Sales Boom for iPad

Sales Boom Looms for iPad and Other Tablets

Apple's iPad is driving tablet sales that Gartner expects to reach 208 million by 2014, fueled by strong demand outside the U.S. Gartner expects tablets to cannibalize sales of e-readers, gaming devices, and netbooks. Smartphones could also be affected as tablets become more like phones. One analyst disagrees, and called Gartner a "sensationalist."

The iPad is driving worldwide tablet sales through the roof. Gartner is predicting tablet sales will reach 19.5 million units in 2010 before jumping 181 percent in 2011 to reach 54.8 million. By 2014, Gartner expects consumers to buy 208 million tablets.

"The all-in-one nature of media tablets will result in the cannibalization of other consumer electronics devices such as e-readers, gaming devices, and media players," said Carolina Milanesi, research vice president at Gartner. "Mini-notebooks will suffer from the strongest cannibalization threat as media-tablet average selling prices drop below $300 over the next two years."

By Jennifer LeClaire

Apple Second-Quarter Net Income Leaps 90 Percent

Apple's earnings in the second quarter have surged past analysts' expectations, and strong iPhone sales are the key: Apple says nine million of the smartphones were sold in the three months that ended March 27, more than double sales from a year ago. Strong Macintosh sales also bolstered Apple's numbers, with almost three million sold.

Apple says its net income in the most recent quarter jumped 90 percent, helped by strong iPhone and Macintosh computer sales.

Its results blew past Wall Street's expectations.

Apple Inc. says it sold nearly 9 million of its popular smart phones in the three months that ended March 27, more than double sales from a year ago.

The company sold almost 3 million Macs, a 33 percent increase. IPod unit sales edged down 1 percent, but Apple still sold 10 million of the digital players.

Apple says it earned $3.07 billion, or $3.33 per share. Revenue rose 49 percent to $13.5 billion.

Analysts expected Apple to earn $2.45 per share on $12.04 billion in revenue.

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RIM Acquisition May Let BlackBerry Control Car Functions

Research In Motion is acquiring QNX Software Systems, whose open Neutrino operating system is used across many industry verticals, including autos. RIM may plan to let its BlackBerry smartphones control automotive and other functions. The QNX technology has been licensed for more than 17 million in-vehicle systems worldwide.

Research In Motion has put its buying power in motion with the acquisition of QNX Software Systems. The Waterloo, Canada-based phone maker reached an agreement with QNX's parent company, Harman International, to acquire the company, RIM announced Friday.

By acquiring the Ottawa, Canada-based QNX, RIM will gain access to its open operating system , Neutrino. The open platform is used across many industry verticals, including telecommunications, medical, defense and automotive.

While QNX's software is used in life-critical systems such as air traffic control, surgical equipment, and nuclear power plants, it has been used most recently in casino gaming terminals and in-car infotainment systems.

Licenses to Entertain

The phone maker may be planning to integrate its BlackBerry smartphone functions with in-car audio and infotainment systems in the short term, but for the long term it looks as though RIM may be interested in providing dashboard and communications systems using BlackBerry functions.

"RIM is interested in expanding opportunities for QNX in the automotive sector and other markets," said Paul Leroux, a spokesperson for QNX. "No question, this is a positive development for QNX."

By Patricia Resende

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China Unlikely To Budge Despite Google's Threat

A Chinese official has affirmed the nation's censorship goals despite Google's threat to pull out of the country. Minister Wang Chen wrote on an official Chinese web site that controlling information ensures national security. Dropping 30 percent of China's search market could hurt Google, but it might return in a different business form.

Two days after Google threatened to stop doing business in China, the nation's leadership is not budging. A senior Chinese government official left little reason to believe Google can find a compromise with the communist country.

Wang Chen, the minister of the State Council Information Office, did not address the Google incident directly. Rather, his statement was posted on an official government web site and in state-controlled media.

"China's Internet is entering an important stage of development, confronting both rare opportunities and severe challenges. The Internet is bringing massive changes to social life, as well as making life much more convenient for many, but at the same time problems with Internetsecurity are increasingly stark," said Chen, noting a severe threat to the physical and mental health of minors from Internet pornography.

China: Internet Should Nurture

As Chen sees it, ensuring the secure operation of the Internet and its information flow ensures national security and the fundamental interests of the people.

In some sense, he said, the greater the reach and influence of Internet media, the greater are the demands for security and reliability, and the greater the responsibilities officials shoulder for Internet security. He said the Internet must fully grasp the major significance of ensuring security and constantly enhance its sense of responsibility, urgency and mission.

"We must make truly improving our capacity to guide opinion on the Internet a major measure for protecting Internet security. Our country is at a crucial stage of reform and development, and this is a period of marked social conflicts. ... Properly guiding Internet opinion is a major measure for protecting Internet information security," Chen said.

Chen added that Internet media need to make nurturing positive, progressive mainstream opinion an important duty. Currently, he added, the Internet allows spreading rumors, issuing false information, and other actions that diminish confidence, and this is causing serious damage to society and the public interest.

China Can't Capitulate

Chen's words may the best picture of China's motives for censoring the Internet. The ability to weed out dissidents is very important to China -- and it doesn't want a revolution, said Rob Enderle, principal analyst at the Enderle Group. He doesn't see much wiggle room for Google in its face off with China, despite support from activist groups for human rights and privacy.

"China has to a large extent subordinated consumer rights to government rights, and if Google wants to stay there they'll have to live under that. Most other companies have bowed down to it," Enderle said. "China is not in a position to capitulate. If they did it for Google, they'd have to do it for everybody."

China has more than 360 million web users and Google owns about 30 percent of the search market. Leaving China may not be the most profitable move for Google, but it may be the most palatable for the company. And Google may be able to return in different business clothes.

"If Google leaves, they lose one of the largest economies of the world and going back in is very difficult," Enderle said. "But they could find a way. They would have to partner with another company to separate their brand from the business if they wanted to go back."

By Jennifer LeClaire

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Facebook Users Can Get McAfee Virus Protection

Facebook and McAfee have partnered to offer Facebook users six months of free malware protection. McAfee will also scan Facebook messages for hidden malware. The Facebook announcement comes just days after CEO Mark Zuckerberg caused a ruckus on privacy. McAfee will also help develop content for Facebook's lightly used security page.

Responding to the growing threat of malware, Facebook on Wednesday announced a partnership withsecurity giant McAfee that will encourage users to sign up for virus protection. The social network , which says it has 350 million users, has also developed a system with McAfee to scan Facebook messages for hidden malware.

If a threat is detected from a user, Facebook will be able to lock out that user's account until a free scan and clean program is run.

Good Timing?

The announcement comes just days after Facebook CEO Mark Zuckerberg caused a ruckus in the tech and online world by saying that the "social norm" had evolved to the point where people were less concerned about privacy and more inclined to share details of their lives on the Internet.

One expert said the timing, likely coincidental, might help change the conversation.

"Certainly, this would have been in the works for quite some time," said Michael Zimmer, an assistant professor in the school of information studies at the University of Wisconsin-Milwaukee and an associate at the Center for Information Policy Research. "But I wouldn't be surprised if someone at Facebook decided to accelerate the announcement to show that they're taking user security seriously."

Facebook said the deal is an expansion of measures it began taking in July to detect compromised user accounts. The agreement will allow Facebook users a free subscription to McAfee Internet Security Suite software for six months, followed by a discount one-year subscription. The software protects against "viruses, spyware, hackers, online scammers, identity thieves, and other cybercriminals," McAfee says.

Another security software company, BitDefender, announced on Dec. 30 that spyware and malware activity rose drastically at the end of 2009. The company pointed to Trojan.Clicker.CM, which can force advertisements inside users' browsers when visiting nonsecure web sites, as the leading threat. Others include Win32.Worm.Downadup.Gen, Exploit.PDF-JS.Gen and Worm.Autorun.VHG.

The most common malware on Facebook has been Koobface, first detected in 2008.

BitDefender said the most common countries of origin for malware were China, France and the United States, followed by Australia, Romania and Spain.

The Best Defense Is an Offense

The McAfee subscription is available by selecting Protect Your PC on McAfee's Facebook page. Facebook said it will not receive any revenue from the deal

By Adam Dickter

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