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Google unveils new smartphone in Nexus line
by Staff Writers
San Francisco (AFP) Oct 31, 2013


Apple tablet share hit low point ahead of iPad refresh
New York, United States (AFP) Oct 31, 2013 - Apple's share of the tablet market fell to its lowest point on record in the third quarter, ahead of the launch of its new iPads, a survey showed Thursday.

Research firm IDC's survey said Apple's market share slid to 29.6 percent, its lowest share since it fueled the tablet craze with its first iPads.

Worldwide tablet shipments grew 36.7 percent from a year ago to 47.6 million units in the third quarter. That was seven percent higher than the second quarter, lower than IDC's forecasts.

Apple sold 14.1 million in the quarter, little changed from a year ago, in part due to its decision to move its product launch to the fourth quarter.

But IDC said the new iPad Air shipping November 1 and refreshed iPad mini should help the California group regain momentum.

"Apple is taking steps to appeal to multiple segments," said IDC's Jitesh Ubrani.

"While some undoubtedly hoped for more aggressive pricing from Apple, the current prices clearly reflect Apple's ongoing strategy to maintain its premium status. It's worth noting that Apple wasn't the only one to increase the price of its small-sized tablet during this product cycle: Both Google and Amazon increased the price of their newest seven-inch tablets."

Samsung held the number-two spot with shipments of about 9.7 million units, IDC said, for a market share of 20.4 percent.

Taiwan's Asus, which makes the Nexus 7 for Google, grabbed 7.4 percent of the market with 3.5 million units, and China's Lenovo was fourth with a 4.8 percent share and 2.3 million units.

Over one-third of the market was held by other vendors including Amazon, Microsoft, Hewlett-Packard and Dell, along with lesser-known, so-called white box vendors that typically sell Android devices at low prices.

"White box tablet shipments continue to constitute a fairly large percentage of the Android devices shipped into the market," said IDC's Tom Mainelli.

"However, many use cheap parts and non Google-approved versions of Android that can result in an unsatisfactory customer experience, limited usage, and very little engagement with the ecosystem. Android's growth in tablets has been stunning to watch, but shipments alone won't guarantee long-term success."

Google on Thursday unveiled its Nexus 5 smartphone, putting its premium brand on a device intended to champion the latest version of its Android operating system.

The hotly anticipated addition to Google's Nexus line is powered by a new "KitKat" version of Android, which was redesigned to work across the wide range of handsets built with the Internet titan's free software inside.

"Now you have one version of the Android operating system that can ship across all versions of smartphones in 2014," Sundar Pichai, head of the Android and Chrome teams, said while providing a look at the new software and Nexus 5.

"As we get on our way to reach the next billion people, we want to do it with the latest version of Android."

The move aims to solve the problem that the wide variety of Android systems used around the world make it challenging for makers of fun, functional or hip smartphone or tablet apps to design programs that work on all devices.

Being stuck with old versions of Android also means that users don't get access to upgrades or improvements cranked out by Google.

Apple executives routinely boast about how most users of its iPhones, iPads and iPod touches are on the latest version of the iOS operating system while many Android users are stuck with old versions.

Changes in KitKat included fine tuning it to work with the limited memory capacities of Android smartphones priced for markets in developing countries or other places where buyers are on tight budgets.

"It is important to us to get the same version of Android to scale across all versions of devices," Pichai said.

Google partnered with South Korean consumer electronics giant LG to make the Nexus 5 smartphone to showcase the prowess of KitKat.

The Nexus 5 was available for purchase in 10 countries through Google's online Play shop, priced at $349 for a 16-gigabyte model and $399 for a version with 32 gigabytes of memory.

KitKat was released to handset makers to begin building their own smartphones using the software, according to Pichai.

"It is a cutting-edge operating system meant to run on cutting-edge phones, but it can run on older phones as well," Pichai said.

It is up to Android smartphone makers whether to push KitKat updates to people using their devices running on old versions of the operating system.

"The idea is to finally unify all of the Android operating systems to the point where they stop fragmenting," said analyst Tim Bajarin, president of Creative Strategies in Silicon Valley.

"Vendors have every reason to keep their customer bases happy."

KitKat improves the smartphone user interface with richer and more immersive graphics while tapping into Google data centers for features such as anticipating what smartphone users wants to see before being asked.

For example, a KitKat-powered smartphone can recognize when you are near a movie theater and automatically pop up film times.

KitKat also takes into account what most people do at a certain spot to predict what a smartphone user might want, Pichai explained.

If the software noticed a person was by Old Faithful geyser in Yellowstone National Park it would automatically display information about when it was due to spout.

If an incoming telephone call is from a business, information from its website will be displayed as the handset rings.

"Our vision is that every time you pick up the phone, the information you want is right there in front of you," Pichai said.

"This is the kind of thing we really get excited about doing; bringing the power of Google smarts to the device."

Making KitKat the one Android operating system to rule them all will help Google's position in smartphones, according to Bajarin.

Google is both a rival and an ally to Android smartphone makers.

While Google has worked with partners to make Nexus brand smartphones for several years, its acquisition of Motorola Mobility last year has made it a competitor in handset hardware.

Leading Android smartphone maker Samsung this week held its first developers conference to encourage creation of apps for its devices, particularly those powered by the South Korean consumer electronics giant's own Tizen software.

"Samsung is very much at odds with Google," Bajarin said.

"Samsung is only going to continue to win if they control their own destiny," he continued. "If they have to rely on Google their future is limited."

Google, Apple and Microsoft each control smartphone hardware and software to lure fans with mobile device "ecosystems" and Samsung likely intends to follow suit, according to the analyst.

"Samsung will be in a tough place if they don't end up controlling the operating system themselves," Bajarin said. "Right now, they are beholden to Google."

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