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OnLive closing? Company says ‘of course not’

Update: While OnLive provided the same statement (below) to Kotaku as they did to Joystiq, a new report from Kotaku, citing a source inside OnLive, claimed the company is about to file for bankruptcy and layoff most of its employees:

The source says that everyone at the company knew things were tight. This morning, an all-hands meeting was called at 10 a.m. this morning where CEO Steve Perlman said that OnLive would be filing for ABC bankruptcy in the state of California—a status that affords them a level of protection from creditors. Perlman also said that the company as it stands now would cease to exist and that no one would be employed by OnLive. A subset of employees would be brought on to the company created from the remains of OnLive.

[tweet https://twitter.com/onlive/status/236537627526979584]

OnLive’s Director of Corporate Communications Brian Jaquet has shot down rumors that the game streaming service is closing its doors after several media outlets reported the story earlier today. A report from The Verge, citing video game developer Brian Fargo and emails from former OnLive staff members, claimed the game-streaming service would shut its doors and lay off staff immediately. Emails obtained by The Verge’s sister site, Polygon, claimed a new company would be formed. However, current OnLive employees would be let go for the time being:

“I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist,” reads an email forwarded to Polygon. “Unfortunately, my job and everyone else’s was included. A new company will be formed and the management of the company will be in contact with you about the current initiatives in place, including the titles that will remain on the service.”

Speaking with Joystiq, Jaquet confirmed OnLive is not shutting down:

“We don’t respond to rumors, but of course not… The exciting news is that the first VIZIO Co-Stars (Google TV stream players) with the OnLive app built-in have just arrived in customer homes,” he continued, “and our second of three ‘Indie Giveaway Weekends’ is going on now. OnLive users can get a free copy of the award-winning games Space Pirates and Zombies and SpaceChem.” So it sounds like OnLive is still open for business.

When asked about possible layoffs, Jaquet confirmed: “The OnLive service is not shutting down.”

Samsung witnesses: Apple owes up to $422M if found guilty of patent infringement

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Another day, more witnesses, accusations of crack smoking. Day 10 of the Apple vs. Samsung case is on the way in sunny San Jose, Calif., this afternoon, where Samsung continues to bring key witnesses to the stand to rest its case. First off—Samsung called financial expert Michael Wagner to the stand this morning to discuss financials. Apple called its own similar witness to the stand earlier, who said Samsung’s margin of United States sales was roughly 35.5-percent (or  $8.16 billion). According to ReutersWagner stated to the court today that Apple overstated the amount of profit Samsung earns for its mobile products in the U.S. Instead of the 35.5-percent Apple alleged, according to Wagner, Samsung’s U.S. margin is only 12 percent (or $519 million). Apple finished its case last week by asserting Samsung owes $2.5 billion to $2.7 billion in damages for alleged “slavish” copying.

With Apple’s explanation on the table, and the amount it is requesting in damages, along with the barring of some products, Samsung had its turn to state its case. Samsung claimed Apple copied its patents that cover emailing pictures from photo albums, the act of playing music from the device, and more. Apple made similar claims to Samsung.

Two more witnesses who took the stand today calculated the amount of royalties Apple would owe Samsung if the company were found to be infringing patents, Bloomberg noted. Vincent O’Brien, a damages expert, told the court that for two of Samsung’s patents, Apple should owe $22.8 million to Samsung. Another witness, David Teece, further asserted Apple should owe another $290 million to $399 million for two Samsung patents. That is a grand total of $422 million, which Apple could eventually be ordered to pay out if found guilty. Samsung rested its case. In further courtroom news, Judge Lucy Koh was once again fired up:


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Handy iOS version/device matrix chart [PDF]

The Loop pointed us to this iOS support matrix (Autumn 2012 edition) posted by app developer Empirical Magic. Definitely a useful resource for developers, the chart shows the number of devices running certain versions of iOS, and makes recommendations for dropping support in future updates.

Apple’s last witness: 2M iPhone and iPad sales, $488.8M lost because of Samsung’s copying

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After 25 hours to make its case in the Apple vs. Samsung trial in San Jose, Calif., Apple wrapped up 14 hours this afternoon by calling CPA Terry Musika to the stand. The Verge reported that, while on the stand, Musika broke down just how much money Apple lost due to Samsung’s patent infringement, which is the highlight of the entire case. According to Musika and Apple’s calculations, the company lost 2 million iPhone and iPad sales or $488.8 million in total. The amount was calculated by the products that Samsung was accused of copying, as well as royalty fees Apple believes Samsung should have paid for its products in question, and profits that Apple may have lost.

The CPA then brought up the $8.16 billion in revenue and $2.241 billion in profit Samsung garnered from the sale of its devices. After taking Samsung’s taxes, profit, and the market conditions at the time into consideration, Musika believes Samsung should pay $2.5 billion to $2.75 billion in damages. That figure is on key with what Apple has already presented. Read on:


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Hong Kong’s second Apple Store landing in Hysan Place, opening later this year?

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Apple’s first store in the heart of Hong Kong’s IFC opened to the public last fall. The store is massive, sporting a gigantic glass display that spans across six lanes of the street below and includes a giant staircase in the center of the store. Around the same time as the IFC launch, a second Apple Store located in Hong Kong was rumored to be in the works. We learned much more about the new flagship store today…


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GameStop’s master turnaround plan revolves around selling used Apple products

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Texas-based game retailer GameStop has taken a hit over the past year as users move game downloads to mobile devices and online platforms. While the company still maintains a two-thirds share of the retail market, its stock has taken a sharp 26 percent dive, leaving the company in need of a serious turn-around. We first reported last September that GameStop had begun taking in trade-ins of Apple’s devices, and we now have learned that was a part of the company’s master plan to bounce back.

In an effort to avoid the fate of Blockbuster, Circuit City and others in the remainder bin of failed retailers, GameStop has embarked on a daring, if inglorious, strategy: refashioning itself from a console-game purveyor into a repairer and reseller of Apple gadgets, betting that its retail visibility will prove an advantage.


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Best Buy founder looking to make major company changes with Apple tactics in mind

Minnesota-based retail chain Best Buy is looking to make some major changes to its business as sales of electronics are moving online. Best Buy founder Richard Schulze told The Wall Street Journal that his company is going to cut prices to better compete with online markets like Amazon and eBay. Furthermore, the founder, who owns one-fifth of the company, wants to enact changes to its customer service that are more in-line with Apple. Apple’s customer service has been called one of the best out of any major corporation, so it would definitely be a smart move. The Apple Care customer service line, coupled with great in-store support, make for a great experience for customers. Best Buy is also looking to make other changes like cutting up to 50 of its larger stores and cut up to $800 million in costs by 2015. Best Buy’s board will meet at the end of August to discuss the proposed changes. [WSJ]


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T-Mobile RF engineer answers questions about iPhone traffic and LTE plans

A T-Mobile RF engineer, claiming to be “heavily involved” in the carrier’s LTE upgrades and network modernization plans, started an AMA on Reddit this morning. Not surprisingly, many of the questions were iPhone and Apple-related. The questions ranged from how much 2G/EDGE traffic the carrier’s network sees from iPhone customers as it begins to transition that spectrum to WCDMA to where T-Mobile plans to upgrade its network coverage next:

Q: Can you talk briefly about how much traffic on GERAN you see from iPhone customers? How much of a catch-22 is that situation for moving that PCS spectrum dedicated to it over to WCDMA?

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Apple’s original icon designer can’t tell the difference between a Samsung phone and an iPhone

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Another day, another witness takes the stand in the Apple vs. Samsung trial. Graphic designer Susan Kare, who once did phenomenal work for Apple in the 1980s, took the stand to testify today and point out similarities between Samsung and Apple’s devices. The Wall Street Journal was present in the courtroom and reported this afternoon that Kare noted that the icons on Samsung devices in many cases infringed on Apple’s patents. We showed you the compelling similarities yesterday and asked if you thought that made Apple’s case.

Kare went on to say that even said she once mistakenly picked up a Samsung device while aiming to pick up an iPhone when meeting with lawyers before the trial. “I think of myself as someone who’s pretty granular about looking at graphics, and I mistook one for the other,” said Kare to the courtroom.

During Samsung’s cross-examination of Kare, the company’s lead attorney, Charles Verhoeven, fired up both a Samsung device and an iPhone to show their startup screens. From there, he concluded that customers should be able to tell the difference between devices due to the logos and sound on Samsung’s Android-branded device (in this instance, specifically). Kare told the court she had “only prepared to compare the look and feel of the two operating systems, and not evaluate their functionality,” noted CNET.


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Apple sued over FaceTime in China for allegedly violating patent

A Taiwanese man in a Zhenjiang court filed a lawsuit against Cupertino-based Apple, claiming the company is infringing on his patent with its FaceTime technology that is present in many iOS and OS X products. According to the man’s lawyer, his client earned the patent in 2003 while working under an employer. Once he left, the patent transferred to his name. The patent, which covers a “voice network personal digital assistant” (sounds more like Siri?), is entirely now under his ownership.

The first hearing is happening next month, according to MIC Gadgetbut Apple has not responded to the accusations. The man does not know how much in damages he is seeking, but demands that Apple stops using FaceTime (an unlikely scenario).

This is not the first legal event in China for Apple in 2012. Many of you might  remember the huge Proview case, where the company claimed it held the “iPad” trademark that Apple calls its tablet line. Proview sought $1.6 billion in damages, but the case settled with Apple paying $60 million to Proview.

It is unclear how the latest FaceTime lawsuit in Zhenjiang will play out, but you can check out the lawyer’s statement below to start forming an opinion: [MIC Gadget]


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Foxconn to keep Sharp afloat as an Apple parts supplier

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Over the years, Sharp has served as one of the key suppliers to Apple for several parts. Sharp’s president even said late last week that the company will begin shipping displays for the sixth-generation iPhone next month. The device is expected to be announced and to ship around the same time. You would think that Sharp would be well off with a contract from Apple, but that does not look to be the case. Sharp is in hot water, reported BloombergFoxconn may be in-line to help the company survive, however, thus benefiting Apple.

You may remember when Foxconn announced that it bought a stake in Sharp in May. The company announced last week that it was seeking a lower price for the purchase, but it would continue to back the company. Bloomberg said that Foxconn wants to secure the stake in order to secure parts for its large client, Apple. Apple, of course, is one of the biggest parts buyers in the world, as it buys from Sharp, Foxconn, LG, Japan Display, and more.

Apple has a large bet on Sharp to ship its product worldwide. Without a key supplier like Sharp, Cupertino-based Apple could face huge delays when shipping a product by not keeping up with demand. Apple Chief Executive Officer Tim Cook has iterated the need to keep up with demand on the company’s quarterly earnings call time-and-time again. Furthermore, Sharp is said to be a key supplier for the rumored Apple television set that somewhat-famed, Apple-focused analyst Gene Munster said is coming sometime during 2013. Apple needs Sharp.


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Flash from the past: ‘Happy Mac’ designer Susan Kare will testify in Apple vs. Samsung case

With billions of dollars on the line, Apple called the creator of its Happy Mac logo, Susan Kare, to the witness stand to testify in the Apple vs. Samsung case. The Happy Mac logo was once the bootup icon for Macintoshes during the 1980s, and it became colorful when the PowerPC Macs were later introduced. Kare also designed many other graphics on the Mac including the trashcan. After her stint at Apple, Kare was one of the original employees at NeXT under Steve Jobs, and she later worked for Microsoft and IBM. CNET reported that Kare would be called to the witness stand so Apple could ask her to compare Samsung’s devices to three Apple patents covering the iPhone. Apple wants her to point out the similarities between the two.

The third day of court begins today, where Kare and more will be called to the stand as witnesses. Each party has 25 hours to tell their side of the story with a limit of 50 witnesses. Here’s who is next: [CNET]


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Senator Al Franken doesn’t believe AT&T should be able to charge extra for FaceTime

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Last month, we broke the news that there were clear signs AT&T was at least laying the groundwork for charging an additional fee for FaceTime over its network. You really do not need any more evidence than the screenshot above, but AT&T’s CEO went on record refusing to deny the plans.

That might not be such a smart move, however. Already, U.S. Senators, like Al Franken, do not seem to cool with the idea, with the former comedian from Minnesota saying in an interview with Nilay Patel of The Verge:

“That’s wrong,” he quickly replied when told of rumors that claim Ma Bell may place a premium on Apple’s video chat technology when iOS 6 launches this fall. “Because that’s not the architecture we’ve had.”

Video with wider network neutrality context follows:

[youtube=http://www.youtube.com/watch?v=k8kuhj4SKCE&start=445]

Rewind the entire thing for the whole conversation.
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ComScore: Ahead of iPhone refresh, Apple outgrew Android and the iPhone took market share from Samsung, Motorola and LG

Today’s comScore report measured the U.S. phone landscape from March to June with some surprising surges from Apple noted. Apple was the only manufacturer to gain market share in the overall handset business by growing 1.4-points in the three months. This is particularly notable because Apple’s iPhone is expected to get refreshed in September.

Additionally, iOS outgrew Android in the three-month span from 1.7-points to 0.6-points (see chart below). The gains by both OSes to a whopping 84 percent of all smartphones measured were at the expense of Microsoft, RIM, and Symbian. On the changes, comScore said:


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One of Apple’s lead designers reveals that the design process starts around a big kitchen table

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“Our role is to imagine products that don’t exist and guide them to life,” said Apple industrial designer Chris Stringer (no relation to Sony’s ex-CEO Howard Stringer), who has been a part of every design since 1995, when he testified today in court as part of the Apple vs. Samsung trial.

Who helps imagine those products that come to life? Stringer told the court that Apple has a small team of only 15 or 16 people who design the original idea for the company’s key products, from the iPhone to the MacBook Pro, AllThingsD first reported. Apple’s lead designer, Sir Jonny Ive, is of the group.

Interestingly, he added the design process begins around a kitchen table, where the intimate team hashes out ideas to someday come to light. If the team believes an idea is good enough, the idea will be made into a physical model. In typical Apple design fashion, the group pays so much attention to detail that there can be up to 50 drawings for one button. What a crazy look into the start of the products we use everyday.

Apple Senior Vice President Phil Schiller is set to take stand next in the case, where both parties are seeking damages over a slew of patents. What a treasure trove of information this case is turning out to be.

 [AllThingsD]


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Amazon Cloud Drive’s gets ‘scan and match’, higher bit rates, much more

A huge update today from Amazon:

Amazon Cloud Player is a service that enables customers to securely store music in the cloud and play it wherever they are on a Kindle Fire, Android phone, Android tablet, iPhone, iPod touch, iPad, Mac, or PC. Amazon Cloud Player now has more benefits, including:

  • Faster music import for Cloud Player using scan and match technology
  • Upgrade of matched files to high-quality 256 Kbps audio
  • Delivery of future Amazon MP3 purchases directly to Cloud Player
  • Delivery of eligible past Amazon MP3 purchases to Cloud Player without having to import them
  • Ability to edit song and album information (such as title and track number), and the ability to import that information for matched files directly from Amazon’s catalog
  • Support for more music file types


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Would Apple ‘confirm’ iPhone event if screen low yield rates were going to affect delivery schedule? (Also AAPL splitting, and buyouts)

After iMore broke the September iPhone event news, Apple, through its channels, confirmed to not one, not two, three, or four, but at least five different publications that the iPhone event would be Sept. 12 with a Sept. 21 launch. If you do not think these are Apple PR confirmations, I have a nice bridge to sell you.

[tweet https://twitter.com/jdalrymple/status/230324873451417600]

With that information in hand, we are pretty certain Apple is on track for a September iPhone announcement.  …But wait.

Digitimes has some bad news for us today.

Low yield rates of in-cell touch panels might disrupt new iPhone delivery schedule and shipments, say rumors

LOL!

In related news, Bloomberg reports that an Analyst says Apple will split its stock so it can join the Dow Jones Industrials—something that has always been on the top of Apple’s priorities list. Sound familiar?

Joining in, the NYTimes suggests that Apple buy US Carrier Sprint, RIM, Twitter and Path. 
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Samsung Chief Product Officer talks patent wars and rectangles

After execs from both companies could not come to terms in an attempt to settle, both Samsung and Apple take the stand in a San José, Calif., court room this week. Apple and Samsung will face off for allegedly stealing each other’s patents. Apple also claims that Samsung’s Galaxy devices “slavishly” copied its beloved iPhone and iPad. The same type of trial already played out in many countries across the pond. It will be interesting to see where this all goes, especially after the injunctions against Samsung’s products we have already seen.

Samsung Chief Product Officer Kevin Packingham recently sat down with the folks at Wired to answer a few questions on the recent legal matters, shedding more light on Samsung’s view of the whole legal fiasco. First off, Packingham answers a question regarding the separation between Samsung’s component business that supplies necessary parts to Apple and the product team that Apple thinks is a bunch of copycats. Packingham answered: “There are times when I’m absolutely appalled that we sell what I consider to be the most innovative, most secret parts of the sauce of our products to some other manufacturer — HTC, LG, Apple, anybody…But you know, we also use Qualcomm components, and we source from other component manufacturers as well.”

Apple, of course, gets a ton of parts from Samsung, and it even partnered with Samsung on a factory in Texas to make A4 and A5 chips for the iPhones and iPads.


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Gas leak at (Dell, RIM, HTC &) Apple MacBook casings manufacturer Catcher injures 5

A chlorine gas leak at one of Apple’s Chinese supplier plants reportedly killed one person and left four others in comas late last night.

According to The Financial Times (via Xinhua Net), the deadly accident occurred at a Catcher Technology factory in eastern China. The company manufactures MacBook casings, as well as product casings for HTC, RIM, and others, and it confirmed late Thursday that the gas allegedly leaked during wastewater processing.

“The accident happened at the waste disposal facility and is not directly related to any manufacturing process, factory, or materials,” said Catcher Vice President of Corporate Finance James Wu in a statement to Reuters.

Another Catcher plant in Suzhou temporarily closed in October 2011 due to local residents who complained about bad odors emitting from the plant. The factory resumed processes within 10 days, however.


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Broadcom announces BCM4335 chip that will likely power 2013’s iPad and iPhone to Gigabit ‘5G’ Wi-Fi

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Broadcom just announced its next round of portable device wireless chip, the BCM4335, which includes the ability to connect to the superfast 802.11ac networks. Apple exclusively uses Broadcom chips in this family for its iOS devices (and a different family for its Macs). The current iPad and iPhone use the Broadcom BCM4330 802.11a/b/g/n baseband/radio with integrated Bluetooth 4.0+HS and an FM transceiver—and the xxx5 is just a minor step up.

We found some code that indicates the next iPhone will use the Broadcom BCM4334, which adds the 40nm process and Wi-Fi Direct capabilities (perhaps opening some Airdrop capabilities too).

The 40nm chip will continue to deliver Bluetooth 4.0 and FM, but its 802.11ac networking could save some power using the new standard. It also features the “industry’s most advanced idle power consumption performance, which significantly extends a mobile device’s battery life.”

Sample chips are already available with a full production expected to be delivered in Q1 2013, just in time for next year’s iPads.

The press release follows:
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Microsoft job listing hints at Outlook and Powerpoint for iOS, perhaps other Office apps

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We had a few hints in the past about Microsoft possibly preparing an iOS version of its Microsoft Office suite of apps. In May, The Daily posted an image of a supposed early build of the software—demoed by a Microsoft employee—rumored to launch in November.

Another hint that Microsoft could have iOS apps in the works comes from a set of job listings posted earlier this month. It looked for a software engineer on the Outlook Test team to work on “Microsoft’s next move on the Mac and on iOS.” Another was on the Powerpoint Test team.

This is not solid proof that Office is coming soon, since Microsoft does have several other iOS apps, such as SkyDrive, OneNote, etc. that could benefit from office integration, but the job listing specifically looks for someone to test Outlook/Powepoint on Mac and iOS.


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Collapsing Nokia may have had Apple-like hardware in development in the 90s

…but horrific corporate management has it in a place where it may be forced into a patent firesale.

Interesting article on Nokia in the Wall Street Journal last night. It starts with:

More than seven years before Apple Inc. rolled out the iPhone, the Nokia team showed a phone with a color touch screen set above a single button. The device was shown locating a restaurant, playing a racing game and ordering lipstick. In the late 1990s, Nokia secretly developed another alluring product: a tablet computer with a wireless connection and touch screen—all features today of the hot-selling Apple iPad.

“Oh my God,” Mr. Nuovo says as he clicks through his old slides. “We had it completely nailed.”

Hardware is a key element, but, as we saw with Apple’s 2002 iPad, software, marketing, ecosystem and maybe most of all timing also play important roles when determining the success of a product line. When the time was right and the opportunities presented themselves, however, Nokia failed to execute.

“What struck me when we started working with Nokia back in 2008 was how Nokia spent much more time than other device makers just strategizing,” Qualcomm Chief Executive Paul Jacobs said. “We would present Nokia with a new technology that to us would seem as a big opportunity. Instead of just diving into this opportunity, Nokia would spend a long time, maybe six to nine months, just assessing the opportunity. And by that time the opportunity often just went away.”

Anecdotally, I have a friend who worked with Nokia in advertising. He would say the same thing: The company was gridlocked by politics and poor leadership. Different product groups treated different parts of the company as competitors and not compatriots.

And, five years after the iPhone unveiled, Nokia is in a tail spin. This is causing a cash crunch so huge that it will likely be forced to sell off a lot of those early patents that are valued around $6 billion—which is just slightly under Nokia’s current $6.5 billion market cap. That means investors have very little confidence in the firms ability to succeed. In fact, had Google waited, Nokia might have been a better patent purchase target than Motorola.

Nokia still is struggling to turn its good ideas into products. The first half of the year saw Nokia book more patents than in any six-month period since 2007, Mr. Elop said, leaving Nokia with more than 30,000 in all. Some might be sold to raise cash, he said.

“We may decide there could be elements of it that could be sold off, turned into more immediate cash for us—which is something that is important when you’re going through a turnaround,” Mr. Elop said.

It is pretty sad that a company like Nokia is not worth more than the patents it holds.

Nielsen: Android and iOS are over 90 percent of US smartphone market, and growing

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…For the first time ever, two-thirds of new phone acquirers are buying smartphones.

Smartphone use is exploding in the United States, while PC sales are dropping. If 66 percent of mobile phone buyers purchase smartphones, and 36.3-percent of them get the iPhone, then that means almost a quarter of all phones bought in the U.S. are iPhones. That also means 36 percent of the purchased phones run Android OS.

More from Nielsen, including the incredibly skewed graphic, is below—which gives Symbian, Palm and Windows 7 devices almost the same amount of “fill” at 2.8-percent as Apple’s 34 percent.


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