Thursday, June 24, 2010

Is the Apple 4 Steel Band Antenna the Problem, or Something Else?

Users are reporting problems with signal reception when the Apple iPhone 4 is held in the left hand, as opposed to the right. But the earlier iPhone 3 also had reception issues, leading one to wonder whether it is a physical issue or a software issue.

It is starting to appear as though every new smartphone has some issues, despite the strengths. HTC Evo users will tell you that despite the bigger battery and beautiful screen, battery life is poor. Poor as in, if you do a lot of web operations, you might have to charge it more than once a day. Of course, iPhone 3 users probably would agree that heavy web use kills battery life as well.

Nobody Likes ETFs, But Nobody Wants to Pay Full Retail, Either

Consumers don't like early termination fees. But neither do they like paying full price. A new Apple iPhone 4 with 32 GBytes of memory can be purchased now for $299 with a two-year contract, or at full retail for $699, without a contract.

Which option do you suspect most people will choose? If you want to know why the hated ETFs exist, it is the subsidy.

AT&T’s ETF on a smartphone like the iPhone is $325, up from $175 in May. Why? Some will carrier greed. But under the old pricing rules, a consumer could buy a phone for $99 on contract, instead of $600. Then the consumer could break the contract, pay the $175 fee, getting the device, without a contract commitment, for $274.

The customer then could sell the device on eBay or simply sign up for service with no contract.

Nobody likes contracts or ETFs. But nobody wants to pay full retail, either.

Right-Handed Users May Have Signal Reception Problems on iPhone 4

Most people now know that when using a mobile device, moving the antenna just several feet can sometimes change signal reception. Most people may not know that physical objects such as hands can interfere with signal reception.

It appears Apple's new iPhone 4 may suffer from that problem. Apparently, the iPhone 4 signal strength drops when a user grips the phone by the metal antenna band. Gizmodo has over a dozen videos of users showing off this problem.

When held in the left hand with our fingers touching the metal band, the bars representing signal strength dropped from 5 to 1 in less than a minute.

The problem appears to involve finger-contact on certain parts of the metal band.  When the phone is switched to the  right hand, which put our fingers in different position, the signal strength remained the same. So for many people, user experience may depend on whether they are left-handed or right-handed.

Right-handed people are going to tend to hold the device in the left hand, and navigate with the fingers of the right hand. That means most people are going to be prone to block the signal themselves, simply based on which hand they are using to hold the device.

And you might have thought mobile phone design was easy!

81% of App Store Downloads are "Free"

Piper Jaffray analyst Gene Munster estimates that 81 percent of downloads from Apple's App Store are free.

His analysis of the Top 50 paid apps reveals that their average selling price is $1.49. Munster estimates that on average, Apple receives $0.29 for every app that's downloaded from its store.

Munster calculates that this means $428 million for Apple based on its 70-30 revenue-share split. Munster estimates that the App Store is generating more than 16.6 million app downloads a day, compared to 8.9 million song downloads from the iTunes Store.

GetJar Raises $11 Million

Fast-growing mobile app store GetJar, which says it has had more than one billion apps downloaded from its store to date, making it second in size only to Apple’s app store, has raised $11 million in a second round of funding.

GetJar’s app store includes about 70,000 apps for all of the major mobile operating systems, including Apple’s, although CEO Ilja Laurs tells us that most of the company’s growth is coming from “open” platforms where there is less of an “established and convenient place” to get apps.

He says the company, which he calls the “Wal-Mart for mobile apps,” will invest much of the new cash in building up its presence on the Android platform.

Only Issue: Will Apple Sell 1 Million iPhone 4 Devices Today?

The only issue is whether Apple will sell one million iPhone 4 devices today. A couple of obvious questions suggst themselves. Since all the early-adopter technophiles and even early majority users made their decisions long ago, Apple's sales now must come from the "typical" consumer.

Smartphone sales have been climbing for the past couple of years, so the issue is how much of the growth Apple is able to grab. The harder-to-answer question is whether Facetime, the videoconferencing app, which encourage families with widely-scattered members to get the device just for that feature.



Wednesday, June 23, 2010

Carrier Ethernet Displaces Nearly All Mobile Backhaul Orders

Wireless network operators are requesting fewer T1s and more carrier Ethernet connections for mobile backhaul, and could stop ordering T1s entirely as soon as next year, Tower Cloud Inc. CEO Ron Mudry says.

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The Roots of our Discontent

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