled in dual modes – GSM/GPRS and Wi-Fi – and both use the Windows Mobile Pocket PC Phone Edition.

 The two companies worked for several months to integrate the software with the handsets and have provided a solution that will, in some circumstances, enable calls made over GSM and GPRS technology to be free, while others will be subject to small charges.

Skype users can call other Skype users for jack diddly squat, while another service, called SkypeOut, enables users to call to public-switched telephone networks for slightly more than two cents a minute.

The VoIP market is currently growing faster than Billy Bunter’s waistline on Bun Eating Day, with businesses and individuals keen to get a slice of the cheap call action.

The Skype service is already making noticeable inroads into traditional phone traffic, with more than one million users on the Skype service at any given time.

The peer-to-peer software is available on Windows, Linux, Mac OS X, and Pocket PC platforms and is the fastest growing voice communications offering worldwide with over 67 million downloads, since its launch in August 2003.

So the program is a hit. Everyone wants it. But how are they going to make money out of something they’re giving away for free?

It seems that Skype’s solution is to create an income stream through licensing their software on to other platforms.

Skype
iMate

Napster To Go Launches – Will It Go with the Public?

Napster Stares iTunes in the Face and Makes Growling NoisesNapster UK has launched what they’re claiming to be the “world’s first portable subscription music service”.

Backed up by an aggressive multi-million pound marketing campaign, Napster is talking big with bold claims of “changing the music industry forever” after their service rolls out after its UK launch, with Europe following close behind.

Priced at £14.95 a month, the Napster To Go service allows users to download as much music as they like from Napster’s one million-strong catalogue and save it to a compatible portable media player.

Unlike the pay-per-track/album services offered by rivals such as iTunes, Napster users can download an unlimited number of tracks and listen to them on and/or offline so long as their membership is active.

Napster Stares iTunes in the Face and Makes Growling NoisesUnlimited music? Over a million tracks? Sounds like the original Napster. Well, there’s the catch. Once you stop shelling out the monthly fee, you’ll be listening to a hard drive full of silence, courtesy of Microsoft’s new Janus digital rights management (DRM) system turning off your access to the tracks.

There’s currently only five compatible music players – Creative Zen Micro MP3 player; iriver H10 MP3 player; iriver Portable Media Centre; Creative Zen Portable Media Centre; and Samsung YH999 Portable Media Centre – with a further 18 devices are expected to hit the market in the next three months.

Napster is predicting a veritable onslaught of compatible devices to follow on within the year.

With the hugely popular iPod notably absent from that list (strangely they don’t support Microsoft’s DRM) and users still able to download DRM-free content from music-sharing sites like Soulseek, we’ll have to wait and see if users are prepared to go along with a monthly subscription where they don’t get to keep the music.

For non-subscription members, Napster also offers the Napster Light a la carte download store that sells individual tracks for 79 pence and albums for £7.95.

Napster

$100 PC Touted by Negroponte for Developing World

$100 PC Touted by Negroponte for Developing WorldA $100 (€76, £53) laptop computer for the developing world has been touted at the World Economic Forum in Davos by Nicholas Negroponte, founding chairman of MIT’s Media Lab.

The computer will have a 14-inch color screen and will run the Linux operating system. According to Red Herring magazine, Negroponte is looking for support from companies such as chip giant AMD, Google, Motorola, Samsung, and News Corporation.

The first units could be ready in about 18 months, Red Herring said.
The developing world is increasingly a target of technology companies – Microsoft has built a slimmed-down version of Windows XP for the Indian, Malaysian, Indonesian and Russian markets, as part of its Windows XP Starter Edition pilot programme. In part this reflects its desire to fight off Linux, which is becoming increasingly popular in these new markets.

Another source of PCs for the developing world is recycling. Every year in the UK 3 million PCs taken out of service, but many are still in good working order. In contrast most schoolchildren in the developing world graduate from high school not having seen a computer in the classroom, and there are a number of charities which take these PCs and reuse them in the developing world.

In related news, MIT has announced that Media Lab Europe, launched in 2000 by the Irish government and MIT will close on February 1 due to a shortfall in financing.

MIT
Red Herring

Easymusic.com Aims to Shakeup Music Downloads

EasyMusicCheaper legal download sites will shake up the online music industry, according to Easyjet founder Stelios Haji-Ioannou.

Last month Haji-Ioannou launched his easyMusic.com download site, in collaboration with online music service Wippit, and predicts that cost-efficient digital downloads will take over from CDs.

He told the BBC World Service’s The Music Biz programme: “There were people who said when I started Easyjet that £29 ($54, €42) would ruin the airline industry. Far from it – it has made some companies less profitable, but it has forced them to compete, and therefore become leaner and more competitive.”

The easyMusic.com site includes tracks from more than 200 labels, including Universal, Warner, BMG, Sony and EMI, with single downloads starting at 25p, ($0.47, €0.36) and UK users can also pay by SMS.

It also plans to includes downloads on a ‘copyleft’ – the opposite of copyright – basis, giving downloaders access to new music for free.

But easyMusic.com is just one of number of new legal download sites launched in the last 12 months to take on market leaders such as iTunes.com.

According to figures from recording industry association IFPI, legal music sites quadrupled to over 230 in 2004, and the available music catalogue has doubled in 12 months to 1 million songs.
And while IFPI chairman and chief executive John Kennedy may say it is now the “priority” of the record industry to licence music “to as many services, for as many consumers, on as many formats and devices for use in as many places and countries as it can”, music sites may struggle to cut the cost of downloads unless they can persuade the record companies to cut back on their margins.

And of course many consumers still prefer to get their music for free – IFPI calculates there are 870 million pirate tracks on the Internet.
easymusic.com