O2 Joins AT&T in Blaming iPhone for Network Issues

O2, one of the leading providers of wireless service in the United Kingdom, has apologized to customers for recent network issues including the inability to make or receive calls, or transmit data. Like AT&T, the United States exclusive iPhone provider, O2 blames the excessive data demands of the iPhone for crippling the network.

On this side of the pond, AT&T has been facing mounting criticism regarding its network. Users have been frustrated by dropped calls, slow data transmission, and poor signal quality--especially in major metropolitan areas like San Francisco and New York. A brief inability for NY residents to purchase the iPhone from AT&T online yesterday prompted speculation that AT&T might be attempting to throttle data usage by limiting iPhone availability.

The absence of the iPhone online may have simply been a glitch on AT&T's end, or it could have been a response to concerns that some users may be purchasing the iPhones and paying the cancelation fee, then turning around and selling them unlocked on the black market overseas. Regardless of what the real reason is behind the temporary ban on NY residents purchasing iPhones, AT&T supplied the fuel for the speculation based on its recent actions and statements.

In response to questions about its network issues and how AT&T might address the problem to reduce user frustration, an AT&T executive suggested that eliminating unlimited data plans and introducing some form of tiered data pricing structure might be a solution.

Users revolted, led by the Fake Steve Jobs, and instituted Operation Chokehold to intentionally bring the AT&T network down in protest, but AT&T claims to have experienced little impact from Operation Chokehold.

Amid all of the finger pointing and mounting frustration with AT&T, some reports have suggested that the iPhone itself may be the source of the problem. Two different wireless quality surveys suggest that AT&T has a strong, stable, and fast network--unless you use an iPhone.

If it is true that an engineering design flaw in the iPhone is the cause of the problem, then both AT&T and O2 are getting the short end of a double-edged sword. Apple fans are a loyal and dedicated crowd, unlikely to blame Apple for issues and quick to accuse the wireless service provider. Partnering with Apple to distribute the iPhone may be an albatross around the neck of AT&T and O2 and turn out to be a decision they could both regret.

One of the attributes that Apple prides itself on is controlling every aspect of the hardware, software, distribution, and other facets of its products to guarantee a superior user experience. Apparently, the wireless network that actually provides the backbone for the iPhone functionality slipped through the cracks. Perhaps Apple should launch its own wireless service to ensure a solid customer experience and circumvent the issues seemingly introduced by the insufficient network capacity of Apple's partners.

 

http://www.pcworld.com/businesscenter/article/185564/o2_joins_atandt_in_blaming_iphone_for_network_issues.html

Apple Stock Expected to Rise in '10

(Bloomberg) — Apple Inc. (AAPL) shares may advance next year after reaching a record yesterday as the maker of the iPhone and Macintosh computer sells more handsets and introduces new products, analysts said.

"Apple remains the best technology company on the planet," Brian Marshall, an analyst at Broadpoint AmTech Inc. in San Francisco, said yesterday in a report. Marshall expects Apple's stock to gain 23 percent to $260 in the next year and recommends buying it. "Its business model is becoming stronger over time."

Software downloads for Apple's devices grew 51 percent in December from the previous month, according to research firm Flurry Inc. That signals that sales of the iPhone and iPod Touch jumped during the holiday season. Analysts and investors expect Apple to add a tablet computer to its lineup next year, providing a fresh source of revenue.

Apple rose to a record $211.61 on the Nasdaq Stock Market yesterday and fell $2.51 to $209.10 at 4 p.m. New York time today. The shares have more than doubled this year, compared with a 61 percent rise for the Standard & Poor's Information Technology Index. The average price estimate for the stock is $242.44, according to a Bloomberg survey of 32 analysts.

Apple, based in Cupertino, California, offers more than 100,000 applications on its iTunes online store, giving its phones and media players an edge over rivals. Google Inc. (GOOG), whose Android operating system runs phones made by Motorola Inc. (MOT) and HTC Corp., has about 12,000 applications.

'Flooded the Market'

"Apple downloads continue to grow at staggering rates," said Peter Farago, a spokesman for San Francisco-based Flurry. "IPod Touch devices must have flooded the market over Christmas."

The 51 percent increase in downloads compares with 22 percent for Android, Flurry said. Downloads for the iPod Touch—a device that offers many of the iPhone's features without the phone—soared more than 1,000 percent on Christmas Day, compared with previous Fridays in December.

The download volume for Apple is more than 13 times larger than for Android, according to Flurry data. Android application downloads increased 93 percent on Christmas Day.

Google, based in Mountain View, California, fell $3.47 to $619.40 on the Nasdaq. The shares have doubled in value this year.

The iPhone still has less than 1 percent of the total global market, giving it plenty of room to grow, Marshall said.

'In Its Infancy'

"Despite the enormous success of the iPhone since inception in July '07, we strongly believe the device is still in its infancy," he said in the report.

Apple could release an oversized iPod Touch as a tablet computer, according to Maynard Um, an analyst at UBS AG in New York. Or the tablet may take the form of a scaled-down notebook computer, he said.

The biggest challenge for Apple will be keeping the momentum going next year, said Shannon Cross, an analyst at Cross Research in Livingston, New Jersey. The economy is still weak and Apple's products are more expensive than those of its competitors, she said. Still, Cross expects Apple to do well.

"We expect expansion to additional carriers for the iPhone, most notably Verizon in the U.S., and then there's the tablet which appears to be coming shortly," said Cross, who has a "buy" rating on the stock and expects it to reach $290 in the next year. "It's a very good time for Apple. It's a very well-positioned company."

The company trounced analysts' estimates for profit and revenue last quarter. Fourth-quarter net income rose 47 percent to $1.67 billion, or $1.82 a share. Sales advanced 25 percent to $9.87 billion in the period, which ended Sept. 26. Analysts surveyed by Bloomberg had predicted revenue of $9.22 billion and profit of $1.43 a share.

Marshall projects sales of $12.5 billion and earnings of $2.27 a share this quarter. That's higher than the average estimates of $11.9 billion for revenue and $2.04 for profit.

 

http://www.businessweek.com/technology/content/dec2009/tc20091230_643329.htm

Nokia hits Apple with latest patent complaint

he legal back-and-forth between Nokia and Apple over patents, and who might be abusing them, continued Tuesday as Nokia lodged a complaint with the U.S. International Trade Commission.

In its complaint to the USITC, the Finnish company alleges that Apple infringes seven Nokia patents "in virtually all of its mobile phones, portable music players, and computers."

The alleged patent infringement is connected to key features in Apple products including user interface, camera, antenna, and power management technologies. Their value to Nokia, the company says, comes in allowing better user experience, lower manufacturing costs, smaller size, and longer battery life for Nokia products.

In October, Nokia filed a lawsuit against Apple in U.S. District Court in Delaware regarding 10 patents related to wireless handsets, which Nokia says Apple has refused to license. Every iPhone model since the original, introduced in 2007, infringes on those patents, Nokia has charged.

Apple filed a countersuit earlier this month, charging Nokia with infringing 13 Apple patents related to the iPhone.

"While our litigation in Delaware is about Apple's attempt to free-ride on the back of Nokia investment in wireless standards, the ITC case filed today is about Apple's practice of building its business on Nokia's proprietary innovation," Paul Melin, general manager of patent licensing at Nokia, said in a statement.

"Nokia has been the leading developer of many key technologies in small electronic devices," Melin said. "This action [Tuesday's complaint to the USITC] is about protecting the results of such pioneering development."

Apple was not immediately available to comment on Nokia's filing with the U.S. International Trade Commission. The USITC is an independent federal agency that looks at issues including unfair trade practices involving patent, trademark, and copyright infringement.

Nokia says that over the past two decades it has spent some 40 billion euros ($57.5 billion) on R&D and has amassed "one of the wireless industry's strongest and broadest IPR portfolios, with over 11,000 patent families."

In November, research firm Strategy Analytics reported that Apple had surpassed Nokia in quarterly mobile phone profits, bringing in $1.6 billion from the iPhone, compared with Nokia's $1.1 billion in cell phone profits.

http://news.cnet.com/8301-1035_3-10422670-94.html

Nokia, Apple Patent Feud Continues

Nokia Corp. on Tuesday fired the latest salvo in a patent-infringement battle with Apple Inc., filing a complaint with the U.S. International Trade Commission alleging that the California-based maker of computers and music players infringes multiple Nokia patents with its products.

Apple declined to comment on Nokia's filing with the ITC.

Nokia alleges that "Apple infringes Nokia patents in virtually all of its mobile phones, portable music players and computers." The Finnish cellphone maker said the seven patents in the complaint relate to user-interface as well as camera, antenna and power-management technologies that Apple uses in its products.

"While our litigation in Delaware is about Apple's attempt to free-ride on the back of Nokia investment in wireless standards, the ITC case filed today is about Apple's practice of building its business on Nokia's proprietary innovation," said Paul Melin, in charge of patent licensing at Nokia.

The companies have gone back and forth for the better part of the year, with Nokia demanding in May and then again in September that Apple pay a royalty to license its patents.

Nokia sued for patent infringement in October, and Apple earlier this month denied the charges and said it was countersuing Nokia for allegedly infringing 13 of Apple's patents.

Since Apple's launch of the iPhone smartphone, Nokia -- the world's biggest cellphone maker -- and others have struggled to keep pace in the smartphone market.

In its fiscal fourth quarter, Apple sold 7.4 million iPhones, up 7% from a year earlier. In October, Nokia said its sales volume dropped 8% to 109 million phones during the third quarter.

 

http://online.wsj.com/article/SB10001424052748703510304574626170512423940.html?mod=WSJ_hpp_sections_tech

Nokia claims Apple is unoriginal

THE SPAT between Finnish phone maker Nokia and fruit-themed toymaker Apple has now moved on to the International Trade Commission (ITC) in the US.

According to Reuters, Nokia claims that Jobs' Mob nicked a number of its patented ideas, and it's apparently asked the ITC to do something about that.

Nokia had sued Apple over 10 mobile phone technology patents in October. Apple replied by countersuing Nokia over 13 of its patents and also threw in charges of anti-competitive practices.

Now Nokia has filed a complaint with the US ITC alleging that Apple infringes Nokia patents in "virtually all of its mobile phones, portable music players, and computers." The areas in which Nokia alleges Apple is infringing include user interface, camera, antenna and power management technologies.

If Nokia prevails in its complaint before the ITC that could make life difficult for Apple. The ITC could stop Apple from importing its toys from overseas, which would put a real damper on the Cappuccino company's business since all Apple gear is made in China these days.

A Nokia spokesman said the firm expects the ITC to decide whether to pursue the case within about 30 days. Any possible injunction against the sale of Apple products would not take effect until early 2011.

Normally what happens in situations like this is that the two sides up the ante until they both agree to let each other use all their patented technologies. Still, it will be funny if the ITC happens to rule that Apple nicked all its best ideas from Nokia before the firms get around to settling. µ

 

http://www.theinquirer.net/inquirer/news/1567042/nokia-claims-apple-unoriginal