Huge Wave of Google App Updates Hits iOS, Android

Google just brought iPhone and Android phone users a holiday gift. Google Maps has returned to the iPhone, this time in the form of its own separate app, while Google Currents — the company’s Flipboard-style online magazine app for Android — received a substantial update as well.

Besides the two big updates, about a half-dozen other apps for Android and Google TV received bug fixes and new features, according to Android Police blogger Ryan Whitwam. Here’s a look at what to expect, and where the rough edges still lay.

Google Maps is back

It was technically never there to begin with; the iPhone simply had a “Maps” app included, which used Google Maps’ data. But a few months ago, Apple switched from using Google’s map data to its own, which caused no end of problems as Apple’s data was incorrect much more often. These problems were sometimes hilarious, but in at least one case they were dangerous, as several motorists had to be rescued after becoming stranded inside an Australian national park (where Apple’s maps said the town they were trying to get to was).

Google Maps has also received a thumbs-down from the Victoria police in Australia, but is regarded as more reliable overall. It’s a completely new app this time, and while it has at least one “Android-ism” according to tech expert John Gruber (an Ice Cream Sandwich-style menu button), it’s reported to work well and doesn’t show ads like the YouTube app does.

It does, however, keep asking you to log in to your Google account so that it can track your location data.

Google Currents has a new look and new features

The update to digital magazine app Google Currents brings its features more in line with Google Reader, the tech giant’s online newsreader app which can monitor almost any website for updates. Like Google Reader, Currents can now “star” stories to put them in a separate list, can show which stories you’ve already read, and has a widget to put on your Android home screen. Other added features include new ways to scan editions and stories, and filter out sections you aren’t interested in.

Bugfixes and updates for other Google apps

Google Earth and Google Drive received miscellaneous bugfixes “and other improvements,” while Google Offers (a Groupon competitor) now features a “Greatly improved purchase experience.”

The Google Search app received a slew of additions to its Siri-like Google Now feature, including new cards to help while you are out and about and new voice actions (like asking it to tell you what song is playing nearby). The Field Trip augmented reality app now uses less battery life, and lets you “save cards” and favorite places you visit, as well as report incorrect data to Google. Finally, Google TV Search and PrimeTime for Google TV both received performance and stability updates.

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.

Linux/Open Source News Headlines – Yahoo! News

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Riveting Details Emerge from CT School Rampage

As morning turned to afternoon on Friday, further details continued to emerge from Newtown, CT, a tight-knit community shaken by a massacre at Sandy Hook Elementary School that took the lives of innocent students and teachers, in addition to the gunman, reportedly identified as Adam Lanza.

RELATED: President Fights Tears as He Addresses Nation

As President Barack Obama touched on in his tear-jerking press conference, this is not the first time the nation has witnessed a tragedy of this kind. The recent mass shooting at an Aurora, CO movie theater is just one instance of such violence. Columbine High School and Virginia Tech also resonate as prime examples.

Hollywood's biggest stars were quick to react to the news on Twitter and made an outcry for stricter gun control regulations.

Watch the video for ET's complete coverage of today's biggest headline.

RELATED: Celebs Tweet Reactions to CT School Shooting

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Domino's founder sues federal government over mandatory contraception coverage in Obamacare

DETROIT — The founder of Domino's Pizza is suing the federal government over mandatory contraception coverage in the health care law.

Tom Monaghan, a devout Roman Catholic, says contraception isn't health care but a "gravely immoral" practice.

He filed a lawsuit Friday in federal court. It also lists as a plaintiff Domino's Farms, a Michigan office park complex that Monaghan owns.

Monaghan offers health insurance that excludes contraception and abortion for employees. The new federal law requires employers to offer insurance including contraception coverage or risk fines.

AP

Domino's pizza founder Tom Monaghan in 1996

Monaghan says the law violates his rights, and is asking a judge to strike down the mandate. There are similar lawsuits pending nationwide.

A message left Saturday for Monaghan's attorney, Richard Thompson, was not immediately returned.

The government says the contraception mandate benefits women.

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Miami in spotlight at AVCC, other entrepreneurship events

Entrepreneurs from around the world took the stage during this packed week of entrepreneurship events in Miami: Florida International University’s Americas Venture Capital Conference (known as AVCC), HackDay, Wayra’s Global DemoDay and Endeavor’s International Selection Panel.

The events, all part of the first Innovate MIA week, also put the spotlight on Miami as it continues to try to develop into a technology hub for the Americas.

“While I like art, I absolutely love what is happening today... The time has come to become a tech hub in Miami,” said Miami-Dade Mayor Carlos A. Gimenez, who kicked off the venture capital conference on Thursday. He told the audience of 450 investors and entrepreneurs about the county’s $1 million investment in the Launch Pad Tech Accelerator in downtown Miami.

“I have no doubt that this gathering today will produce new ideas and new business ventures that will put our community on a fast track to becoming a center for innovative, tech-driven entrepreneurship,” Gimenez said.

Brad Feld, an early-stage investor and a founder of TechStars, cautioned that won’t happen overnight. Building a startup community can take five, 10, even 15 years, and those leading the effort, who should be entrepreneurs themselves, need to take the long-term view, he told the audience via video. “You can create very powerful entrepreneurial ecosystems in any city... I’ve spent some time in Miami, I think you are off to a great start.”

Throughout the two-day AVCC at the JW Brickell Marriott, as well as the Endeavor and Wayra events, entrepreneurs from around the world pitched their companies, hoping to persuade investors to part with some of their green.

And in some cases, the entrepreneurs could win money, too. During the venture capital conference, 29 companies —including eight from South Florida such as itMD, which connects doctors, patients and imaging facilities to facilitate easy access of records — competed for more than $50,000 in cash and prizes through short “elevator’’ pitches. Each took questions from the judges, then demoed their products or services in the conference “Hot Zone,” a room adjoining the ballroom. Some companies like oLyfe, a platform to organize what people share online, are hoping to raise funds for expansion into Latin America. Others like Ideame, a trilingual crowdfunding platform, were laser focused on pan-Latin American opportunities.

Winning the grand prize of $15,000 in cash and art was Trapezoid Digital Security of Miami, which provides hardware-based security solutions for enterprise and cloud environments. Fotopigeon of Tampa, a photo-sharing and printing service targeting the military and prison niches, scored two prizes.

The conference offered opportunities to hear formal presentations on current trends — among them the surge of start-ups in Brazil; the importance of mobile apps and overheated company valuations — and informal opportunities to connect with fellow entrepreneurs.

Speakers included Gaston Legorburu of SapientNitro, Albert Santalo of CareCloud and Juan Diego Calle of .Co Internet, all South Florida entrepreneurs. Jerry Haar, executive director of FIU’s Pino Global Entrepreneurship Center, which produced the conference with a host of sponsors, said the organizers worked hard to make the conference relevant to both the local and Latin American audience, with panels on funding and recruiting for startups, for instance.

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Gov. Scott calls for bids to build transparency web site

TALLAHASSEE --
A budget tracking web site paid for by Florida taxpayers but never made public will remain on the shelf as Gov. Rick Scott announced Friday that he will seek bids to create a public budget watchdog site and the vendors of the existing system can get in line with everyone else.

“We have decided to begin a competitive procurement process to contract with a company that best demonstrates their ability to publish web-based, user-friendly budget data at the lowest cost to taxpayers,’’ said Melissa Sellers, communications director for the governor.

The Florida Senate paid $5 million to Spider Data Services to develop Transparency 2.0 for use by the Senate and its staff to monitor the budget, state contracts and personnel services. Although the system was ready to launch in November 2011, it was never unveiled.

A Herald/Times review of Transparency 2.0 shows that, unlike other transparency web sites maintained by the legislature, the governor’s office or the chief financial officer, Transparency 2.0 allows for comprehensive and easy data searching for every line item in the budget. The system supplies planning and budget documents, and audit reports as well as contract information and links to personnel expenses.

It also shows which contracts were inserted into the budget by legislative leadership, offers a comprehensive look at billions of dollars in outside contracts and allows for the public to track budget data that today is controlled by agency and legislative staff.

The governor’s office has not ruled out the possibility that Transparency 2.0 may be the platform for the governor’s web site because Spider Data Services will be allowed to compete with other bidders, Sellers said. The bid process will be open to the public “while also ensuring we save as much taxpayer money as possible” and will begin in the new year, she said. There is no date for its scheduled completion.

State law requires that the governor’s office create a budget tracking web site and it already maintains a modest system called TransparencyFlorida.gov. But the system has its flaws, including listing 27,922 contracts as “confidential” when a Herald/Times review found that many of those contracts are available to the public through a public records request.

Two government watchdog groups, Integrity Florida and the First Amendment Foundation, have called on Scott to take advantage of the Senate’s investment and make Transparency 2.0 the platform for public access.

Dan Krassner of Integrity Florida said he hoped Scott would reconsider his decision to not give the public access to a system, even as he is seeking new bids.

“It’s disappointing that Floridians will not have access to the powerful budget tracking website that was built with $5 million in public money,’’ he said. “This is a victory for the Tallahassee insiders who will continue to know exactly how government spends our money while Floridians are left in the dark.’’

In 2011, the Senate signed a contract with Spider Data System to develop a budget transparency web site for use by the Senate and its staff to monitor the budget, state contracts and personnel services. Although the system was ready to launch in November 2011, it was never unveiled.

The Senate contract was signed by the former chief of staff Steve MacNamara, who later become the governor’s chief of staff. Before MacNamara left the governor’s office, the Senate signed memorandum of understanding transferring management of Transparency 2.0 to the governor but, uneasy about the way the contract was handled, MacNamara’s successor, Adam Hollingsworth, refused to sign the agreement.

Legislators included $2.5 million in the 2012-13 budget to pay for increasing transparency of government budgets and contracts but Scott has not tapped that money.

Bad blood remains between the state and the owners of Spider Data Systems, Anna Mattson and Sherri Taylor. The two women successfully won a $500,000 settlement against the state in 2008 after the House broke a contract with them to develop a web-based budget and the governor’s office developed a web-based budget that was similar to the functions of their design.

Now, Scott’s legal counsel has advised the governor’s budget staff not to sign onto the Transparency 2.0 system — to assess how well it works — because they fear they could be sued for intellectual property theft.

Scott’s office will start accepting bids for the new web site after the first of the year. Meanwhile, Sen. Don Gaetz has assigned his staff to also look at creating a public web site for legislative review.

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Celebs Tweet Reactions to CT School Shooting

There was breaking news this morning out of Newtown, Connecticut when at least one gunman opened fire at Sandy Hook Elementary School. CBS News is reporting that a minimum of 27 people were killed in this massacre, including an estimated 18 young children.

Lt. J. Paul Vance of the Connecticut State Police held a press conference to assure concerned citizens that "the scene is secure" and "the shooter is deceased inside the building." Twenty-year-old Adam Lanza has reportedly emerged as the gunman. Brother Ryan, 24, had previously been named as the suspect, but sources are now telling the Associated Press that after being questioned by police it was determined that he was not involved. Their mother was a teacher at the school and is presumed to be one of the fatalities. An additional investigation is ongoing at another location, where one more victim was allegedly killed. The two crime scenes are thought to be linked. President Obama has been briefed on the horrific situation and offered his condolences to the victims and community. Three additional victims are being treated at Danbury Hospital. The hospital released a statement reading, "Our hearts and prayers are extended to everyone involved in this terrible tragedy."

As word spread about the tragedy, Twitter exploded with reactions from celebrities, many of them parents themselves.

Alyssa Milano: What the f*** is wrong with people?

Hilary Duff: Oh my.I am shocked.Heartbroken.Devastating news about this elementary school shooting. What is wrong w/ people?Praying hard 4 these family's

Mandy Moore: Absolutely devastating news this morning. There are no words.Thoughts, prayers and love to all in #Newtown.

Lisa Ling: Why are we still not seriously talking about gun control? Bless the families of those lost in Conn. My God.

Mia Farrow: #PrayForNewtown. Gun control is no longer debatable- it's not a 'conversation'- It's a moral mandate. '

Maria Shriver: My heart is breaking as this story unfolds. Let's start a #circleofprayer for the children and their families. Just yesterday, I wrote about the joy of becoming a mother. Right now so many mothers and fathers are in indescribable pain. Please say a prayer for the victims of the shooting at Sandy Hook Elementary School in Newtown...

Russell Simmons: prayers for the children, families and faculty of Sandy Hook Elementary School and the people of Newtown. my heart is broken.

Courteney Cox: Praying for Sandy Hook

Ali Fedotowsky: The shooting at Sandy Hook elementary is so heartbreaking. Children? It just doesn't make any sense. My heart goes out to the families.

Steve Carell: Pray for Sandy Hook, Newtown CT.

Bethenny Frankel: Oh my goodness. There has been a shooting at a school. I had no idea. This is so tragic. Poor babies!

Maksim Chmerkovskiy: University, high school, movie theater, and now ELEMENTARY school?!? What's next Kindergarten? WTF is wrong with people?!? I hate the "my heart is with" this and "my prayers go out" that... We ALL need to get fucking angry and DO something more than 'feel sad'....to unload a weapon on small children!!!!

Piers Morgan: I can't bear this. It's just beyond comprehension that anyone would do this in an elementary school. Those poor children. Don't just mourn these poor dead children America - get angry and do something to stop these senseless shootings happening.

Hilaria Baldwin: These shootings need to stop what do we do? I cannot help but think back to where I was when people committed these heinous acts. Why do they have to be so cruel, sick, and heartless? Guns bring nothing but pain and heartbreak. Violent video games foster rage and troubled imaginations. Why are we so enamored with violence? My thoughts and prayers are with you all in Sandy Hook. Whether you are a victim of violence, trauma or loss, I am sending my love & support

Vinny Guadagnino: Praying for the Victims in the Connecticut school shooting. This is happening too much. 18 children dead

Randy Jackson: Thoughts and prayers go out to those in Connecticut

Chris Cuomo: #Newtown kids as young as grade k may have been involved. Kids told to close eyes while running out. Pray for the families. #Newton story not abt the #'s. The magnitude is so great because so many kids involved. Killing kids is the worst result of violence.

Sophia Bush: My heart aches for Connecticut ....

Chad Johnson: Just seeing my news feed on the Connecticut shooting, what is going on, prayers to the families and students involved.

Kyle Richards: Omg. Just hearing about the school shooting. In shock. So incredibly sad.

Gilles Marini: Enough f***ing violence. Enough. How could a man killed anyone? Even more a child. I'm crushed! #Connecticut elementary school

Jenna Ushkowitz: My heart goes out to all the Families and children affected by the CT shooting. When will the violence end?

Kevin Spacey: Just heard about the shooting in Connecticut. My thoughts go out to all who are dealing with this sad news.

Adrienne Maloof: Terrible terrible news about the shooting in Connecticut. Sending thoughts and prayers to everyone involved....

Kristin Cavallari: The fact that there was a shooting at an ELEMENTARY school makes me sick. My thoughts go out to all the families

Martina Navratilova: There is no proper time to talk gun control except now!

Holly Robinson Peete: I'm following #SandyHookElementary shooting reports like it's MY child's school #parentsworstnightmare…

Lisa Rinna: Horrible news I just heard about the shooting in CT at an elementary school how can we stop this violence?!

Sherri Shepherd: ABC is reporting the shooter was 24 armed w 4 weapons wearing a bullet proof vest.this makes no sense. @ an elementary school? #Sandyhook

Michael Urie: GUN CONTROL LEGISLATION NOW. #enough

Albie Manzo: Absolutely heartbreaking story coming out of CT, I will never understand how someone could do such a horrible thing.

Teresa Giudice: On days like this, we should hug our children just a little bit tighter.

Marlee Matlin: #PrayForNewtown Pray for the children teachers and families. Pray for some sense out of this madness. I am numb as the numbers of the dead - children and adults - keep ticking up. #PrayForNewtown

Christina Applegate: There are just no words. Only sorrow. We are all shedding tears today for those families.

Karina Smirnoff: We need to pray for all the families affected by the Newtown, CT school shooting. Absolutely devastating....

Hoda Kotb: #prayfornewtown

Brandi Glanville: I can not believe this school shooting, what is wrong with people!!!! My heart is breakking for the kids and families.

Ashley Hebert: My heart is broken for these children/families in Newton. This is unimaginable.

Caroline Manzo: school shooting in Connecticut is heartbreaking - poor little babies - may God be with them all

Kristin Chenoweth: Well im hearing about this shooting in CT. Praying. Sending prayers.

DJ Pauly D: My Prayers Go Out To Everyone Affected By This Horrible Shooting In Connecticut

Melissa Joan Hart: How could someone be so evil as to kill innocent children at school? God Bless and watch over those families and children that witnessed it!

KhloéKardashianOdom: To harm children who are defenseless is truly disgusting. I'm in disbelief. #PrayforNewtown my heart truly goes out to EVERYONE affected

Julie Benz: Please pray for the families and victims of the horrible tragedy in CT.

Lisa Gastineau: How could ANYONE harm KINDERGARTEN CHILDREN!! Beyond insane-saddest thing I've ever heard #pain #prayers

Justin Bieber: heard about what happened in CT, my prayers go out to all those suffering in this tragedy. it'ss just wrong. Everyone please pray for them. #PRAYforCT

Jada Pinkett Smith: We have lost innocent lives to madness in Connecticut at Sandy Hook Elementary today. My condolences to the entire community. Please join me in a three day fast in honor of the dead. Let us reflect upon what we can change in our homes and in our relationships with others to help bring an end to these kinds of atrocities in our communities. Life is about the quality in which we treat ourselves and...others.May love keep you ALL safe.

Captain Mark Kelly (husband of Gabrielle Giffords): I just woke up in my hotel room in Beijing, China to learn that another mass shooting has taken place - this time at the Sandy Hook Elementary School in CT. My thoughts and prayers are with the families of the victims and the entire community of Newtown, CT. I just spoke to Gabby, and she sends her prayers from Tucson. As we mourn, we must sound a call for our leaders to stand up and do what is right. This time our response must consist of more than regret, sorrow, and condolence. The children of Sandy Hook Elementary School and all victims of gun violence deserve leaders who have the courage to participate in a meaningful discussion about our gun laws - and how they can be reformed and better enforced to prevent gun violence and death in America. This can no longer wait.

Oprah Winfrey: Dear Lord.. Help us to understand as we Stand with these families. Heal our broken hearts. #PrayForNewton

Bruce Jenner: My heart goes out to all those directly and indirectly affected by this senseless tragedy at a place that I hold very near and dear to my heart. I have the fondest memories of this beautiful town that I grew up in. As a father, I can hardly imagine what the community is going through. My prayers and condolences are with them all.

Alicia Keys: My heart is so heavy right now as I think of these innocent children, teachers, their families and community.

PHOTOS: Families Embrace Outside Sandy Hook Elementary School After Shooting

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SHOCKING AUDIO: Gunman's rampage took only minutes, cop radio calls reveal

AFP/Getty Images

State Police inspect the area near Sandy Hook Elementary School.

Judging by the radio calls, it took only a few minutes for a gunman to snuff out the lives of 20 Newtown school children and six adults.

The first word of the horrifying Newtown school shooting went out over the town’s police radio at 9:36 this morning.

Two minutes later, a dispatcher reported the gunshots had stopped.

UP TO 27 PEOPLE SHOT DEAD AT SCHOOL

“Sandy Hook School. Caller is indicating she thinks there’s someone shooting in the building,” a Newtown dispatcher radioed in the town’s first report of the killings.

Less than a minute later, the dispatcher radioed:

“Units responding to the Sandy Hook School. The front glass has been broken in front of the school They are unsure why ...

“All units, the individual I have on the phone said he is continuing to hear what he believes to be gunfire."

Amid the confusing situation, officers can be heard reporting a possible second shooter headed for the rear of the school.

“The shooting appears to have stopped,” the dispatcher radioed at 9:38 a.m. “There is silence at this time. The school is in lockdown.”

Moments later, an officer apparently at the scene is heard saying: “They’re coming at me through this wood.”

“This is it,” said another.

And after that, at 9:46 a.m., as police searched the school, someone who could not hide the emotion in his voice radioed these haunting words: “I’ve got bodies here. Need ambulances.”

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Gasoline prices soon to hit low point for 2012

Gas prices will soon drop to their lowest level of the year.

By Monday, the national average should fall below the $3.28 a gallon that drivers paid on Jan. 1, according to analysts. The drop is a gift for those hitting the road during what is expected to be the busiest Christmas travel season in six years.

Still, it’s more like a stocking stuffer. That’s because for the second straight year, Americans will spend a record amount on gasoline. The government estimates that gas averaged $3.63 a gallon this year, 10 cents above the record set a year ago.

Drivers can only hope that forecasts for lower prices next year come true.

A combination of high oil prices and supply shortages caused by refinery and pipeline problems kept gas prices elevated for most of the year. The national average hit a high of $3.94 a gallon in early April and was around $3.87 in September after Hurricane Isaac disrupted supplies from the Gulf Coast.

Prices in most areas have fallen since then as supplies got replenished and refiners switched to cheaper winter blends of fuel. However, New York and New Jersey saw temporary spikes in November due to Superstorm Sandy. At $3.77 a gallon, New York’s average price is the second-highest in the nation, behind Hawaii’s $4, according to auto club AAA.

Californians continue to pay some of the highest gas prices in the U.S. But they’re likely relieved to be spending an average of $3.59 a gallon just two months after a refinery fire and pipeline shutdown sent prices at the corner station soaring close to $5.

The nation’s lowest prices are found mostly in the lower Midwest and parts of the South. Missouri is closest to cracking the $3 level, with its average price of $3.01. Oklahoma, South Carolina and four other states show an average of $3.10 a gallon or less.

Florida’s average price for a gallon of regular was $3.29 Friday, almost flat with the price one year ago. In Miami, the price was just shy of $3.37, two cents higher than a year ago. In Fort Lauderdale, the price was slight less than $3.38, almost three cents higher than a year ago.

AAA says 93.3 million people will travel at least 50 miles between Dec. 22 and Jan. 1, the most since 2006. So, the falling price of gas will provide a little relief to motorists, who’ve been digging deep for gas money all year. The average driver will pay a little less than $2,700 for 744 gallons of gasoline this year, which will be a record, according to data from Oil Prices Information Service.

Americans’ fuel bill ran up even as they used the least amount of gas in more than a decade. The slower U.S. economy and an increase in fuel efficient cars helped cut gasoline consumption, which government data show peaked in 2007. Consumption is expected to be about 8.73 million barrels per day this year, which would be the lowest level since 2001.

Prices should be cheaper next year, forecasters say.

Barring unexpected events like hurricanes or a conflict that disrupts oil supplies from the Middle East, OPIS chief oil analyst Tom Kloza said the nationwide price for gas should stay below $4 per gallon in 2013. The government is predicting $3.43 a gallon for next year, which would be the lowest price since 2010 when gas averaged $2.78 a gallon.

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Citizens to postpone action on controversial loan program

TALLAHASSEE --
Citizens Property Insurance Corp will shelve a controversial $350 million loan program while it gathers data and looks at more options to reduce its number of policies.

Citizens Chief Financial Officer Sharon Binnun told a Citizens’ panel Thursday that recent success in other depopulation efforts and uncertainty over the long-term success of those efforts make it wise to take a longer look at a recent proposal to provide low-interest loans to companies willing to take riskier policies off the company’s books.

A handful of companies have already agreed to take out nearly 300,000 less risky policies from the state-backed insurer without the financial incentives.

Company officials say, however, that the surplus loan program should be revisited next summer, rather than scrapped entirely.

“It would be prudent for us as an organization to … come next summer take all the things we learned and see where we stand,” Binnun said.

Earlier this year, officials drew criticism after they proposed an effort to use $350 million in surplus funds to provide 20-year loans to companies that would take Citizens policies and keep them for at least 10 years.

Incoming House Speaker Will Weatherford was among a group of lawmakers that urged caution and further review.

Contrary to initial estimates, Citizens President Barry Gilway said Thursday the loan program as now structured is unlikely to entice many private carriers to take advantage of the loans.

Outside investment advisors are reviewing the loan program and are expected to make recommendations early next year. Gilway, who took over in June and presented the loan program shortly after his arrival, said discussions with potential companies indicate that changes need to be made.

“I seriously doubt even if the surplus note program would proceed that we would have any real takers that meet the financial requirements that we believe would be necessary,” Gilway said.

Sean Shaw, a former Florida insurance consumer advocate who now works with a Tampa law firm that represents policyholders in lawsuits, applauded the decision, saying the proposal had not been fully vetted by the Legislature.

“The surplus lines program seems to be off the table, and that’s great news,” Shaw said in a statement.

The full Citizens Board of Governors is expected to vote on the proposal Friday.

The board is also expected to hear a proposal to set up a clearinghouse at Citizens to provide customers with more information upfront on policy options.

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iPhone 5 hits China as Apple market share slips

SHANGHAI (Reuters) – The China release of its iPhone 5 on Friday should win Apple Inc some respite from a recent slide in its share of what is likely already the world’s biggest smartphone market, but its longer-term hopes may depend on new technology being tested by China‘s top telecoms carrier.

Cupertino, California-based Apple has been in talks about a tie-up with China Mobile for four years. A deal with China’s biggest carrier is seen as crucial to improve Apple’s distribution in a market of 290 million users – which is forecast to double this year.

China is Apple’s second-largest and fastest-growing market – it brings in around 15 percent of total revenue – but the company’s failure to strike a deal with China Mobile means it is missing out on a large number of phone users. As the China pie grows, Apple’s sales increase, but without China Mobile, it’s losing ground at a faster rate compared to other brands.

“In absolute terms, this (iPhone 5) launch will certainly result in strong sales for Apple in China. However, in relative terms, I don’t believe it will move the needle enough in market share,” said Shiv Putcha, a Mumbai-based analyst at Ovum, a global technology consultant.

China Mobile and Apple initially said they were separated only by a technical issue – as the Chinese carrier runs a different 3G network from most of the world – but that has evolved into a broader and more complex issue of revenue-sharing.

“China Mobile and Apple still have to solve many issues, such as the business model, articles of cooperation and revenue division, but I believe we will reach an agreement eventually,” China Mobile CEO Li Yue was reported by Chinese media as saying in Guangzhou last week.

Apple China declined to comment. China Mobile said it had no update to the Apple discussions.

STRONG PRE-ORDERS

Apple’s ranking in China’s smartphone market slipped to sixth in July-September, according to research firm IDC, [ID:nL4N09G1QK] but investors, primed to look to China product launches for an uptick in Apple’s quarterly sales, have good headline numbers to digest – more than 300,000 iPhones pre-ordered on one carrier alone. But it’s the lack of a deal with the No.1 carrier that prevents those numbers being stronger.

The iPhone is currently sold through Apple’s seven stores, resellers and through China Unicom and China Telecom – which together have fewer than half the mobile subscribers of bigger rival China Mobile.

“Apple’s market share declined because of the transition between the iPhone 4S and 5. Their market share will recover (with the iPhone 5), but if you don’t have China Mobile, the significant market share gains will be very difficult,” said Huang Leping, an analyst at Nomura in Hong Kong.

TD-LTE: STILL DISTANT

Cutting a deal with a Chinese state-owned carrier may be less optimal than the deals Apple is used to in other markets, and analysts note that China Mobile wouldn’t necessarily open the flood gates for Apple.

Ovum’s Putcha believes Apple and China Mobile will eventually strike a deal – though this would be for an iPhone running on China Mobile’s next-generation network rather than its current 3G network.

Of China Mobile’s 704 million subscribers, only 79 million are on its 3G network, and Apple has been reluctant to sign up to China Mobile’s under-utilized, homegrown TD-SCDMA technology. “Apple likely doesn’t see the return-on-investment in extending themselves for TD-SCDMA,” Putcha said.

China Mobile is currently trialling its next-generation network, TD-LTE, which could be of more interest to Apple, but full-scale commercial use – and an iPhone tie-up – could still be years away.

ANDROID THREAT

Meanwhile, rivals are circling, eating away at Apple’s smartphone market share. Samsung Electronics, Lenovo Group and little-known Chinese brand Coolpad held the top three slots in the third quarter, according to IDC.

All three have relationships with China Mobile and offer smartphone models at different price points. Apple competes exclusively at the high-end, and even there, rivals are rolling out models with China Mobile. Last week, Nokia said it planned to release its latest Lumia smartphone with China’s top carrier, which is also expected to launch Research in Motion’s new Blackberry 10, analysts predict.

“The threat will still come more from the Android camp where they have many vendors already working with China Mobile and offering high-end phones,” said TZ Wong, a Singapore-based IDC analyst.

While these smartphones don’t generate the buzz of a new iPhone, Chinese buyers are not known for their brand loyalty, and this could siphon away users considering an Apple upgrade.

“I’ve used a Blackberry, Android and iOS and, personally, I want to try the Windows 8,” said Andy Huang, a 37-year-old fund manager, who owns most iPad models, an iPhone 4 and a 4S. “I think the Windows 8 is very innovative.”

With a China Mobile deal looking some way off, Apple could always boost market share by offering cheaper models – the basic iPhone 5 will cost 5288 yuan ($ 850) without a contract – though this appears an unlikely route for a high-end brand.

“If they want to expand market share, probably the only way to do it here dramatically would be to put out a lower cost phone,” said Michael Clendenin, managing director at RedTech Advisors. “It’s really uncertain if they’d decide to go that route … Apple’s a mystery in that regard.”

($ 1 = 6.2518 Chinese yuan)

(Additional reporting by the Shanghai Newsroom and Jane Lee; Editing by Kazunori Takada and Ian Geoghegan)

Tech News Headlines – Yahoo! News

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