Lenovo iPhone Killer

Lenovo has been busy finalizing their new smartphone code named the “OPhone”. Compared to the iPhone it looks to be a killer device. Some Chinese bloggers got their hands on one and did a comparision against the iPhone. The dimensions closely mirror Apple’s iPhone but there are some surprises like a 5MP camera with a flash and a 16GB micro SD slot.

Early in December photos leaked on the OPhone and it was rumored to be built on Google’s Android platform. This would be a big step up from Google’s G1 device in many ways. Lenovo and China Mobile could have a legitimate iPhone killer on their hands. Time will tell but if this is build on Android, Google is quickly closing the gap on Apple.

Microsoft Launches First iPhone App Seadragon

Microsoft’s Live Labs group launched Seadragon Mobile on the Apple iPhone. Its available through the iTunes app marketplace. Seadragon Mobile enables you to view gigapixel images from any device.  Microsoft calls the technique of viewing large images “deep zoom” and its a key technology in their Photosynth product.

What is interesting about this move is Microsoft is making Seadragon Mobile available on Apple’s iPhone even before you can get it on the Windows Mobile platform. Is this a change of heart for Microsoft? Probably not. Seadragon Mobile uses graphics accelerated hardware and there are not many devices on the market today that take advantage of those capabilities. Microsoft is probably using this as an opportunity to test some technology early and also doing a little bit of hedging.

Apple to Sell $99 iPhone at Walmart

According to BGR Apple(AAPL) is planning on selling a $99 iPhone at Walmart(WMT). If this is true, everyone in the mobile business should get a little scared. This means that Apple has hit a very important price point. Most of the 1.2 billion phones sold every year are below $100 price point. This will make sales of iPhone sky rocket at levels not seen since iPod. Now it seems Apple has the largest retailer on the planet behind them and Walmart and Apple are primed to sell 10’s of millions of units. Engadget even has pictures of at&t manuals with Walmart logo on them. Looks real to me.

Nokia who owns over 40% of the phone market should start getting a little worried. They sold over 430M units last year and their bread and butter segment was at price point below $100 for low end feature phones. This move by Apple can be a real game changer if it proves to be true.

There is No Money in iPhone Apps

Apple has created the new shareware marketplace with iPhone Apps. In August Steve Jobs was standing on his soap box and beating his chest because he claimed sales of iPhone Apps hit $30 million in the first 30 days. Jobs claimed that iPhone apps would be a billion dollar business.

Now 10K apps later the #1 “paid” app on iTunes is Koi Pond. This is a joke. Gizmodo gives an entire breakdown of the apps by category. The iPhone app marketplace has really blossomed into a freeware marketplace. The only really successful apps that will be high volume will be free. There is no money in building small little consumer apps.

The only reason Apple got 10K people to build apps was the hope it would lead to getting users. iPhone will create a concentrated set of users using a common platform. But similar to Facebook apps no one really looks at Facebook as a real application platform. It’s just a way to get access to a 120 million people that are all socially connected. And the only reason established companies will build apps is to stay relevant to iPhone users.

Developers are also constrained by Apple’s closed system approach. Similar to Chinese capitalism it looks and smells like a open marketplace but its not really open. I can’t wait until 2009 where Pong will be the #1 “paid” iPhone app.

Apple Sued Over iPhone

When the Apple iPhone launched Steve Jobs said it had over 50 different patents, but it looks like they failed to file a really important one. EMG Technology is a company that holds patents of Elliot Gottfurcht and others who claim that the iPhone infringes on patent 7,441,196. In a press release, EMG Technology, claims that the iPhone uses the same method as their invention to display a Web page on a mobile device. EMG is seeking unspecified damages and an injunction against Apple.

Since Apple entered the cell phone business more than two years ago, the iPhone has gotten a lot of critical acclaim and has sold over 10 milllion units. This may be one of many lawsuits and come up because of its growing popularity. If the claim has any merit, my guess is Apple will settle for an undisclosed ammount. They have a track record of keeping things quite and paying off the people they need to.

Apple Updates iPhone Firmware

Apple (AAPL) released an update to their iPhone firmware (2.2) to fix a dozen security vulnerabilities and added a few new features like Google Street View and podcast downloads.

Most of the attention was given to the update center on GPS and Google Maps. Now a user can see a 360-degree view of locations taken by Google car’s with cameras mounted to them. It also added walking directions in Google maps with information on public transportation.

In addition the iPhone can now download podcasts over the air using a Wi-Fi or 3G network. Previously users had to rely on syncing their content in iTunes. User can also now turn off the auto-correct feature on the virtual keyboard, which is helpful if the iPhone can’t guess what you are typing. Other additions include several bug fixes to the email and web browsing experience. It also includes fixes on phone quality to reduce dropped calls and improve sound. But with all these fixes how come no one in Cupertino created a “Copy and Paste” feature. This has been one of the most requested features from the iPhone community. I guess Steve Jobs in going to wait until MacWorld for that one.

Verizon Wireless Launches RIM BlackBerry Storm

Verizon Wireless (VZ) launched the Blackberry Storm with the first touch interface from Research in Motion (RIMM). In the two years since the iPhone was first announced, virtually every major mobile manufacturer has been racing to touch screen party. Not RIM, the BlackBerry manufacturer has been biding its time, and is only now releasing its first touchscreen.

For the company that created the “crackberry” and popularized the qwerty keyboard creating a touch screen in a sense goes against their DNA. In a time where the Apple (AAPL) iPhone outsold the entire BlackBerry mobile line of devices in the third quarter, I guess RIM is a little scared about the traction Apple seems to be getting.