App Downloads and Virtual Goods at CES

By Megan Fleet

Anyone with a tablet, smartphone, or is in the vicinity of someone with these devices knows about apps. Downloads of apps on smartphones and tablets are projected to be in the 41 billion range for 2012. With those kinds of numbers, there is some serious cash to be made on the focus and popularity of apps. The industry knows it and these small applications have become all the rage at this year’s CES. More and more consumer are leveraging the power of unlocked cell phones to choose their preferred service providers and break away from long term service contracts… while customizing their phones with both apps and cell phone accessories of their choice.

The flip side of this is that costs of downloads is ever decreasing with the increase of competition. To counterbalance these declining revenues, players are looking to virtual goods. Already ahead of the curve, both Apple and Android are evolving to inhabit this space. In turn, they will keep customers hooked into their ecosystems and continue to diversify the different kinds of devices and accessories are integrated into consumers’ lives on their platforms. Experience the mind blowing clarity of XMI Speakers. Uncompromised sound quality and a revolutionary design accentuating today’s interactive lifestyle. Our earpieces and headsets combine sophisticated style and precision engineering that deliver brilliant sound for your total listening pleasure

Both Apple and Android own the lion’s share of app downloads to date, but according to Josh Martin, Director of Apps Research at Strategy Analytics, “The introduction of tablets from Amazon and Barnes and Noble and a renewed push for Windows Phone ensure an intensifying battle for the third horse in the apps ecosystem race.” Customers are bound to vote with their wallets and their thumbs with consideration of unlocked devices as well. The industry is changing, becoming more competitive and giving consumers more options of how they receive their data and how they communicate.

Luckily for us customers, this spirited competition is the recipe for lower prices, more choices, and better technology as developers scramble to win us over with must have accessories that make life better and faster speeds. Clearly this is the free market at its best (ignoring carrier exclusivity in this last statement!).

By Megan Fleet

Many pro-business advocates will espouse the virtues of patents and their being upheld with patent law in the free market world. A clear comparison in the schools of thought: free market vs. controlled market is the US vs. China. The latter is known for its corporate espionage, systemic lack of creativity, and lack of respect for the rights of intellectual property. The former sometimes has the opposite problem where obscure patents and a muddy system work against entrepreneurs and fail to promote the sharing of information and technology. Strangely, the proprietary model of Apple and their inclination to sign carrier exclusive deals instead of providing carrier agnostic unlocked cell phones seems counterintuitive to this pro-business strategy they’ve pursued.

With these polar opposites at work in the global corporate world, the HTC / Apple patent infringement case actually made me a smile a bit as it is a rare case of patent law being meted out justly and under the intent of the law. On Monday, the United States International Trade Commission ruled that as of April 19^th, 2012 they will ban the import of certain HTC devices (no word on if any of these patent infringements extend to HTC specific after market phone and mobile accessories.  Leaving your valuable mobile devices unprotected is risky!  Protect your devices from scratches and blemishes with stylish top brand cases and skins accessories.

In response, HTC released this statement to BGR via email “We are gratified that the commission affirmed the judge’s determination on the ‘721 and ‘983 patents, and reversed its decision on the ‘263 patent and partially on the ‘647 patent […] We are very pleased with the determination and we respect it. However, the ‘647 patent is a small UI experience and HTC will completely remove it from all of our phones soon.”   Discover the select accessories, such as, stylus & pens, data cables, batteries, SD micro cards, desktop chargers, earpieces & headsets as well as glider gloves all specifically designed to make your devices functionally efficient and performance rich.

This is a ruling that was made after the July 16^th decision that determined a violation of two Apple owned patents by HTC. Luckily for the device manufacturer, it appears that they will be able to side step considerable losses in inventory, research & development, and market share by implementing the required changes before the April 2012 deadline.  The latest  trend setting fashionable bags, cases and sleeves accessories express your unique style.  Make your mobile devices stand out.  Customize your look – how cool can you be?

Last year, in an effort to help reduce crime the Mexican government passed a law that required all pre-paid, anonymous mobile phone users to submit their personal information to their wireless provider and have their cellular line linked with their name and personal information.  The law was enacted to try and combat what Mexican authorities called “mobile extortion.”

Many ransom demands from organized crime and drug cartel kidnappings are often made via anonymous, pre-paid cell phones.  This is also the preferred method of communication for ‘common criminals” in Mexico.

The vast majority of Mexico’s estimated 84 million mobile phones are of the pre-paid variety.  With a weekend deadline looming for compliance with this new law over 30 million pre-paid users have failed to submit their information to the wireless companies.  If users do not submit their information by the deadline the wireless companies have been instructed to shut off these devices that are not in compliance.

As is the case with many laws there is opposition to this new ruling.  Critics say that these criminals will just register their devices with fake or other people’s credentials.  These critics also feel that denying the Mexican people access to cell phones, including unlocked cell phones, is a violation of their constitutional rights under Mexican law.  Telcom company America Movil is predicting losses of around $10 million a day if the 30 million unregistered lines are actually shut down.

While this new law seems like a good idea on paper I am sure it will not entirely deter the criminals from committing their crimes.  They may need to develop a new method of communication or register their mobile device in a fake name but will more than likely not stop crime altogether.

We continue to hear stories about accidents that have occurred due to people using their unlocked cell phones.  We have heard the stories regarding train operators, bus drivers and other people involved in public transportation.  The unfortunate thing is that there have been fatalities due to cell phone use.  We have also seen many accidents that have been caused by somebody talking on the phone or trying to change the music they are listening to.  This is why the transportation Ministry has issued the ban in Ontario and British Colombia.

The Ministry of Transport has stated that more than 20% of accidents can be directly linked to drivers not paying attention to the road.  This also includes cell phones being used for text messaging, talking and listening to music.  The ban also includes the use of handheld games, and DVD players.  The ban came into effect on October 26, 2009.  The police have been issuing warnings to anyone found using their cell phone or other devices while driving.

However, starting on February 1 drivers will now be fined up to $500 if they are caught in violation.  Drivers can use a GPS system as long as it is secured to the dashboard.  You can still use hands-free cell phone as well.  This goes hand-in-hand with the other provinces that have already implemented these bans.  The whole concept is to make the roads safer for everyone.  Many people agree with the ban and do not have a problem obeying it.

Even though Bluetooth Headsets are acceptable, it is important to remember not to get distracted while speaking on the telephone.  As drivers, it is everyone’s responsibility to make sure they are paying attention to the road in order to not create or get involved in an accident.

   So the election has come and gone and we are really no further ahead then before the election?  What does this mean for the country?  What about this talk about turmoil in the US?  Who knows we at PureMobile aren’t pretending to be economic gurus or aren’t going to give you advice on something that we shouldn’t.

   What we do want to do is continue the conversation we had last week.  Last week we talked about Stephen Harper and good for him he is going to be Prime Minister for a little longer, but this week we will shift our attention to the other Candidates.  We Have Stepane Dion, Gilles Duceppe and Jack Layton.  Now these three represent the other “major” parties of Canada.  There are “minor” parties that we will not talk about.

   What we want to know is what these three use as communication devices.  It’s safe to say that everyone has a cell phone, but which kind of cell phone?  Do they use BlackBerry’s?  Do they you a simple phone like a Motorola Razr?  We know our readers want to know.

   With the federal election only weeks away we are getting down to crunch time with Stephan Harper, Stéphane Dion, and Jack Layton being the front runners.  Like everyone we hear all the daily news stories about what the politicians are doing and where they are doing it.  What we want to know is what kind of cell phone they are using while out on the campaign trail.

   Stephan Harper is still young enough that technology isn’t out of his grasp.  He, like everyone else, uses a cell phone in his daily life.  The question is which one?  Does he use a smart phone, like a Blackberry or iPhone or is he more of the simple man and uses something like a Motorola Razr or Sony Ericsson k550?  At PureMobile this is a question that we think our customers want answered among other things like what are the politician’s views on cell phone fees like system access charges and early termination costs.

   What we want to know is what you think.  We want to know which cell phone our customers think Mr. Harper uses on the campaign trail.  On Tuesday we will reveal which phone he uses.  Until then you can look at our phone list here to get a better idea of the phones that are available to the candidates.