Randomly Noted

Add a new player to the smartphone market.

Dell unveiled the Aero earlier today and the key question will be what points of differentiation the new phone offers. It will run on Google’s Android software and that means users of this phone will have access to abut 40,000 applications. And it costs $99 if you sign-up for two years with AT&T. That’s the same price for buying the iPhone 3Gs (the older version) and Apple says its iPhone has more than 200,000 apps.

One big difference seems to be that the Dell phone will suport Adobe flash, which powers a lot of internet video. Apple has no plans to incorporate Adobe flash into its phones or tablets.

Almost everything about the planned IPO by Internet-phone-company Skype is big. Well, almost everything. But we’ll get to that in a minute. When you have a hot company, and this one is right now, everybody and their brother wants a piece of the action. That might explain the reason there are 13 underwriters listed as co-managers for the deal. And while “registered users” doesn’t mean these folks are always using the technology, it does mean a lot of people are at least familiar with the company – it had 560 million registered users as of the end of June.

Average monthly users has more than doubled to 124 million since the end of 2007. Most are using the free, Skype-to-Skype services but more and more people are being upsold to the paid services – like Skype to landline or mobile phone. But still, that number is only 6.5% of average monthly users.

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The simmering feud between Apple and Google just got a little warmer. As part of Apple iPhone4 announcement on Monday, the company said it would allow Microsoft’s Bing to be an alternative search option to Google.  There had apparently been talk that Apple might consider using Bing as its default search option instead of Google. And while it didn’t go quite that far, this move is yet another example of how delicate the relationship is between the two companies. To see PC World’s story on this, click here.

Verizon’s new iPhone deal with Apple is a blow to Google and its Android phone ambitions. Given a choice, most consumers would opt for iPhone over Android devices. So, the availability of a new iPhone model at Verizon sales will cut into Android sales at a crucial time — just as Google’s gaining traction in the market. That said, the recent growth in Android phones from the likes of Motorola, Sony Ericsson and HTC suggests Apple shouldn’t take its market dominance for granted. A blend of smart functionality and appealing pricing is all a user needs to opt for an Android-based model over the iPhone. Check out this article from ChannelWeb, and this one; also have a look at an article in PCWorld, which shows that Google’s got big plans for Android.

Microsoft CEO Steve Ballmer, in a speech in Houston today, compared China’s censorship of the internet to Europe’s Nazi hate crime laws and the U.S.’s anti-child porn laws. This comes a week after rival Google stood up to China, putting at risk its business future in that country. Needless to say, what Beijing does to stifle the free flow of information (and much else) cannot be compared with European post-WWII anti-hate laws and American prohibitions on child pornography. Colleague Angel Gonzalez covered Ballmer’s appearance before an audience of Texas oil and gas executives. Angel writes that Ballmer told the group “most countries exert some sort of control over information; in France, it’s illegal to trade Nazi paraphernalia, for example, and the U.S. has strict laws to curb child pornography. ‘We have to take our cue here from the U.S. government,’ he said.” Granted, many Western companies find ways to comply with distasteful Chinese laws without (completely) compromising their morals and standards. But simply put, Ballmer might have found a way to describe the nature of this quandary without so blatantly appeasing Chinese officialdom.

Alan Abelson characterized this titanic standoff so well in this past weekend’s edition of Barron’s: “Who would ever have thought that simple and bland admonition would trigger a confrontation between the world’s two greatest powers.”  He was of course talking about the flap between Google and China (those two superpowers) and Google’s claim last week that it had suffered cyber attacks that have been traced back to China.

Well, more fallout today: Google has delayed the China launch of two new mobile phones that use its new operating system. So far, neither is flinching. Which begs the question – which one needs the other one more? Stay tuned.

Google’s decision to take on China over cyber attacks “originating from China” could go one of two ways, I reckon: 1) the giant search firm will reach some sort of watered-down accommodation with Beijing with minimal repercussions for either side; or 2) today’s bold statement will mark a turning point in foreign IT and media companies’ relations with China. One hopes it’s the latter. Here’s the latest coverage. Google hasn’t always stood up to China, as my WSJ colleagues have reported in the past. It’s extremely rare for foreign companies with a lot at stake in China to openly, or even behind-the-scenes, push back when Chinese authorities and power-brokers censor, infiltrate and otherwise bully them. It’s hard enough to make money in China, given the partnerships, joint ventures and other revenue-sharing configurations foreigners are forced into. To challenge the business and regulatory status quo – in a public forum – is asking for trouble. Threatening to pull out completely, as Google is doing, begs for it. “If we determine that we are unable to achieve the objectives outlined we will not hesitate to reconsider our approach to China,” says David Drummond, Google senior vice president for corporate development and chief legal officer, in his extraordinary blog.  Google is stirring the pot; how things play out will be well worth watching.

Satellite-navigation product maker Garmin posted a 25% earnings increase in the third quarter, blowing out Wall Street’s revenue and earnings estimates. Investors greeted the news by selling off, sending the stock down 15% in Wednesday trade. What gives?

OK, revenue was off by 10% on the quarter, and the earnings gains came from improving productivity and managing expenses – i.e., cost cuts. But the Street was looking for EPS of 69 cents and revenue of $704 million, and Garmin delivered $1.07 and $781 million.

Blame Google.

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The resignation of Eric Scmidt, the chief executive officer of Google, from the board of directors of Apple is just a glaring example of a poor industry practice. Currently serving CEOs should not be board members of other public companies.

In the Schmidt/Apple affair it took head-on competition in some areas between the two companies before the announced mutual decision that Schmidt should take his leave. Dow Jones Newswires also noted there has been a Federal Trade Commission look at the boards of Apple and Google, as they not only shared Schmidt as a member on both but also Genentech Chairman Arthur Levinson.

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With Singapore’s StarHub announcing it will soon offer an Android-powered phone from Google by way of Taiwan’s HTC Corp., I decided to find out what this is all about. With a 10-year-old Star Wars-and-Lego-obsessed son, I figured anything with “android” in the name would soon become fodder for dinner-table chit-chat. A few Google searches and I’m immersed in the world of mobility, Linux, “cupcakes,” “eclairs” and Marissa Mayer, who apparently adores cupcakes (the fattening ones) and, by the way, is a high-level engineering executive at Google. (All this by way of the web, so hopefully reliable information.) This disclosure of my ignorance of hot new mobile gadgets is just a segue into the topic of Taiwan’s economy. Today’s MSCI index rejig recognizes the island-nation’s recent share price surge. Taiwan’s weighting in the MSCI All Country World Index will rise to 1.41% from 1.3% at the end of May. It’s the biggest increase for any Asia-Pacific market in the index and could pump about NT$15 billion of additional investment in Taiwan’s stock market, DJN reports, citing Fubon Financial’s Joyce Chang. That’s because exchange-traded funds the world over that track the index will pour proportionately more money into Taiwanese shares. Taiwan’s relative out-performance reflects “an influx of money from investors seeking to capitalize on improving relations between Taiwan and China,” write DJN’s Perris  Lee Choon Siong and Jessie Ho.