Weekly Digest
Weekly Digest Issue No. 553
17-02-2011
by Deirdre McArdle
Android devices flood Mobile World Congress | Profits jump at Dell, Lenovo
Bumper week for tech sector jobs
It was a positive few days for tech sector jobs in Ireland, with a number of international firms outlining recruitment plans. In Dublin and Galway financial services firm Fidelity Investments announced an EUR11 million investment for an expansion that will lead to the creation of 100 highly skilled technology jobs. The new positions will focus on investment management and corporate enterprise technology solutions. The firm set up in Ireland in 1996 and currently has over 240 technology-focused employees in Dublin and Galway. It said the success of its existing operations here, as well as research carried out in Irish universities, were key factors in its decision to expand here.
Cementing Ireland's status as the internet capital of Europe, online payments firm PayPal said on Wednesday it planned to create 150 new jobs at its Dublin headquarters. This latest round of hiring will bring PayPal's Irish workforce to over 1,350, making it a significant employer in the Irish tech sector. The new positions will be based in the payment firm's European Centre of Excellence in Blanchardstown, and they will mainly focus on customer service.
Also on Wednesday, in another fast-growing segment of the technology sector, American Medical Systems said it was to invest EUR4.6 million in the establishment of a manufacturing facility in Athlone. The plan will see the company create 50 new jobs at the facility, which is the firm's first manufacturing operations outside the US. Finally, US software firm Kana Software announced a STG7 million investment in Belfast, where it plans to open a development, consultant services and technical support unit. The move will create 109 jobs in Belfast.
Android devices flood Mobile World Congress
One of the hottest events in the opening months of the year kicked off this week in Barcelona. The stand-out event for the global mobile industry, the Mobile World Congress (MWC) typically attracts 50,000 senior mobile executives from 200 countries. Traditionally, the event sees new releases from major mobile players, and this year was no exception.
Judging by the reports coming out of Barcelona, Android-related announcements dominated the event. Every significant device launched at MWC, from smartphones to tablets, is powered by Google's Android platform. Samsung Electronics launched the new Galaxy S smartphone and tablet; HTC revealed its first tablet, as well as five new smartphones; and LG Electronics debuted its G-Slate tablet and the first 3D phone, the LG Optimus. All of these devices run on Android.
Meanwhile, Sony Ericsson unveiled the Xperia Play, which is essentially a PlayStation phone. The device is the latest in Sony Ericsson's Xperia range of smartphones, and will be powered by Android Gingerbread, the latest version of the operating system. It will feature a four-inch touchscreen and a slide-out gaming controller. The device is the first to be PlayStation Certified. The device will go on sale in Ireland in early April and will be available on all networks: Vodafone, O2, Three, Meteor and eMobile. A price for the Xperia Play hasn't been revealed yet.
Rounding off the MWC was the Global Mobile Awards, where Apple's iPhone 4 was named 'Best Mobile Device', while HTC was named 'Device Manufacturer of the Year', largely in recognition of its Desire handset, which the judges said set the bar for Android-based smartphones.
Microsoft, Nokia alliance hits headlines
Much of the early headlines of the Mobile World Congress were dominated by the smartphone partnership between Nokia and Microsoft. The deal, announced late last week, will see Windows Phone become Nokia's primary smartphone operating system, relegating Symbian and MeeGo to the bench. The hook-up between Nokia and Microsoft is aimed at providing stiff competition for Apple's iOS and Google's Android, which have accumulated significant market share in the thriving smartphone market.
Investors didn't respond well to the news, with Nokia shares taking a hammering on Friday and Monday, though they have recovered somewhat since then. Following news of the deal, investors wondered just what Nokia would get from the deal. The questioning led to Stephen Elop, head of Nokia, moving to counter perceptions that Microsoft got the better part of the alliance. He explained that the Finnish company would receive billions of dollars in financial support from Microsoft to help develop and market smartphones using the Windows operating system. Elop also disclosed the Microsoft payments and other benefits Nokia will receive as a result of the deal between the two companies.
As well as investors, the deal took the mobile industry by surprise too, with many industry commentators predicting a Nokia/Android hook-up. Indeed, at the Mobile World Congress earlier this week, Google's Eric Schmidt said his company had held extensive talks with Nokia about the possibility of an Android partnership, but in the end the Finnish firm chose Microsoft. "We would like them to adopt Android at some point in the future and that offer remains open. We think Android was a good choice for Nokia. We are sorry they made a different choice," said Schmidt in an Economic Times report. For his part, Elop said Nokia's decision to partner with Microsoft means there will be a "mass market alternative" to Apple's iOS and Google's Android, according to a report in the Financial Times.
Profits jump at Dell, Lenovo
Two PC manufacturers reported their quarterly results this week, with both recording solid growth and profit gains. First up, Dell posted revenue for the quarter ended 28 January of USD15.7 billion, up 5 percent from the year-ago figure. Meanwhile, profits soared to USD927 million, or USD0.48 per share, almost triple the profit of USD334 million, or USD0.17 per share, reported a year earlier.
Dell cited a strong performance in its commercial business division, which saw operating income jump by 61 percent year-on-year. The markets responded positively to Dell's results, with shares in the PC maker jumping 5 percent in after-hours trading on Tuesday. However, the firm's record results were marred somewhat by a forecast of slower profit growth for the current year.
Elsewhere, Chinese PC maker Lenovo also warned of a potential slowdown in profit growth, citing a general slowing of growth in the Chinese market. On a more positive note, Lenovo's fourth quarter figures saw revenue increasing by 22 percent to USD5.81 billion, from USD4.78 billion in the year-ago quarter.
Meanwhile, net profit for quarter amounted to USD99.65 million, up 25 percent from USD79.5 million a year earlier, and ahead of the average USD86.85 million forecast by analysts. Lenovo highlighted growth in its mobile internet unit as one of the main drivers of its solid results; the firm said it doubled its smartphone sales during the fourth quarter.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 