When Microsoft announced its acquisition of Skype, I blogged about the value that the Skype user base had to Microsoft, particularly as it looked to bolster the suite of constituencies that the OS vendor sought to draw to Windows Phone 7. That Facebook has now decided to integrate Skype and make it the default engine for video chat inside the service is not a surprise. Facebook has collaborated with Skype in the past and has a strong relationship with the company’s new parent Microsoft. According to Mark Zuckerberg, the Skype integration project was under way before Microsoft acquired Skype, which makes sense given the suddenness with which Microsoft moved to acquire the once IPO-bound IP communications provider.
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In the high-tech world of James Bond, Q equipped the MI6 operative with all manner of category-stretching products – from a pen containing an explosive charge to vehicles that fire missiles. And while, unlike the Polaroid in the 1989 film Licence to Kill, it will never shoot deadly lasers (firmware updates have their limitations), Pentax’s Q camera, which shares its name with 007’s gadget guru, will also blur category boundaries.
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This was a significant week for transatlantic telecom tie-ups. Swedish infrastructure giant Ericsson snapped up Telcordia Technologies, the company that was once Bellcore, the R&D arm of the Baby Bells. Closer to the consumer, though, was Garmin’s acquisition of German navigation competitor Navigon.
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One of the advantages of Windows Phone 7 is that Microsoft maintains more control over which handsets get upgraded and when. To that end, the company has noted that all Windows Phones that have been released to-date will be upgradeable to the next major version. That will help Windows Phone efforts from stronger domestic partners such as Samsung, LG, and HTC.
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When NPD’s Mobile Phone Track became the first to report on Windows Phone 7’s U.S. market share in the fourth quarter, I noted that while Microsoft had done a good job of communicating the integration of Microsoft products and services, they were not all created equal, and that the company still had a long road ahead in terms of catching up in features and differentiating on hardware. For example, without support for 4G networks, none of the original Windows Phone 7 handsets had front-facing cameras.
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Whether you consider Android a deliverer of differentiation or a fiend of fragmentation, you could find much evidence in the diverse ways that two leading bookstore rivals have not only expanded the operating system’s ecosystem, but used it as a vehicle for digital retailing.
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A look at the most successful large-screen handsets throughout 2010 reveals that three variants of Samsung’s Galaxy S – the Fascinate (Verizon), Captivate (AT&T), and Vibrant (T-Mobile) took three of the top five spots. The Fascinate was outsold by the Droid X, and the Epic 4G by the EVO 4G, but in both cases the 4.3” device had a head start on the 4” one. (AT&T did not have a 4.3” device in 2010 and T-Mobile’s 4.3” handset ran an aging version of Windows Mobile.)
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Among the non-surprises at the launch of the new iPad was Apple keeping the “unbelievable” price points where they were for its original slate, including the opening price point of under $500. While I’d be very surprised to not see other companies – particularly HP – at least match Apple in that regard, the iPad has been able to compete on price versus even subsidized products like the Motorola Xoom that smartphone vendors have offered to their go-to channel.
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The arrival of the Kindle at AT&T stores represents more progress in the creeping distribution of Amazon’s popular e-reader. Originally, the Kindle was a 3G-only device powered by Sprint. However, the arrival of Wi-Fi-only competition from Barnes & Noble caused Amazon to respond with its own Wi-Fi-bound Kindle. Since then, far fewer consumers have opted to pay the 3G premium for either device, and Barnes & Noble decided to completely forego a cellular version of its Nook Color “reader’s tablet.” In contrast, category pioneer Sony has fallen behind as its entry-level e-reader, the Pocket Edition, lacks Wi-Fi and relies on PC sideloading.
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One would be hard-pressed to find a stronger advocate of audio quality in the PC world than HP. The company’s engineers have worked with Interscope Records to license the Beats brand and tune the upper end of its PC line to meet the requirements of that brand. It’s also had a public association with Black Eyed Peas artists Will.i.am and Fergie and used this weekend’s GRAMMY awards for high-profile exposure to its new Everybody On campaign.
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Consumer Technology | Ross Rubin, Executive Director, NPD Connected Intelligence | 
July 7, 2011 2:40 pm | 
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