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Article from GigaOm.

Google may not have had much of a choice when it came to buying Motorola Mobility for $12.5 billion. If it didn’t, someone else would have and that would have put the company in an even bigger patent hole.

Our sources say that Motorola was in acquisition talks with several parties, including Microsoft for quite some time. Microsoft was interested in acquiring Motorola’s patent portfolio that would have allowed it to torpedo Android even further. The possibility of that deal brought Google to the negotiation table, resulting in the blockbuster sale.

Motorola found a Google deal more digestible because Microsoft had no interest in running a hardware business and was essentially interested in Motorola’s vast collection of patents. Google moved aggressively, and at $40 a share, Google is now paying a 60 percent premium to Motorola’s recent stock price. The deal it struck gives it access to Motorola’s strong portfolio of 17,000 current patents and 7,500 patent applications across wireless standards and non-essential patents on wireless service delivery.

The high-level talks between Google and Motorola started about five weeks ago. Google CEO Larry Page and Motorola CEO Sanjay Jha were talking directly, and only a handful of executives were brought into discussions. Our sources suggest that Android co-founder Andy Rubin was brought into the talks only very recently.

My view is that while Google might have won the battle, in the long run it has put the Android ecosystem at risk. Mobile industry insiders view this as a ray of hope for Windows Mobile Phone 7 to sign-up the disillusioned handset makers who at this point must be reworking their mobile OS strategies.

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Article from SFGate.

“Apple sliced through the competition to briefly become the most valuable company in the world Tuesday, as its market capitalization surged past No. 1 Exxon before settling slightly lower.

The Cupertino company closed the day with its stock up 5.9 percent to $374.01 per share, valuing it at $346.7 billion. Exxon, the Texas oil giant, ended the day with a value of $348.3 billion.

It capped an astonishing turnaround for a company that founder Steve Jobs has said was weeks from bankruptcy when he returned as CEO in 1997 and focused the company on a handful of key products.

Apple’s stock price has gone up nearly 35 percent in the past year, reflecting heightened confidence among investors in its line of computers and mobile devices. In its most recent quarter, the company posted a record $28.57 billion in revenue as sales of the iPhone, iPad and notebook computers soared.

The company’s growth is particularly strong in the Chinese market, Apple Chief Operating Officer Tim Cook told analysts last month. International sales accounted for 62 percent of Apple’s revenue in the last quarter.

The company is expected to continue growing in the near term, analysts predict. A new iPhone is expected in the fall, and analysts say Apple might also introduce a lower-cost model that would help the company reach a lucrative new market.

Sales of the iPad continue to soar. Apple sold 9.25 million of the tablet computers in the last quarter, a 183 percent increase over the same period in 2010.

“On the iPad side, they’re so far ahead of the market that none of the Android or other tablet competitors have really made much of a dent in their market share,” said Charles Golvin, an analyst with Forrester Research. “‘Tablet is still essentially synonymous with ‘iPad.’ ”

It was less than two years ago that Apple joined the list of the 10 most-valuable U.S. companies. Since then, it has made a rapid ascent, surpassing Microsoft last year to become the world’s most valuable technology company.

Less than a month ago, Exxon was worth more than $50 billion more than Apple. Exxon’s market value declined as investors became pessimistic about prospects for economic growth, which drives demand for oil.”

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Article from GigaOM.

Android has been outselling the iPhone recently but Apple’s iPhone was still the most desired smartphone in the U.S., according to the Nielsen Co. Not anymore. Nielsen said 31.1 percent of respondents in March said they want their next smartphone to be an Android device, while 30 percent said they wanted an iPhone. Nielsen said consumers planning on buying an Android in the next year increased from 25.5 percent in July to September while people planning on buying an iPhone slipped from 32.7 percent during the same period. That’s not terribly surprising considering the growing momentum behind Android. But it shows that Android’s appeal is continuing to grow even despite the broader availability of the iPhone on Verizon .

Before, Android’s rise could have been chalked up to the fact that iPhone was limited to just one carrier. But it’s increasingly showing that it is attractive by itself, not just as a more accessible alternative to the iPhone. The iPhone is still limited in distribution and opening up availability to Sprint and T-Mobile could shift things somewhat. But at this point, it seems like Android appeal is rock solid while the iPhone is cooling off somewhat with consumers. The smartphone race looks more and more like a two-horse competition, according to Nielsen. Only 10.5 percent of consumers said they planned on buying a BlackBerry device, down from 12.6 percent in July through September. Interest in Windows devices also slipped from 6.8 percent last year to 6.4 percent this year, even with the launch of Windows Phone 7 in November. Android continues to rule the smartphone marketshare battle with 37 percent, compared to 27 percent for the iPhone and 22 percent for BlackBerry.

Recent statistics show how much momentum is behind Android. Fifty percent of people who purchased a smartphone in the past six months said they had chosen an Android device while 25 percent said they had bought an iPhone and 15 percent said they got a BlackBerry device. Now Apple is still sucking down the biggest profits, and has become the largest phone vendor by revenue. And it still has a lead when you consider all iOS devices compared to Android. But Android’s momentum, especially in smartphones, is just getting stronger. If it can replicate that success in tablets, it won’t be long before it has a greater overall ecosystem reach soon.

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Article from SFGate.

“Here’s how effortless it is to move your digital music collection from Apple’s iTunes software to Amazon’s new Cloud Drive music service:

1. Visit Amazon.com, enter your user name and password, and find the link that says “upload files.”

2. Agree to the terms of service and solve a Captcha, one of those tricky image-recognition puzzles that prove you’re an human being.

3. Download Amazon’s MP3 uploader software, which scans the music on your hard drive.

4. Select about 1,000 of the gazillion songs you own and mark them for upload.

5. Wait around six hours for the upload to finish.

6. Download Amazon’s separate Cloud Player app for Android to stream that music to your phone, or use a Web browser to listen to it from any PC.

Sounds easy, right?

Welcome to the awkward stage of the digital music revolution. Online song sales have stagnated, depriving the endangered music industry of one of its last remaining lifelines. Yet digital music continues to be a vital battleground for Google, Apple and Amazon to try to lure users to their other devices and online offerings.

Now, Jeff Bezos & Co. have boldly tried to leapfrog Google and Apple in the quest to liberate people from the decade-old practice of buying and downloading digital songs to a computer and then manually transferring them between devices.

The idea behind “cloud music” is to let people stream their music collections from the Web to any computer or device. Analysts believe such services are inevitable – even if Amazon stumbles.

“Having access to your music on all your devices has to be the starting point of any next-generation music service and product,” said Mark Mulligan, an analyst at Forrester Research.

That’s the vision, but right now, the convoluted uploading process is the result of key trade-offs Amazon made to get to the cloud music market before its rivals.

Licensing deals

First, major labels want new licensing arrangements for cloud services and a bigger cut of the online music pie. Their demands have slowed down the introduction of cloud music features, and Amazon designed its service without their permission, instigating a wave of complaints from Sony Music Entertainment and Warner Music Group.

“We’re disappointed by their decision to launch without a license,” said Brian Garrity, a spokesman for Sony.

Bill Carr, Amazon’s vice president for music and movies, claims Amazon “highly values” its relationship with the labels, but compares uploading songs to the legally harmless practice of attaching a hard drive to your PC and transferring music files to it.

Amazon primarily designed a service to comply with copyright laws – not to make shifting music to the cloud seamless. Amazon requires users to upload their own copies of songs that it could more easily supply from its digital store. Services like MyPlay and Mp3tunes have tried the same basic approach over the years. None attracted many users.

Amazon, which controls only about 13 percent of the digital music market despite four years of battling iTunes, apparently believes it has unique advantages in the coming cloud music battle.

Thanks to the massive server capacity backing its successful cloud computing business, in which it rents computing power to other companies, Amazon can offer its streaming music users 5 gigabytes of music storage for free, or 20 GB if they buy just one album from Amazon. The company is also prominently advertising the service on its home page.

“We observed from our other digital media businesses that buy-once, play-anywhere really resonates with consumers,” Carr said.

The service Amazon released last week has been criticized for being difficult to use and incompatible with Apple iPads and iPhones.

Not social

“There’s nothing social about it. How can you launch anything on the Web today that doesn’t integrate social?” said David Pakman, the former chief executive of eMusic and a partner at Palo Alto venture capital firm Venrock.

David Hyman, founder of Berkeley music subscription service Mog, says of Amazon’s cloud offering: “It’s a stepping-stone. This is Amazon putting its feet in and testing the waters.”

So what does the future of cloud music look like? Google, Apple or Amazon might finally get the major-label licenses that will allow them to make storing music collections in the cloud seamless for users. (Instead of uploading each song, the service could simply scan the names of songs in a collection and reproduce them in the cloud.) Or subscription music services such as Mog, Rdio and Rhapsody that offer unlimited access to a broad catalog of Web-based music for a monthly fee may find the mainstream success that has long eluded them.

Such an unlimited cloud music offering may be Amazon’s ultimate goal; Carr doesn’t rule out developing a music subscription service and offering it for free to members of Amazon Prime.

“This is an exciting Day One,” he said of Cloud Drive. “We always have an open mind.”

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Article from TechCrunch.

“$41 million. From Sequoia Capital, Bain Capital, and Silicon Valley Bank. Pre-launch.

That’s how much a brand new startup called Color has to work with. Your eyebrows should already be raised, and here’s something to keep them fixed there: this is the most money Sequoia has ever invested in a pre-launch startup. Or, as the Color team put it, “That’s more than they gave Google.”

But the founding team goes a long way toward explaining it. Headed by Bill Nguyen — who sold Lala to Apple in late 2009 — the company has attracted a wealth of talent. It has seven founders including Nguyen and company president Peter Pham, who previously founded BillShrink. And its chief of product is DJ Patil, who was previously LinkedIn’s chief scientist.

So what exactly is Color?

Update: The application is now available for the iPhone at Color.com. Android is coming.

At first glance, it looks like another mobile photo app, like Path, Instagram, or PicPlz. You take snapshots with your mobile phone (the app supports both Android and iOS at launch) and they appear in a stream of photos. And there aren’t even any of those trendy lenses to spruce up your images. Sounds pretty basic, right?

But the beauty of Color stems from what it’s doing differently. Unlike Instagram and Path, there isn’t an explicit friend or following system — you don’t browse through lists of contacts and start following their photo stream. Instead, all social connections in the application are dynamic and established on-the-fly depending on whom you’re hanging out with. And your photos are shared with everyone in the vicinity. In some senses this is the Twitter of photo apps — it’s all public, all the time (I’m ignoring Twitter’s protected tweets, since most people don’t use them). Another way to look at it: it’s almost the complete opposite of Path, which is built around sharing photos with an intimate group of friends.

It’s difficult to explain what Color does with a bullet list of features, so I’ll try painting an example that hopefully demonstrates how it works.

Say you walk into a restaurant with twenty people in it. You sit down at a table with four friends, and start chatting. Then one of your friends pulls out their phone, fires up Color, and takes a snapshot of you and your buddies.

That photo is now public to anyone within around 100 feet of the place it was taken. So if anyone else in the restaurant fires up Color, they’ll see the photograph listed in a stream alongside other photos that have recently been taken in the vicinity.

In a crowded area these streams of photos will get noisy, so Color also has some grouping features. Tell it which four people you’re eating with, and Color will create a temporal group with a stream of just the photos you and your buddies have taken. But here’s the twist: because everything on the service is public, you can also swipe to view other groups, to see what the tables next to you are snapping photos of. And you can always jump to the main stream, which shows a mishmash of photos taken by everyone.

It takes some time to wrap your head around, and my time with the app was limited, so I can’t really vouch for how well it works. But there’s some very interesting technology that’s working behind the scenes to make Color more than just a simple group photo app.

First are the social connections, called your Elastic Network. All of your contacts are presented in a list of thumbnails ordered by how strong your connection is to that user. Whenever Color detects that you’re physically near another user (in other words, that you’re hanging out), your bond on the app gets a little stronger. So when you fire up the app and jump to your list of contacts, you’ll probably see your close friends and family members listed first. But if you don’t see a friend for a long time, they’ll gradually flow down the list, and eventually their photos will fade from color to black-and-white.

These social connections are important because they’re the only way to view a stream of photos beyond those have been taken near you. If you fired up Color in that restaurant example from earlier, you’d only be able to see photos that had been taken by friends and strangers within 100 feet of that restaurant. That is, unless you jump to your social connections. Tap on your best friend’s profile photo, and you’ll then be able to see all of the photos that have recently been taken within 100 feet of them. In other words, Color is trying to give you a way to see everything that’s going on around you, and everything that’s going on around the people you care about.

The Groups feature also makes use of this elastic network. In the restaurant example above, the application would likely already know who your friends were based on your previous interactions and would automatically place them in the same group — you wouldn’t have to manually do it yourself.

Color is also making use of every phone sensor it can access. The application was demoed to me in the basement of Color’s office — where there was no cell signal or GPS reception. But the app still managed to work normally, automatically placing the people who were sitting around me in the same group. It does this using a variety of tricks: it uses the camera to check for lighting conditions, and even uses the phone’s microphone to ‘listen’ to the ambient surroundings. If two phones are capturing similar audio, then they’re probably close to each other.

So far I’ve described a compelling and unique photo app with some neat tricks. But how exactly is Color going to make “wheelbarrows of cash”, as Nguyen says?

At this point the company is still very early on, but it eventually plans to offer businesses a self-serve platform for running deals and ads as part of the Color experience (you fire up the app to see the photos being taken around you, and you also see the special of the day, for example).

But that’s just the start. Nguyen has visions of fundamentally changing some aspects of social interaction and local discovery with the app, which he considers part of the so-called Post-PC movement. Using all of the data being collected (remember, the app is taking advantage of all of your phone’s sensors), Color hopes to eventually start recommending nearby points of interest, and maybe even interesting people.

There are still plenty of questions, even about the existing service. This kind of voyeurism — you’re sharing photos with the world and looking at photos from strangers — could take a while to get used to. People may reject it entirely. Or it may be completely addictive. There’s really no way to tell until people start using the app in the wild.

The future is unclear, but promising. And with this much money in the bank and a staff of 27, Color has plenty of time to hone in on what works.”

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