Apple Calls the Tune, Again

Apple might not yet have remade the notebook or netbook business, and might not have conclusively proved there is an undiscovered new consumer electronics niche for tablet devices, but it has caused Microsoft to kill its existing slate project, known as "Courier."

Microsoft’s Courier originally was conceived as the tablet of the future, Microsoft’s answer to Apple’s iPad, with two screens. Apple might disagree that the iPad is a "big iPod Touch," but Microsoft apparently has concluded that a two-screen device with a book style form factor is not what the market will want.

Perhaps the bigger deal, perhaps obvious in retrospect, is that although the device would have been "touch" capable, it somehow fails to offer an experience similar to the iPad. Make that one more case of Apple disrupting the conventional wisdom about user experience and user interface. And it apparently hopes to do the same in the mobile advertising businesss.

Apple never likes to play at the low end of any business, so we should not be surprised to see Apple taking that tack as it attempts to show what its iAd network can do on devices such as the iPad, iPhone and iPod Touch.

Apple also is famously "controlling" about the "user experience," so you should not be surprised to hear that Apple is making "initial demands for greater control over advertisers' marketing campaigns."

According to the Wall Street Journal, Apple is looking for placements priced about an order of magnitude (10 times) higher than is typical.

If you recall the demo Apple put together for its iAd announcment, you can understand why: Apple is aiming for content-rich campaigns that may involve branded characters and expensive production.

Apple Inc. aims to charge close to $1 million for ads on its mobile devices this year and perhaps even more--as much as $10 million--to be among the first participants.

Ad executives say they are used to paying between $100,000 and $200,000 for similar mobile deals.

Obviously, Apple is attempting to pull off a couple "hero" campaigns that likely cannot be replicated too widely in the future because most campaigns will not be able to afford the high rates.

One example Apple has been showing advertisers is an ad for Nike's Air Jordan basketball shoe.

When a user is in an application, an animated banner ad appears on the border of the screen, along with an iAd logo. If the user taps on the ad, it expands across the screen, displaying a video, an interactive store locator and exclusive offers at local stores, among other features.

Apple is planning to charge advertisers a penny each time a consumer sees a banner ad, ad executives say. When a user taps on the banner and the ad pops up, Apple will charge $2. Under large ad buys, such as the $1 million package, costs would rack up to reach $1 million with the various views and taps.

Marketers will be able to target ads to groups of users based on consumers' download preferences from its iTunes store, according to ad executives. For instance, a marketer could choose to show its ads to people who have downloaded financial applications or reggaeton music, horror movies or comedy TV shows.

Marketers also will be able to target ads to users in a general location like a city, although they cannot target ads to individual consumers or access personal details.

Apple is seeking high quality ads from big-name marketers for the launch, ad executives say. The ads will go through an approval process, and Apple will build the ads itself during the first couple of months to make sure they work well and attain a certain aesthetic and functionality, ad executives say. Eventually, Apple plans to create a developer kit so that agencies will be able to design and create the ads themselves.

The process is causing tension among some ad directors, who are hesitant to give up control. Welcome to Apple's world.

About 1/2 of 1 Percent of Time Warner Cable Customers Buy 50 Mbps Service

It's likely fair to keep in mind, as ISPs, regulators and policy advocates ponder future service offerings at speeds of 100 Mbps, or even higher, that few U.S. consumers appear to want to buy service at speeds of 50 Mbps or higher.

Time Warner Cable  added 212,000 high-speed Internet subs in the first quarter, with about 1,000 buying the ultra-high-speed Docsis 3.0 services. That represents about one half of one percent of new customers, roughly in line with the few figures that have emerged from other ISPs able to sell 50 Mbps to 100 Mbps access services in Europe or North America.

The number of wideband subscription adds in the first quarter are consistent with recent trends at TWC, the only major US MSO so far that's even been willing to share those numbers. In January, TWC said it added only about 2,000 wideband subs in the fourth quarter of 2009.

Comcast, which has 80 percent of its plant wired up for wideband and intends to finish the job later this year, hasn't disclosed any D3 subscriber figures.

AT&T noted during its first quarter conference call that 59 percent of its customers buy access at speeds of at least 3 Mbps. What that might suggest is that most consumers still do not buy ultra-fast connections, preferring medium-speed connections instead.

Layar Launches First Augmented Reality Content Store

You might be wondering whether "augmented reality" is a feature or a business model. Layar hopes to prove it can be a business model, by introducing an AR content store that allows publishers to offer AR experiences on multiple mobile platforms such as iPhone and Android.

The content store is seamlessly integrated into the Layar "Reality Browser", which is already used on more than 1.6 million mobile devices globally.

The Layar Payment Platform supports multiple payment providers and multiple currencies, ready to serve the different local markets.

Layar deals with legal, administrative and tax rules enabling the publisher to focus on their core activities. The first payment provider is PayPal, supporting payments to residents of United States, United Kingdom, Canada and Australia. More countries, currencies, payment methods and payment providers will be added regularly, the company says.

Publishers can set up accounts at http://site.layar.com/create.

Among the developers that already have signed up are Berlitz City Guides, Mouse Reality for Disney World, UK Sold Prices and Disneyland and EyeTour.

UK sold prices allows users to check the latest UK residential sold price information while users are out and about.  Berlitz helps people experience the city’s highlights: the best attractions, coziest restaurants, most comfortable hotels, coolest places to shop and most fashionable nightlife.

Mouse Reality for Disney World and Disneyland helps users find and navigate all attractions, shows, shops, dinning, transportation, and more in Disneyland and Disney World.

EyeTour helps users explore Puerto using exclusive video content of historical sites, museums, restaurants, parks and more.

Looking ahead, the company believes it can use AR to create a business offering a marketplace for content, services and goods, says Raimo van der Klein, Layar CEO.

Publishers can start selling their content without upfront investments while Layar facilitates payments between the end-user and the publisher. Publishers receive 60 percent of the net proceeds.

Android users who are residents of United States, United Kingdom, Canada or Australia can start buying layers right now after installing the new version of the Layar Augmented Reality Browser. The iPhone update is soon to follow.

Layar describes itself as the world’s leading Augmented Reality Platform on mobile. The Layar Reality Browser currently has more than 1.6 million users and comes pre-installed on tens of millions of phones from leading handset manufacturers and carriers by the end of the year. Over 500 layers are developed by the global community of 3000 Layar publishers.

The free Layar Reality Browser is available on Android devices and iPhone 3GS.

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HTC Incredible Goes On Sale Today at Verizon Wireless

19% CAGR for Tablet Style PCs

Sales of slate-style tablet PCs will grow at a 19-percent compound annual growth rate through 2015, the same rate as smartphones, while Wi-Fi-equipped handsets will grow at about a 21 percent CAGR, say researchers at Coda Research Consultancy.

That forecast could be taken to mean either that the tablet, such as the Apple iPad, really will create a new segment of the consumer electronics market, or that it will cannibalize part of existing markets such as netbooks, notebooks or laptops, or that tablets. In the former case the tablet might replace some parts of the need for e-book readers and netbooks or notebooks; in the latter case the tablet will change the user interface from keys to touchpad.

To be sure, devices such as the iPad could succeed simply by rearranging existing demand. But Apple, for one, seems to have achieved its greatest success when it can create a whole new market or rearrange an existing market. The iPod created a new market, while the iPhone rearranged an existing market.

Coda researchers so far think tablet computers represent the emergence of a new market, and new behaviors.

Consumer usage will tend to be around content consumption rather than creation, and for accessing information. A greater proportion of slates will be shared across household members than notebooks currently are. It is possible, in other words, that although high-end slates might continue to be personal items, as are mobile phones, some lower-end slates might be more like remote controls, used by everybody in a household, and not "owned" by individuals.

Business uses also could arise in healthcare, education, field sales and services, real estate, the insurance industry, and industrial design, Coda believes.

The other likely avenue is use by traveling workers, for the same reason many people now claim they can travel without a PC, and simply use a smartphone. Though the iPad and other tablets will not likely replace the smartphone on trips, many could decide it works well enough to take along as a substitute for the PC, the iPod and the e-book reader.

Nokia to Introduce N8, Using New Version of Symbian

The Nokia N8, Nokia's latest smartphone, using the new Symbian 3 operating system, is designed to challenge the iPhone and BlackBerry at the high end of the market, where Nokia arguably has been struggling.

The Nokia N8 will be available in selected markets from the third quarter of 2010 and comes with an estimated price tag of €370 (about $493) before taxes and subsidies.

The Nokia N8 introduces a 12 megapixel camera with Carl Zeiss optics, Xenon flash and a large sensor that rivals those found in compact digital cameras. Additionally, the Nokia N8 offers the ability to make HD-quality videos and edit them with an intuitive built-in editing suite.

Doubling as a portable entertainment center, people can enjoy HD-quality video with Dolby Digital Plus surround sound by plugging into their home theatre system. The Nokia N8 enables access to Web TV services that deliver programs, news and entertainment from channels like CNN, E! Entertainment, Paramount and National Geographic. Additional local Web TV content is also available from the Ovi Store.

Social networking also is featured. People can update their status, share location and photos, and view live feeds from Facebook and Twitter in a single app directly on the home screen. Calendar events from social networks can also be transferred to the device calendar.

The Nokia N8 comes with free global Ovi Maps walk and drive navigation, guiding people to places and points of interest in more than 70 countries worldwide.

Nokia has upgraded its Symbian software to make it more user friendly, a criticism of earlier versions of Symbian.

The Symbian 3 operating system supports features touchscreen commands such as multi-touch, flick scrolling and pinch-zoom, as well as faster multi-tasking, Nokia says.

Will Rogers Introduce Bundled Mobile Broadband Plans?

Canadian wireless provider Rogers apparently is considering giving customers a data plan that would let them use an iPad (or other similar devices) plus mobile phones, on a single access plan,  according to Electronista.

That's the sort of innovation in pricing plans and packaging that seems almost inevitable as people start using multiple wireless devices, and start to rebel against paying separate access fees for every single device they use, especially when some of those devices might not require much bandwidth, while others are used often enough to justify a typical $30 a month plan.

Observers often criticize mobile and other service providers for unimaginative thinking on such matters. Fair or not, one wonders what changes might be in store when fourth-generation Long Term Evolution networks start to enter their marketing phases.

So far, Clearwire has been more experimental than other leading mobile providers. To be fair, it isn't clear how much creativity actually can be brought to bear on the basic access service. But we ought to expect some changes as the types of devices benefiting from mobile access proliferate, and people start using multiple devices.

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