Today’s mobile news roundup: Motorola announces death of Webtop; House Intelligence Committee warns US companies from doing business with Chinese tech firms; HTC profits drop to record low; users blamed for iPhone 5 purple photo haze; and Nokia VP leaves company.

Motorola announces death of Webtop

Webtop, Motorola Mobility’s technology that aimed to bridge the gap between PCs and smartphones, has been killed off.  The reason is attributed to the fact that not many people were interested the smartphone accessory as many smartphones these days perform enough PC functions on their own.  Not to mention, the Webtop dock was priced at $129 and it was compatible for use with just a handful of devices.  They will be pushing the development of Android smartphones with more desktop-like features, a strategy likely geared towards the enterprise where they’ll compete with Apple and Microsoft in the coming months.

House Intelligence Committee warns US companies from doing business with Chinese tech firms

In a report made by the House Intelligence Committee, they warned American companies against doing business with two Chinese tech firms: Huawei Technologies Ltd. and ZTE Corp.  Despite being the leading suppliers of telecommunications gear and mobile phones in China, they’re being investigated in their involvement with alleged cyber espionage.

The Committee believes that there is a correlation between Huawei and ZTE to the increasing cyber attacks made to the US led by Chinese hackers using their components in US infrastructures.

“The investigation concludes that the risks associated with Huawei’s and ZTE’s provision of equipment to US critical infrastructure could undermine core US national-security interests,” the report says.

The report also warned that malicious hardware or software implants in Chinese-manufactured components could cripple the US’ communications in time of crisis or war.  The report goes on to claim that Huawei may have received abundant support from the Chinese government as well, leading to the conclusion that they are aiding the telco in cyber espionage.  Huawei denied the allegations.

HTC profits drop to record low

The high demand for Apple’s iPhones and Samsung’s huge range Galaxy smartphones has greatly taken its toll on HTC as they reported a 79 percent drop in quarterly profits.  Their third quarter net income dropped to $133 million which greatly missed analysts’ expectation of $151 million.  Analysts are now expecting HTC’s profits to continuously drop as interest in their devices decline in the US and Europe.

“HTC is likely facing further share loss in the U.S. and Europe” in the fourth quarter, Kevin Chang, an analyst at Citigroup Inc. in Taipei, who rates the stock sell, wrote in an Oct. 4 report. “While HTC was doing well in China in the third quarter, we believe the dramatic price declines and performance improvements of white box smartphones have dampened HTC’s momentum in China.”

Users blamed for purple haze on photos taken with iPhone 5

Last week, more consumers reported having issues with their newly purchased iPhone 5.  The latest was users reporting a purple haze on photos they took with their iPhone 5.

Apple has already addressed the issue, stating that the purple haze appears when there is a light source near the subject of the photo and recommends angling the iPhone 5 or using your hand to shield the lens to prevent this from happening.  But iPhone 5 users did not appreciate Apple telling them that it was their fault, refuting Apple’s claim that all iPhones have the same issue.  The blame falls squarely on the iPhone 5, according to some users who declare the iPhone 4S is better at taking photos regardless of lighting conditions.

Others still are suggesting that the new Sapphire Crystal lens is to be blamed for the purple haze, but Apple has yet to confirm or deny this.

Nokia VP leaves company

Nokia vice-president of product marketing Ilari Nurmi confirmed to Reuters that he left the mobile company, but his reason for doing so was not divulged.  Nurmi also tweeted his departure from Nokia, wishing the Finnish company all the best, and he is looking forward to getting the Lumia 920 when it becomes available.

Some are suggesting that investors’ disappointment over the lack of details as to when the Lumia 920 will be available when it was unveiled last month as the reason behind Nurmi’s departure from the company.  Many are banking on the Nokia-Windows phone as their hero phone to be able to compete with Apple’s iPhone 5 and Samsung’s range of Galaxy smartphones but with the lack of information as to when it will be available and pricing, investors were not pleased.