This year’s show saw a mixture of application and device-centric news dominating the show. Dual-core processors are now so last year, with various Android-based devices boasting quad-core as the new “must-have” spec. By contrast, Microsoft’s presence at the show was muted: no big splashy demos of operating systems (although Windows 8 was previewed to the media nearby) and the company’s main focus was that it isn’t that size (or numbers) isn’t what counts, at least in terms of processors. Microsoft promoted an “I got smoked by Windows Phone” challenge, highlighting the benefits of a well-developed operating system over the technical “benefits” of Android.

Samsung took a different approach, showing off a 10” version of the new Note tablet (with pen) and also demonstrating the Samsung Beam, a smartphone with a pico projector built in. The device was not significantly larger than the average smartphone and the battery life is a claimed three hours for projecting. Overall, it was a satisfactory experience and better than one would expect from such a device. We can expect more smartphone OEMs to follow suit in the coming year.

But the most talked about device-centric news at the show was Nokia’s launch of a 41 megapixel camera phone, the PureView 808. While such a device sounds ridiculous at first blush, the thinking behind it is brilliant. Camera phone will never match the zoom capabilities of a Digital SLR, but with such a high megapixel rate, the photographer can zoom in afterwards creating a zoomed (and excellent quality) picture in hindsight. Random photographers can now create stunningly-cropped pictures where they previously had a terrible shot.

Near Field Communication also enjoyed a resurgence at the show, with more OEMs highlighting the early benefits of the technology. Companies such as NXP highlight various applications including NFC-enabled parking meters and a motorcycle that can be started via an NFC-enabled phone, while others focused on simpler implementations. Sony, which launched addition Xperia devices at the show, highlighted an NFC “tag” solution. The Tags can be used to activate various actions within the phone. For example, touching a Tag placed in the living room could sync your phone to a local Bluetooth speaker, launch your music player and lower the ringer volume of the phone. The Tags themselves do almost none of the work: they simply act as the unique NFC-tag that the NFC-enabled phone recognizes and then reacts to. It’s a clever system, and a good example of how NFC can be used, but not one that will see mass adoption on the consumer market. Nokia’s NFC highlight was a partnership with Michelin, through which Michelin-rated restaurants will place NFC chips behind the Michelin logos at restaurants. By touching the logo, the application will pull up reviews of the restaurant, details of the chef and could also lead to social-related activity.

And finally, there were the apps. Google dominated with a strong Android app presence at the show, but Microsoft also had a reasonable presence, not least through the Nokia booth. And while it may seem that we are providing a lot of call-outs to Nokia in this wrap-up, it is not without merit. Just one year ago, the company was the big new of the show for all the wrong reasons: it had abandoned Symbian and opted for Windows Phone at a time when Windows Phone was struggling. Fast forward one year and Nokia has launched four Windows Phone devices – the Lumia series – and more importantly is driving application developers to new heights. The company announced several new applications that will be unique to Nokia devices, such as improved Nokia Drive, better music streaming services, public transportation tracking, books reading and partnerships with the likes of Red Bull, Kraft food and Michelin. While the turnaround is far from complete, the progress from effectively zero to this state highlights the potential beginning of a remarkable turnaround for the OEM. Further, it highlights the fundamental importance of driving unique content as a means of differentiating in a market where the devices and operating systems are become very standardized (unless you happen to have a 41MP camera phone of course).

However, the move from AT&T, while almost inevitable, is certain to face significant opposition from consumers who have a different interpretation of what “unlimited” constitutes. To be fair to AT&T, they are not the first to define “unlimited” as something that can be throttled: T-Mobile already offers an unlimited plan which throttles data use back to a slower speed once a data limit is hit. Technically, both services still do offer the consumer unlimited access, just not at the same speed. The difference between the two services is that T-Mobile’s service was launched with throttling included, while AT&T (and for that matter Verizon Wireless) is adding it retrospectively. This is a fairly unusual step for carriers, which typically consider existing users to be grandfathered into older plans and are therefore untouchable.

The result of this approach could be a backlash against AT&T with consumers looking for alternative solutions. But what choices do they really have? Only Sprint offers an unlimited plan without speed variation, Verizon Wireless removed its unlimited plan last summer and T-Mobile is focused on throttled plans. This provides some opportunity for the regional players, but realistically, most consumers still gravitate to a national provider. Sprint could see a bump in subscriber growth due to AT&T’s move, but apart from that most consumers will grumble but likely stay where they are. Unless… one of the other carriers takes the opportunity to offer more compelling plans. While unlimited in the old sense of the word is unlikely to make a comeback, Verizon Wireless currently offers a “double data” LTE promotion (4GB for the price of 2GB for example). T-Mobile, in particular, could – and should – grasp this opportunity to launch more aggressive plans in a bid to drive subscriber use. The next few weeks could be interesting to watch.

In addition to the off-line capabilities, Nokia has also added personalization features to the service: rather than simply choosing preset channels of music genres, customers can also create their own channels based on a number of selected bands. By entering a number of musical acts, the music service will then play similar music. While hardly a ground-breaking feature, this functionality does bring Nokia’s service far closer to the standard for streaming services. Perhaps more interesting is the ability to scan music already on your computer and then use your selections as a basis for streaming music options to create playlists.

The music service is free with Lumia devices, but is not yet available in all markets. Indeed, the service is not available in the U.S. and while Nokia is “considering” the implications of adding the service, there is a strong possibility that it will not make the move across from Europe. Among the many barriers to a U.S. debut is the strong Zune music presence on Windows Mobile, which is likely to take precedence.

The current smartphone data plans are 200MB ($15), 2GB ($25), and 4GB ($45), the latter including hotspot tethering. The new plans raise the stakes in terms of data and price, with 300MB ($20), 3GB ($30) and 5GB ($50), again, with the latter plan including tethering.

So why the change? According to AT&T, the change reflects the increased consumption by consumers with their smartphones and tablets. In other words, we need more data. If the argument holds true, then the pricing is a benefit, with the new plans offering cheaper pricing per GB. But on the downside, if we don’t need more data, then the new plans make the jump into smartphones just that bit more expensive, especially with the lack of those often talked about family data plans still conspicuously absent.

NPD Connected Intelligence tracks data consumption on Android smartphones through an on-device meter. Average cellular data tracks comfortably under 2GB on average (and typically averages out at 1GB per month). This is not to say that consumers are not pounding data on their smartphones, but we find that Wi-Fi use far outweighs the cellular consumption.

And for those that do exceed the old 2GB point, AT&T offered a reasonable $10 for an additional 1G. The downside of the new price points is that three is an increased barrier to entry, particularly for tablet plans, which are also now priced at $14.99 (250MB) $30 (3GB) and $50 (5GB). Our research shows that not only are the majority of tablet users not leveraging cellular connections, but that an increasing number of tablet users are choosing Wi-Fi only (65% are Wi-Fi only now, compared to 60% in April 2011).

But in fairness to AT&T, their plan has some merit: Verizon Wireless also charges $30 for its primary smartphone (and tablet) data plan, but provides just 2GB for that price. So perhaps AT&T’s real trick here is at least to provide pricing parity and let the consumers easily see what you get (or not) for the price point, offering a whole additional 1GB. So be it, but neither company is likely to see a major upswing in tablet users as a result.

On the mobile side, my wireless provider held the ultimate high ground, owning my cell phone number. Any switch in allegiance meant revoking my right to the number and beginning all over again. And while we all did occasionally switch, the move was hardly ever the result of a spur-of-the-moment decision. When data came along, the mobile carriers also offered email addresses in another bid to cement the relationship. Of course, both the email address and the phone number are now independent entities: we have alternative email options, such as Gmail, and the ability to port our numbers from carrier to carrier.

The latest approach to encourage loyalty is the cloud. Carriers offer cloud space to ensure that your smartphone device is automatically backing up to a safe zone. Those photos, no longer just trivial snaps, but now your core photographic album of events, can be safely stored with the carrier, as can your contacts and other content. Connected device OEMs are also throwing in some cloud access, with everyone from Apple and Microsoft to much smaller OEMs, all talking up the cloud.

But just as the email address and the phone number were retention tools, so too is the cloud. Once a consumer’s content is in said cloud, the move to switch from one to another becomes a matter of pain and effort. However, the cloud strategy goes beyond the old plan of retention alone, but can factor into encouraging consumers to remain brand-loyal as they consider additional purchases. After all, if the content is held in one cloud, the goal is to access that content from all devices, rather than having different devices pointing to different clouds.

And so, it is no surprise that a big theme at CES this year is the cloud. While last year was all about the tablet, this year focuses on what to do with tablet content – and how to expand the sphere of influence further. While the cloud itself may be an amorphous service concept, rather than a consumer electronic product per se, the goal is clear: hold onto the consumer’s content and you can build a CE ecosystem around it.

At the other end of the spectrum, is Decide. Decide also wants to ensure that the price is right, but by recommending when – and where – to purchase the product to guarantee that the deal is the best that you are likely to see in the coming months. Their algorithms look at billions of price considerations, as well as the likelihood that a new version of the product is just about to launch. The system is based on the same concept as Farecast, the flight fare comparison tool purchased by Microsoft in 2008. When the price looks to be as low as it will go, customers are referred to the correct buying site, and Decide gains a small commission for the pass-through.

While Savvy can be considered to be an ally of all things retail, Decide is an online tool, partnering with the likes of Amazon. While brick and mortar retailers can certainly be part of this process, the name of the game is purely a price negotiation, rather than considering the benefits of service expertise and customer rep knowledge, for example. Add into this mix the plethora of scan-based price comparison tools that are appearing from many online providers (such as Amazon) and the retail market looks set to face some interesting challenges before the end of the year.

The phone looks set to provide an appealing alternative for many basic phone users too, especially children, due to the non-rechargeable battery. Of course, this all comes at a cost, and while the device certainly has a design flair to it, there’s no “smart” appending to the phone. As such, there’s no data connectivity, Angry Birds, or other such necessities for many smartphone-desiring kids.

But the real drawback of the product has nothing to do with the GSM-based device itself, but rather the cellular connectivity that one must purchase. For an emergency device to make sense, it needs to be something you can throw in the glove-box and forget about until the inevitable emergency happens. But cellular plans are not designed like that, and carriers charge by the month; even prepaid plans expire rather rapidly. As a result, while the battery will be as active as an Energizer Bunny, the chances that your prepaid plan is still alive and well are as remote as the location you’ll no doubt be stuck in.

Verizon Wireless is using the phrase “Global Ready” to emphasize the global aspect of these devices. Verizon Wireless is clearly focusing on the most lucrative part of the subscriber base; but the move also helps Verizon to counter the ongoing perspective that a GSM heritage equates to global, while a CDMA heritage (such as Verizon’s) is primarily a U.S. affair. This latter perception, while still valid for CDMA-only devices, will become less of a concern as the carrier continues to launch LTE devices.

The launch of these two Mi-Fi products also puts more pressure and doubt on the longevity of the USB modem category. Currently, USB Modem connections are the dominant form of connection for non-phone devices, such as notebooks and laptops. However, we expect to see the category share decline (in terms of connections) starting this year, as Mi-Fi devices provide comparable connectivity (and come to market more rapidly than in the past) and customers look to provide connectivity to more than one device at a time.

Further, the focus on Mi-Fi helps alleviate some pressure on the carriers to add “family” data plans. While still crucial within the smartphone space as a component of family plans, the need for a shared data plan across a mixture of device platforms becomes less pressing.

For the cable companies, the selling of spectrum is a full-on acknowledgement that it makes no sense to build out a wireless infrastructure, but that wireless will become an important component that must be better-supported than it has been up to now. Cox, while not part of this initial deal, recently abandoned its efforts to launch a wireless network of its own. The deal is not the first of its kind: Qwest made a similar deal with Verizon back in 2004. However, while the deal between Verizon and the cable companies is significant in itself, the more important component is the shockwave that will reverberate around the industry:

• DirecTV is Verizon’s long-time partner, providing the entertainment component of the quad play (outside of FiOS markets). With Verizon now potentially partnering with cable companies, the DirecTV play may be minimized.

• Sprint is the de-facto choice of the cable companies when it comes to a wireless play. There have been several iterations (none of which have been too successful) over the years, with the most recent one also including Clearwire. But if the cable companies truly collaborate with Verizon for wireless service (which looks very likely) then Sprint and Clearwire will lose a source of wholesale subscribers.

• AT&T has just lost out on a significant source of spectrum, the most valuable wireless commodity there is. But worse than that; by selling the spectrum, the cable companies have effectively removed themselves from the competitive landscape (at least directly), acknowledging that there is little return for building out a network. This hardly helps AT&T’s argument (for the purchase of T-Mobile) that the wireless market has a plethora of competitors and is a vibrant market.

• For Deutsche Telekom, Plan B certainly will have included trying to sell T-Mobile USA to the cable companies. With this potential customer now talking with Verizon, DT may well need to hang on to T-Mobile USA for longer and try to refresh the brand.

A big question that goes unanswered in all this is the video entertainment component. By making Comcast a de facto video offering, Verizon Wireless—and by association Verizon Communications—diminishes one more competitive piece in an already less-than-competitive market for home entertainment. Cable operators have, of late, been losing video subscribers, a trend that is unlikely to be reversed just by adding Verizon Wireless to the pack. The broadband implications of the new relationship also should not be overlooked. Comcast and Time Warner offer a wide-area Wi-Fi broadband strategy (along with Cablevision) where their home broadband consumers have free access to Wi-Fi. Potentially, if this is part of the shared relationship, Verizon Wireless customers that purchase cable-based broadband will be offloading more of their data use to a Wi-Fi network. As a result, Verizon Wireless may have just scored more spectrum, and an off-load network to reduce strain of the spectrum as well. The result could be a very robust connected device strategy that provides clear differentiation from the competition.

So far, that’s the easy news, and a combination of Microsoft and Nokia should ensure that the marketing push is truly pervasive. A more interesting issue is the value-added services that Nokia has come to be known for (at least outside the U.S). Mapping is a certainty and the Navteq-based Nokia map is already available for the U.S. market. Nokia’s music aspirations may be trickier. Nokia plans to leverage its current Nokia Music store services to provide a free streaming solution (with an offline option) for Nokia Windows Phone devices. The new music service – Nokia Music Mix – provides compilation channels of tracks sourced from the Music Store, and in particular leveraging locally-relevant music based on the existing Nokia Music strategy in various parts of the world. But Nokia never managed to bring the music service to the U.S. market due to a number of factors, such as licensing agreements. Will this impact the company’s ability to deliver a full level of service to the U.S. market? Perhaps, but the phone alone, which is the slickest implementation of Windwos Phone to date, and with hardware that is elegantly distinctive from the mass of standard smartphones, should be enough to drive Nokia sales…even in the U.S.