Microsoft (MSFT) Lumia Smartphone Set To Launch Next Week

We look at Microsoft’s first attempt at making a smartphone since dropping the Nokia title after the buyout

By: Larry Darrell

It’s been a short while since Microsoft (NASDAQ:MSFT) decided to remove the “Nokia” name from its smartphone business. But the Redmond-based tech giant shows no intention of slowing down, as it announces, and prepares for, the launch of the first smartphone that will drop the Finnish phone company’s title in favor of naming the series "Microsoft Lumia."

In the past, Microsoft has struggled to find a place in the market for its Windows Phone operating system, which, according to third-party analysts, is used in only 2.5% of mobile devices across the world. Google Inc.’s (NASDAQ:GOOG) Android leads comfortably in first place with an 85% share, followed by the many millions of iPhones running Apples Inc.’s (NASDAQ:AAPL) proprietary iOS. 

Most of the phones released by Microsoft have only found a place in developing markets, where people just recently got a taste of what smartphones have to offer – their main appeal being the colorful covers and looks.

In more mature markets, Microsoft hasn’t made a significant impact, with brands like Apple and Samsung Elect Ltd (F) (OTCMKTS:SSNLF) taking the lion’s share. Microsoft’s smartphone business is also under threat from Chinese competitors in emerging markets, which offer decent quality phones and impressive specifications at a significantly lower price.

For now, it seems like Microsoft intends to stick to its previous strategy, which could be considered a questionable move by some. The company announced, “Microsoft is delivering the power of everyday mobile technology to everyone. Come back on November 11, to find out more!”

While the wait till next Tuesday is certainly on, sources say that Microsoft’s new phone will be far from a game changer. As rumors have it, it will have a 5-inch display of around 960 x 540, coming out to be an unimpressive 280 pixels per inch. The core will be quite mediocre as well, with a 1.2 GHz Snapdragon 200 Chipset and 1GB RAM. The phone will feature 8GB internal memory and a 1900 mAh battery. Even the camera isn’t much to look at, with a 5 megapixel primary and VGA secondary front snapper.

The one thing that the phone does have going for it is its price, which is expected to be around $100-150 off contract. However, unless Microsoft makes some serious upgrades to the Windows Phone operating system, the new phone may not do very well.

Once again, Microsoft gambles with a low-end device, which is strange considering that just last week, two Chinese smartphone manufacturers – Xiaomi Inc. and Lenovo Group Limited (ADR) (LNVGY) – traded places as the third and fourth largest manufacturers in the world.

Lenovo and Xiaomi specialize in devices that offer much better specs than the phone Microsoft intends to offer. The two pose a serious threat to the tech giant’s business in the emerging markets. And as it is, Samsung and Apple’s premiums lines are often the phones of choice for many in the US, UK, and Europe.

While the release of Microsoft’s new phone doesn’t make earlier versions of the Lumia series such as the 1020, 1520, and 920 irrelevant, these old phones remain the best Microsoft has to offer to mature markets, and they haven’t been updated in a while. In the meantime, Samsung and Apple have been busy updating their devices year after year.

Microsoft has had a mixed experience with hardware. Consoles such as the Xbox and Xbox 360 performed extremely well, while the Xbox One (like some of its phones) was a bit of a disaster. The Surface tablet initially started off slow, but sales have picked up 127% since the release of the Surface 3 Pro.

November 11 and the months following it will show how well Microsoft’s rebranding efforts pay off for its smartphone business.

Credit:http://www.bidnessetc.com/28819-microsoft-msft-lumia-smartphone-set-to-launch-next-week

Xiaomi to be valued above $40bn in fund raising

by Tim Bradshaw and Richard Waters 

©Bloomberg

Xiaomi, the fast-rising Chinese smartphone maker, is in talks to raise close to $1.5bn in new capital at a valuation set to exceed $40bn, in the largest private financing for a venture-backed company since Facebook in 2011.

Negotiations with investors including DST – the Russian internet company that also backed Alibaba, Facebook and Airbnb – are yet to be finalised, according to people familiar with the discussions. But if completed, the deal would propel the four-year-old Chinese company to the top tier of the global technology industry at a valuation exceeding that of Sony and Lenovo put together.

Xiaomi declined to comment on its fundraising plans.

The private stake sale would also price Xiaomi at more than double Silicon Valley’s most richly valued private company, Uber, which raised $1.2bn at a $17bn valuation this summer.

According to CB Insights, which tracks private financings, a $1.5bn capital injection would match Facebook’s 2011 fundraising, which valued the social network at $50bn in its last round before it went public, as the largest amount ever raised by a venture-backed company.

Both Wall Street and Silicon Valley investors are largely sidelined in the fundraising for the latest Chinese technology sensation after Alibaba, which has a market capitalisation of $270bn after going public in New York in September. Instead Xiaomi is hoping to secure funds from Asia-based investors.

“Alibaba and Xiaomi are similar in that there’s a lot of people out there who wished they had invested, but at the time they thought the valuations were way too high and then they missed it,” said a person with knowledge of both companies. “In retrospect they regret it.”

IDC, the technology researcher, said last month that Xiaomi’s smartphone sales were outstripped only by Samsung and Apple in the third quarter, thanks to the popularity of the Mi4 handset launched in August. The company has built its brand on producing handsets that aim to compete with international rivals on quality, but at a much lower price.

Xiaomi shipped 17.3m smartphones in the three months ending in September, up 211 per cent on the third quarter of 2013, just ahead of Lenovo and LG Electronics, IDC said, although Xiaomi still holds only 5 per cent of the market.

Despite such growth, some argue that Xiaomi remains a risky proposition at such a high price, given the rapid rise and fall of smartphone makers such as Motorola and HTC, and the emergence of lower cost handsets in Asia.

Unlike Apple, which controls its own hardware, software and services, Xiaomi is reliant on Google’s Android operating system.

But with a $1.5bn war chest Xiaomi could continue its push into new markets across Asia and Latin America, and add new devices to its portfolio of smartphones, tablets, routers and television equipment. It is also investing in its own TV content.

“They see themselves as more than Apple,” said the person with knowledge of Xiaomi. “They want to ‘out-Apple’ Apple in the sense that they’re integrating hardware, software, content and services into a broad ecosystem.”

They want to ‘out-Apple’ Apple in the sense that they’re integrating hardware, software, content and services into a broad ecosystem

Xiaomi’s “rock star” launch events and sellout products, coupled with online distribution and minimal advertising spending, have produced unprecedented growth in revenue and profits, according to people familiar with the company.

However, prospective backers may have to wait years for a return on their investment. Xiaomi’s founders have maintained that they do not plan to go public for five years.

The company has also found little trouble in accessing cash. Xiaomi recently agreed a $1bn loan with 29 banks, with the funds likely to be used to finance its push into new markets, such as Brazil and Indonesia.

Credit:http://www.ft.com/cms/s/0/2995254e-662c-11e4-a454-00144feabdc0.html#axzz3IOUB89fp

Xiaomi's Killer App? Its Business Model

By Leonid Bershidsky

Xiaomi Corp., the private company that sells the most smartphones in China, had been shrouded in mystery: It wasn't clear how it could make money by selling top-of-the-line products at rock-bottom prices. Xiaomi has revealed its 2013 financials, and they show a handsome profit, which means smartphones from Apple, Samsung and even LG and HTC may be grossly overpriced.

Xiaomi's flagship phone, the Mi4, sells for a minimum of $327. Its specifications are largely the same as, say, the Samsung Galaxy S5, which costs at least $150 more. The Chinese maker doesn't skimp on component quality to drive down the price: It uses the same Sony battery and optical sensors, Qualcomm processor, Wi-Fi and audio chip, Samsung RAM chip and parts as other premium smartphones. Xiaomi phones don't look or feel cheap, though their design is minimalistic. The Mi interface, with its highly intuitive, native-feeling and iOS-like Android flavor, is an improvement on Google's version of the operating system and doesn't suffer from the bloatware inflicted on users by other phone manufacturers.

It's a good piece of equipment that reviewers can't fault. It could compete on its own merits, not just on price, so why sell it cheaply?

One possible answer is that Xiaomi sees the phones as just delivery devices for software, which the company also develops.

"We are an Internet and a software company much more than a hardware company," Hugo Barra, Xiaomi's vice president for global operations, said at a recent tech conference.

Barra repeats this disorienting mantra every chance he gets, but the financial data, published in The Wall Street Journal, show it either reflects wishful thinking or plans for a distant future. The company made 94 percent of its $4.3 billion in revenue from selling mobile phones. Even Apple, where hardware accounts for 90 percent of sales, is more of an "Internet and a software company."

Xiaomi is a late entrant to the market, so it has avoided the hassle of going head-to-head with established players in its price category. Instead, it has chosen to keep down both costs and margins, and to concentrate on the product.

The company is spending very little on conventional marketing. Instead, it provides forums and communicates with users on social networks. In 2013, it only spent 3.2 percent of revenue on sales and marketing. Apple's sales and marketing efforts consume twice as big a share of revenue, which is 40 times greater than Xiaomi's. Samsung's selling and marketing expenses account for 16.3 percent of sales.

Even though it saves on everything except quality parts, Xiaomi still has a gross margin only half as high as Apple's or Samsung's. It did, however, make a net profit of $566 million last year, 12.8 percent of revenue. That's high: Samsung's net profit last year was 13.3 percent of revenue.

That may explain why Xiaomi is attempting to attract its latest round of financing at a higher valuationrelative to sales than Apple commands. The Chinese company may be more valuable than any other mobile phone manufacturer because its business model is a killer app. Xiaomi founder Lei Jun described it this way:

When I was with Kingsoft, I had the opportunity to work with Nokia and Motorola, 2 mobile phone giants of their time. One day, I pointed out to their R&D boss, some inadequacies. After that, they merely acknowledged my input, but never acted upon what I had said. So I thought to myself, if I make a phone, you can tell me anything you wish for it or what's wrong. If it is justifiable, we will work on it immediately. I'll give you an update every week and you may even see your wishes come true within a week.

In this era of marketing-driven business, "build it and they will come" isn't a popular approach. It is effective, however. When Xiaomi phones become more readily available in Europe and the U.S., there will be no reason to pay more for competing products whose specifications and build quality are practically the same. Chinese consumers have already reached this conclusion.

To contact the writer of this article: Leonid Bershidsky at lbershidsky@bloomberg.net.

To contact the editor responsible for this article: Max Berley at mberley@bloomberg.net

Credit:http://www.bloombergview.com/articles/2014-11-06/xiaomi-s-killer-app-its-business-model

Apple can’t stop the spread of malware

By Jennifer Booton

Apple blocks infected apps, but the illicit market is extensive

Apple can’t protect users if they download apps from third-party sources.

A new family of malware found in unauthorized mobile applications threatens Apple Inc. devices in China and other emerging markets, underscoring the risk of downloading apps for smartphones and tablets from third-party sources.

Apple AAPL, +0.29%  told MarketWatch Thursday that it has blocked the infected apps, which include popular games such as Sims 3 and Angry Birds. However, the black market for pirated apps is extensive, and that makes it very difficult for the tech behemoth — or anyone for that matter — to keep a lid on it.

Third-party applications don’t pose as much of a threat in the U.S. and other Western countries where Apple users tend to be loyal to the Apple App Store. But it has become a problem in emerging markets, where incidents of malware originating from third-party sites tend to be much higher.

This is because Apple users in emerging markets try to save money by purchasing unlicensed apps, or seeking apps that do not follow Apple’s iOS protocol, said CyberSponse CEO Joe Loomis. Pirated versions of apps from the official Apple App Store are often available for free on third-party sites.

Quashing the malware problem is difficult, said Ryan Olson, intelligence director at cyber security company Palo Alto Networks PANW, +0.86%because anyone can upload apps to third-party sites. Some of those sites can be trusted, he said, while others host pirated material and are far less secure. It’s difficult for major tech companies like Apple and Google Inc.GOOGL, +0.02%  to keep track of such sites.

Despite warning users about the dangers of downloading any files, including apps, from unaffiliated third-party sources, Olson said Apple and Google “can’t really stop” the spread of malware if users continue to download from unaffiliated sites.

“As always, we recommend that users download and install software from trusted sources,” an Apple spokesperson said in an email to MarketWatch on Thursday.

US:AAPL

$60$80$100$120

All 467 of the Apple-compatible apps uploaded to the Chinese Maiyadi App Store from April 30 to June 11 were infected with a new type of malware dubbed WireLurker, according to Palo Alto Networks, which exposed China’s malware problem in a 30-page report published Wednesday night.

Those infected apps were downloaded tens of thousands of times from Maiyadi, a third-party site, by Apple users during a two-week test period earlier this year, Palo Alto Networks said.

Apple and other tech companies will try to shut these sites down, Loomis said, but doing so is difficult because sites that engage in piracy are usually based overseas.

In fact, nearly all cases of iPhone malware have derived from third-party app stores, particularly one known as Cydia, said Greg Martin, founder and chief tech officer of ThreatStream.

Cydia is a third-party app store run by SaurikIT that is targeted toward “jailbroken” phones, or those devices whose operating systems have been cracked into by users, often so that they can personalize and customize their iPhones and add their own software.

Cydia calls itself an “alternative” to the Apple App Store. However, jailbreaking violates Apple’s terms of service and voids the device’s warranty.

Credit:http://www.marketwatch.com/story/apple-cant-stop-the-spread-of-malware-2014-11-06

Sony Xperia Z3 review: Superb design and capabilities that best the Apple iPhone 6

Summary: Sony doesn't release too many smartphones on US carriers, but T-Mobile has a real winner here with the Z3. Matthew not only tested one out, he bought his own and put aside the iPhone 6 Plus

By Matthew Miller

T-Mobile Sony Xperia Z3

I bought a Sony Xperia Z2 from Handtec back in May and thought it was the phone for me. While it was great, the rumors of a Z3 kept me from keeping it. Now that I have spent a week with the new T-Mobile Sony Xperia Z3, I am extremely pleased I waited for this upgraded model — which may be the best Android phone available today.

After selling that Xperia Z2 on Swappa and moving through a few other phones in the last couple of months, my most recent infatuation has been with the Apple iPhone 6 Plus. But I now have at least 10 reasons (keep reading this review) for preferring the Sony Xperia Z3 over the iPhone 6 Plus..

I checked out the evaluation Z3 for just two days before ordering my own and returning the review unit. The Xperia Z3 gives me a high end device with waterproof characteristics at a reasonable price, along with the great benefits of T-Mobile ownership. T-Mobile customers should take a serious look at the Z3 before buying a new smartphone.

Specifications

• Processors: Snapdragon 801 2.5GHz quad-core processor and Adreno 330 GPU
• Display: 5.2-inch 1920 x 1080 pixels resolutioin IPS Triluminos
• RAM: 3GB
• Internal storage: 32GB and microSD storage support up to 128GB
• Cameras: 20.7-megapixel rear and 2.2 megapixel front facing
• Radios: 802.11 a/b/g/n/ac Wi-Fi, Bluetooth 4.0, NFC, DLNA, ANT+, MHL 3.0
• Battery capacity: 3,100 mAh with stated talk time up to 21 hours
• Other features: Waterproof and dust tight (IP65 and IP68 ratings), Sony 3D surround sound technology with dual front facing stereo speakers
• Dimensions: 146 x 71.88 x 7.62 mm, and 152 grams

The T-Mobile variation of this device addresses one concern I have with overseas models and the last Z2 I owned, the integrated storage. Every high end smartphone should come with at least 32GB so it is great to see T-Mobile and Sony launched a version here with 32GB rather than the 16GB on most all other Xperia variants.

Looking at the other Sony Xperia Z3 specifications, the only one that isn't the highest available on Android today is the processor. The Snapdragon 805 processor is available on the Galaxy Note 4 and Nexus 6.

On the hardware

It is rather stark to grab a Sony Xperia Z3 and then a Samsung Galaxy S5. One is clearly a much better built device and in my opinion you won't find an Android device with a better fit and finish. If Apple built an Android device, it would probably look and feel much like the Xperia Z3.

Sony fixed its Xperia displays with the Z2 and the same one is found on the Z3. The side bezels are pretty narrow and the top and bottom don't even bother me any longer knowing that stereo speakers are present.

I love Sony's silver central power button positioned along the new rounded metal edge. The corners are made of plastic to help with drop survival while metal wraps the rest of the edges. The glass back concerns me a bit, but I will just have to hold on to it a bit tighter.

Sony includes a couple of contacts on the left side and for about $25 you can pick up a dock on Amazon and charge the Xperia Z3 wirelessly. I wish that Qi charging was including, but the dock solution works well and provides you with a nice bedside clock.

A physical camera capture button is found on the lower right side and this is something I love having on a smartphone. While nearly all Windows Phone devices have this button, very few Android models include it.

The same 20.7 megapixel camera from the Z2 is found on the back of the Z3. It does a solid job of capturing photos, but I honestly expect more from Sony and hope they can continue to improve it with software updates.

Like HTC and others, Sony includes a Stamina Mode on the Z3 so you can manage your battery and make sure your phone never dies when you need it. I have been going longer than a full heavy day with the Z3 and with the Stamina Mode there are no worries at all about having an integrated large capacity battery.

Sony was one of the first to integrate waterproof capability in its smartphones and as a person living in a wet part of the world, it is something I find almost essential today. Now that I run with a phone for safety and to capture images on the go, I need a waterproof phone or a case that keeps the phone safe and sound.

Sony sells noise-cancelling earbuds that work with the Z2 and Z3. As a daily train commuter, these are awesome to have working with the Z3.

In my opinion, Apple and HTC are the current leaders in smartphone design and when you hold one of these devices you feel like you spent your money well. The great thing about Sony is that they take this same attention to design detail and include all of the best Android specs to create a superb smartphone experience.

A few phones have designs that keep me flipping the phone around in my hand and the Z3 is one of those devices. It is very pocketable, especially for a 5.2 inch display smartphone, and feels great in your hand.

Pros	Cons
Awesome metal and glass design	Cover to access the microUSB port
Waterproof capability	Device is slippery and easy to drop
Physical camera capture button
microSD expansion card slot
3GB RAM, 20.7 megapixel camera, other high end specs
Loud front-facing stereo speakers
Long battery life

On the software

The Sony Xperia Z3 launches with Android 4.4 with the promise that Android Lollipop (5.0) will be released in the next few months. I won't go into detail on Android KitKat since the OS has been covered extensively over the past year.

Sony has one of the lightest skins available in the Android world, but let's take a bit closer look at what you can expect on the Z3 since it is different than stock Android.

Sony additions: Sony does bring some of its branded experiences to the Z3. Sony has long been known for the Walkman and you will find this as the music player on the Xperia Z3. It is an attractive and functional application and I am working to load up all my music on my microSD to enjoy it with the noise-cancelling earbuds on the Z3. You can also sign up and use Walkman to access Sony's subscription service.

Sony also includes Movies, Movie Creator, OfficeSuite, PlayStation, Sketch, Smart Connect, Sony Select, TrackID, Video Unlimited, What's New, and Xperia Lounge. While I am not sure we need additional service options with Google Play loaded on Android devices, Sony isn't overbearing with these services either.

Movie Creator creates highlight movies with your photos and videos. HTC launched this idea with the HTC One M7 and since then many others, BlackBerry, Motorola, and Sony for example, have implemented a twist on highlight videos.

Sony PlayStation gamers will love the Z3 and to be honest I did start looking at the PS4 after I bought the Z3. Sony provides the capability to connect the Z3 to the PS4 and also use the DualShock 4 Controller with the Z3.

While the iPhone camera does a great job and Apple has improved the functions with more options on the iPhone 6, Sony provides an extensive collection of camera modes on the Z3. Some of the modes are silly, but others are quite useful. You can take slow motion and time-lapse videos with the Z3, along with many other advanced scenes.

T-Mobile additions: Thankfully T-Mobile is the one major US carrier that limits how much bloatware is added to its phones. On the Z3 you will find T-Mobile Name ID (subscription service), T-Mobile My Account, Mobile Hotspot, T-Mobile TV, Visual Voicemail, and Device Unlock. After you pay off the phone, you can SIM unlock your phone with the Device Unlock application.

A couple of these are subscription services, Name ID and TV, but those are the only two I would like to remove. The rest actually help you manage your account and control your wireless connections.

The fantastic T-Mobile services that came through various Uncarrier initiatives include Wi-Fi Calling and unlimited streaming of music services. While Wi-Fi Calling is excellent at my house, I use the free texting via Gogo while flying around the country on Alaska Airlines. It is very convenient to stay in touch with my family on the airplane without having to pay for wireless service.

Pricing and availability

The Sony Xperia Z3 is available now for $630 or $26.25/month for 24 months. This is a reasonable price for a high end smartphone. By comparison, the 16GB iPhone 6 is $649, but has no capability for memory expansion. The 32GB Nexus 6 is available for $649 as well, again with no capability to expand that storage capacity.

The competition

There are plenty of high end smartphones available today that compete against the Xperia Z3. The iPhone 6 and 6 Plus, Nexus 6, BlackBerry Passport, Moto X, Samsung Galaxy Note 4, Galaxy S5, and more are available now.

The Z3 satisfies me over all the others due to these ten features:

• Waterproof rating: I run with my phones and often in the rain so I need a waterproof phone to help me stay fit.
• microSD storage: It is nice to pop a microSD card in and out as you capture photos and videos, as well as making it easy to transfer documents.
• Indicator light: I like having a small subtle light to inform me when a notification is present. It is also helpful to have different colors for different types of notifications.
• 3GB RAM: I still can't believe Apple only launched its new iPhones with 1GB of RAM. You won't have any trouble multi-tasking with the Z3.
• Front-facing stereo speakers: All phones should at least have one speaker on the front, but I prefer dual speakers like HTC provides.
• Physical camera button: Nothing beats pressing and holding a camera capture button to launch the camera. The Z3 feels more like a camera than a phone at times.
• Active noise-cancelling earbuds: I commute a couple of hours a day on the train and also travel via plane about once a month. Having noise-cancelling earbuds, with smart controls, is awesome.
• FM radio: While some people may not appreciate having a FM radio, it is a great way to enjoy music, news, and sports without consuming data.
• DLNA support: One thing that drives me crazy about my iPhone is that I cannot easily share photos and videos with family and friends on a large TV.
• USB OTG: It is incredibly convenient to pop in the Truffol Dual OTG USB stick and transfer files to and from my PC when on the road.

Conclusion

Sony has a limited presence in the US with most of its devices being sold either overseas or at the US Sony Store as unlocked models for AT&T and T-Mobile customers. Verizon just recently launched theSony Xperia Z3v, which is a variation of the Z3 I bought from T-Mobile.

Some people complain that Sony launches new smartphones too often, but that is definitely not the case in the US. This latest model is an amazing piece of technology and is clearly one of the best smartphones available today. While the Apple iPhone 6 is a well built and designed smartphone, it is clear that Sony also knows how to design a phone for the masses.

I tried using my iPhone 6 Plus and still do like it, but just like in the past I tend to get bored with iPhones after about a month. Android offers more for my needs and the Sony Xperia Z3 is the one for me.

I also find that Sony's RF signal is better on the Z3 than what I see on the iPhone 6 Plus. My iPhone 6 Plus often drops to 3G or worse in the exact same locations where the Z3 keeps hold of a LTE signal.

Contributor's rating: 9.5 out of 10

Credit:http://www.zdnet.com/sony-xperia-z3-review-superb-design-and-capabilities-that-best-the-apple-iphone-6-7000035400/