Buzz of the week 14-Jul-08

1. SK and Sprint: Considering alliance, not merger.

The Wall Street Journal and a few other news outlets are reporting that SK Telecom and Sprint are considering a partnership in which they would jointly develop handsets and services. Last November, Sprint rejected a $5 billion investment offer by SK Telecom and Providence Equity Partners. Recently Sprint has shown some signs of a rebound. The company's new Samsung Instinct phone is selling well and the company is expected to have improved its churn when it reports its second-quarter earnings on Aug. 6. In late June, SK Telecom invested $25 million in equity capital in Virgin Mobile USA as part of Virgin's acquisition of MVNO Helio. SK will have a 17 percent investment in Virgin Mobile and two seats on the Virgin Mobile board of directors. The deal is supposed to close in the third quarter. More here.

2. Mobile Video battling consumer concerns

Mobile video interest is growing despite lingering technological challenges according to a new consumer survey issued by mobile video solutions provider Avot Media. Among the 400 mobile users queried after viewing mobile video content, outdated devices, limited phone or operator support, user error and/or poor network coverage were frequently cited as major obstacles; 33 percent of users also expressed concerns about download time, another 33 percent pointed to freezing/stuttering issues, and 32 percent expressed image quality questions. Despite their concerns, 36 percent of respondents said they would view movie trailers on their mobile devices, with 31 percent stating an interest in instructional how-to videos and 32 percent expressing an inexplicable desire to watch American Idol performances. More here.

3. Google touts mobile ads

Google shares dropped in after-hours trading Thursday after the web services giant's second quarter earnings report failed to match expectations. Google reported Q2 earnings of $5.37 billion, a 39 percent year-over-year increase and a 3 percent jump over Q1 totals; still, the growth was insufficient to investors spoiled by the firm's traditional 50 percent quarterly growth. During a conference call, Google CEO Eric Schmidt maintained the company is in good shape to survive a forthcoming economic downturn, with Google execs blaming Q2 results on a decline in AdSense revenue and paid clicks as the firm continues to place a growing emphasis on ad quality, not quantity. Co-founder Sergey Brin also cited the promise of the mobile ad market: "We've substantially increased the size of our index ... Now our users get much fresher and faster results across a greater range of sources," he said. Brin added that the mobile ad market will improve with the addition of location-based data personalization. More here.

4. Nokia's and Sony-Ericsson's profits plunge:

Nokia's profit fell 61% in the second quarter from the same period a year ago, when the company booked a large gain from its network joint venture with Siemens, an Associated Press report said. The ASPs also fell. More here.

Sony Ericsson's second-quarter profits dropped a dramatic 97 percent causing the company to cut its workforce by 2,000 people. Second quarter profits were $9.5 million, down from $348.6 million in second-quarter 2007. In addition, net sales fell 9.4 percent to $4.46 billion down from $4.92 billion. Sony Ericsson shipped 24.4 million phones in the quarter, down 2 percent from second-quarter 2007. The average selling price of its handsets was $183.72 down from $191.64. in the year-earlier quarter. More here.

5. Rumors back on Google's GPhone

Here we go again. Just when you thought rumors of a Google-branded mobile device (a.k.a. the GPhone) were finally put to rest months ago with the announcement of the Android OS, tongues are wagging once more. According to The Hollywood Reporter, the web services giant's co-founders Larry Page and Sergei Brin and CEO Eric Schmidt met with a dozen journalists last week for an informal and far-reaching discussion that touched on "the inroads the company is making with its own branded mobile phone as a replacement for the iPhone." Huh? Turns out Hollywood Reporter writer Dan Cox got the details mixed up--Silicon Alley Insider reports the Google execs were in fact talking about their Android-based devices, not a Google-branded handset. More here.

6. Developers growing impatient over Android Updates

It appears that third-party software developers are becoming increasingly frustrated over the lack of information pertaining to the status of the platform. Nicolas Gramlich, who runs the independent Android Development Community message boards, lamented about the unresolved bugs in the existing SDK, as well as the lack of information on future developments. For some unfathomable reason, it appears that a new and improved SDK is being shared only with the 50 finalists in the Android Developer Challenge instead of being publicly released. To rub salt on the wound, an email congratulating the 50 finalists on their access to the private download site was accidentally sent to everyone who have entered the contest. More here.

Thank you very much,

RamP!