This week in Barcelona, the GSMA – the peak global standards body for the mobile phone industry – is hosting its annual industry trade event, the Mobile World Congress. The MWC is arguably the largest annual event in the telecommunications industry. It brings together carriers with mobile phone makers, equipment makers and app developers. It’s where handset manufacturers make the big pitch to mobile carriers for the year ahead. A strong presentation can bring your products to the attention of mobile carriers the world over. Perhaps more than the Consumer Electronics Show in January, the MWC is the big event where mobile phone makers unveil their new smartphones and other products for the year ahead. This year’s event certainly hasn’t underwhelmed, with major announcements from some of the industry’s biggest players. It’s time to take a look at eight of the biggest announcements from this year’s show: 1. Samsung Galaxy S5 Samsung is now easily the biggest handset maker in the industry. According to IDC, for the full year of 2013, it shipped a massive 313.9 million smartphones worldwide – that’s three out of every 10 smartphones shipped anywhere in the world. Forget about Apple versus Samsung, it’s not even a race anymore at this point. Apple shipped 153.4 million units in 2013, meaning that for every handset Apple shipped, Samsung shipped more than two. In fact, with the exception of the US and Japan, Apple is not even really competitive with Samsung anymore. That race was lost two years ago. In addition to manufacturing smartphones, it also supplies itself with almost every component, from batteries and processors to cameras, memory chips and displays. It is both the world’s second biggest chip builder, and the world’s second biggest ship builder. So when Samsung unveils its main, flagship smartphone for the year, you better believe that everyone in the industry – from carriers to competitors – is watching very closely. This year’s flagship, the Galaxy S5, was largely an incremental improvement on its predecessor, with the South Korean tech giant confirming speculation the new device is both dust-proof and waterproof. Needless to say, both Telstra and Optus have already announced they’re carrying the new smartphone. Aside from the Galaxy S5, Samsung shocked the industry when it snubbed Google for the latest version of its Galaxy Gear smartwatches. Instead of Android, the new devices will be powered by its own operating system, known as Tizen. 2. Microsoft’s Nokia X smartphones – powered by Android For nearly two decades, Microsoft’s Windows operating system had battled an open source rival, known as Linux. While Linux has struggled to make inroads in the desktop PC market, it has emerged as the dominant operating system for servers. Linux also forms the basis of Google Android, which competes head-to-head with Microsoft Windows Phone. Meanwhile, in September last year, Microsoft bought the mobile assets of Nokia, along with a licence to use its patents, for $US7.2 billion. In light of this, there was some scepticism when rumours first surfaced that Nokia was gearing up to release a series of smartphones powered by Android. At MWC, Nokia confirmed the rumours by unveiling a new smartphone product line powered by Android called the Nokia X series. The new devices will come with Microsoft’s cloud-based apps and services pre-installed and won’t come with the Google Play app store. Nonetheless, when Microsoft takes control of Nokia in April, it will be selling a consumer product based on Linux. Who would have thought it? 3. Facebook buys WhatsApp for $US16 billion A week before the MWC, Facebook announced it is taking over mobile messaging service WhatsApp for an incredible sum – $US16 billion. With both WhatsApp co-founder and chief executive Jan Koum and Facebook founder and chief executive Mark Zuckerberg delivering keynote speeches at MWC, the tech world was certainly going to pay attention. During the keynote, Koum did not disappoint, announcing WhatsApp was launching free voice calls through its app during the second quarter, once the takeover by Facebook has been completed. No doubt some of the mobile carriers were a little edgy about the prospect of Facebook launching an all-out assault on their lucrative voice call and text message businesses. 4. Mozilla unveils a $25 smartphone This year’s Mobile World Congress marked the one year anniversary of the debut of Mozilla’s smartphone platform, Firefox OS. For those unfamiliar with the platform, Mozilla is best known for its Firefox web browser. Last year, it announced it was creating a mobile operating system based on Firefox that would compete head-to-head with Google Android, Apple iOS, Windows Phone 8 and BlackBerry 10. In Firefox OS, all apps basically work like interactive websites and are coded in web standards, including HTML5 and CSS. Since this is less demanding than running a “full” operating system with apps, the theory went that Firefox OS would perform well on low-end devices aimed for emerging markets. In practice, some of the first Firefox OS smartphones, including the ZTE Open, have left a lot to be desired. As I explained in Control Shift last week, Mozilla’s expansion drive has left it in a precarious position in the marketplace: As if the situation weren’t already urgent enough already, Mozilla’s lucrative deal with Google expires in November of this year. In a sense, it’s fitting that [Mozilla founder Mitchell] Baker has taken up trapeze as a hobby, because Mozilla’s in the middle of a high-wire act. It might be that, over the coming months, one of Mozilla’s growing number of Firefox OS-driven side-projects gains traction in the market place. However, it could also backfire spectacularly, endangering its main source of revenue in the process. Aside from the seven new smartphones on display, Mozilla also announced that a smartphone costing just $25 would hit the market this year. Given that, up until the fourth quarter of last year, more than half of all mobile phones sold worldwide were still featurephones, mostly in emerging markets, the $25 phone might just be the big hit Mozilla’s looking for. Story continues on page 2. Please click below. 5. Major updates for BlackBerry enterprise customers BlackBerry chief executive John Chen’s bid to turn around the fortunes of the smartphone pioneer were filled out in a series of major product announcements at MWC. Up until now, enterprises using BlackBerry Secure Work Spaces on BYOD (bring your own device) smartphones needed to use different versions of BlackBerry Enterprise Service (BES) depending on whether staff used newer BlackBerry 10/Android/iOS devices, or older BlackBerrys. That has been cleared away with the release of BES 12, in the process clearing away many headaches for IT administrators. As an added bonus, it supports Windows Phone devices too. The company also unveiled a new flagship phone with a full keyboard called the Q20 and an enterprise version of its BlackBerry Messenger service called eBBM Suite. 6. At least Sony’s new products are water-tight Earlier this month, Sony announced it is selling its VAIO PC business to investment firm Japan Industrial Partners, spinning off its Bravia TV business into a separate subsidiary and slashing its global headcount by 5000 as part of a major restructure. At the time, the Japanese tech giant announced it’s setting its sights on the smartphone, tablet and wearables markets for its future growth. Suffice to say, the company is hoping it delivered a hit with the products it unveiled at MWC. The company unveiled a new flagship smartphone called the Xperia Z2, a 4G Android 4.4 KitKat smartphone powered by a 2.3 GHz quad-core Qualcomm processor. The company is proclaiming its 20.7-megapixel camera capable is the most ever used in a waterproof smartphone. Which I’m sure is fantastic news for scuba-diving photographers. The company also unveiled a 10.1-inch tablet called, imaginatively enough, the Z2 Tablet. The tablet is being marketed as the lightest ever used in a waterproof tablet. Finally, the company unveiled a smart wristband called the SmartBand. 7. Opportunity knocks for LG? The highlight for LG was an update of the KnockON security system called “Knock Code”, which uses a series of knocks rather than a password to secure a device. The new feature will appear on the LG G Pro 2 phablet, a new six-inch phablet set to go head-to-head with Samsung’s popular Galaxy Note devices. The company also unveiled its “L Series 3” range of low- to mid-range smartphones at the show. That said, most of LG’s big announcements came at the 2014 Consumer Electronics Show in Las Vegas in January, including its LG Lifeband Touch activity tracking bracelet, LG Heart Rate headphones, and webOS-powered smart TVs. 8. Tickets please! With the rapid growth of mobile ticketing, it’s no surprise the world’s largest telecommunications show would embrace NFC tickets. Telstra was one of a range of carriers to trial NFC badge technology for tickets to this year’s event. The badges use information stored by a mobile carrier, including name and telephone number, to help verify an attendee’s identity. The validation process also includes a photo ID check. This year’s show also features an NFC Experience demonstrating NFC-based mobile commerce systems for payment, retail, transport, mobile identity and ticketing/access. In addition, there are 61 NFC-enabled Tap-n-Go Points providing event news, schedules, documents, presentations, videos and other information. According to figures published by ABI research, in the next five years, 34 billion tickets to be sent to mobile devices,. In terms of technology used to authenticate tickets, the figures show 48% will rely on QR codes, near-field communications (NFC) will be used on 30%, while SMS or other technologies will be used on 22%. If the forecast is accurate, it suggests using our smartphones to touch on for events, public transport or entry into secure areas could soon be a part of everyday life.
Samsung has unveiled its newest flagship smartphone, the Galaxy S5, at the Mobile World Congress in Barcelona, with the South Korean tech giant confirming speculation the new device is both dust-proof and waterproof. The Galaxy S5 is built on a 2.5GHz quad-core processor, up from 2.3 GHz quad-core processor in its predecessor, the Galaxy S4, and runs Google Android 4.2.2 KitKat. Samsung is marketing the device as being designed to be used with the company’s Galaxy Gear range of smartwatches, with key features such as its S Health 3 software taking real-time readings from the watch. The GS5 includes a 5.1-inch full HD AMOLED display with a display resolution of 1920 by 1080 pixels, again slightly larger than the 4.8-inch display on its predecessor. A key area of improvement is in the camera, which Samsung had bumped up from 13-megapixels to 16 megapixels, with the device claiming the industry’s faster autofocus speed of up to 0.3 seconds. “People want a high-quality yet easy-to-use camera built into their smartphones so that they can snap, edit and share like a pro. With the Galaxy S5 we were able to incorporate all of these needs without sacrificing the device’s design, style and general functionality,” says Ki Hyoung Son from Samsung Electronics’ camera R&D group. The GS5 also features a removable 2800 mAh battery, a capacity increase from the 2600 mAh batter in the GS4 and 2100 mAh in the GS3. Along with the new battery, the device includes an Ultra Power Saving Mode that turns the display to black and white while shutting off all unnecessary functions. In terms of memory, it includes 2GB of RAM, 16 or 32 GB of internal memory, which can be upgraded using microSD cards. One slight downside of the upgrade is a slight increase in weight, which has increased from 133g on the GS4 to 145g on the GS5. The device is also larger in all dimensions than its predecessor, measuring at 142mm by 72.5mm by 8.1 mm, compared to 138.6mm by 69.8mm by 7.9 mm for its predecessor. In terms of connectivity, the new device includes fifth generation Wi-Fi 802.11ac and 2X2 MIMO, along with USB 3.0 ports and a unique feature called Download Booster, which allows it to simultaneously use Wi-Fi and 4G/LTE to send data. “With the Galaxy S5, Samsung is going back to basics to focus on delivering the capabilities that matter most to our consumers,” Samsung Mobile chief JK Shin says. “Consumers are looking for mobile tools that inspire and support them as they improve their everyday lives. The Galaxy S5 represents an iconic design with essential and useful features to focus on delivering the ultimate smartphone on the market today through people inspired innovation.” Samsung says the new device will be available to consumers in April. This article first appeared on SmartCompany.
A Hobart-based game developer, Six Faces, has been named as one of five companies accepted into the European iGaming Congress Startup LaunchPad program in Barcelona. Six Faces was formed last year and develops online wagering games. The six co-founders had worked in the gaming industry for decades. Six Faces managing director of business development Craig Driver told StartupSmart they had launched the start-up because they were keen to create new products. “We’re trying to change the space, and bring some newness to a space that appears on the surface to be innovative, but really it’s a lot of same-same,” Driver says, adding that the experience of the team has created some vigorous conversations that have led to robust products. Driver says he expects it was their Swopstakes product, a lottery based on sports results, which got them into the pitching competition as it was a fresh idea. The team will be pitching to a crowd of over 1,500 delegates, including an expert panel of gaming investors. Six Faces will be partnering with existing Australian wagering companies and launching their offering in March 2014. Driver says the gaming market is ripe for disruption. “The market is very competitive with a large number of players, but all are competing with essentially the same product suite, the same offering and even very similar price points,” he says. This meant customer acquisition was becoming really expensive, and the promotions were becoming laughable. “We saw an opportunity to differentiate ourselves on product, and we’ll be looking to partner with existing companies and give them a competitive advantage.” Driver says they’ll be seeking global partners and possibly investment at the pitch day, where they will have eight minutes to pitch and answer questions from the judges. “It’s about exposure, and we’re looking to partner with companies globally and in a number of jurisdictions. We’re here in Australia, and we’ll be partnering to launch here in March, but all of our products are global so we’re focused on the UK and Europe next as they’re vibrant gaming markets,” Driver says. Four of the six team members are based in Tasmania. “From relatively humble beginnings and surrounds to be on a global stage and representing Tasmania and Australia, we’re pretty excited,” Driver says.
The founder and chief executive of Silicon Valley start-up Zuora has revealed how the company completed four rounds of funding totalling $82 million, and how the subscription economy is transforming business models. Zuora, founded by Tien Tzuo, provides cloud-based billing and payment solutions, allowing companies to offer services via subscriptions. Zuora refers to this as the subscription economy. Tzuo founded Zuora in 2007 after working for Salesforce.com, where he built the company’s original billing system. He also served as chief marketing officer and chief strategy officer. Today, Zuora employs around 250 people, and has offices in the Bay Area, London, Sydney, Beijing, Atlanta and Chicago. The company has more than 500 customers, including Fairfax, Ninefold, ServCorp and Quotify. It has also raised a total of $82 million, including a $36 million Series D round 18 months ago. Tzuo, who is currently in Australia, told StartupSmart the company has been fortunate to raise such a large amount of money. “Benchmark Capital led our A round, Shasta Ventures led our B round, Redpoint [Ventures] led our C round, and Greylock and Index Ventures led our D round,” he says. “We’re fortunate that the market we’re trying to capitalise on is one that people believe in. People see that the world’s moving towards a subscription economy. “They like us in the sense that, from an investor’s standpoint, they don’t have to bet on who has the best marketing motivation product, who has the best storage product, [etc.]. “A bet on us is sort of a bet on the sector, and so if you believe [in] the whole sector, like SaaS and cloud… then we should be able to grow with it. “They like us because we’re a diversified bet.” Tzuo believes the Series B round, rather than the Series A round, is the most challenging. “It’s one of those things where the A round is sort of all hopes and dreams, whereas… the D round is where you’ve got a bunch of history, you’ve got customers, the business model is starting to form,” he says. “The B round is kind of this tweener thing, where you don’t really have a business model yet and you haven’t figured everything out yet.” According to Tzuo, start-ups are among the companies leading the subscription economy. “We’re seeing a once-in-a-century transformation going on in business models and this is all stemming from the internet,” he says. “There are a lot of start-ups in the commerce space now that offer different things as a service, [such as] the Dollar Shave Club. “We’ve very involved in the start-up innovation space, not just in Silicon Valley but here in Australia… as well as in the UK. “We’ve got start-ups in Berlin, start-ups in Madrid and Barcelona. We’re even talking to a company in Iceland – our first customer in Iceland.” Zuora is also tapping into the concept of “B 2 any”, says Tzuo. “In 2006, 2007, 2008, we saw a lot of start-ups thinking they’re going to sell to consumers and then realising the money was with businesses,” he says. “The whole point is companies are no longer B2C companies or B2B companies… A lot of our customers now are mixed.”
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