Swapping wallets for smartphones

Google Inc is trying to nudge consumers and merchants into a world where the smartphone has replaced the wallet as the container for credit cards, coupons and receipts.

In Google's vision shoppers will touch their phone screen to select a card, then tap the phone to a credit-card reader in a store or restaurant. Google would make money by selling coupons and advertising that come along with the experience.

It's a goal shared by others. The Internet search and advertising company faces tough competition from cellphone companies, payment card issuer Visa Inc, eBay Inc's PayPal payment service and others. All of them want to play the central role of tying together phones, retailers and banks into a new payment system.

This isn't Google's first attempt at electronic payments. The company, based in Mountain View, California, introduced an online payment service called "Checkout" five years ago. It hasn't posed a serious threat to PayPal.


Google views its digital wallet as a way to sell advertising at a pivotal moment: When shoppers are in stores, ready to spend money and even more receptive to coupons and other discount offers.

Nick Holland, an analyst at Yankee Group, said that although all parties stand to benefit from Google's system, Google itself has the most to gain. That's because the Google Wallet would allow the company to "own" the market for advertising that's tied to the user's location.

Google said it's launching a Google Wallet trial in San Francisco and New York in co-operation with Visa rival MasterCard and Citibank. It will open up the system to consumers later in the summer. It then plans to expand across the country.

There has been talk of smart payment systems for years, and Google faces the same hurdles that have stifled previous trials.

One is that Google Wallet will initially work on only one smartphone, the Google Nexus S 4G carried by Sprint Nextel Corp.

Several smartphone makers, including Research In Motion Ltd, maker of the BlackBerry, are ready to bring out more phones with chips for so-called Near-Field Communications, or NFC, but it's uncertain if they'll work with Google's system.

Another hurdle is getting retailers to invest in terminals that can talk to the phones. Google Wallet will connect only to MasterCard PayPass terminals. There are more than 135,000 of those in US stores and restaurants, but that's only a small fraction of the total number.

Google's carrot is that retailers will be able to put loyalty cards and coupons in the Wallet, helping them track and engage with their customers. Partners in the trial include Macy's, RadioShack, Subway, Toys R Us, Duane Reade and Walgreens.

Hurdles

Yet another problem: Google needs to get cellphone companies on board. Its partner Sprint is the country's third-largest. AT&T Inc, Verizon Wireless and T-Mobile USA, the rest of the four biggest national carriers, have formed their own consortium to create a wallet that will compete with Google's.

The final obstacle is persuading consumers to take the leap. Phones might one day offer slightly faster checkouts, but the benefit would be small.

Google calls Wallet a "single-tap solution," but in a demonstration on Thursday at Google's New York office, a Google executive had to tap his phone twice to a terminal provided by retail partner American Eagle Outfitters Inc, then sign on the screen to get a purchase of a pair of denim shorts through.

Osama Bedier, Google's vice-president of payments, said it was up to the retailer to decide if the shopper has to sign on the screen.

"Consumers and businesses don't have a compelling need for changes in payment methods," a recent study by the Federal Reserve said. It nevertheless concluded that there are substantial benefits to reap for everyone involved if mobile payments become a reality.

One of the potential benefits is increased security compared to cards with magnetic strips, which can be copied surreptitiously.

The Wallet will initially work with a MasterCard from Citigroup Inc and with a prepaid debit card issued by Google, but the intent is to let the wallet accept any card.

"This is about creating a compelling model and asking folks to join," Bedier said.

Banks and payment processors such as MasterCard and Visa like the idea of mobile payments, but have their own designs on the space.

Visa already has announced plans for its own wallet. MasterCard is collaborating with Google but is working on its own projects.

"Today's announcement is another early salvo in what will be a long and hard-fought battle to change consumers' payment behaviour and, as a potential result, the makeup of the payments landscape," said Forrester Research analyst Charles Golvin

Swapping wallets for smartphones

Google Inc is trying to nudge consumers and merchants into a world where the smartphone has replaced the wallet as the container for credit cards, coupons and receipts.

In Google's vision shoppers will touch their phone screen to select a card, then tap the phone to a credit-card reader in a store or restaurant. Google would make money by selling coupons and advertising that come along with the experience.

It's a goal shared by others. The Internet search and advertising company faces tough competition from cellphone companies, payment card issuer Visa Inc, eBay Inc's PayPal payment service and others. All of them want to play the central role of tying together phones, retailers and banks into a new payment system.

This isn't Google's first attempt at electronic payments. The company, based in Mountain View, California, introduced an online payment service called "Checkout" five years ago. It hasn't posed a serious threat to PayPal.


Google views its digital wallet as a way to sell advertising at a pivotal moment: When shoppers are in stores, ready to spend money and even more receptive to coupons and other discount offers.

Nick Holland, an analyst at Yankee Group, said that although all parties stand to benefit from Google's system, Google itself has the most to gain. That's because the Google Wallet would allow the company to "own" the market for advertising that's tied to the user's location.

Google said it's launching a Google Wallet trial in San Francisco and New York in co-operation with Visa rival MasterCard and Citibank. It will open up the system to consumers later in the summer. It then plans to expand across the country.

There has been talk of smart payment systems for years, and Google faces the same hurdles that have stifled previous trials.

One is that Google Wallet will initially work on only one smartphone, the Google Nexus S 4G carried by Sprint Nextel Corp.

Several smartphone makers, including Research In Motion Ltd, maker of the BlackBerry, are ready to bring out more phones with chips for so-called Near-Field Communications, or NFC, but it's uncertain if they'll work with Google's system.

Another hurdle is getting retailers to invest in terminals that can talk to the phones. Google Wallet will connect only to MasterCard PayPass terminals. There are more than 135,000 of those in US stores and restaurants, but that's only a small fraction of the total number.

Google's carrot is that retailers will be able to put loyalty cards and coupons in the Wallet, helping them track and engage with their customers. Partners in the trial include Macy's, RadioShack, Subway, Toys R Us, Duane Reade and Walgreens.

Hurdles

Yet another problem: Google needs to get cellphone companies on board. Its partner Sprint is the country's third-largest. AT&T Inc, Verizon Wireless and T-Mobile USA, the rest of the four biggest national carriers, have formed their own consortium to create a wallet that will compete with Google's.

The final obstacle is persuading consumers to take the leap. Phones might one day offer slightly faster checkouts, but the benefit would be small.

Google calls Wallet a "single-tap solution," but in a demonstration on Thursday at Google's New York office, a Google executive had to tap his phone twice to a terminal provided by retail partner American Eagle Outfitters Inc, then sign on the screen to get a purchase of a pair of denim shorts through.

Osama Bedier, Google's vice-president of payments, said it was up to the retailer to decide if the shopper has to sign on the screen.

"Consumers and businesses don't have a compelling need for changes in payment methods," a recent study by the Federal Reserve said. It nevertheless concluded that there are substantial benefits to reap for everyone involved if mobile payments become a reality.

One of the potential benefits is increased security compared to cards with magnetic strips, which can be copied surreptitiously.

The Wallet will initially work with a MasterCard from Citigroup Inc and with a prepaid debit card issued by Google, but the intent is to let the wallet accept any card.

"This is about creating a compelling model and asking folks to join," Bedier said.

Banks and payment processors such as MasterCard and Visa like the idea of mobile payments, but have their own designs on the space.

Visa already has announced plans for its own wallet. MasterCard is collaborating with Google but is working on its own projects.

"Today's announcement is another early salvo in what will be a long and hard-fought battle to change consumers' payment behaviour and, as a potential result, the makeup of the payments landscape," said Forrester Research analyst Charles Golvin

Swapping wallets for smartphones

Google Inc is trying to nudge consumers and merchants into a world where the smartphone has replaced the wallet as the container for credit cards, coupons and receipts.

In Google's vision shoppers will touch their phone screen to select a card, then tap the phone to a credit-card reader in a store or restaurant. Google would make money by selling coupons and advertising that come along with the experience.

It's a goal shared by others. The Internet search and advertising company faces tough competition from cellphone companies, payment card issuer Visa Inc, eBay Inc's PayPal payment service and others. All of them want to play the central role of tying together phones, retailers and banks into a new payment system.

This isn't Google's first attempt at electronic payments. The company, based in Mountain View, California, introduced an online payment service called "Checkout" five years ago. It hasn't posed a serious threat to PayPal.


Google views its digital wallet as a way to sell advertising at a pivotal moment: When shoppers are in stores, ready to spend money and even more receptive to coupons and other discount offers.

Nick Holland, an analyst at Yankee Group, said that although all parties stand to benefit from Google's system, Google itself has the most to gain. That's because the Google Wallet would allow the company to "own" the market for advertising that's tied to the user's location.

Google said it's launching a Google Wallet trial in San Francisco and New York in co-operation with Visa rival MasterCard and Citibank. It will open up the system to consumers later in the summer. It then plans to expand across the country.

There has been talk of smart payment systems for years, and Google faces the same hurdles that have stifled previous trials.

One is that Google Wallet will initially work on only one smartphone, the Google Nexus S 4G carried by Sprint Nextel Corp.

Several smartphone makers, including Research In Motion Ltd, maker of the BlackBerry, are ready to bring out more phones with chips for so-called Near-Field Communications, or NFC, but it's uncertain if they'll work with Google's system.

Another hurdle is getting retailers to invest in terminals that can talk to the phones. Google Wallet will connect only to MasterCard PayPass terminals. There are more than 135,000 of those in US stores and restaurants, but that's only a small fraction of the total number.

Google's carrot is that retailers will be able to put loyalty cards and coupons in the Wallet, helping them track and engage with their customers. Partners in the trial include Macy's, RadioShack, Subway, Toys R Us, Duane Reade and Walgreens.

Hurdles

Yet another problem: Google needs to get cellphone companies on board. Its partner Sprint is the country's third-largest. AT&T Inc, Verizon Wireless and T-Mobile USA, the rest of the four biggest national carriers, have formed their own consortium to create a wallet that will compete with Google's.

The final obstacle is persuading consumers to take the leap. Phones might one day offer slightly faster checkouts, but the benefit would be small.

Google calls Wallet a "single-tap solution," but in a demonstration on Thursday at Google's New York office, a Google executive had to tap his phone twice to a terminal provided by retail partner American Eagle Outfitters Inc, then sign on the screen to get a purchase of a pair of denim shorts through.

Osama Bedier, Google's vice-president of payments, said it was up to the retailer to decide if the shopper has to sign on the screen.

"Consumers and businesses don't have a compelling need for changes in payment methods," a recent study by the Federal Reserve said. It nevertheless concluded that there are substantial benefits to reap for everyone involved if mobile payments become a reality.

One of the potential benefits is increased security compared to cards with magnetic strips, which can be copied surreptitiously.

The Wallet will initially work with a MasterCard from Citigroup Inc and with a prepaid debit card issued by Google, but the intent is to let the wallet accept any card.

"This is about creating a compelling model and asking folks to join," Bedier said.

Banks and payment processors such as MasterCard and Visa like the idea of mobile payments, but have their own designs on the space.

Visa already has announced plans for its own wallet. MasterCard is collaborating with Google but is working on its own projects.

"Today's announcement is another early salvo in what will be a long and hard-fought battle to change consumers' payment behaviour and, as a potential result, the makeup of the payments landscape," said Forrester Research analyst Charles Golvin

Internet rules at centre of e-G8 forum

Schmidt says policymakers should tread lightly at regulating the Internet and avoid "stupid" rules.

France wants better regulation of the Internet. Google's executive chairman said policymakers should tread lightly and avoid "stupid" rules.

Bridging such differences about how the Internet could or should be more regulated took centre stage at an "e-G8" meeting.

The meeting aimed to parlay the digital world's growing economic clout into a cohesive message for world leaders at the Group of Eight summit later this week in Normandy.

The two-day Paris gathering has brought together Internet and media world gurus such as Google Inc executive chairman Eric Schmidt, News Corp chairman and CEO Rupert Murdoch, and Facebook founder and CEO Mark Zuckerberg.


And the discussion includes issues such as protecting children from "evil stuff" online, preventing illegal downloading of copyrighted materials and shielding Facebook users from unsolicited invitations.

The e-G8 comes amid concerns in the industry that some countries - including several in Europe such as France - have taken measures or enacted laws that could curb Internet freedoms.

French President Nicolas Sarkozy, kicking off the conference, said governments need to lay down and enforce rules in the digital world - even as they need to foster creativity and economic growth with the Internet.

It's unclear whether he'll win over digital executives with this argument, or whether the G-8 summit - which doesn't include countries such as China, a major source of online activity and online regulation - will agree on a single policy going forward.

Sarkozy said he faced mistrust over his push for the "e-G8" when Japan's earthquake, fiscal troubles in Europe, and the Arab world revolutions are likely to dominate the G-8 summit in Deauville on Thursday and Friday.

Listen up

Conflicting visions about the Internet - notably about how regulated it should be - has pitted companies such as Amazon.com and Google against governments about how to protect privacy and copyrights online.

"We need to hear your aspirations, your needs," Sarkozy told hundreds of business executives, creative minds and journalists at Tuileries Gardens here. "You need to hear our limits, our red lines."

Policymakers such as Sarkozy say the blistering pace of growth has often left regulators behind. He said a "balance" needed to be struck to prevent misuse of the Internet - such as to protect children online - while boosting its potential as a driver for economic growth.

While praising the executives, he said regulatory curbs are needed.

"Don't let the revolution that you've begun threaten everyone's basic right to a private life and full autonomy," said Sarkozy. "Full transparency ... sooner or later runs into the very principle of individual freedom."

Google's Schmidt said technological changes have led to a "shift in power" toward individuals - whether to illegally release secret documents or transfer copyrighted material, or rally against their repressive regimes.

"My own opinion is that most governments are having trouble with that shift in power," he said. "So rather than sort of complaining about it, which is what everybody does, why don't we see if we can harness it?"

During an e-G8 panel talk, Schmidt said: "You want to tread lightly on regulating brand new, innovative industries .... Clearly you need some level of regulation for the evil stuff. But I would be careful about overregulating the Internet.

"I cannot imagine any delegate in this conference (who) would want Internet growth to be significantly slowed by a government that slows it down because of some stupid rule that they put in place," he said.

Issues

Last week, the United Nation's independent expert on freedom of speech said governments that curtail users' access to the Internet are violating a basic human right - regardless of the justification.

Britain last year joined France by announcing it would cut off Internet access to people who illegally download copyright-protected material. The French Government has so far issued only warnings under the "three strikes" formula for possible penalties.

Privacy concerns have also raised hackles in Europe.

In January, Facebook and German officials reached a deal over unsolicited invitations sent to non-members of the social networking site through its "Friend Finder" feature - which allows Facebook to send e-mail invitations to potential users through current members' address books.

The feature came under fire in Germany for violating privacy laws by allowing unauthorised access to information of third parties. The agreement allows Facebook members more control over the e-mail addresses they share.

Johannes Caspar, a data protection official in Hamburg who negotiated the deal for the Germans, said US laws under which Facebook operates tend to be more laissez-faire than those of Europe about privacy issues.

He said Facebook has co-operated with German investigations about possible privacy law violations, and the onus now is on Europe "to make things clearer" about the rules companies face on the continent.

Internet rules at centre of e-G8 forum

Schmidt says policymakers should tread lightly at regulating the Internet and avoid "stupid" rules.

France wants better regulation of the Internet. Google's executive chairman said policymakers should tread lightly and avoid "stupid" rules.

Bridging such differences about how the Internet could or should be more regulated took centre stage at an "e-G8" meeting.

The meeting aimed to parlay the digital world's growing economic clout into a cohesive message for world leaders at the Group of Eight summit later this week in Normandy.

The two-day Paris gathering has brought together Internet and media world gurus such as Google Inc executive chairman Eric Schmidt, News Corp chairman and CEO Rupert Murdoch, and Facebook founder and CEO Mark Zuckerberg.


And the discussion includes issues such as protecting children from "evil stuff" online, preventing illegal downloading of copyrighted materials and shielding Facebook users from unsolicited invitations.

The e-G8 comes amid concerns in the industry that some countries - including several in Europe such as France - have taken measures or enacted laws that could curb Internet freedoms.

French President Nicolas Sarkozy, kicking off the conference, said governments need to lay down and enforce rules in the digital world - even as they need to foster creativity and economic growth with the Internet.

It's unclear whether he'll win over digital executives with this argument, or whether the G-8 summit - which doesn't include countries such as China, a major source of online activity and online regulation - will agree on a single policy going forward.

Sarkozy said he faced mistrust over his push for the "e-G8" when Japan's earthquake, fiscal troubles in Europe, and the Arab world revolutions are likely to dominate the G-8 summit in Deauville on Thursday and Friday.

Listen up

Conflicting visions about the Internet - notably about how regulated it should be - has pitted companies such as Amazon.com and Google against governments about how to protect privacy and copyrights online.

"We need to hear your aspirations, your needs," Sarkozy told hundreds of business executives, creative minds and journalists at Tuileries Gardens here. "You need to hear our limits, our red lines."

Policymakers such as Sarkozy say the blistering pace of growth has often left regulators behind. He said a "balance" needed to be struck to prevent misuse of the Internet - such as to protect children online - while boosting its potential as a driver for economic growth.

While praising the executives, he said regulatory curbs are needed.

"Don't let the revolution that you've begun threaten everyone's basic right to a private life and full autonomy," said Sarkozy. "Full transparency ... sooner or later runs into the very principle of individual freedom."

Google's Schmidt said technological changes have led to a "shift in power" toward individuals - whether to illegally release secret documents or transfer copyrighted material, or rally against their repressive regimes.

"My own opinion is that most governments are having trouble with that shift in power," he said. "So rather than sort of complaining about it, which is what everybody does, why don't we see if we can harness it?"

During an e-G8 panel talk, Schmidt said: "You want to tread lightly on regulating brand new, innovative industries .... Clearly you need some level of regulation for the evil stuff. But I would be careful about overregulating the Internet.

"I cannot imagine any delegate in this conference (who) would want Internet growth to be significantly slowed by a government that slows it down because of some stupid rule that they put in place," he said.

Issues

Last week, the United Nation's independent expert on freedom of speech said governments that curtail users' access to the Internet are violating a basic human right - regardless of the justification.

Britain last year joined France by announcing it would cut off Internet access to people who illegally download copyright-protected material. The French Government has so far issued only warnings under the "three strikes" formula for possible penalties.

Privacy concerns have also raised hackles in Europe.

In January, Facebook and German officials reached a deal over unsolicited invitations sent to non-members of the social networking site through its "Friend Finder" feature - which allows Facebook to send e-mail invitations to potential users through current members' address books.

The feature came under fire in Germany for violating privacy laws by allowing unauthorised access to information of third parties. The agreement allows Facebook members more control over the e-mail addresses they share.

Johannes Caspar, a data protection official in Hamburg who negotiated the deal for the Germans, said US laws under which Facebook operates tend to be more laissez-faire than those of Europe about privacy issues.

He said Facebook has co-operated with German investigations about possible privacy law violations, and the onus now is on Europe "to make things clearer" about the rules companies face on the continent.

Internet rules at centre of e-G8 forum

Schmidt says policymakers should tread lightly at regulating the Internet and avoid "stupid" rules.

France wants better regulation of the Internet. Google's executive chairman said policymakers should tread lightly and avoid "stupid" rules.

Bridging such differences about how the Internet could or should be more regulated took centre stage at an "e-G8" meeting.

The meeting aimed to parlay the digital world's growing economic clout into a cohesive message for world leaders at the Group of Eight summit later this week in Normandy.

The two-day Paris gathering has brought together Internet and media world gurus such as Google Inc executive chairman Eric Schmidt, News Corp chairman and CEO Rupert Murdoch, and Facebook founder and CEO Mark Zuckerberg.


And the discussion includes issues such as protecting children from "evil stuff" online, preventing illegal downloading of copyrighted materials and shielding Facebook users from unsolicited invitations.

The e-G8 comes amid concerns in the industry that some countries - including several in Europe such as France - have taken measures or enacted laws that could curb Internet freedoms.

French President Nicolas Sarkozy, kicking off the conference, said governments need to lay down and enforce rules in the digital world - even as they need to foster creativity and economic growth with the Internet.

It's unclear whether he'll win over digital executives with this argument, or whether the G-8 summit - which doesn't include countries such as China, a major source of online activity and online regulation - will agree on a single policy going forward.

Sarkozy said he faced mistrust over his push for the "e-G8" when Japan's earthquake, fiscal troubles in Europe, and the Arab world revolutions are likely to dominate the G-8 summit in Deauville on Thursday and Friday.

Listen up

Conflicting visions about the Internet - notably about how regulated it should be - has pitted companies such as Amazon.com and Google against governments about how to protect privacy and copyrights online.

"We need to hear your aspirations, your needs," Sarkozy told hundreds of business executives, creative minds and journalists at Tuileries Gardens here. "You need to hear our limits, our red lines."

Policymakers such as Sarkozy say the blistering pace of growth has often left regulators behind. He said a "balance" needed to be struck to prevent misuse of the Internet - such as to protect children online - while boosting its potential as a driver for economic growth.

While praising the executives, he said regulatory curbs are needed.

"Don't let the revolution that you've begun threaten everyone's basic right to a private life and full autonomy," said Sarkozy. "Full transparency ... sooner or later runs into the very principle of individual freedom."

Google's Schmidt said technological changes have led to a "shift in power" toward individuals - whether to illegally release secret documents or transfer copyrighted material, or rally against their repressive regimes.

"My own opinion is that most governments are having trouble with that shift in power," he said. "So rather than sort of complaining about it, which is what everybody does, why don't we see if we can harness it?"

During an e-G8 panel talk, Schmidt said: "You want to tread lightly on regulating brand new, innovative industries .... Clearly you need some level of regulation for the evil stuff. But I would be careful about overregulating the Internet.

"I cannot imagine any delegate in this conference (who) would want Internet growth to be significantly slowed by a government that slows it down because of some stupid rule that they put in place," he said.

Issues

Last week, the United Nation's independent expert on freedom of speech said governments that curtail users' access to the Internet are violating a basic human right - regardless of the justification.

Britain last year joined France by announcing it would cut off Internet access to people who illegally download copyright-protected material. The French Government has so far issued only warnings under the "three strikes" formula for possible penalties.

Privacy concerns have also raised hackles in Europe.

In January, Facebook and German officials reached a deal over unsolicited invitations sent to non-members of the social networking site through its "Friend Finder" feature - which allows Facebook to send e-mail invitations to potential users through current members' address books.

The feature came under fire in Germany for violating privacy laws by allowing unauthorised access to information of third parties. The agreement allows Facebook members more control over the e-mail addresses they share.

Johannes Caspar, a data protection official in Hamburg who negotiated the deal for the Germans, said US laws under which Facebook operates tend to be more laissez-faire than those of Europe about privacy issues.

He said Facebook has co-operated with German investigations about possible privacy law violations, and the onus now is on Europe "to make things clearer" about the rules companies face on the continent.

Govts must never block Web access

The United Nation's (UN) independent expert on freedom of speech says governments that cut users' access to the Internet are violating a basic human right "regardless of the justification provided."

Frank La Rue says blocking Net access is "disproportionate," whether it is a blanket ban imposed during times of political unrest or against individuals for violating specific laws.

Britain last year announced it planned to follow France's lead to cut off Internet access to people who illegally download copyright-protected material.


La Rue's report also urges governments to decriminalise all forms of defamation and ensure Internet users can express themselves anonymously.

The report will be discussed by the UN Human Rights Council in Geneva next month.

Govts must never block Web access

The United Nation's (UN) independent expert on freedom of speech says governments that cut users' access to the Internet are violating a basic human right "regardless of the justification provided."

Frank La Rue says blocking Net access is "disproportionate," whether it is a blanket ban imposed during times of political unrest or against individuals for violating specific laws.

Britain last year announced it planned to follow France's lead to cut off Internet access to people who illegally download copyright-protected material.


La Rue's report also urges governments to decriminalise all forms of defamation and ensure Internet users can express themselves anonymously.

The report will be discussed by the UN Human Rights Council in Geneva next month.

Govts must never block Web access

The United Nation's (UN) independent expert on freedom of speech says governments that cut users' access to the Internet are violating a basic human right "regardless of the justification provided."

Frank La Rue says blocking Net access is "disproportionate," whether it is a blanket ban imposed during times of political unrest or against individuals for violating specific laws.

Britain last year announced it planned to follow France's lead to cut off Internet access to people who illegally download copyright-protected material.


La Rue's report also urges governments to decriminalise all forms of defamation and ensure Internet users can express themselves anonymously.

The report will be discussed by the UN Human Rights Council in Geneva next month.

e-Book sales surpass printed books

Amazon.com Inc said that after less than four years of selling electronic books, it's now selling more of them than printed books.

The online retailer said that since April 1, it has sold 105 e-books for every 100 printed books, including printed books for which there is no electronic edition.

The comparison excludes free e-books, which would tip the scales further if they were included.
Printed books include both hardcover and paperback books. Amazon said in July that e-book sales had outstripped hardcover sales. It's now selling three times as many e-books as it did a year ago.

Analysts estimate that Amazon accounts for about two-thirds of US e-book sales.


Amazon also said the latest and cheapest version of its Kindle e-book reading device is the best-seller of the line, five weeks after it was introduced.

The Kindle with Special Offers costs US$114, and shows ads in standby mode.

e-Book sales surpass printed books

Amazon.com Inc said that after less than four years of selling electronic books, it's now selling more of them than printed books.

The online retailer said that since April 1, it has sold 105 e-books for every 100 printed books, including printed books for which there is no electronic edition.

The comparison excludes free e-books, which would tip the scales further if they were included.
Printed books include both hardcover and paperback books. Amazon said in July that e-book sales had outstripped hardcover sales. It's now selling three times as many e-books as it did a year ago.

Analysts estimate that Amazon accounts for about two-thirds of US e-book sales.


Amazon also said the latest and cheapest version of its Kindle e-book reading device is the best-seller of the line, five weeks after it was introduced.

The Kindle with Special Offers costs US$114, and shows ads in standby mode.

e-Book sales surpass printed books

Amazon.com Inc said that after less than four years of selling electronic books, it's now selling more of them than printed books.

The online retailer said that since April 1, it has sold 105 e-books for every 100 printed books, including printed books for which there is no electronic edition.

The comparison excludes free e-books, which would tip the scales further if they were included.
Printed books include both hardcover and paperback books. Amazon said in July that e-book sales had outstripped hardcover sales. It's now selling three times as many e-books as it did a year ago.

Analysts estimate that Amazon accounts for about two-thirds of US e-book sales.


Amazon also said the latest and cheapest version of its Kindle e-book reading device is the best-seller of the line, five weeks after it was introduced.

The Kindle with Special Offers costs US$114, and shows ads in standby mode.

Lenovo unveils new machines: Z370 and S100

Lenovo has unveiled its first slim tower desktop called the H330, which the company said is around half the size of standard desktop computer. Despite its size, the H330 will meet all your computing needs whether it is for work or home use, Lenovo said.

The machine is powered by an Intel Core i3-2100QM (3.1GHz) processor, 2GB DDR3 SDRAM, 1TB SATA hard drive, an 8-in-1 card reader and a 1GB Radeon HD6450 discrete graphics card. The H330 runs Windows 7 Home Premium and comes with an optional monitor.

The company also unveiled its latest mobile device, the IdeaPad S100 netbook. The S100 is powered by Intel Atom N570 (1.66GHz) processor. It has a 10.1in backlit LED display and an Intel Graphics Media Accelerator 3150 graphics card.

Other features of the netbook include 2GB DDR3 SDRAM and a 320GB SATA hard drive. The S100 runs Windows 7 Starter and comes with the DirectShare application that lets users sync their files with another Lenovo computer without connecting to the Internet.

The S100 weighs less than 1kg and comes with a six-cell lithium-ion battery. Lenovo also unveiled other IdeaPad notebooks, namely the Y470, Z370, and Z470.

The Y470 is optimised for a mobile multimedia experience - it features the OneKey Theatre II feature, which automatically maximises advanced audio-visual settings at a touch of a button, and SRS Premium Sound with JBL-designed speakers to provide users with a richer audio experience.

The Y470 is powered by an Intel Core i7-2630QM processor and comes with 14.1in WLED HD display. Other specifications include 4GB DDR3 SDRAM, 750GB hard drive, three USB ports, one USB/e-SATA combo port and an HDMI port.

On the other hand, the Z370, which is powered by an Intel Core i3-23100M processor, comes with a 13.3in LED display and Intel HD Graphics 3000 graphics card. Other features include 2GB DDR3 SDRAM and a 750GB hard drive.

Meanwhile the Z470 is powered by Intel Core i5-2410M processor, comes with 14in WXGA LED display, 4GB DDR3 SDRAM and a 640GB hard drive. All of the three notebooks run on Windows 7 Home Premium.

Lenovo unveils new machines: Z370 and S100

Lenovo has unveiled its first slim tower desktop called the H330, which the company said is around half the size of standard desktop computer. Despite its size, the H330 will meet all your computing needs whether it is for work or home use, Lenovo said.

The machine is powered by an Intel Core i3-2100QM (3.1GHz) processor, 2GB DDR3 SDRAM, 1TB SATA hard drive, an 8-in-1 card reader and a 1GB Radeon HD6450 discrete graphics card. The H330 runs Windows 7 Home Premium and comes with an optional monitor.

The company also unveiled its latest mobile device, the IdeaPad S100 netbook. The S100 is powered by Intel Atom N570 (1.66GHz) processor. It has a 10.1in backlit LED display and an Intel Graphics Media Accelerator 3150 graphics card.

Other features of the netbook include 2GB DDR3 SDRAM and a 320GB SATA hard drive. The S100 runs Windows 7 Starter and comes with the DirectShare application that lets users sync their files with another Lenovo computer without connecting to the Internet.

The S100 weighs less than 1kg and comes with a six-cell lithium-ion battery. Lenovo also unveiled other IdeaPad notebooks, namely the Y470, Z370, and Z470.

The Y470 is optimised for a mobile multimedia experience - it features the OneKey Theatre II feature, which automatically maximises advanced audio-visual settings at a touch of a button, and SRS Premium Sound with JBL-designed speakers to provide users with a richer audio experience.

The Y470 is powered by an Intel Core i7-2630QM processor and comes with 14.1in WLED HD display. Other specifications include 4GB DDR3 SDRAM, 750GB hard drive, three USB ports, one USB/e-SATA combo port and an HDMI port.

On the other hand, the Z370, which is powered by an Intel Core i3-23100M processor, comes with a 13.3in LED display and Intel HD Graphics 3000 graphics card. Other features include 2GB DDR3 SDRAM and a 750GB hard drive.

Meanwhile the Z470 is powered by Intel Core i5-2410M processor, comes with 14in WXGA LED display, 4GB DDR3 SDRAM and a 640GB hard drive. All of the three notebooks run on Windows 7 Home Premium.

Lenovo unveils new machines: Z370 and S100

Lenovo has unveiled its first slim tower desktop called the H330, which the company said is around half the size of standard desktop computer. Despite its size, the H330 will meet all your computing needs whether it is for work or home use, Lenovo said.

The machine is powered by an Intel Core i3-2100QM (3.1GHz) processor, 2GB DDR3 SDRAM, 1TB SATA hard drive, an 8-in-1 card reader and a 1GB Radeon HD6450 discrete graphics card. The H330 runs Windows 7 Home Premium and comes with an optional monitor.

The company also unveiled its latest mobile device, the IdeaPad S100 netbook. The S100 is powered by Intel Atom N570 (1.66GHz) processor. It has a 10.1in backlit LED display and an Intel Graphics Media Accelerator 3150 graphics card.

Other features of the netbook include 2GB DDR3 SDRAM and a 320GB SATA hard drive. The S100 runs Windows 7 Starter and comes with the DirectShare application that lets users sync their files with another Lenovo computer without connecting to the Internet.

The S100 weighs less than 1kg and comes with a six-cell lithium-ion battery. Lenovo also unveiled other IdeaPad notebooks, namely the Y470, Z370, and Z470.

The Y470 is optimised for a mobile multimedia experience - it features the OneKey Theatre II feature, which automatically maximises advanced audio-visual settings at a touch of a button, and SRS Premium Sound with JBL-designed speakers to provide users with a richer audio experience.

The Y470 is powered by an Intel Core i7-2630QM processor and comes with 14.1in WLED HD display. Other specifications include 4GB DDR3 SDRAM, 750GB hard drive, three USB ports, one USB/e-SATA combo port and an HDMI port.

On the other hand, the Z370, which is powered by an Intel Core i3-23100M processor, comes with a 13.3in LED display and Intel HD Graphics 3000 graphics card. Other features include 2GB DDR3 SDRAM and a 750GB hard drive.

Meanwhile the Z470 is powered by Intel Core i5-2410M processor, comes with 14in WXGA LED display, 4GB DDR3 SDRAM and a 640GB hard drive. All of the three notebooks run on Windows 7 Home Premium.

Cisco narrows focus with new business structure

The CEO of Cisco says that the company will be making bold decisions to narrow its focus

Cisco Systems Inc will undergo a number of structural changes following several challenging quarters as the networking behemoth attempts to become more efficient in bringing products to market.

Cisco, which last month killed off its Flip Video camcorder business, has tried to narrow its focus as competition intensifies. It now wants to focus on five priorities: core routing, switching and services; collaboration; datacentre virtualization; architectures and video.


Last month, CEO John Chambers acknowledged criticism that the company has attempted to compete in too many areas. He sent employees a memo vowing to take "bold steps" to narrow the company's focus.

Chambers warned of "tough decisions" ahead for the company.

Spokesman Kristin Carvell declined to comment on whether there would be layoffs or executive departures.

Cisco said it will organise worldwide field operations according to three geographic regions. Its services business will organise around key customer segments and delivery models.

The company is also streamlining its engineering organisation and will now have three "councils," which at Cisco have traditionally formed around each of the company's top priorities. Those councils will focus on enterprise, service provider and emerging countries.

The changes will take place over the next 120 days, the company said.

Cisco narrows focus with new business structure

The CEO of Cisco says that the company will be making bold decisions to narrow its focus

Cisco Systems Inc will undergo a number of structural changes following several challenging quarters as the networking behemoth attempts to become more efficient in bringing products to market.

Cisco, which last month killed off its Flip Video camcorder business, has tried to narrow its focus as competition intensifies. It now wants to focus on five priorities: core routing, switching and services; collaboration; datacentre virtualization; architectures and video.


Last month, CEO John Chambers acknowledged criticism that the company has attempted to compete in too many areas. He sent employees a memo vowing to take "bold steps" to narrow the company's focus.

Chambers warned of "tough decisions" ahead for the company.

Spokesman Kristin Carvell declined to comment on whether there would be layoffs or executive departures.

Cisco said it will organise worldwide field operations according to three geographic regions. Its services business will organise around key customer segments and delivery models.

The company is also streamlining its engineering organisation and will now have three "councils," which at Cisco have traditionally formed around each of the company's top priorities. Those councils will focus on enterprise, service provider and emerging countries.

The changes will take place over the next 120 days, the company said.

Cisco narrows focus with new business structure

The CEO of Cisco says that the company will be making bold decisions to narrow its focus

Cisco Systems Inc will undergo a number of structural changes following several challenging quarters as the networking behemoth attempts to become more efficient in bringing products to market.

Cisco, which last month killed off its Flip Video camcorder business, has tried to narrow its focus as competition intensifies. It now wants to focus on five priorities: core routing, switching and services; collaboration; datacentre virtualization; architectures and video.


Last month, CEO John Chambers acknowledged criticism that the company has attempted to compete in too many areas. He sent employees a memo vowing to take "bold steps" to narrow the company's focus.

Chambers warned of "tough decisions" ahead for the company.

Spokesman Kristin Carvell declined to comment on whether there would be layoffs or executive departures.

Cisco said it will organise worldwide field operations according to three geographic regions. Its services business will organise around key customer segments and delivery models.

The company is also streamlining its engineering organisation and will now have three "councils," which at Cisco have traditionally formed around each of the company's top priorities. Those councils will focus on enterprise, service provider and emerging countries.

The changes will take place over the next 120 days, the company said.

Chinese tech giants fight over 4G phones

Two of China's biggest technology companies have launched a court battle in Europe over mobile phone patents in a rare public clash between firms Beijing is promoting as national champions.

The fight between Huawei Technologies Ltd and ZTE Corp highlights the challenge for communist leaders who need to manage Chinese corporate ambitions as they try to create global competitors in telecoms, energy and other fields.

It is the first case of its kind between major Chinese companies, which usually settle disputes in private.

"We're going to see more of this in this industry and others," said David Wolf, a technology marketing consultant in Beijing. "The government will find, wow, we've got these national champions, but now they're trying to kill each other."

The dispute centres on fourth-generation mobile technology, which companies that are developing it say will deliver more stable connections, wireless broadband and other advances. It is in limited use in the United States and being tested elsewhere.


Control of key patents could help decide which equipment suppliers are positioned to reap billions of dollars in sales once it is rolled out in other markets.

Huawei and ZTE make network gear, the core of phone systems. They have multibillion-dollar annual sales in China, Africa and Latin America and see themselves as potential global 4G leaders. That fits with Communist Party hopes to transform China from a low-cost factory into a creator of profitable technology.

Huawei has filed patent infringement lawsuits against ZTE in France, Germany and Hungary. ZTE rejected the claims and said it has asked a French court and Chinese regulators to invalidate a Huawei patent.

Huawei and ZTE are among China's first wave of fledgling multinational companies. They compete with Nokia-Siemens Networks, Ericsson and Alcatel-Lucent and have a small but growing US and European presence.

Their dispute comes amid mounting complaints by foreign business groups about Beijing's industrial policy. They say China is improperly supporting favoured companies by limiting market access and providing low-cost loans and other support.

Huawei's lawsuits accuse ZTE of infringing patents for data cards and improperly using a Huawei-registered trademark on some of its products.

"We will do whatever is required to ensure that the use of Huawei's intellectual property by any company is based on internationally accepted protocols and practices," said Huawei's chief legal officer, Song Liuping, in a statement.

ZTE said its lawsuit accused Huawei of infringing its 4G patents. The company said it also has asked a French court and China's State Intellectual Property Office to invalidate Huawei's patents for a rotary USB connector used to exchange data between devices.

"ZTE respects the intellectual property rights of other companies, but it will not stop protecting its own intellectual property rights," said a company statement.

Huawei, founded in 1987 by a former Chinese military engineer, has 110,000 employees and reported 2010 revenues of 182bil yuan.

Chinese tech giants fight over 4G phones

Two of China's biggest technology companies have launched a court battle in Europe over mobile phone patents in a rare public clash between firms Beijing is promoting as national champions.

The fight between Huawei Technologies Ltd and ZTE Corp highlights the challenge for communist leaders who need to manage Chinese corporate ambitions as they try to create global competitors in telecoms, energy and other fields.

It is the first case of its kind between major Chinese companies, which usually settle disputes in private.

"We're going to see more of this in this industry and others," said David Wolf, a technology marketing consultant in Beijing. "The government will find, wow, we've got these national champions, but now they're trying to kill each other."

The dispute centres on fourth-generation mobile technology, which companies that are developing it say will deliver more stable connections, wireless broadband and other advances. It is in limited use in the United States and being tested elsewhere.


Control of key patents could help decide which equipment suppliers are positioned to reap billions of dollars in sales once it is rolled out in other markets.

Huawei and ZTE make network gear, the core of phone systems. They have multibillion-dollar annual sales in China, Africa and Latin America and see themselves as potential global 4G leaders. That fits with Communist Party hopes to transform China from a low-cost factory into a creator of profitable technology.

Huawei has filed patent infringement lawsuits against ZTE in France, Germany and Hungary. ZTE rejected the claims and said it has asked a French court and Chinese regulators to invalidate a Huawei patent.

Huawei and ZTE are among China's first wave of fledgling multinational companies. They compete with Nokia-Siemens Networks, Ericsson and Alcatel-Lucent and have a small but growing US and European presence.

Their dispute comes amid mounting complaints by foreign business groups about Beijing's industrial policy. They say China is improperly supporting favoured companies by limiting market access and providing low-cost loans and other support.

Huawei's lawsuits accuse ZTE of infringing patents for data cards and improperly using a Huawei-registered trademark on some of its products.

"We will do whatever is required to ensure that the use of Huawei's intellectual property by any company is based on internationally accepted protocols and practices," said Huawei's chief legal officer, Song Liuping, in a statement.

ZTE said its lawsuit accused Huawei of infringing its 4G patents. The company said it also has asked a French court and China's State Intellectual Property Office to invalidate Huawei's patents for a rotary USB connector used to exchange data between devices.

"ZTE respects the intellectual property rights of other companies, but it will not stop protecting its own intellectual property rights," said a company statement.

Huawei, founded in 1987 by a former Chinese military engineer, has 110,000 employees and reported 2010 revenues of 182bil yuan.

Chinese tech giants fight over 4G phones

Two of China's biggest technology companies have launched a court battle in Europe over mobile phone patents in a rare public clash between firms Beijing is promoting as national champions.

The fight between Huawei Technologies Ltd and ZTE Corp highlights the challenge for communist leaders who need to manage Chinese corporate ambitions as they try to create global competitors in telecoms, energy and other fields.

It is the first case of its kind between major Chinese companies, which usually settle disputes in private.

"We're going to see more of this in this industry and others," said David Wolf, a technology marketing consultant in Beijing. "The government will find, wow, we've got these national champions, but now they're trying to kill each other."

The dispute centres on fourth-generation mobile technology, which companies that are developing it say will deliver more stable connections, wireless broadband and other advances. It is in limited use in the United States and being tested elsewhere.


Control of key patents could help decide which equipment suppliers are positioned to reap billions of dollars in sales once it is rolled out in other markets.

Huawei and ZTE make network gear, the core of phone systems. They have multibillion-dollar annual sales in China, Africa and Latin America and see themselves as potential global 4G leaders. That fits with Communist Party hopes to transform China from a low-cost factory into a creator of profitable technology.

Huawei has filed patent infringement lawsuits against ZTE in France, Germany and Hungary. ZTE rejected the claims and said it has asked a French court and Chinese regulators to invalidate a Huawei patent.

Huawei and ZTE are among China's first wave of fledgling multinational companies. They compete with Nokia-Siemens Networks, Ericsson and Alcatel-Lucent and have a small but growing US and European presence.

Their dispute comes amid mounting complaints by foreign business groups about Beijing's industrial policy. They say China is improperly supporting favoured companies by limiting market access and providing low-cost loans and other support.

Huawei's lawsuits accuse ZTE of infringing patents for data cards and improperly using a Huawei-registered trademark on some of its products.

"We will do whatever is required to ensure that the use of Huawei's intellectual property by any company is based on internationally accepted protocols and practices," said Huawei's chief legal officer, Song Liuping, in a statement.

ZTE said its lawsuit accused Huawei of infringing its 4G patents. The company said it also has asked a French court and China's State Intellectual Property Office to invalidate Huawei's patents for a rotary USB connector used to exchange data between devices.

"ZTE respects the intellectual property rights of other companies, but it will not stop protecting its own intellectual property rights," said a company statement.

Huawei, founded in 1987 by a former Chinese military engineer, has 110,000 employees and reported 2010 revenues of 182bil yuan.

Apple update fixes iPhone tracking "bugs"

Apple released updated software for iPhones to fix "bugs" that resulted in location data being unencrypted and stored for up to a year.

A note included with the update said that the cache of saved data on devices was reduced and that location information would no longer be backed up at iTunes on people's computers.

Turning off the location services feature on an Apple gadget will cause location data to be deleted, the update promised.

The changes came in an iOS 4.3.3 software update for iPhones, iPads, and iPod touch devices.

According to British researchers, iPhones and iPads running iOS 4, the latest operating system, were storing latitude and longitude coordinates in a hidden file along with a time stamp and the data was easily retrievable.


"By passively logging your location without your permission, Apple made it possible for anyone from a jealous spouse to a private investigator to get a detailed picture of your movements," they said.

The Cupertino, California-based company has staunchly denied tracking iPhone users, maintaining that location data gathered by the smartphones was used for services such as navigation or targeted ads.

Apple said the iPhone was not logging a user's location but maintaining a database of nearby WiFi hotspots and cell towers to "help your iPhone rapidly and accurately calculate its location when requested."

Apple said the location data the researchers were seeing on the iPhone is "not the past or present location of the iPhone, but rather the locations of WiFi hotspots and cell towers surrounding the iPhone's location, which can be more than one hundred miles away from the iPhone."

Apple update fixes iPhone tracking "bugs"

Apple released updated software for iPhones to fix "bugs" that resulted in location data being unencrypted and stored for up to a year.

A note included with the update said that the cache of saved data on devices was reduced and that location information would no longer be backed up at iTunes on people's computers.

Turning off the location services feature on an Apple gadget will cause location data to be deleted, the update promised.

The changes came in an iOS 4.3.3 software update for iPhones, iPads, and iPod touch devices.

According to British researchers, iPhones and iPads running iOS 4, the latest operating system, were storing latitude and longitude coordinates in a hidden file along with a time stamp and the data was easily retrievable.


"By passively logging your location without your permission, Apple made it possible for anyone from a jealous spouse to a private investigator to get a detailed picture of your movements," they said.

The Cupertino, California-based company has staunchly denied tracking iPhone users, maintaining that location data gathered by the smartphones was used for services such as navigation or targeted ads.

Apple said the iPhone was not logging a user's location but maintaining a database of nearby WiFi hotspots and cell towers to "help your iPhone rapidly and accurately calculate its location when requested."

Apple said the location data the researchers were seeing on the iPhone is "not the past or present location of the iPhone, but rather the locations of WiFi hotspots and cell towers surrounding the iPhone's location, which can be more than one hundred miles away from the iPhone."

Apple update fixes iPhone tracking "bugs"

Apple released updated software for iPhones to fix "bugs" that resulted in location data being unencrypted and stored for up to a year.

A note included with the update said that the cache of saved data on devices was reduced and that location information would no longer be backed up at iTunes on people's computers.

Turning off the location services feature on an Apple gadget will cause location data to be deleted, the update promised.

The changes came in an iOS 4.3.3 software update for iPhones, iPads, and iPod touch devices.

According to British researchers, iPhones and iPads running iOS 4, the latest operating system, were storing latitude and longitude coordinates in a hidden file along with a time stamp and the data was easily retrievable.


"By passively logging your location without your permission, Apple made it possible for anyone from a jealous spouse to a private investigator to get a detailed picture of your movements," they said.

The Cupertino, California-based company has staunchly denied tracking iPhone users, maintaining that location data gathered by the smartphones was used for services such as navigation or targeted ads.

Apple said the iPhone was not logging a user's location but maintaining a database of nearby WiFi hotspots and cell towers to "help your iPhone rapidly and accurately calculate its location when requested."

Apple said the location data the researchers were seeing on the iPhone is "not the past or present location of the iPhone, but rather the locations of WiFi hotspots and cell towers surrounding the iPhone's location, which can be more than one hundred miles away from the iPhone."