Apple rumor round up: 15-inch Macbook Air, Face recognition coming to iOS, solar-powered iPhones

By Ricardo Bilton | July 27, 2011, 10:24am PDT

Summary

a 15-inch Macbook Air, solar-powered iPhones, and face recognition are all the stuff of the latest round of Apple rumors.

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Apple may have announced a bunch of new products last week, but that doesn’t mean the rumor mill has any intention of taking a rest.

Macbook Air goes Pro with 15-inch screen

Right on the heels of Apples’ recent Macbook Air upgrades comes speculation that Apple plans to release a 15-inch version of the notebook. This slice of heaven device is likely to add a number of the Macbook Air’s most significant features - the SSD and lack of optical drive, most notably - in a effort to become both thin and powerful. The lack of an optical drive is seen as particularly likely, considering Apple’s already-proven penchant to dispense with it in the effort to lighten up their devices.

Rumors point to the Macbook Air Pro (or whatever) seeing a release as early as this fall, putting it in direct competition with Intel’s Ultrabooks.

Would the move make sense? Definitely. In fact, it was a bit of a surprise to many that Apple didn’t release such a product with its announcements last week. A 15-inch Macbook Air would be the perfect formula for those who want a ultra-thin computer but who aren’t willing to sacrifice screen size to get it. Of course, the question is, can a thinned-out Macbook Pro maintain the same level of performance as the current line of Pro’s? Let’s hope so.

iOs saves face with face recognition

Last year Apple bought out Polar Rose, a Swedish company specializing in face recognition algorithms. Recent speculation, reported via 9-to-5 Mac, points to that technology making its way to iOS 5 in a significant way - as a public developer API. This means that any developer would be able to create applications based on facial recognition, a possibility that blows open the possibilities for the technology. Face-based authentication? That can happen.

An iPhone with the power of the sun

Echoing previous speculation that Apple is working on new forms of charging technology for the iPhone 6, recent rumors say that future Apple products could harness the power of the sun. Or at least that’s the story according to DigiTimes, which says Apple is currently in the evaluative stages for using solar panels in future products. The catch? Developing a usable form for the technology takes time, which likely means we won’t see a solar-powered iPhone anytime soon.

Previous round ups:

Apple rumor round up: New MacBook Air, Lion July 13th, iPad HD this fall, iPod Touch getting 3G

Apple rumor round up: iPhone 5 this September, hi-res iPad 3, Apple-branded televisions?

Apple rumor round up: iPhone 5 hard to make, wireless charging coming to iPhone 6

http://www.zdnet.com/blog/gadgetreviews/apple-rumor-round-up-15-inch-macbook-air-face-recognition-coming-to-ios-solar-powered-iphones/26568?alertspromo=&tag=nl.rSINGLE

Galaxy Tab LCD beats iPad 2 in viewing comparisons (spoiler: just barely)

By Jason D. O'Grady | July 26, 2011, 8:00am PDT

Summary

DisplayMate performed in-depth lab and viewing tests of the iPad 2, Motorola Xoom, Asus Transformer, Acer Iconia, and Samsung Galaxy Tab 10.1 — and the results may surprise you.

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The LCD display panel in a tablet computer is the single most expensive and important hardware component because it determines the quality of the visual experience for every application it runs. DisplayMate Technologies Corporation’s Ray Soneira performed in-depth lab and viewing test comparisons of the iPad 2, Motorola Xoom, Asus Transformer, Acer Iconia, and Samsung Galaxy Tab 10.1 — and the results may surprise you.

And the winner is…

While the iPad 2 display easily outperformed all of the previous Android Tablets, with the new Galaxy Tab 10.1, Samsung has delivered the first Android Tablet with an impressive, potentially outstanding display, but then ruined it by turning up the color level to obnoxious levels – apparently in an effort to overcompensate and blatantly standout from the other mobile LCD displays that have subdued color. But in the case of color, too little is a lot better than too much…

As a result the iPad 2 still delivers the best color picture quality and accuracy of all of the Tablets, even though its colors are somewhat subdued. As things stand, based on all of the display tests, the iPad 2 and Galaxy Tab 10.1 are reasonably close in performance in most categories, so it’s almost a tie, but the Galaxy Tab is ahead more often than the iPad 2, so the Galaxy Tab is the Winner, by a nose…

Although the results skew ever so slightly toward the Galaxy Tab, it’s unlikely that any of the current crop of tablets would be able to beat an iPad 3 packing a Retina Display (as has been rumored) but we’ll have to reserve judgement until the new iPad ships — possible as soon as this Fall.

Read the rest of the tablet LCD shootout for the full results and conclusions.

http://www.zdnet.com/blog/apple/galaxy-tab-lcd-beats-ipad-2-in-viewing-comparisons-spoiler-just-barely/10696?alertspromo=&tag=nl.rSINGLE

BGR posts image gallery of rumored HTC 10 inch Android tablet

By Matthew Miller | July 26, 2011, 8:20am PDT

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HTC is likely working on a 10 inch Android tablet and BGR now has an image gallery of this rumored device.

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BGR just posted an image gallery of a 10 inch HTC Android tablet, currently named the HTC Puccini. I recently “rediscovered” my HTC Flyer and have been using it more and more with the HTC Ereader app (powered by the Kobo bookstore), Evernote inking capability, and HTC Sense user interface. It is natural for HTC to move to the 10 inch form factor to compete with other Android tablets like the Motorola Xoom and Samsung Galaxy, but I personally find the 7 inch to be more compelling for mobile use with the iPad 2 ruling the 10 inch space.

The rumored 10 inch HTC Android tablet may have an 8-megapixel rear camera (I still don’t understand why large tablets even need one of these), stereo speakers, 1.5 GHz processor, Honeycomb OS, HTC Sense, and a 4G LTE radio. HTC has not yet announced such a device and it remains to be seen if this will actually launch. I would love to hear how the HTC Flyer is doing in terms of sales since the success of that device may determine if this one gets released.

http://www.zdnet.com/blog/mobile-gadgeteer/bgr-posts-image-gallery-of-rumored-htc-10-inch-android-tablet/4941?alertspromo=&tag=nl.rSINGLE

MacBook Air and OS X Lion synergy: A big hurdle for Windows 8

By James Kendrick | July 22, 2011, 5:37am PDT

Summary

The synergy between these the new MacBook Airs and OS X Lion is powerful stuff, and demonstrates the big task ahead for Microsoft’s work in progress, Windows 8.

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Unless you have been sleeping in a cave somewhere, you know that Apple released new MacBook Air notebooks and OS X Lion together. The joint release is significant because Lion is designed from the ground up to optimize the user experience on Apple hardware. The synergy between these Apple products is powerful stuff, and demonstrates the big task ahead for Microsoft’s work in progress, Windows 8.

OS X Lion has a raft of features designed to make working with a MacBook Air, even older MacBooks, as intuitive as possible. The ability to have lots of programs running and easily get to any one of them is already changing the way I work with OS X. The handling of the small notebook screen is pure genius, as is moving between programs occupying the entire display via simple touch gestures. The hardware and software have been written from the ground up to work together.

Apple hasn’t done this overnight, it has been laying the groundwork for this synergy for a while. It started by putting large touchpads on every MacBook, and carried it over to non-notebooks with the release of the Magic Mouse and Magic TrackPad. The groundwork for a touch optimized experience was laid even before the iPad hit the scene. The company had a good plan and has executed it well.

This is the giant hurdle Microsoft faces with the next version of Windows, not so cleverly codenamed Windows 8. The sneak peeks Microsoft has given us of Windows 8 show an exciting new direction for the platform. Windows 8 attempts to do what Apple has executed, making the OS work efficiently with the system in the user’s favor. What will determine how well consumers react to Windows 8 when released will be how easy it is to use, especially on notebooks. Windows 8 must find a way to handle smaller displays intelligently like OS X Lion, and bring touch (not necessarily the screen) into the equation.

This is a daunting task for Microsoft as a software company. The legacy of Windows is that by design of Microsoft’s business plan, it must work on a wide variety of hardware made by other companies; this is not a complication faced by Apple. Microsoft decided long ago to be a software company, and this is now a competitive disadvantage. If it has to compromise the user experience offered by Windows 8 to make it work on some hardware, it will not compare well with OS X. That is a simple fact of life in this competitive environment.

Computer users have evolved the last few years to expect systems to be easy, even enjoyable to use. In the early days of Windows we all expected things to be complicated, and keeping everything going properly required access to an “expert”. Those days are gone, folks now expect their computer to just work, and be intuitive at that. This is the biggest obstacle facing adoption of Windows 8, as it means the OS must work on whatever hardware Microsoft certifies it for, and run well.

I am optimistic about the next version of Windows, more so than with any version in a long time. I hope that Microsoft’s decision to broaden the scope of hardware that Windows 8 will service doesn’t turn into a bad decision. Apple’s ecosystem is getting better due to the limited hardware focus needed due to building everything internally. Windows 8 doesn’t have that luxury, and that may be an awfully big a hurdle to jump.

Related:

• Why my next laptop will be a MacBook Air
• First impressions of OS X Lion for mobile workers
• The 11-inch MacBook Air is the best laptop I’ve ever owned
• Apple (mostly) kills off the white Macbook
• Apple MacBook Air: The original Ultrabook gets even better
• Apple rocks China: Can it outrun counterfeiters?
• Apple’s corporate iPhone, iPad app strength bad news for rivals
• Apple Q3 a blowout: 20.34 million iPhones; 9.25 million iPads

http://www.zdnet.com/blog/mobile-news/macbook-air-and-os-x-lion-synergy-a-big-hurdle-for-windows-8/3403?tag=nl.e539

Ninety-five percent of enterprises choose iPad over Android

By Jason Hiner | July 21, 2011, 12:21pm PDT

Summary

While new Android tablets keep showing up every week, new data from Good Technology shows that enterprises are still shunning them for iPads.

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The number of companies getting in line to challenge the iPad grows almost every week. And, while a few companies like RIM and HP are using their own OS to power their tablets, most of the iPad challengers are running Android. However, new data released by Good Technology shows that enterprise customers are choosing iPad over Android tablets by a huge percentage.

According to Good’s four-month tally of recent mobile device activations for its large stable of enterprise customers, tablets are taking a growing chunk of the activation pie, but among those tablet adopters the Apple iPad is grabbing 95% of all activations, while very few Android tablets are showing up in large companies. In fact, iPad activations actually surpassed Android smartphone activations in the enterprise in recent months, according to the Good data. Take a look at the chart below.

Good Technology has been an enterprise mobile stalwart since the mid-2000s when it helped many companies securely deploy and manage Palm Treo smartphones. In recent years, Good has shifted its software toward iPhone and Android smartphone deployments. It can manage both types of devices, as well as most other mobile platforms, and it can manage both IT-deployed devices and customer-owned devices. Enterprises that want tight control over their mobile data rely on companies like Good to help bridge the gap between traditional IT best practices and modern consumer-driven mobile devices. Good’s customers include 182 of Fortune 500 companies and 49 of the Fortune 100. It’s sometimes called “BlackBerry BES for the rest of us.”

It’s interesting to note that while Android continues to gain market share in the overall U.S. mobile market, it’s actually been slipping a bit among U.S. enterprises in recent months, according to Good’s data.

As for the tablet picture, John Herrema, Good’s Senior VP of Corporate Strategy at Good Technology, said, “Roughly half of the iPads we activated in this quarter were for the financial sector.” The chart below shows the breakdown of deployments across different industries.

Good also provided some additional commentary on the

In general, iPads are being deployed as a complementary “+one” device, not as an outright laptop or PC replacement. Key use cases for the iPad in Financial Services and Healthcare center on deployment as a laptop alternative, but not full-time replacement, for users who are heavy content consumers and/or presenters, but not heavy content creators. Examples of such users include executives, sales and client services staff, insurance agents and adjusters, and doctors. We are seeing proactive deployment in hospital settings as an outright replacement for “computers on wheels” and legacy tablet form factors. There is increasing interest among our customers with significant retail and/or field operations to use tablets for a variety of “in store” and field service applications. This includes not only customers from the Wholesale & Retail sector, but also customers in Financial Services, Communications, and Energy & Utilities that have significant retail and/or field service operations. Based on feedback from our customers, we’re seeing a greater tendency for iPads to be purchased and deployed proactively on both a BYOD and company-owned basis. This contrasts with the overall deployment model for iPhones and Android smartphones, where BYOD is the more dominant approach overall.

I’ll throw out one last chart from the Good data trove. It’s the top 10 devices that are activated on Good’s enterprise network.

This was originally published on TechRepublic.

http://www.zdnet.com/blog/btl/ninety-five-percent-of-enterprises-choose-ipad-over-android/52958

How to: Procure Apple iPads, tablets in the enterprise

By Larry Dignan | July 21, 2011, 2:33am PDT

Summary

Procuring tablets and negotiations have a few quirks relative to other enterprise hardware deals, according to Forrester Research.

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Consumerization brought Apple iPads and related tablets to corporations, but sourcing managers at large companies will be the ones bringing these devices to businesses in bulk. To date, procuring tablets and negotiations have a few quirks relative to other hardware deals, according to Forrester Research.

In a report, Forrester noted that popularity of the iPad in corporations—Apple’s financials tell the tale—but sourcing and vendor management executives may have to learn new tricks buying tablets.

The research firm makes the following points:

• So far, businesses are supporting tablets because workers are bringing them into the office.
• Despite Apple’s early run to the front, the corporate tablet market will be diverse as HP’s TouchPad, Android devices and RIM’s PlayBook enter the workplace.
• Companies will have to decide whether to base their sourcing plans on Apple or a traditional IT supplier. Why? Negotiations tactics will vary based on which side you choose.

That last point is notable and perhaps the biggest reason Apple rivals will get some enterprise traction. If companies can lump tablets in with PCs a company like HP or Lenovo could do well. Ditto for RIM, which can sell BlackBerries and PlayBooks together. Apple has been consumer focused and businesses will have to procure through resellers, which may not be used to working with large companies.

Forrester is recommending that companies stick with existing sourcing tactics. “Following basic tenets of hardware sourcing best practices eliminates the confusion and brings clarity to any irrational exuberance,” said Forrester.

General practices that will work procuring tablets:

• Publish a request for proposal with business requirements to determine whether you need an iPad or any tablet.
• Work with vendors and resellers to get the best deal.
• Time a purchase to the vendor’s final quarter.

The problem with that plan is that Apple’s pricing tactics for businesses are different. You can’t play the volume game like you would with another vendor. And it’s unlikely that you can get tablets tossed into a broader PC deal. Forrester reports that large account resellers are moving lots of iPads, but that means there’s little incentive for Apple to discount. Anything less than 1,000 iPads for a reseller isn’t likely to get much of a discounts.

If your company will commit to iPads you have some leverage. Apple dealers get an extra point of margin on a minimum 1,000 iPad order. Companies can negotiate to get some of that margin in the form of a discount. In addition, Apple allows resellers to offer enterprise discounts. If companies give a $250,000 a year purchase commitment for Apple gear they can get better prices and discounts.

But the risk for Apple in the enterprise is that companies can and will get better discounts elsewhere. Companies can lump tablets in with PCs and laptops. HP will put tablets in its Big Deal letters, which offer volume discounts for a tablet and PC bundle. Buying from Apple rivals also make it easier to negotiate via an advisor, who would have more historical data on deals. And it may also make sense to get tablets from a vendor you’re already using for a PC refresh.

To combat the discounting of traditional enterprise players, Apple executives this week talked about company specific applications for the iPad. Custom business apps would help lock in companies to the Apple ecosystem even with discounts.

http://www.zdnet.com/blog/btl/how-to-procure-apple-ipads-tablets-in-the-enterprise/52890

‘We view a tablet as a PC’: Microsoft chooses to repeat history

By James Kendrick | July 13, 2011, 5:36am PDT

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It is beginning to look like Microsoft is about to repeat the Tablet PC history with Windows 8, and that is not a good thing.

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Microsoft is trying to excite the tech crowd with Windows 8, the next version of the platform that the company is pushing for computers of all types, including tablets to compete with Apple’s iPad. The folks from Redmond have been showing early prototypes of Windows 8 that look a lot like the Windows Phone 7 interface, with live tiles sliding around the screen. It is obvious the attempt is to keep the Windows platform as the dominant line for Microsoft, while the rest of the mobile world has realized that full-blown computers are not what tablet customers want. It is beginning to look like Microsoft is about to repeat the Tablet PC history, and that is not a good thing.

“We view a tablet as a PC”.

This statement given yesterday by Windows Phone president Andy Lees at the Worldwide Partners Conference as reported by Electronista was directed at putting to bed any ideas that outsiders have for a tablet OS based on Windows Phone.

According to Microsoft’s transcript of Lees’ talk the PC theme remained, but had a few caveats (emphasis mine).

One of the key important things here, though, is the change that’s yet to happen, but it’s about to happen, and that is the bringing together of these devices into a unified ecosystem, because at the core of the device itself it’s possible to be common across phones, PCs, and TVs, and even other things, because the price drops dramatically. Then it will be a single ecosystem. We won’t have an ecosystem for PCs, and an ecosystem for phones, one for tablets. They’ll all come together. And just look at the opportunity here.

In 2010, if you count all of these things, there’s just under 700 million units sold in that year. And yet if you look at the predictions from IDC and add them up, that will increase to over a billion units that are sold in 2012. And notice how it’s additive; it’s not that this is about replacing the PC. And that’s why our strategy is that these new form factors are within a single ecosystem and not new ecosystems themselves. Windows has always spanned different PC form factors. And with Windows 8 we’re going to take this to a whole new level including tablets.

Now, a lot of people have asked me, are we going to produce a phone that is a tablet? You know, are we going to use Windows Phone 7 to produce tablets? Well, that is in conflict with this strategy. We view a tablet as a sort of PC. We want people to be able to do the sorts of things that they expect on a PC on a tablet, things like networking to be able to connect to networks, and utilize networking tools, to get USB drives and plot them into the tablet. To be able to do things like printing, all of the things using Office, using all of the things you would expect from a PC and provide a hybrid about how you can do that with the tablet, as well.

The comments shined a light on Microsoft’s view of the tablet market that is not accurate. It keeps alive the mistaken view that drove Microsoft’s Tablet PCs, that full-blown computers are what consumers want in a tablet. That didn’t work with the original Tablet PC, and that is not going to work for today’s consumer tablets. It’s looking like Microsoft is determined to repeat history, and a failed one at that.

Apple set the consumer space on its ear with the release of the iPad, the first tablet that breached the mainstream market in numbers. The iPad defined an entire market that has companies scrambling to penetrate, and none have done so successfully to date. What caught consumer’s eyes in the iPad was the fact that it wasn’t a full PC with all of the complexities those bring. No, the iPad was a pure mobile OS that focused on bringing a touch tablet experience that was simple yet full-featured enough to let users do the things that matter. Getting on the web, playing games and consuming media were the focus of the iPad with iOS, and consumers bought into the system by the millions.

The original Tablet PC designed by Microsoft is a full PC that nobody bought in significant numbers, and it has been around for a decade. The iPad sold more tablets in the first nine months than all of the Tablet PCs bought combined over a decade. That is a significant indicator of what consumers want, a simple mobile tablet and not a full-blown PC.

Microsoft seems to be pushing the ‘tablet as a PC’ philosophy in a desperate attempt to keep the Windows line driving everything it does outside the smartphone space. The choice to repeat history will likely have the same results as the first time; nice products that nobody buys because they are too complex to operate, maintain and develop apps for. Consumers don’t want tablets that are PCs, they want them to just work.

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Is the next MacBook Air the perfect student laptop?

By Zack Whittaker | July 17, 2011, 4:34pm PDT

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The upcoming MacBook Air — Apple’s netbook — could be the most cost effective, efficient laptop for the busy academic lifestyle.

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Looking at the expected specification of the upcoming revised MacBook Air, one can only deduce that, this multi-platform capable device could well be the perfect companion for students.

Though the specifications for the new MacBook Air have not been confirmed, it looks likely that it will include:

• Ultra-low voltage Intel Sandy Bridge Processor
• High-speed Thunderbolt ports
• Mac OS X Lion pre-installed
• Backlit keyboard
• 128GB/256GB solid-state hard-drive drive
• 4GB RAM

That alone is enough to make even the most die-hard Windows fan drool, surely?

I can tell you now, as soon as they are released — looking likely to be next week — I will be taking one for myself. As I look towards postgraduate study, I cannot think of anything better on the market to complement my studies than a dual-booting MacBook Air.

(Image via Flickr)

Netbooks are, despite my past assertions, perfect for the travelling, cross-campus venturing, busy and productive students.

For students, who are often on the go for many hours of the day, and find as a basic requirement for any portable device, the ability to run all day without the need to recharge, a netbook is perfect.

While iPads could fill this void, the need for a productive QWERTY-keyboard is necessary for those writing essays on the go. Though I have no doubts that the iPhone is ideal for short messages, even with a wider and larger keyboard, the iPad is still lacking luster in the student market.

I will make a bold statement and say: if the specifications are correct (and multiple sources are confirming this to be the case), then the new MacBook Air — even the 11″ smaller model — is the most powerful laptop for its size and weight on the market, now and ever.

The thing with laptops is that it takes only one hardware difference to change a product’s model number. It makes it confusing, frankly.

The new MacBook Air will be — as with the previous range of MacBook devices — in date and powering above other devices on the market.

Though it sounds somewhat academic — excuse the pun — to have a similar device with the same, or slightly better specifications, one knows that Apple will produce a certain level of guaranteed quality. It will neither hum nor hiss, and the fan will not whirr aimlessly nor shall the device become so hot on one’s lap that it decreases sperm count over time.

It just “does” what it does — with one major difference.

The dual-booting Boot Camp enabled Windows slash Mac OS X will fit both kinds of student: the Windows productive student, and the Mac OS X creative student.

The price, however, is one of a contentious issue.

With academic discount, at around $800 for an Apple-branded netbook, which will without doubt last you the academic year if not longer — may not be cheap, but is surely an investment for months down the line.

Whether or not you are an Apple fan, the MacBook Air could well be the most cost effective, efficient and sturdy solution for the busy academic lifestyle.

But hey — just my two cents at the end of the day.

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http://www.zdnet.com/blog/igeneration/is-the-next-macbook-air-the-perfect-student-laptop/11574

Updated MacBook Air now available: Starting at $999

By Zack Whittaker | July 20, 2011, 5:57am PDT

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The new MacBook Air — the perfect student laptop — has been launched. Starting at $999, the specifications have been vastly updated.

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The new and updated MacBook Air is now available around the world.

Starting at $999 for the U.S. market and at £849 for the U.K. crowd, the new MacBook Air comes with the technology we had previously expected.

Included in the updated specifications:

• Mac OS X Lion pre-installed
• 11″ and 13″ models available
• 0.11″ thick at its thinnest point — 0.68″ at its thickest
• 128GB/256GB solid-state hard drive
• 4GB RAM
• 5 hours battery life
• Intel HD Graphics 3000
• Intel Core i5 and Core i7 dual-core processors
• Thunderbolt I/O technology
• LED backlit display
• Glass multi-touch trackpad
• Backlit keyboard
• Ultra-fast wireless-n networking

Released today, university students will be offered discounts to significantly reduce the costs of purchasing expensive-in-comparison Apple hardware.

Gallery
To see updated pictures of the new MacBook Air, the Mac mini, and Mac OS X Lion Server, head over to the gallery.

Students can expect to pay £730 through the Education Store, and U.S. students will find the costs to be knocked down to $949, according to the website.

Students are already taking to Apple more than Microsoft with the back to school offers. Though the advance of an Xbox 360 may be more expensive than Apple’s $100 credit on the Mac App Store, more students prefer the appeal of Apple hardware over Windows-based PCs.

MacBook Air’s could be the perfect student laptop. Small, slim and incredibly light, along with battery power to last a student all day and powerful technology to rival the majority of other up-to-date laptops, the only downside is seemingly the price.

Nevertheless, with academic discount and financing options available, the new MacBook Air could be seen more of an investment through college than that of ‘disposable hardware’ from cheap laptop PCs.

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Microsoft vs Apple: The back-to-school battle

By Manan Kakkar July 19, 2011, 3:01am PDT
Summary

In August, a new academic year begins and many — like me — are looking for a new a personal computer. The Macs seem to be a popular choice, according to statistics; and until this year Apple had a very enticing Back to School offer: a free iPod Touch with the purchase of a Macbook. I expected the offer to continue and was waiting for a refresh to the 13″ Macbook Air. Apple announced their Back to School offer for this year and I was disappointed. It is a $100 iTunes Store credit that one can use to buy applications or media. Microsoft had announced their Back to School offer before Apple and it now seems like a better deal. An Xbox 360 free with a $700 PC is a bargain.

The base Xbox is available at $200 while the 8GB iPod Touch is $230. It is amusing how a game console is cheaper than a portable music player, but keeping that aside, the price difference between the devices isn’t huge to the end consumer. The choice is quite personal: a portable media player that can do free video calls and games vs. a gaming console that can be used with the hottest selling accessory, has the best gaming experience and access a huge portfolio of multimedia content.

This brings me to up-sell on these devices for both companies. In Apple’s case, apps, books, games and multimedia on the iTunes Store generated revenues of $1,782,000 in 2010 with 82.7% market share. (Asymco says the App Store generated $3 billion in sales.) Users download a lot of apps. Some numbers about the iPod Touch and iTunes store:

• Average iOS user will download 83 apps in 2011 compared to 51 in 2010 (Source)
• App downloads have overtaken song downloads on the iTunes Store (Source)
• More than 50% of the iPods sold were iPod Touch devices (Source)
• More than 15 Billion apps have been downloaded. (Source)

Comparing this to the revenues Xbox generates for Microsoft:

• Xbox LIVE has more than 30 Million members
• 53 Million Xbox 360 consoles
• 40% time spent on XBox is for non-gaming activity (Source)
• Xbox (console, Kinect and LIVE) were responsible for Microsoft’s strong Q3 results (SEC Filing)

Xbox offers Live TV, Hulu, Netflix and access to the Zune marketplace. Point being, both devices are not a onetime investment for the customer, they are gateways to revenues for the companies and partners through value added services.

While writing this piece I came across an article where analysts are predicting death of the iPod. A lot of users own iPhones, it offers the same features as the iPod Touch and more, so does the iPad. According to Apple’s numbers, Macs and iPhone or iPads make for the preferred combination and in such a scenario, a $100 store credit does make sense. However, I prefer to have a dedicated music player, primarily because I can survive with a media player with no battery but not a phone with no battery life.

Many consumers who buy the Macbook won’t be buying the iPod Touch. While the deal offered by Microsoft is more value for money for the consumer, unfortunately the PCs don’t compete with Macbooks. For example, the base Samsung Series 9 is $1650 and a similar Macbook Air is $1300 (minus i5 & backlit keyboards, both are expected as part of the refresh most likely at the same price). The Macbooks are good hardware but a $100 store credit doesn’t entice me. I would have spent that $100 even if I got the free iPod Touch, and herein lies my dilemma: Do I go for the better PC or the better Back to School deal?

http://www.zdnet.com/blog/btl/microsoft-vs-apple-the-back-to-school-battle/52560?tag=nl.e539