Jul
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2011
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Consumers Lack 4G Understanding

Consumers Lack 4G Understanding

Wireless carriers may need to do a better job explaining the high-speed 4G technology to smartphone users, according to a recent study, especially as companies bank on 4G as a significant part of their mobile and financial strategy going into the future.

Gadget review and shopping site Retrevo recently found less than a quarter of people they surveyed planned to buy a 4G-capable phone this year. Thirty percent said they wouldn’t go 4G because they think the accompanying data plan costs too much, 22 percent said they felt 4G performance didn’t justify the cost, and 19 percent said they just don’t know enough about 4G to make the switch.

The findings indicate a major gap for carriers to overcome as they beef up 4G networks in anticipation for increased data demands fueled by increasingly robust devices. With subscriber rates maturing, carriers look to data and sophisticated smartphones as the next area of growth, justifying prices with potential access to high-speed technology. But this requires consumers that understand the value of high-speed networks and decide to invest in the powerful new phones to take advantage of the technology.

But potential customers may not be at that level of awareness quite yet, with many believing they mistakenly have 4G capabilities already. Thirty-four percent of iPhone users and 24 percent of BlackBerry users reported they already had a 4G version of the phone, when in fact one doesn’t yet exist.

Apple’s iPhone 5, and Research In Motion’s Bold 9900, both debuting later this year, are slated to use the 4G network.

For carriers spending money and devoting resources to deploying their 4G network, the news should be a wake-up call. Combined with general skepticism and uncertainty about many carriers’ new tiered data plans, the fact that most consumers don’t understand the advantages of the 4G network might fuel consumer confusion and backlash when prices possibly rise to accommodate higher speeds.

As all the major carriers gear up to expand their 4G coverage this year and champion the technology in their advertising, their efforts may come to naught if consumers are unclear on 4G’s advantages and benefits. This may require carriers and phone makers retooling their advertising and outreach to customers, who ultimately must buy the phones and sign the contracts to take advantage of the faster networks.

Consumers Lack 4G Understanding originally appeared at Mobiledia on Thu Jul 14, 2011 12:52 pm.

Jul
14
2011
0

Apple Hiring Extra Workers For Possible August IPhone 5 Launch

Apple Hiring Extra Workers For Possible August IPhone 5 Launch

Apple posted a job application for iPhone sales specialists, hinting at the possibility of an earlier release for the iPhone 5 than previous rumors have suggested.

The posting surfaced on the U.K. job site Reed two days ago. The listing seeks new iPhone sales specialists willing to work five days a week. New hires will have to undergo four days of training in the second week of August before their first official day of work on August 16. The listing is for a temporary position that will end on October 29.

The Cupertino, Calif.-based company often hires additional help in its retail stores for major product launches, even initiating an “all hands on deck” blackout period when employees aren’t allowed to take vacations. The new job posting suggests the company is building up its retail teams in anticipation to the increased traffic a new device launch would bring.

Most recent speculation suggests an iPhone 5 release sometime in September, but Apple’s new hiring schedule may push that date up some.

If these rumors are true, there are several ways Apple may benefit from an August launch of the iPhone 5. An August release could help the company steal the thunder of the anticipated Motorola Droid Bionic, believed to hit stores as early as August 4.

Analysts say the Droid Bionic represents the next evolution in Android phones, boasting many powerful features like dual-core processors. In this light, Apple may want to bring its next generation iPhone to market to compete against the Android device as soon as possible.

Additionally, many know that Apple is overdue for an iPhone refresh. This is the first year Apple didn’t introduce the company’s latest phone at its annual conference in June. With fall approaching, a mid-August release would let Apple take advantage of the back-to-school shoppers and get a head start on the holiday season.

Although the iPhone 5 is expected to hit stores by the end of the year, very little is known about its features. Some reports claimed the phone will feature an entirely new design with a larger screen. Others said the phone will feature more minor upgrades, such as an 8-megapixel camera and an A5 processor with the same exterior design as the iPhone 4.

If Apple’s job posting is indicative of an August iPhone 5 release, we may get the answers to all of our iPhone 5 questions sooner than expected.

Apple Hiring Extra Workers For Possible August IPhone 5 Launch originally appeared at Mobiledia on Thu Jul 14, 2011 11:58 am.

Jul
14
2011
0

RIM Co-CEOs Get 6 Months to Prove Themselves

RIM Gets Six Months To Prove Co-CEO Stance

Research in Motion’s co-CEOs have six months to prove the effectiveness of their shared roles, as the Blackberry maker works toward answering shareholders’ calls for changes management.

Investors last week called for the Waterloo, Ontario-based company to vote on splitting the roles of co-CEOs Jim Balsillie and Mike Lazaridis. Shareholders postponed the vote to give the joint-management concept a chance at generating business, particularly overseas.

“We wanted to give them a chance to prove that there is an actual business necessity,” said Jennifer Coulson, manager of corporate engagement at Northwest & Ethical, a major investor.

Northwest started to question the dual roles in June, and the firm proposed Balsillie and Lazaridis split their jobs, claiming the combined CEO positions hurt RIM’s ability to compete against rivals, especially as its market share plunged amid challenges from Apple’s iOS and Google’s Android devices.

Hoping to preserve their co-leadership positions, Balsillie and Lazaridis requested a committee to determine if the company’s management needed changing.

Fellow investment firm Glass Lewis & Co., however, demanded a vote to change management at Tuesday’s shareholder meeting, even if a study was permitted.

Northwest & Ethical, which asked RIM to deliver a decision on the issue of co-CEO roles by January 31, plans to draft findings about the positions and reintroduce the matter at RIM’s annual meeting next year, if necessary.

Beyond discussion over management issues, shareholders expressed their overall frustration, claiming RIM let Apple and Google take over the mobile technology market without a fight, after it led the smartphone market for years.

Apple now holds 26 percent of the market and Google’s Android-powered devices lead with 38 percent. As a result, RIM’s stock took a 49 percent drop last quarter, marking the company’s worst three-month performance since 2002.

Furthermore, investors criticized RIM’s decision to keep details about its new line of QNX-based phones private.

In June, RIM said it may halt development on its BlackBerry PlayBook 2, choosing instead to focus on its “super-phones,” which will use the QNX system. RIM is banking on QNX to breathe new life into its smartphones, but The OS is the same platform powering the failing PlayBook. Developers stated they won’t develop for the OS until RIM proves it can be successful.

Lazaridis said a new touch screen BlackBerry Bold will come out this year, and it still plans to introduce a 4G version of its PlayBook this fall.

While shareholders are split on RIM’s future, some investors said they were reassured by the meeting, after Lazaridis and Balsillie spoke with confidence to their company.

Lazaridis and Balsillie admit the transition to QNX is taking longer than expected, but maintain RIM still has a profitable future and can once again be a powerhouse in the smartphone market. The pair’s contention that the dual CEO structure will serve as the best management framework going forward has won out, at least for the short term, but will likely be called into question again if the company fails to regain traction.

RIM Co-CEOs Get 6 Months to Prove Themselves originally appeared at Mobiledia on Thu Jul 14, 2011 11:33 am.


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