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Samsung Boosts Entertainment Options with Blockbuster Deal

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For Gen Y, Smartphones Are Necessities

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News Under the Sun is a weekly column rounding up all the events in the mobile industry. Want the news but don't want it every day? Subscribe to our weekly Facebook or Twitter page.

IPhone 4S Debuts in China, Apple Makes an Unprecedented Payout

Apple is preparing to launch the iPhone 4S in China next week after months of regulatory hurdles, as the company ramps up its competition against Google Android. The 4S sold out in minutes when it debuted in Hong Kong in November, and with strong promotion through regional carriers, sales are expected to soar. The 4S will also debut in several countries in Africa and the Caribbean, including the Dominican Republic, Ecuador, Jamaica, the British Virgin Islands, Bolivia, Antigua and Botswana.

The iPhone 4S continues to perform well, but the iPad 2 faces increasing competition from Amazon's Kindle Fire tablet. To bolster its book division, Apple plans to discuss its iBooks platform at a media event at the end of January, and rumors point to everything from a revamped iBookstore to new licensing deals, or even a decision to jump into the world of textbooks.

The Cupertino, Calif.-based company is also looking to boost its struggling mobile advertising business by hiring Todd Teresi, former vice president of Adobe, as the new vice president of iAd. Many companies remain discouraged from using the service due to expensive ad space and a limited audience, even in the wake of discounts on ad space Apple offered last year.

At least one of Apple's numerous court cases will end in a pricey $5 million patent settlement. Apple will remit the sum to Taiwanese company Elan Microelectronics to avoid going to court next month over elements of touchpad design, and the deal includes a cross-licensing agreement allowing the two companies to use one anothers' patents going forward.

Meanwhile, iPhone 4S users are consuming more data than ever, doubling usage over previous iPhone models. The increase is reportedly due to Siri, the 4S's voice recognition software system, and it is placing additional stress on an already spectrum-crunched network.

Steve Jobs will be immortalized in the form of a new action figure, as memorials of the late Apple co-founder continue to pay homage to his genius. Creator, In Icons, is taking pre-orders for the 12-inch action figure, priced at $100, with shipment set for the end of February.

Google Sees Booming Sales, Looks to Grow Google+

Both Google and Apple saw record-breaking device activations and app downloads over the holiday season, as consumers put smartphones and tablets at the top of their shopping lists. Flurry reported nearly seven million worldwide phone activations on Christmas Day, evenly split between the two rival companies.

Google's fledgling social network Google+ garnered 49 million visits in December, a 55 percent increase that highlights the potential for rapid growth in 2012. Facebook still dominates the social networking field with more than ten times the amount of Google+'s current subscribers, but if users continue to sign-up for the newer site, Facebook might face significant competition later in the year.

Meanwhile, the Mountain View, Calif.-based company quietly added 217 active and pending patents to its repertoire, likely planning to use the patents to defend itself against a mounting number of lawsuits accusing Android of patent infringement. Google's proposed acquisition of Motorola will also add a hefty 20,000 patents to its armor as the company continues to bolster its defenses.

In other legal news, Google and Oracle will head to court in March if no settlement is reached over alleged Java patent infringements. Oracle is asking Google for $2.2 billion for using the Java technology, but Google's highest offer thus far fell short at $100 million. A settlement could save each company millions in costly court fees, but so far neither side appears ready to back down.

Verizon Revokes Convenience Fee After Consumer Outrage

Verizon quickly abandoned plans to charge their users a $2 monthly payment fee after outraged consumers blasted the carrier and threatened to switch service providers. The proposed "convenience" payment would have been added to any bill paid over the phone or online, but in the wake of an impending PR disaster, Verizon quickly scrapped the fee.

The Basking Ridge, N.J. -based company also decided to cease offering the Motorola Droid 3, along with several other Android devices. The Droid 3 struggled to compete with newer devices like the Samsung Galaxy Nexus and the HTC Rezound during the holiday shopping season, and Motorola is expected to roll out the Droid 4 early this year, propelling Verizon to scrap the older model and clear shelves to make room for new inventory.

Apple's iPhone 4S, however, is selling like hotcakes, and in late 2011 Verizon set the record for the most iPhones sold on a U.S. carrier in a single quarter. Consumers increasingly view Verizon as the go-to carrier for Apple products, and the expansion of their lightning-fast LTE network hints the trend is likely to continue.

AT&T Increases 4G Network

AT&T expanded its 4G network into 11 new locales over the holidays including New York City, San Francisco, Los Angeles, Phoenix, and Austin. The carrier promises complete nationwide 4G coverage by 2013, but decreasing spectrum supply could thwart AT&T's plans.

Sprint Holds Out for LightSquared, Galaxy Nexus Coming

Sprint is struggling to launch its own 4G network, awaiting long-delayed government regulatory approval of its LTE partner company LightSquared. The carrier granted the Virginia-based start-up an additional 30 days to win approval from the FCC, and is banking on the 15-year deal that to grant much coveted spectrum space for its new venture.

Reports say the Samsung Galaxy Nexus will be the premiere device on Sprint's upcoming LTE network, but the carrier has not yet confirmed the rumors. The Nexus received excellent reviews from critics upon its release, and could lend Sprint's fledgling 4G network a much-needed boost for its debut.

A new 4G network might lend the Overland Park, Kans.-based carrier enough spectrum to stop penalizing its heaviest data users. Sprint CEO Dan Hesse said his company throttles the top 1 percent of data users, leading to criticism over the company's much-advertised "unlimited" data plans. An upgraded network may serve to eliminate the need for additional fines.

T-Mobile Slashes Smartphone Prices

T-Mobile is slashing the prices on some of its most popular smartphones in hopes of luring post-holiday customers with its trademark low prices. The Bellevue, Washington-based carrier will offer the HTC Radar 4G, HTC Amaze 4G and Samsung Galaxy S2 phones for $50 after mail-in rebate when users sign up for a two-year contract, a move that could prove a big draw, especially for first-time smartphone buyers.

RIM Discounts PlayBook, Looks Ahead to Leadership Change

Research In Motion also slashed prices on its PlayBook tablet, and will offer the 16-gigabyte, 32-gigabyte and 64-gigabyte PlayBooks for $300 in the official online store through February 4. The troubled BlackBerry maker likely wants to recoup some losses on the disappointing device, which debuted with the same price tag of Apple's iPad 2 but couldn't compete with the flashier device.

The Waterloo, Ontario-based company is betting big on its upcoming BlackBerry 10 software to pull it out of a current market slump, but rumors say RIM shelved the Milan, rumored to be the first device to run the new platform, due to technical problems. The launch of BlackBerry 10 faced repeated delays in 2011, and now isn't expected to be released until the second half of 2012.

New leadership could be a good thing for RIM in its quest to regain reputation and market share, and at least one report claims the BlackBerry maker will oust its current longtime co-CEO's Mike Lazaridis and Jim Balsillie. The two men have been criticized harshly during a tumultuous year, and many of RIM's shareholders are pushing for leadership change at the executive level to turn the company's fortunes around.

Microsoft Ramps Up Competition with Voice Assistant

Microsoft ignited a big push to enter the smartphone game with its new line of Nokia Lumia phones, and developers are taking notice. One developer has created a free voice recognition app for Windows phones, giving Apple's Siri a bit of competition. Shai Leib built "Ask Ziggy" using voice recognition technology from Nuance for the WP7 platform, giving consumers seeking voice software a second option.

Amazon's Kindle Fire Erodes IPad's Dominance

Amazon's Kindle Fire led to lower than expected sales of the iPad 2, according to research firm Morgan Keenan. Apple's tablet sold about three million less units than initially predicted over the holiday season, while Kindle Fire sales soared to record-breaking heights, signaling consumer enthusiasm for Amazon's lower-priced offering.

Samsung Unveils Galaxy Ace Plus, Loses to Apple in Italy

Samsung plans to release the Galaxy Ace Plus in Russia starting in January, as the company attempts to flood the market with impressive low-range options that appeal to budget-conscious consumers. The Ace Plus is a follow-up to Samsung's original Ace phone, and the updated version will help keep the company's catalog fresh.

Samsung is banking on the Galaxy phone line for continued success after record sales helped the company surpass Apple as the world's top maker of smartphones. The Galaxy line of devices offers consumers a wide range of low-to-high end smartphones, and mass appeal seems to be luring more and more users to Samsung hardware.

The South Korean company didn't fare so well against Apple in Italian court, where a judge failed to grant Samsung an injunction on the iPhone 4S. The two phone makers are embroiled in patent litigation throughout the globe and don't appear to be receptive to a settlement, meaning the fierce competition between the rivals will continue.

In better news, Samsung won approval from the South Korean government to build a flash memory manufacturing plant in China, as the global flash memory market continues its boom. The plant will give Samsung an edge over its competitors, which must purchase their device chips from third-party manufacturers.

HP Shifts Focus to Mobile, Gets WebOS Boost

Hewlett-Packard is moving forward with plans to improve its fortunes after struggles with hardware and legal issues hurt the company's bottom line in 2011. To help facilitate a turnaround, HP made its Web OS platform open-source, hoping to lure third-party developers looking to create new software.

WebOS got a reputable boost this week when a Stanford University Department of Radiology research associate developed an application that operates an MRI scanner and allows radiologists and other medical personnel to view images captured by the MRI machine on a TouchPad tablet. The development was good news for HP, and if the technology catches on, WebOS could gain new life in the healthcare market.

Nokia Banks on Windows Phone

Nokia, Microsoft and AT&T plan to launch the latest Windows smartphone with a $100 million advertising campaign, marking the first time a major cell phone carrier is getting behind the Windows name. The move is a risky one since Windows-powered phones have yet to take off, but the Microsoft name could prove an irresistible draw for consumers who run the company's software on their PC's.

The Finnish phone maker also acquired Smarterphone, a Norwegian company that developed an OS for basic feature phones, in a push to diversify its offerings and target new and cost-conscious consumers.

Intel Announces LG Smartphone

Chipmaker Intel plans to unveil the first smartphone powered by its Medfield processor. Intel is expected to introduce a high-end Android smartphone made by LG at the Consumer Electronics Show this month in Las Vegas, according to the Korea Times, as the company pushes to build its presence in the mobile market.

HTC Looks to Stem Losses

HTC will retool its strategy this coming year to prevent a downward slide after a worrisome a 26 percent drop in net profits in the fourth quarter of 2011, its first in two years. The company faces increasing competition in the global smartphone market, and plans to diversify its offerings in order to reach a larger consumer base.

Huawei Faces U.S. Government Scrutiny

Huawei agreed to scale back business contracts in Iran after U.S. politicians claimed the phone maker's contracts violate sanctions, saying it will not seek new customers in Iran and will limit the scope of its business with existing clients. The scrutiny is nothing new for Huawei, which has struggled to build its brand in the U.S. amid rumors the company supplies controversial parties like the Chinese military with its products.

U.S. State Department Tweets Press Conference

The U.S. State Department will take press questions from around the globe via Twitter, and plans to answer them during a Friday briefing in video files embedded in its own tweets. The digital initiative is dubbed "21st Century Statecraft," and marks a departure in traditional press conference format spearheaded by the Obama administration.

Across the globe, the Japanese government is developing a computer virus to track down the source of a cyber-attack and neutralize it, a novel approach that underscores the seriousness of cyber-warfare.

Hackers Target Neo-Nazi Groups

Meanwhile, hacktivist group Anonymous published thousands of names and e-mail addresses connected to Germany's far-right National Democratic Party as part of a campaign the collective calls ""Operation Blitzkrieg." The controversial group continues to wage cyber-protests against organizations it deems politically incorrect, much to the chagrin of citizens whose private information may have been compromised.

Facebook Top Factor in Divorces, Honors Advertising Elite

A U.K. survey blames Facebook for one out of every three divorces that occur in England, underscoring how social media is affecting privacy and family interactions. Sending inappropriate messages to the opposite sex and posting negative comments about exes on the social network topped the list of offensive behaviors, cautioning users to be more careful about what they post.

Meanwhile, the social networking site is gearing up to host the first annual Facebook Studio Awards, which will honor last year's most successful ad campaigns on the site. Top industry insiders will judge from hundreds of entries, and the winner will be featured on Facebook Studio in 2012.