All posts by Tim Anderson

Nokia results: demonstrating the Osborne effect?

Here’s Wikipedia:

The Osborne effect is a term referring to the unintended consequence of the announcement of a future product ahead of its availability and its impact upon the sales of the current product.

The reference is to Osborne Computer Corporation, a pioneer of early personal computers, which announced the next generation of its range long before it was available. Sales of the current model immediately dived, and the company went bankrupt.

In February this year, Nokia announced that it was abandoning its Linux-based MeeGo smartphone OS, then in development, and that Symbian would be reserved for low-end phones. Its future smartphone strategy will be based on Windows Phone.

Now here come the results:

The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011.

says the release, which report an 11% decline in sales quarter-on-quarter and an operating loss:

In the period from January to June 2011, net financial expense was EUR 74 million (EUR 141 million). Loss before tax was EUR 141 million (profit before tax EUR 632 million). Loss was EUR 261 million (profit EUR 279 million), based on a loss of EUR 24 million (profit of EUR 576 million) attributable to equity holders of the parent and a loss of EUR 237 million (loss of EUR 297 million) attributable to non-controlling interests. Earnings per share was EUR -0.01 (basic) and EUR -0.01 (diluted), compared with EUR 0.16 (basic) and EUR 0.16 (diluted) in January-June 2010.

Would these results have been better, if Nokia had not bet its business on Microsoft’s mobile OS back in February? My guess is that they would. Nokia in effect announced the obsolescence of all its current Smartphone range. Smart device sales are down 32% year on year.

Still, even the Osborne effect does not account for the decline in its sales of feature phones, down 20% year on year and 25% quarter on quarter. This is what Nokia says:

The year-on-year and sequential declines in our Mobile Phones volumes were driven by distributors and operators purchasing fewer of our mobile phones during the second quarter 2011 as they reduced their inventories of those devices which were slightly above normal levels at the end of the first quarter 2011. In addition, our lack of Dual SIM phones, a growing part of the market, until late in the second quarter 2011 adversely impacted our Mobile Phones volumes during that quarter. Mobile Phones volumes were also adversely affected by continued pressure from a variety of price aggressive competitors.

Despite the grim figures though, it is too early to pronounce the failure of CEO Stephen Elop’s strategy. After all, no Nokia Windows Phones are yet on sale. The company must be hoping to hang on until it has a decent range of Windows Phones, and for Microsoft to grow its mobile market share dramatically above what it is currently.

Should Nokia have chosen Android rather than Windows Phone? Android’s extraordinary growth suggests that it should; yet there are signs of significant copyright and patent trouble for Android, and by attaching to Android Nokia would have been a me-too behind more established vendors such as Samsung, HTC, and nearly everyone else.

Should Nokia have persevered with MeeGo and Symbian? Although early MeeGo devices are winning praise, I doubt that the OS would have challenged Android and iOS; but that is open to speculation.

The problem for Nokia is that if it was going to make a radical platform shift, some degree of Osborne effect was inevitable. Adopting Windows Phone could not have been done in secret.

That said, perhaps the company could have been smarter. Rather than laying all its cards on the table, could it have announced a Windows Phone strategy alongside MeeGo and Symbian, adopting a more gradual approach to avoid shocking the market?

It is also worth noting that Nokia’s problems started long before the arrival of the new CEO. What we are seeing now is the playing out of old mistakes, not just the impact of what may be new ones.

However you spin it though, the new Nokia is a lesser thing than the Nokia of old, which commanded rather than followed the mobile market.

Apple’s new Mac Mini ditches DVD drive, promotes App Store

Apple is now selling a new range of Mac Mini computers with Intel Core i5 or i7 processors and a Thunderbolt port.

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There is also an HDMI port for connection to an entertainment system, FireWire 800, 4 old-style USB 2.0 ports – not USB 3.0, presumably to focus on Thunderbolt – and an SDXC card slot.

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There is one thing missing, though, which is the DVD drive. Want to rip CDs, play a DVD, or install an application from optical media? Here’s what Apple says:

With the Mac App Store, getting the apps you want on your Mac has never been easier. No more boxes, no more discs, no more time-consuming installation. Click once to download and install any app on your Mac. But if an app you need isn’t available from the Mac App Store, you can use DVD or CD Sharing. This convenient feature of OS X lets you wirelessly “borrow” the optical drive of a nearby Mac or PC. So you can install applications from a DVD or CD and have full access to an optical drive without having to carry one around.

Of course you can also purchase an external optical drive, though hanging a device like that off the Mini so spoils the attraction of its small size.

By omitting the optical drive, Apple is also promoting its App Store over shrinkwrap software. This is good for usability, and means the user will get the latest version of the application rather than having to update immediately, as is often the case with shrinkwrap installs.

A side-effect though is that more transactions are subject to Apple’s cut of the sale price. Third-party resellers are hammered. Further, Apple gets to approve what software appears in the store.

The desktop Mac is unlikely ever to be locked down like the iOS devices; though it would not surprise me if some future Mac Mini actually does run iOS rather than OS X. Nevertheless, you can see how well this plays into the overall strategy.

Renault’s electric Frendzy includes RIM Playbook, external 37” screen

I am not a motoring journalist, but this is a car I would like to review. Renault’s Frendzy, which will be shown at the Frankfurt Motor Show in September, has several notable features:

1. It’s electric

2. An asymmetric design in which the passenger’s side represents business, and the driver’s side leisure.

3. An external 37” widescreen display embedded into the passenger side door, which is a sliding affair with no window.

4. A dock for the RIM Playbook.

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The Playbook does obvious things like navigation, but also more than that:

As soon as it is plugged in, it becomes an integral element of the vehicle and configures itself into the Renault environment. Continuity of work is assured once the device is removed, and it can of course be used for all of the renowned BlackBerry PlayBook tablet features.

The device has an important role to play, too, in the customization of the vehicle as it controls the exterior screen while the vehicle is in motion and when parked, for business as well as for personal uses – pictograms illustrating life with electric vehicles, or the viewing of a film, for example.

says the release.

5. RFID sensors in the door sills. If you are delivering goods that have RFID chips, you can have a truly intelligent courier service. The packages can inform the vehicle of their destination, talk to the navigation system to display the route, and I presume could even raise the alarm if you drove away from the destination having forgotten to deliver parcel 3 of 3.

All cool; and I have not even mentioned the interior lighting can be switched from green for work to orange for leisure.

At the same time, I have some questions.

I am not sure whether giving the driver easy access to a full-featured tablet is wise, as I would rather he concentrated on driving rather than posting messages to Facebook or engaging in the latest MMORG (Massively Multiplayer Online Role-Playing Game).

It also seems a bit of a waste having the 37” screen external. I can see the sense for advertising, though having the screen on the side means it will be more visible to pedestrians than to other motorists, and is even 37” really big enough to get a message across at the kind of distance that will be typical? Renault says:

… a large external screen that can display useful messages or information (such as “making deliveries” or “back in five minutes”, the battery-charging method or the remaining charge) or advertising messages, either whilst parked or on the move.

I am not sure that I really want to tell the world how low my battery is.

The one thing you cannot do with the external screen is watch a film on it, unless you park and have a picnic I guess, though not to worry:

Depending on their mood of the moment, children can watch a film or play games on the touch-sensitive pad which slides out from the back of the driver’s seat. They can even draw on a special slate integrated into the sliding door.

Finally, I am amused by the trouble Renault has taken with the sound scheme – yes, since electric vehicles are inherently silent but need to make a noise for safely reasons, even the sound has a personality:

FRENDZY’s dual personality prompted Renault and IRCAM (Institut de Recherche et Coordination Acoustique / Musique) to develop a broad range of sounds. The programme has led to a variety of sounds that are emitted both inside and outside of the vehicle to ensure that everyone can tell whether it is in business or passenger car mode, thanks simply to its sound signature.

More information on the Frendzy is here.

Now you can rip SACDs

Sony’s Super Audio CD (SACD) is an audiophile format featuring high resolution and multi-channel sound. The discs are are copy protected, and until now it has not been possible to create an exact copy. Of course you can capture the analogue output and re-digitise it, and certain players from manufacturers such as Oppo enable you to capture digital output converted from Sony’s DSD (Direct Stream Digital) format to high-resolution PCM (Pulse-Code Modulation); but still, it is not an exact copy.

Ripping an SACD is still not that easy. The crack depends on getting hold of an early model of the PlayStation 3 that has not been updated to the latest firmware. Recent PS3s do not play SACD at all, plus you need firmware of 3.55 or lower, before Sony removed the capability of running an alternative operating system. There is no downgrade path, so it is a matter of scouring eBay for one that has not been updated.

Once you have the right hardware you can follow the instructions here  to rip the SACD:

SACD-Ripper supports the following output formats:
– 2ch DSDIFF (DSD)
– 2ch DSDIFF (DST) (if already DST encoded)
– 2ch DSF (DSD)
– mch DSDIFF (DSD)
– mch DSDIFF (DST)
– mch DSF (DSD)
– ISO (due to the 4GB FAT32 size limit on the PS3, files will be splitted when larger)

There is some discussion of the procedure here from where I have grabbed this image:

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Is it worth it? Good question. There are SACD enthusiasts who swear that DSD reproduces sound with a natural fidelity that PCM cannot match. On the other hand, researchers conducted a test showing that listeners could not tell the difference if the output from SACD was converted to CD standard PCM. I have also seen papers suggesting that DSD is inferior to PCM and may colour the sound. Expect heated opinions if you enter this debate.

Nevertheless, there are many great sounding SACDs out there and the format is not completely dead. Universal Japan, for example, issues SACDs made of SHM (Super High Material) at premium prices, and whether it is thanks to the super super technology, or simply clean mastering from good tape sources, these are proving popular within the niche audiophile market.

The fact that these discs cannot be perfectly ripped is part of the appeal from the industry’s perspective. Now that is no longer the case, and the torrent sites will be able to offer DSD files with full SACD quality.

Keyboards, consoles and living rooms: Trust Thinity reviewed

Computers are for the study, consoles for the living room, right? Kind-of, but we are seeing some convergence. The box under your TV might actually be a Mac Mini or a PC, or you might be browsing the web on your Sony PS3. From time to time you hit a problem: game controllers are lousy for text input.

I was an early adopter for Microsoft’s Media Center PC, and hit exactly this problem. Microsoft’s media center remote was good in its way, but sometimes I needed a keyboard and mouse. I ended up getting a wireless keyboard. However I also discovered that a keyboard, while great for a desk, is an awkward thing to have lying around in a living room.

This is the problem Trust is trying to address with its Thinity Wireless Entertainment Keyboard. This is a small keyboard – think netbook-sized – with an integrated trackpad. It comes with a USB wifi adaptor and a stand/charger.

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When sat in its charger it is reasonably stylish as these things go, but still looks like a keyboard.

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The Thinity is compatible with Windows PCs – why not Mac? – Sony PlayStation 3, and Microsoft Xbox 360. There is no need to install drivers, just plug in the USB device and it works. That said, there is no caps lock indicator on the keyboard, so you can download a software indicator for Windows if you want.

The trackpad is actually multitouch, and as well as having hardware left and right buttons,  tapping with three fingers makes a right button click, and it behaves as a scroller if you drag with two fingers.

How is it then? Well, it does the job and is easier than using a game controller to type URLs and passwords. I cannot rate it highly though, since it is not a particularly well-designed keyboard. The keys are close together and it is hard to type at speed. I would not enjoy using it as a main PC keyboard; I wrote most of this review with it but found it a struggle.

It is also a shame that there are no configuration options for Windows. I would like to turn off tapping, which I personally find a nuisance because of accidental clicking though I know others who love it.

Although the Trust brand is associated with budget gear, I get the impression that the company set out to make at least a mid-range product, with multi-touch keypad and a long-lasting li-ion battery. Unfortunately it needs a bit more design effort, making it seem over-priced for what it is. There are little annoyances, like the fiddly on-off switch, the support tabs on the back that are hard to prise open, and the fact that the keyboard flexes a little more than it should.

Logitech’s Google TV, the Revue, has a keyboard/trackpad that is only a little larger, but is more usable.

But do you want a keyboard in the living room at all? Personally I am doubtful. They are a transitional necessity. I am a fan of apps rather than remotes. The virtual keyboard on an Apple iPad does all that is necessary for occasional text input in a more elegant and living-room-friendly manner. Nintendo is taking this same direction with the Wii U, which has a touch controller with its own screen.

Of course these devices cost more and do more than a simple wireless keyboard, but they are inherently better suited to the task. One factor is that when you type, you do not want to be 12 feet away from where the letters are appearing on a screen. With a screen-equipped remote, they are right in front of you.

That does not solve the immediate problem with a PS3, Xbox or Media Center PC, so you will still need something like the Thinity, though I would suggest you check out the competition too. Long term though, I do not think we will see many keyboards in the living room.

Apple’s uneasy relationship with its retailers

I’m at an event run by an Apple accessory distributor, showing off the latest add-on gadgets. Met someone whose company has a number of high street stores selling Apple products.

“What do you do when an Apple Store opens in the same town as one of your shops?”

Answer: “It screws us”

That shop becomes instantly unprofitable.

The consequence: one retailer said it is inevitable that Apple-only retailers will diversify and start selling Windows, Android and so on.

It is a bitter pill since Apple itself encouraged independent retailers to invest in prime retail sites – only to compete with them a year or two later with it’s own stores.

Resellers are also facing competition from the Mac app store, selling previously profitable applications like Final Cut and of course the next version of OS X, Lion, either exclusively or at prices with which they cannot compete.

Does Apple care? Well, it seems there is one team tasked with supporting independent resellers, and another tasked with finding good sites for new Apple stores, and the two do not talk to each other. Which I suppose is what you would expect.

Apple may deliver the most user-friendly devices out there, but that does not make it a nice company to do business with.

Warring models of music distribution

How should we pay for the music we listen to? In the digital, internet era, it seems to me that there are three business models.

In the first model, you pay for a lifetime right to each album or track you want to add to your collection. This is the most similar to what we are used to from purchasing physical media like records or CDs. You do not own the music of course; all you have ever purchased is a licence to listen to it.

Until now the digital equivalent has been downloads as offered by Apple iTunes or Amazon’s MP3 store. However, Apple has now announced iCloud, which extends this model to de-emphasise the actual download. You download a track to play it on your device, but there is no problem if you have more licenced tracks than you have space for; you can just download the ones you want to play. You can also “upload”, but when you do this, you do not really upload the tracks, but rather just inform iCloud’s database that you are licenced for them.

The second model is where you subscribe, giving you the right to play anything that your music provider has to offer. The most successful example is Spotify, which has a superb client for Mac and PC that offers near-instant playback of any of 13 million tracks.

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An advantage of this approach is that it is naturally social. Since everyone has access to the same library, you can share playlists easily.

The third model is where you do not pay at all. In pre-digital days, you could listen to the radio or swap tapes with friends. Now almost anything is available, legally through Spotify (though now restricted to 2.5 hours per week and 5 times per track), or illegally through countless sites easily found through Google, or through copying your friend’s hard drive stuffed with music.

Personally I am a fan of the second model. I think musicians should be rewarded for their work, and that all-you-can-eat licencing is the best and fairest approach, taking advantage of what technology enables. Buying a lossy-compressed download with a restrictive licence is also poor value compared to buying a record or CD.

I get the impression though that the music industry is set against the subscription approach. Apple seems reluctant to embrace it, hence iCloud is still tied to the first model. Spotify still has it, but the company now seems to be putting increasing emphasis on downloads and locally stored music, which is strange given its original concept, as well as making its ad-supported free streaming account less attractive.

The business reasoning, I guess, is a belief that selling music piecemeal is more profitable, and exploits the collecting instinct that has served the industry so well in the past.

The risk is that the third model will sweep it aside.

Nintendo bringing dual screen to the Wii with smart controller

Nintendo has announced the Wii U, set for release sometime in 2012. If the unique feature of the original Wii was the motion controller, this new one is characterised by a smart controller that is in effect a mini-console in its own right, complete with 6.2″, 16:9 touch screen, accelerometer and gyroscope. In fact, it sounds a lot like a tablet with game controller buttons.

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As for the console, it is not so different from before except that it now includes an IBM Power-based multi-core processor and from what was seen at E3, a substantial advance in graphical power. The original Wii Remote controllers are still supported, as are accessories like the Wii Balance Board.

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The console has internal flash memory, but you can attach an external USB hard drive. The disc drive reads a new proprietary high-density format as well as existing Wii titles, with which it is backward-compatible.

Why two screens? Well, it opens up many new possibilities for game play as well as non-gaming uses. At E3 it was shown being used for video chat.

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Nintendo spoke of the Wii U having a “strong bond between games, the TV and the internet,” and the new controller could be used for social interaction while the main screen is showing TV or internet content.

Having a second screen also means you have use one for navigation and the other for content, which makes a lot of sense.

I admire Nintendo’s ability to innovate. Now that the other consoles have picked up the idea of motion controllers, Nintendo is branching in a different direction, and this looks like a good upgrade for the Wii.

At the same time, the similarity of the new controller to an Apple iPad or RIM PlayBook or Android tablet gives me pause for thought.

First, it is going to be expensive relative to the original Wii.

Second, what are the possibilities for gaming if Apple put together the iPad and the Mac, or if Microsoft broke with its past and actually integrated Windows 8 on a tablet with the Xbox 360?

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Asus announces combined smartphone and tablet – the Padfone

Asus has announced the Padfone, a combined tablet and smartphone running Google Android. The phone docks inside the tablet, which means you get an internet-connected tablet without having to pay for an additional SIM card and contract. It is a similar concept to Motorola’s Atrix, which combines smartphone and netbook. I like the concept and its efficiency, though I am not sure that this is quite the right approach.

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Asus is also having another at at Linux on a netbook. The Eee PC X101 will run MeeGo, the Linux-based operating system which was once a joint Intel-Nokia project, but ditched by Nokia in favour of Windows Phone. MeeGo enables Asus to offer the X101 at a lower price than would be the case with Windows, as well as offering snappier performance; however there will also be a Windows 7 option so I guess the market will decide.

Review: Q2 Internet Radio, colourful minimalism

This one is nearly brilliant. The Q2 Internet Radio is a cute 10cm cube which does just one thing: play internet radio.

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This gadget is from the UK-based Armour Group, and the company has endeavoured to learn the lesson of Apple and to create a device that is attractive, usable, and avoids the distraction of myriad features that are rarely used.

The Q2 supports just four channels, selected by you. You change channel by turning the device, with the number on top indicating the current choice. Increase volume by tilting the cube back, decrease by tilting it forward, mute by turning it on end.

Round the back there is an on-off button, a USB port and a headphone socket; and that is about it for controls. The rechargeable battery gives around 14 hours playback time according to the manufacturer. An LED that is just about visible through the speaker grille shows the status: green for online, red for offline, flashing amber for low battery.

The Q2 comes in a smart box and is just asking to be given to someone, a gift that even technophobes will enjoy.

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Setup is a matter of downloading and installing an application on your Windows or Mac (Linux not supported yet) and then connecting the Q2. The application has a bold and colourful drag-and-drop approach, and it is a matter of moments to select a wifi network, enter the security key, and then select stations or podcasts for the four available channels. Just in case you did not know, there are thousands of internet radio stations, though quality varies and I found that some channels did not actually play. Still, you will have no trouble finding four good ones.

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Now, I have a few reservations about this device, but let me start with the good news. Operating the unit is genuinely easy, it looks good presuming you find a colour you like, and sound quality – though mono unless you use headphones – is remarkable considering the small size. Here’s why:

The Q2 Radio uses a custom designed full range 2.4” 4 ohm drive unit chosen for good sensitivity and matched to the 140 Hz tuned port enclosure.

Biquad DSP filters are used to voice the sound, giving a smooth listening response and added bass extension from the speaker system.

The amplifier is a high efficiency Class AB BTL type, optimised for battery operation, giving typically less than 0.1% THD under normal operating conditions. The use of a Class AB rather than Class D type amplifier results in both lower noise and distortion.

So far so good; but this device does have frustrations.

I am all in favour of minimalism, but wonder if this has been taken too far here. What if you or those who share your home want more than four channels? Changing the presets is a hassle. I also found that controlling the volume control by tilt is not really a great idea, since it is easy to over-shoot and have to tilt it the other way.

The Q2 feels well made, but I noticed that the rubberised surface picks up dust easily.

Now, there are a couple of things that Amour could do to improve the Q2. The first is to add Bluetooth with A2DP support, so that it could act as a remote powered speaker for a smartphone.

Second, the Q2 is crying out for an app that would let you control it from a smartphone. As it is, you have to connect it to a computer via USB to make any change to its settings. An app would be more elegant, and allow the Q2 to take real advantage of the thousands of internet radio stations available.

As it is, this is an expensive device for what it does. It is worth noting a some of the limitations that are inherent to its design. It needs to be in range of a wifi connection, so it is not suitable for travel, and most hotspots will not work because they require a login. It is not suitable for a bedside radio, since it has no clock or alarm. It does not support USB charging, so you need to use the supplied mains adaptor.

A few flaws then; but the Q2 is FUN and would make a delightful present. Yes, you can get more elsewhere for the same price; but value for money is not what this product is about.