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Adobe’s Updated Digital Publishing Suite Means More Magazines For The iPhone

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When it comes to digital magazines, why should tablet owners have all the fun? That’s the sentiment Adobe was espousing earlier today at an event held in New York where they officially pulled back the curtains on their updated Digital Publishing Suite.

You’d be forgiven if you haven’t stumbled across Adobe’s DPS before — as the name sort of implies, it’s meant for publishers to prepare digital editions of their print content for consumption on all sorts of gadgetry. Given their size, tablets have been the obvious focus for content creators, but Adobe’s new update brings (among other things) the ability for them to whip up digital magazines that work well on the iPhone too.

One publisher has already signaled their commitment to tailoring their digital magazine experience to the iPhone — Conde Nast leans pretty heavily on Adobe’s Digital Publishing Suite to layout their digital editions, and they revealed that an iPhone-friendly makeover for The New Yorker was in the works. Here’s hoping that some of Conde Nast’s other properties (my fingers are crossed for the exceptionally handsome Wired) get the same treatment, though the shift toward smaller screens will force designers to rethink how users read and engage with that content.

Even with the process for creating rich media content for smaller screens streamlined (Adobe offers up their own best practices here), it’s still no easy feat to devise a handsome, thoughtful way to dive into that content on a smaller screen. That lack of real estate means that publishers will have to get really creative in order to deliver the sort of experience that make digital magazines more compelling than their dead-plant counterparts.

[via Gizmodo]


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Firefox For Android Beta Gets Native UI, Improved Performance And Support for Flash

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Mozilla was late to the mobile revolution and is still playing catch-up with Firefox for mobile. It’s starting to look as if Firefox for Android is slowly becoming a competitive player on Google’s platform, though. Today, Mozilla is launching its most radical redesign of its browser for Android in beta. This new version features a redesigned interface that, according to Mozilla, “blends in with the Android user interface.” The beta now also features support for Adobe’s Flash plugin, as well as the usual performance improvements and bug fixes.

Firefox for Android Beta is now available in Google Play and unlike Google’s own impressive Chrome for Android, it will work on any phone running Android 2.2 and above (including, of course, Ice Cream Sandwich). For now, it’s only available in English, though.

The highlight of this release is, without doubt, the new native user interface. This new update, however, also features an improved version of what Mozilla calls the “Awesome Screen,” its smart mobile homepage for Firefox.

In addition, the Firefox team has worked on improving startup and response times for the browser, as well as the browser’s overall graphic performance. Thanks to hardware acceleration, web apps and games on the browser should now also run significantly more smoothly on Firefox for Android. Redoing the user interface, of course, should also give the browser a bit of a speed bump.

Mozilla also promises better text readability in this version by using font size inflation.

The fact that this beta now supports Flash will likely raise some eyebrows. It’s worth noting, though, that by default, plugins are only loaded on touch.


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3,997 Models: Android Fragmentation As Seen By The Developers Of OpenSignalMaps

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Over the past six months, the folks at OpenSignalMaps have been keeping tabs on the devices that have been downloading their network monitoring app, and so far they’ve recorded downloads onto 681,900 separate Android devices in 195 countries. Now they’ve taken all that data and splayed it out for all to see, and it highlights rather nicely how big a headache fragmentation can be for developers.

For the most part, the results are as you’d expect — runaway hits like Samsung’s Galaxy S II was the most represented device among the 3,997 distinct models they spotted, and Samsung Android devices were far and away the most widely used. What really gets me is how many other devices and brands fill up the rest of that list. Seriously, if you haven’t yet, go look at it. Mouse-over some of the smaller blocks, see if there are any brands or devices that ring a bell.

It’s pretty crazy to see just how many players are in the field, and nothing against OpenSignalMaps — their app is actually pretty damned useful — but it’s not an immediate must-download for every user.

That there are gobs of Android devices floating around out there isn’t exactly a shocker, but data like this really drives home the issue. With so many devices running so many versions of Android with who knows many carrier- and manufacturer-mandated tweaks onboard, how is a developer supposed to make sure that all of their users gets a consistent experience? They can’t, unless they’re willing to test like crazy.

Google chairman Eric Schmidt famously downplayed the term “fragmentation” at this year’s CES, suggesting instead that people call it “differentiation.” It’s hard not to agree with sentiment on some level — after all, one of Android’s key strengths is how easily it fits into different niches and price points. But according to him, as long as every Android user is able to use the same apps, there’s no problem here.

That strikes me as a rather shortsighted way of looking at it. Downloading and installing apps is one thing, but what I think really counts — the user experience — can still vary from hardware configuration to hardware configuration. Not a day goes by without new Android hardware (or rumors of new Android hardware) making the rounds — hell, just an hour or so ago, the Wall Street Journal reported that Google will soon be filling out the new Devices section in the Google Play Store with new, unlocked “Nexus” hardware thanks to cooperation from up to five hardware manufacturers.

That’s why developers like Animoca have invested what I can only imagine is a sizable amount of money and effort testing their apps with something like 400 Android devices before pushing them out into the world. And of course, fragmentation isn’t just a hardware issue — the OSM post points out that the two most used versions of Android now only account for 75% of the devices they surveyed, down from 90% last year, yet another issue for developers to grapple with.

Does every developer need to go through a process that outlandish? Certainly not — OpenSignalMaps seems to test on a tiny fraction of that, and smaller developers can cover most of their bases with a handful of carefully chosen devices. At the end of the day though, despite the sheer amount of choice and flexibility that Android has provided users, those developers still have a choice to make — do they want to strive for perfection, or do they want to keep their sanity?


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In Zlango’s World, Emoticons Are The Future (And The Future Revenue Model)

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They say if you want to understand the future, you have to look at children. And if my 10-year-old cousin’s chat history is any indication, we will soon be communicating in emoji, Egyptian hieroglyphics or some other kind of pictographic language that renders the 2,000-year-old Roman alphabet obsolete.

Sometimes she sends me full e-mails like this (except it goes on forever): . It either means ‘My cat ate my homework,’ or it’s the Five Stages of Grief in a single word. I’m not really sure.

Anyway, there is a mobile app for that. It’s called Zlango and it’s backed by Benchmark Capital, Accel Partners and DAG Ventures.

Zlango is a mobile chat app that is on emoticon crack cocaine. Instead of pure text-based chats, it supports emoticons married to words. There are standard packs of pictures in the app, but users can upgrade and pay for new packs of themed emoticons using virtual currency. There are Walking Dead-themed packs, Terminator-themed images and ones that draw their inspiration from anime. When you type words in Zlango, it will auto-suggest different emoticons from its library of more than 1,000 free images.

Mock it as you may, but the app has a few hundred thousand active users every day, which is good for a mobile app that is not a game and is only on one smartphone platform, Android. It came out last October and has delivered 10 billion icons so far. Plus, it had been growing at a 20 to 25 percent month-over-month rate in April.

Zlango is unusual in that it takes a business model from the gaming world and applies it to texting. There are plenty of chat apps out there, but many are very advertising-dependent like Pinger or are paid apps like WhatsApp. By using virtual currency, Zlango can make consumers a little less price sensitive because they’re not paying for packs with real dollars.

The company, which is based in Tel Aviv, has a long history after being founded in 2006. It’s one of those pre-smartphone era companies that is crossing over into an iOS-Android ruled world with a host of feature phone users around the world. Zlango used to rely more on pre-install deals with mobile carriers, but now it needs to go down the direct consumer route. The chief executive Roni Haim came in a few years ago after several telecom and electronics startups, including Alvareon, Gilat Satellite Networks and Foxcom.

“Black and white text is very nostalgic,” Haim said. “Going forward, people will want to send text with images, pictures and videos to express themselves creatively and personalize how they communicate.”

The company hasn’t taken any funding since a $12 million round five years ago and Haim says he has no immediate plans to follow up with more capital.




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Banters Hits The Deadpool, Co-Founders Leto & Moberg Are Betaworks Bound

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Today, the Banters social experiment has officially come to a close, as the startup’s co-founder Lauren Leto said via blog post today that the team will be no longer actively working on the site beginning June 1st. However, in spite of its tumultuous road and final splash into the deadpool, the news came with a silver lining. Both Leto and her co-founder, Patrick Moberg, will be taking up residence at Betaworks, the New York accelerator that has incubated or funded startups like bitly, Chartbeat, SocialFlow, News.me, Kickstarter, TweetDeck, and many more.

As for some background, it was a little under two years ago that Texts From Last Night co-founder Lauren Leto and partner-in-crime Patrick Moberg launched Bnter, a simple way for people to share text, IM, and chat messages with their friends on the web — for all to see.

The startup was backed by a cast of well-known angel investors, including Founder Collective (Chris Dixon), SV Angel (David Lee), High Line Venture Partners (Shana Fisher), and more. It later was the subject of some founder-VC drama along with Spark Capital and Tumblr, but came out alive and continued to iterate.

While it initially focused on SMS, it later broadened its scope to let users share any sort of conversation, including Gchat, in-person chat, email and more, and launched both iPhone and Android apps, a bookmarklet, in-depth Twitter integration, and supported Facebook Chat, Foursquare comments, GroupMe, etc.

In spite of its full roster of available integrations and cross-platform functionality, Banters suffered from a clunky user experience, as its original model required users to launch the app or visit its home page, open a new post, attribute another user to bring them into the conversation, filling out various message boxes, adding tags — and then, at long last, posting. It had become too much like a CMS and had lost the lightweight feel of an SMS tool.

Recognizing this process was arduous for users, Banters launched a new version of its iPhone app in January, which leveraged Siri’s technology to input conversations and quotes. The idea was to make adding a conversation to the app as easy as snapping a mobile photo. Along with its new iPhone app, the startup added more functionality, including a “like” button, activity stream and an ‘Explore’ tab to help surface the best conversations.

And because its original name “Bnter” was tough for some to pronounce, Leto and Moberg changed the startup’s name to “Banters.”

Unfortunately, try as they might, Banters ran its course. Leto said in a blog post today that, although its user base has been passionate, the platform simply hadn’t gained the traction, or user base, the co-founders had hoped it would find.

As a result, beginning June 1st, the team will no longer be actively working on Banters. “We’re not outright closing the site down any time in the foreseeable future,” Leto says in her post, “but, for the sake of prudence, we’re encouraging our users to export their data here.”

Although Banters is hitting the deadpool, its co-founders are moving on to new projects. Leto says that she had long been a fan of “Findings,” Betaworks’ tool that offers “a straightforward, intuitive way to share and discuss quotes from books and the web.” Seeing that Findings and Banters share similar goals, Leto and Moberg will be joining Betaworks this summer.

Leto will become the General Manager at Findings, while Moberg will become Betaworks’ “Hacker-in-Residence.”

Of the new move, Leto says:

It’s never easy to stop working on an idea after having invested so much into it, but I’m thankful that we’ll have the opportunity to keep working on a product that closely aligns with the mission we set out with at Banters: to harness the timeless power of quotes and words, and share them in ways that have only recently been made possible by technology.

It’s unclear to what extent the kerfuffle with Spark Capital handicapped the team’s ability to raise another round of capital, but as Sarah points out in the post, by the time of the botched funding, Leto had “reportedly cut her salary to zero to help the make the company’s ends meet.”

Regardless, the experience didn’t end positively for either side, and it seems that Banters never found that new round of capital it needed to keep its fires lit. It’s tough, too, considering the fact that Banters seemed like it was onto a potentially big idea. Nevertheless, it’s great to see that the two co-founders have landed in a great spot and will, in some capacity, get to continue working on the idea.

For more, see Leto’s blog post on the shuttering of Banters here.


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Flipboard Expands: Adds Audio From NPR, Public Radio & SoundCloud; Introduces Japanese Version

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“Social magazine” Flipboard may have to think up a new tagline for itself, as tonight the company is rolling out an update which greatly expands its focus beyond text-based content to also include audio. The rollout features integrations from NPR, PRI (Public Radio International) and social sound platform, SoundCloud.

Also of note, Flipboard is launching its third localized edition with the debut of a Flipboard app for Japan, following its previous launches in China and France. And there’s an update which will matter a lot to a smaller number of users: integration of Apple’s VoiceOver controls to provide better access for the visually impaired.

Unless you’re based in Japan, the biggest news today is the introduction of the audio content to what’s primarily been a text-focused, magazine-like platform for reading news, blogs and updates from your social networks. But when you think about it, the addition makes sense – news is often delivered through multiple formats, not just text. And Flipboard already has a video section, we should point out.

The audio integrations will be highlighted in a newly added category, simply called “audio,” which will appear after the Flipboard app update (version 1.9) gets pushed out tonight. The section will showcase the curated selections from NPR and PRI including content like NPR’s “Fresh Air” and PRI’s “The World,” for example, as well as content from SoundCloud. However, a search option will also be available so users can find any audio content that Flipboard might now host. SoundCloud users will be able to listen to their sets, favorites, and people or artists they follow, but you won’t need to have a SoundCloud account to take advantage of the new offering.

Audio is background-enabled, too, allowing you to exit the app while continuing to listen, or while continuing to browse through Flipboard.

In speaking with the company earlier today, it becomes clear that the new audio integrations are only the start of what’s next for Flipboard, which is aiming to move from “magazine” to more of a digital entertainment hub. While the company won’t go on record with detailed plans to integrate more audio sources, it does intend to “do more with audio,” given that there are already “lots of great services to work with” out there right now, including on-demand streaming music and radio offerings like Spotify, Rdio, MOG and Pandora, for example.

While deals with those would help Flipboard beef up its music selections, another obvious focus for the company would be the integration of more podcasts – a part of iTunes which today is somewhat of a sub-par experience. (There’s a reason why iTunes/Apple users often turn to third-party apps, like Instacast, e.g).

Further down the road, Flipboard will look into other ways it can do more with video, too, which could mean that it one day will compete with social video services like Twitvid, Showyou, Shelby.tv and others.

As for all that buzz about the Flipboard Android app, which is arriving on the Samsung Galaxy S III and already available as a hacked version, the company would only say that it’s currently working on a broader Android release. But the unintentional beta Flipboard found itself in is somewhat of a blessing and curse for the company. On the one hand, it’s getting much-needed feedback on how Flipboard works on unsupported phones and tablets, but on the other hand, for many Android users, their first experience with the app may be one that’s less than ideal.

Flipboard says it plans to officially come to market this summer on Android, but doesn’t have a date to announce yet.

The Japanese version, audio integrations and voiceover controls are all rolling out tonight on iOS. Or, if you’re new to Flipboard, you can grab it from iTunes here.


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Ask A VC: Spark’s Nabeel Hyatt On Hyper Growth And Whether Facebook Is Fueling Future Rivals

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Ask a VC is back this month (finally!) after a long hiatus. This week we have a freshly-minted VC, Nabeel Hyatt, of Spark Capital. Hyatt just joined Spark after 15 years of starting and building companies. His most recent company was social gaming outfit Conduit, which became Zynga Boston after it was acquired.

We have a couple of questions from readers — one from Nicky, who asks whether the VC model is “broken”, and another from a reader Alex, who asks about how the landscape for user acquisition is changing.

User acquisition is Hyatt’s home turf. As a general manager at Zynga, which is the most data-driven company on the Facebook platform, he had to know the arc and decline of social games like the back of his hand. This is super-useful in light of the explosive growth that apps like SocialCam and Viddy are seeing on Facebook and iOS.

What’s happening right now is that Facebook is finally becoming a potent force in mobile app distribution, as Hyatt explains in the video. A year ago, if I talked to top free or grossing developers, hardly any of them said Facebook was an important channel for acquiring users. They were too addicted to paid channels like Free App A Day, offer walls or even download bots. Several of these channels are now banned by Apple, which is making more room for apps that are genuinely engaging or are getting users virally.

Secondly, Facebook is realizing that if it wants to stay relevant in a mobile era, it has to step up its ability to push traffic to mobile apps, Hyatt says. A year ago, they were bent on bypassing the native app route and pushing the ecosystem toward building with HTML5 instead. But over the last few months, they’ve stepped away from that rhetoric and are now driving traffic to both native and HTML5-based apps.

With the new mobile platform, Facebook is now able to single-handedly drive apps to the top of the free charts on iOS — something it didn’t do a year ago. That pushed apps like Viddy and Socialcam to the top of the charts over the past month. Now the question is what does this mean? How should these companies be valued? Are investors being sophisticated enough about how to value them?

Hyatt says working at Zynga has given him many insights about what to look for. Namely, downloads and even daily active users aren’t sufficient enough metrics for judging apps.

You have to ask for other numbers. For example, he’ll look at one-day retention: how many users come back the second day? And he’ll look at seven-day retention: how many users come back seven days later? He also looks at DAU/MAU, which is the ratio of daily active users to monthly active users. It’s a measure of stickiness: out of all the users that touch an app every month, how many come back every day?

If you look at Viddy and Socialcam, this DAU/MAU metric is looking troubling on both of them, according to AppData. (Though, keep in mind, there have been some reporting errors over the past week.) He said that very few games can thrive if they fall below 12 percent on this metric. Even though Farmville is about three years old, it’s still hovering at around 19 percent. Viddy has been below 10 percent for more than a week and SocialCam just dipped below that key level. This is a negative sign.

That said, when an app gets a slug of growth like this, the peak number of users is not actually that important. It’s the number of users that it keeps engaged for the following several months.


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Twilio Calling: Cloud Telephony Startup Adds An Android SDK, Now Works On 75% Of All Smartphones

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Cloud-based telephony API startup Twilio has made significant inroads into VoIP and other carrier services like SMS by launching products that work on the web and in iOS apps, supporting 90,000 registered developer accounts in the process. Today it’s widening that net considerably with the launch of a new Android client, the first SDK from the company to work on Google’s platform. And it hints that Windows Phone may be next in line.

Considering that Android is currently the most popular smartphone platform globally, this potentially gives Twilio a much bigger opportunity to deliver services to the wider smartphone market — with Android and iOS together accounting for 75 percent of the existing smartphone market, according to Gartner.

Twilio is kicking off its Android service with features to integrate voice features into Android apps: as with Twilio’s existing APIs for iOS apps and websites, the Android VoIP APIs effectively let developers incorporate VoIP features directly into apps, to create features like in-app calling that work without needing to launch any additional apps or services. Other features in the SDK include real-time presence, with developers able to build buddy lists to let users know who is online, and who can voice chat; and app backgrounding, which lets users receive voice calls even if the relevant app is not being used.

But what’s potentially most interesting about the launch of the Android SDK is that it could lead to some interesting bridges built between Android apps, iOS apps, web apps and traditional voice calls.

“We now support the vast majority of smartphones globally,” Thomas Schiavone, director of product management for Twilio, noted in a statement. “With this many developers and our proven success on iOS, we know we’ll see some incredible and innovative cross-platform communication apps in the months to come.”

Schiavone further said that there will be SDKs for other platforms coming soon — and hints that the next SDK to come might be for the Windows Phone platform. “We are looking at what will be next,” he told TechCrunch. “Android and iOS are the leaders, but at this time there is no clear number three. However, we are watching all the other platforms and are particularly interested in Window’s Phone.”

That would also make sense, given the strategic partnership Twilio already has with Microsoft. That partnership was announced earlier this month and means that Microsoft now offers Twilio’s APIs to tens of thousands of Microsoft Azure cloud developers.

In addition to that development, Twilio has been releasing a steady stream of other news in the last month that points to the company looking to expand quickly and make good use of its $33 million in funding to date. Its services are now available in 12 countries — 10 in Europe and the U.S. and Canada — and in April, Twilio hired a full-time executive in Europe, James Parton, poached from Telefonica. But it has also seen one significant executive departure, too: Danielle Morrill, an early employee who headed up marketing, just this week left to work on her own startup, the Y Combinator-backed Refer.ly.

The Android SDK has been running in a private beta, the company tells me, and from today it will be available to all Android developers.


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Gartner: Q1 2012 Phone Sales Declined 2%, Dragged Down By Asia-Pacific. Samsung Leads All

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Sign of a maturing marketing flattening out, a lack of compelling devices, or a contraction in the economy? Gartner today released figures that note that worldwide sales of mobile phones were actually down by two percent this quarter, to reach a total of 419.1 million units — the first time the market has declined since the second quarter of 2009, the analysts say.

Gartner’s explanation is a slowdown in demand from Asia-Pacific, because of a lack of compelling new devices getting launched in the period: users are simply holding out until something better comes along. Nevertheless, of the vendors that are doing well, Samsung is riding at the top of the list, with 20.7 percent of all mobile sales globally, and among smartphones, it is the only Android vendor to have more than 10 percent market share — with Android now accounting for 56 percent of all smartphone sales in the quarter.

This will be the quarter that people remember as the one when Samsung swapped places with Nokia, with others like Strategy Analytics also showing a similar shift. In Gartner’s calculations of mobile sales, Nokia has now slipped down to second position with 19.8 percent of all mobile sales to Samsung’s 20.7 percent, equivalent to 86.6 million units.

Nokia, Gartner notes, had been in the number-one position since 1998 — but from the looks of its earnings for the last few quarters, it doesn’t appear that Nokia will be regaining the lead any time soon.

(Don’t rule it out yet, though. Nokia just yesterday launched two more low-cost, souped up feature phones that play to the developing markets where it has continued to do alright, despite its market share losses in more advanced countries.)

Among the other trends that Gartner noted, it pointed out that white-box vendors — the long tail of device makers that fill in the “others” category seemed to have been hit the hardest.

It notes that while companies like Nokia may have been selling in less at the retail level, white-box vendors have a supply issue in that they overproduced and now have a build-up of inventory. That will mean very cheap devices will be hitting stores in the next couple of quarters as they try to shift their stock for the next generation of devices. (This by the way was a similar problem Nokia had in Q2 2011, when Gartner suspected this might have made Nokia appear to have a bigger share of sales than it actually had.)

Overall, Samsung and Apple were the only two vendors in the top 1o mobile rankings to have gained market share: the rest all declined, as you can see from the list below.

In smartphones the power of the two is even more pronounced. Samsung and Apple now represent 49.3 percent of all smartphones sold — a sure sign of the consolidation being that a year ago the pair only accounted for 29.3 percent. Nokia’s smartphone share is down to 9.2 percent, Gartner says.

Samsung also managed to wrest the leading smartphone maker crown from Apple this quarter: it sold 38 million units to Apple’s 33 million.

Among Android makers, Samsung is also proving once again that it is the brand to beat: it accounted for 40 percent of all Android smartphone sales. (In that respect, Google’s Motorola buy seems less and less like a device play, or that it can realistically be one.)

But even with Apple in second, its actual growth was hugely impressive, at 96.2 percent over the year. China, Gartner notes, is now Apple’s second-largest market after the U.S. It looks like those sales were 8 million in total: 5 million from Apple’s official sales channges, and another 3 million from “transshipments” from Hong Kong.

More worryingly, RIM sold only 9.9 million units in the quarter and its global mobile share declined down to a mere 2.4 percent (in smartphone-only, that share is 6.9 percent, roughly half of what it was a year ago). BlackBerry 10, its new OS, will hopefully be the knight in shining armor that RIM desperately needs. Also, while Windows Phone actually grew in real terms, with 2.7 million sales in the quarter compared to 2.6 million a year ago, it’s not at all keeping pace with overall growth, and its share is now down to 1.9 percent from 2.6 percent a year ago.

Overall, smartphone sales accounted for just over one-quarter of all mobile sales: they stood at 144.4 million units, out of total mobile sales of 428 million units. That represented growth in smartphone sales of 44.7 percent, Gartner says.

Samsung’s Galaxy S III, the follow up to its best-selling Galaxy S II, was launched only last month and is now gradually getting rolled out worldwide — although it has seen mixed reviews and so it remains to be seen whether it will prove to be a similar blockbuster for the Korean company. In the meantime, we all continue to guess when Apple might release its next iPhone — with many suspecting it will not be until the later half of this year.


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iZettle, The ‘Square Of Europe’, Checks Out Mobile Payments In The UK With 3,000 Free Readers For SMBs

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With Square yet to reveal when or where it might offer its mobile payment service in Europe, and PayPal apparently still only talking with would-be partners, the door is wide open for more local players to jump in and pick up some market share. Sweden’s iZettle, which often gets compared to Square, is now doing just that: today it is launching its iOS, dongle-based mobile payment service to the UK, four months after its pan-nordic live launch, and as it is preparing to launch an Android version of its product later this year.

iZettle kicking off its service by giving away 3,000 card readers to small businesses and sole traders in the country as part of its invitation-only beta, which it is running in cooperation with MasterCard, American Express and Diners Club. In its still brief life, it has seen some decent traction in Sweden, Norway, Denmark and Finland, where it now has 50,000 active merchants on its network.

iZettle is filling a practical need in the current market. The initial aim of the service, according to Jacob de Geer, the founder and CEO, is to target not those merchants that already take card payments, but those who have never signed on to using anything other than checks, cash and invoices to accept payments. There are roughly 20 million small businesses in Europe that fall into this category, he says, with the “uncarded” ranging from sole traders like carpenters to small independent cafes. “We’re not trying to go after those with existing infrastructure because switching costs are too high,” he says.

De Geer will not yet reveal the total number or value of transactions or how many consumers that have used the service to date, except to say that the company is building out its infrastructure to keep up with the demand and has grown by 10 percent in recent months. What’s interesting is that, for now at least, the service seems to be attracting high-value transactions: De Geer says the average value of a transaction is €60 ($76), compared to between €10 and €15 for the average NFC transaction in the Nordic region. (In comparison, he notes that Square transacts between $8-10 per day on any given reader, but that’s an average number and it has picked up a huge number of merchants now.)

The iZettle service works similar to PayPal’s Here and Square, in that a merchant plugs a card-reading dongle into an iOS device to process a card payment using an app downloaded to the device. Instead of reading the magnetic strip on the back of the card, iZettle reads the chip — these are now near-ubiquitous in Europe and tend to be more secure. Like other card payment services, you sign on the device screen to complete a payment, and the funds are deposited in a merchant account the next day.

Similar to other payment services iZettle works on a commission basis — in its case a percentage on each transaction, with that percentage varying by country. It actually dropped a transaction fee it used to take only days ago — perhaps a sign of how the area is heating up and so offering more competitive offerings is essential.

For now, the service is only on iOS but De Geer says that Android is coming soon, “this year for sure.” He says that the delay was due to (surprise!) fragmentation across too many versions of the platform, and too many devices. But the evolution to Ice Cream Sandwich — the latest OS — is definitely making things more standardized, he notes.

One expansion that is not coming soon is to the U.S. Not only do companies like Square and Here have a lot of early business sewn up, but he also notes that “The U.S. is not too interesting for us given that they use the mag stripe and we focus on chip-and-PIN services.”

More interesting, he says, are markets like Asia and Latin America, where there is good chip-card penetration but card payment facilities are still relatively low among smaller businesses. Still, the next launches are likely to be in Europe, with Germany, France, Italy and Spain all on De Geer’s roadmap, with “one or two of those” expected to come online this summer. To date, iZettle has received venture funding of $16.4 million from Index, Creandum and others to fund that expansion.

Interested companies can either register a request through iZettle’s web site, or via its iTunes app, and the first 3,000 will get a free card reader to get started.


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