UPDATED 09:04 EDT / APRIL 15 2013

Microsoft Unsure of SmartWatch Market, New Rivalry with Apple + Google

In today’s mobile news roundup: Microsoft in on the smartwatch game; Apple duped by scammers; Foxconn resumes hiring for next iPhone; and Dish to block Softbank’s Sprint acquisition.

Microsoft in on the smartwatch game

The software giant is said to be working on a “touch-enabled” watch device that could potentially go head-to-head with Apple’s iWatch, Samsung’s Galaxy Altius, and Google’s Android smartwatch.

Microsoft executives stated that the company asked Asian suppliers to “ship components for a potential watch-style device,” but it is still not sure if the plan would come to fruition though there is huge interest in a wearable smart device.

“We see growing demand for wearable gadgets as the size of the smartphone has become too big to carry around,” said RBS analyst Wanli Wang. “A smart watch that is compatible with a smartphone and other electronics devices would be attractive to consumers.”

If Microsoft perfects this wearable device and releases it ahead of competition, it could make up for the loss brought about by low sales of the Windows 8 platform and its Surface tablets.  Microsoft has declined to comment.

Speaking of the iWatch, Intuit chairman and Apple board member William V. (Bill) Campbell stated that wearable intimate devices could be a big hit, much like our growing dependence on smartphones and tablets, hinting that the iWatch is in the product pipeline of the Cupertino company.  Campbell stated that other companies would soon follow if they see its success.

Apple duped by scammers

In December, a group of Chinese distributors duped Apple into giving them iPhone 4S BAND parts, which makes up the iPhone’s core components except for the battery and the back panel, by submitting serial numbers of 121 genuine iPhone 4S with made up issues.  The suppliers then sent fake iPhone 4S BANDS to Apple, which the company replaced.  The suppliers used the real BANDS to refurbish old iPhones and sell them for the price of brand new units.  Apple quickly caught on and reported it to the authorities, but the suppliers denied the wrongdoing.  Nevertheless, upon investigation it was determined that 118 of the 121 devices were activated in December.  Apple alerted the authorities in January, but has yet to track down the refurbished iPhones or the stolen BANDS.

Foxconn resumes hiring for next iPhone assembly 

In February, Foxconn froze hiring employees as more people came back to work after the Chinese New Year.  Now, the Chinese factory is said to be hiring more people as Apple readies its next iPhone which will be released later this year.

Apple said to have requested the new hires as they will be the ones in charge of assembling the iPhone 5S as well as older models such as the iPhone 5 and 4S.  Though some are expecting the next iPhone to be released as early as June, analyst Ming-Chi Kuo stated that there could be a delay, as Apple still has to figure out the right coating material to use “to prevent interference from the black and white coating material under the cover glass,” for its fingerprint scanning feature.

Dish to block Softbank’s Sprint acquisition

Dish Network Corp. is said to be interested in acquiring Sprint Nextel and is making a $25.5 billion bid for the network.  Dish is said to be offering $4.76 in cash and about $2.24 in Dish stock and is effectively bigger than what Softbank is offering Sprint at $12 billion.

“Sprint is in play,” Dish Chairman Charles Ergen said in an interview in New York. “We think we’ve made an offer that’s much more compelling than the Softbank transaction.”

If the acquisition pushes forward, Dish shareholders will take control of the company and its chairman would be the largest shareholder.  The acquisition would enable Dish to offer video, high-speed Internet and voice service in one package, across the country, even if the subscriber is in or out of his abode.  The deal would also allow the company to offer internet connectivity to places that aren’t reached by Dish’s broadband offering via Sprint’s wireless network.


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