Development for Apple Watch “is right on schedule” and shipments are expected to begin in April, Apple CEO Tim Cook said Tuesday on an earnings call. Developers are hard at work on apps “all designed specifically” for the Apple Watch's user interface, he said. Cook has “very high” expectations for the Apple Watch, he said. “I'm using it every day and love it and I can’t live without it. So I see that we’re making great progress on the development of it. The number of developers that are writing apps for it" is "impressive and we’re seeing some incredible innovation coming out there.” The iPhone was the star of Apple’s Q1 ended Dec. 31, Cook said. That Apple sold on average 34,000 iPhones every hour that quarter is a volume that’s “hard to comprehend,” Cook said. Apple sold 74.5 million iPhones in the quarter, an increase of 23.4 million over last year, representing 46 percent unit growth, said Chief Financial Officer Luca Maestri. Sales of iPhones grew strongly in both developed and emerging markets, Maestri said, including a 44 percent increase in the U.S. and a 97 percent increase in Brazil, Russia, India and China, he said. The company's stock closed up 5.6 percent at $115.31 Wednesday. The introduction of the large-screen iPhone 6 Plus helped push iPhone average selling prices $50 higher than a year earlier, to $687, Maestri said. The downside of iPhone’s popularity was that iPhone “channel inventory” fell by 200,000 units in the quarter, “and we were not able to reach supply-demand balance until this month,” Maestri said. “This left us below our target range of five to seven weeks of channel inventory on a look-forward basis.” Apple works with "about 375 carriers, representing 72 percent of the world’s mobile phone subscriber base, and we have over 210,000 points of sale for iPhone across the globe,” said the CFO. Apple thinks its iPhone strength will be sustainable throughout calendar 2015, Cook said. “We are incredibly bullish about iPhone going forward,” he said. “We believe that it’s the best smartphone in the world. Our customers are telling us that. The market is telling us that. We’re doing well in virtually every corner of the world." Only a “small fraction” of the iPhone installed base has upgraded to iPhone 6 or iPhone 6 Plus, he said, suggesting sales momentum will continue. “We had the highest number of customers new to iPhone last quarter than in any prior launch,” including the “highest Android switcher rate in any of the last three launches in the three previous years,” he said. Asked to quantify that “small fraction” of iPhone users who have upgraded to an iPhone 6 or 6 Plus, it’s “a number that's in the mid-teens or barely in the teens,” Cook said. “There is an enormous amount left. And given there are fair amount of Android units out there, there is also an enormous amount of Android customers that could switch. And I’d also remind you that there is a lot of people that have not yet bought a smartphone. And I know it doesn’t feel like that when you’re sitting in the United States.”
Microsoft’s “most strategic objective” is to build “developer momentum” behind Windows 10, and that’s what the company is focusing on “with a lot of different actions,” CEO Satya Nadella said on an earnings call. Microsoft plans to release Windows 10 later this year as a free upgrade for Windows 7, 8 and 8.1 users who act to redeem the offer in the first year, Microsoft has said. Its goal with Windows 10 is to create a “great opportunity for every developer” to write these “universal” applications that will run on the desktop as well as on Microsoft phones and tablets, Nadella said Monday. With Windows 10, “we're building a device platform for the mobile-first, cloud-first world,” Nadella said. “It's a world where the mobility of a person's experience is paramount, requiring a platform that spans devices from small screens to large screens, to no screens at all. It's a world where interacting with technologies is as natural as interacting with other people and it's a world that demands trust and security." For developers, Windows 10 “will be the most attractive windows development platform ever,” Nadella said. “We ... have made this our most collaborative project yet with more than 2 million insiders giving us feedback every day.” Microsoft also is “making progress with our own devices,” Nadella said. For Q2 through Dec. 31, Microsoft surpassed the $1 billion revenue mark with its Surface tablets for the first time, he said. For Microsoft Surface, “the value proposition of being the most productive tablet is resonating,” he said. But the company's stock closed down 9.3 percent to $42.66 Tuesday. Microsoft sales of Lumia phones topped 10 million units in Q2 and are up 30 percent compared with the same quarter a year earlier, Nadella said. Sales were particularly strong of Lumia 500 and 600 series “affordable smartphones,” he said. “In this segment of the market, the combination of our brand and value stand out and we plan to continue to build a beachhead here.”
U.S. telecom companies are “ready to install broadband connections to give communities reliable access to the Internet and to help build the smart cities that [India’s] Prime Minister [Narendra] Modi has called for,” President Barack Obama said Monday at the U.S.-India Business Council Summit in New Delhi. “We can work together to develop new technologies that help India leap forward,” Obama said. He cited India’s plans of “fast-tracking American investments” in the country: “We need to be fostering a business environment that’s more transparent and more consistent, and more predictable. In knowledge-based economies, entrepreneurs and innovators need to feel confident that their hard work and, in particular, their intellectual property will be protected.” Commerce Secretary Penny Pritzker is accompanying Obama on the trip. Disney CEO Bob Iger was also present for a CEO roundtable on the visit, a pool news report said Monday. Obama said a lack of effective IP protection has caused U.S. industry to limit investment in India, hurting India's software development, according to a different pool report.
The Obama administration plans an “all-of-the-above” approach on spectrum, wrote White House Council of Economic Advisers Chairman Jason Furman and U.S. Chief Technology Officer Megan Smith, in a joint Wall Street Journalop-ed. The AWS-3 auction “is an important step toward President [Barack] Obama ’s goal of freeing up 500 megahertz of spectrum by 2020, nearly doubling the amount available for mobile broadband use,” they said. It’s crucial to make more spectrum available and that government agencies continue to find ways to free up more spectrum, they said. “Ultimately, reaching the president’s 500 MHz goal will require changing the traditional spectrum model of exclusive, licensed use. Many organizations have begun to explore new technologies for sharing spectrum more efficiently and new economic models for allocating this scarce resource.”
Harman announced purchase agreements designed to position the company as a leading software provider for the connected space. CEO Dinesh Paliwal said on a Thursday conference call that Harman’s planned buys of Symphony Teleca, which provides software engineering and integration services globally, and Red Bend Software, provider of over-the-air (OTA) and cybersecurity software, will transform Harman into a “comprehensive products, systems and engineering services company” for the automotive, telecom, media, CE and healthcare markets. Harman will be able to “enable and enhance the connected lifestyle people want,” Paliwal said. Both companies have been service providers to Harman “for some time,” he said. The Red Bend transaction is valued at $170 million -- about $99 million in stock and $71 million in cash. The agreement to buy Symphony Teleca calls for a base purchase price of $780 million, including $382 million in cash and $166 million in Harman stock. The acquisitions will add some 8,000 engineers -- most from Symphony Teleca -- to Harman’s current engineering staff of 3,500 in software and 3,000 in hardware and industrial design, Paliwal said. Symphony Teleca, based in Silicon Valley, has a customer base including Adobe, Comcast, Google, Intel, Jaguar, Land Rover, Microsoft, Verizon and SiriusXM, Harman said. Symphony Teleca, which brings a platform for integrated services geared to converged markets, along with software engineering and integrated services for the connected experience, offers Harman “immediate scale and engineering services to accelerate connected car innovations,” Paliwal said. Symphony’s software development capabilities will enable Harman to integrate and leverage high-margin segments including the cloud, mobile devices, design and analytics, said Paliwal. He said Symphony is the “largest Android ecosystem scaling partner worldwide” as well as a strategic partner of Microsoft. Harman will be able to provide a “complete set of software defined services” around predictive analytics, cloud enablement, the Internet of Things gateway, turnkey mobile development and commercialization “to enable everything from autonomous driving to intelligent cities,” he said. Israeli company Red Bend -- with a customer base including AT&T, China Mobile, Huawei, Lenovo, LG, Samsung, Sprint, Telit and Verizon -- provides over-the-air software and hypervisor-based virtualization technology for cybersecurity applications. The technology is positioned to meet the demands of the connected car and can be a “prerequisite to autonomous driving,” Paliwal said. That includes the ability to deliver “safe, secure OTA updates” for on-board and non-Harmon automotive systems, “either embedded or downloaded,” Paliwal said.
Comments are due March 9, replies April 7, on a Nov. 21 NPRM on governance and oversight of 911 service in light of the IP transition, said a Thursday FCC Public Safety Bureau public notice. "The American public has developed certain expectations with respect to the availability of 911 and E911 emergency services, and Commission action is both appropriate and necessary where reliance on voluntary efforts alone proves inadequate to ensure reliable and resilient 911 service,” the FCC said in the NPRM.
T-Mobile CEO John Legere’s visit to Washington this week took him to Capitol Hill Thursday, according to photos posted on his Instagram account. He initially met with House Minority Leader Nancy Pelosi, D-Calif., for a “great” meeting, he said in posting the photo: “Thank you for supporting competition!” Later he posted a photo of himself and Sen. Ed Markey, D-Mass., noting that he met with Markey to discuss T-Mobile and “thank him for support.” Legere previously posted photos this week showing his meetings with FCC Commissioners Mignon Clyburn and Ajit Pai. Legere also met with Commissioner Jessica Rosenworcel and Chairman Tom Wheeler. He tweeted: “Two very different meetings @fcc, one with @TomWheelerFCC and one with @JRosenworcel! Thank you Chairman Wheeler for supporting competition.” Clyburn posted a tweet of her own, showing Legere seated next to her wearing high-top Converse All-Stars in T-Mobile magenta.
CEA is “disappointed” that President Barack Obama “missed the opportunity” in his State of the Union address “to push for strategic immigration reform,” said CEA President Gary Shapiro Wednesday in a statement. Immigration reform for the high-skilled is needed “to keep the world’s best and brightest here in the U.S. to build companies and create jobs, a key policy component necessary to maintain our leadership in innovation,” Shapiro said. “We also would have appreciated the recognition he provided in the 2014 State of the Union speech that patent trolls are hurting America's job creators.” Shapiro hailed Obama’s promise to “proactively seek bipartisan support” of trade promotion authority (TPA), “especially with the opportunity we have this year to pass trade agreements that help our manufacturing sector.” To compete in the global marketplace, “U.S. manufacturers have to be able to effectively supply the world with their products,” Shapiro said. “Passing TPA legislation that reflects the realities of the digital age would not only improve U.S. trade, but also strengthen job creation and bolster our economic recovery.” CEA agrees with the need to preserve an open Internet, Shapiro said. But “the best way to do so is through a measured and common-sense approach that encourages competition” among ISPs and investment in the Internet, he said. That’s “a solution that balances the desire for open access with the need to continue encouraging innovation,” he said. CEA also backs Obama’s call “to reform unfair and outdated tax laws that allow more than $2 trillion in U.S. corporate earnings to be held overseas, and use those funds to help upgrade our nation’s infrastructure,” Shapiro said.
The Department of Energy released recommendations for utility companies to ensure that all customers' energy usage data remains private. The guidelines, known as the Smart Grid Data Privacy Voluntary Code of Conduct (VCC), were developed in the past two years after customer concerns about smart metering technology, which were largely exposed in a recent white paper from the American Public Power Association, DOE said Tuesday. Its recommendations aren't mandatory but are viewed as a step toward ensuring customers can't be identified by data collected by the smart meters, said the department.
AT&T's planned acquisition of DirecTV will close in Q2, Canaccord Genuity analysts emailed investors Wednesday. The acquisition is expected to close in 2015's first half, an AT&T spokeswoman emailed us. The ongoing net neutrality debate and the FCC upcoming vote on a net neutrality order in February won’t affect the acquisition, Canaccord Genuity said. DirecTV didn't have an immediate comment. The news release announcing AT&T/DirecTV May 18 said it was expected to close within about 12 months, a DirecTV spokesman said.