Amazon may have angered record companies by rushing out its cloud-based music service, while a spate of tech titans are racing to roll out mobile payment systems. Meanwhile, Apple is readying its iPhone 5, widely expected to be showcased at the WWDC conference on June 6.
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Amazon Strikes First in Cloud Music
Amazon on Tuesday announced a new cloud-based service that lets customers buy, store and access music, movies and e-books in an online "storage locker."
Users can stream the content from Android smartphones -- through a web browser -- meaning their files, which are normally stored locally, can now be accessed from multiple devices. Amazon said the new service won't be available on Apple's mobile products, but users can still upload their iTunes library to Cloud.
In its haste to rush out cloud services before Apple and Google, Amazon launched "Cloud Drive" and "Cloud Player" before getting licensing deals from major record labels. The music industry isn't happy, and hinted it may block the service. But, Amazon, which insists that it doesn't need new licenses since online storage is the same as keeping files on a PC's hard drive, is trying to reach a deal.
Amazon, one the world's most powerful Internet companies, now puts increased pressure on Apple and Google, who are prepping similar music services for their mobile products. The move could also spell trouble for smaller music streaming services from mSpot and MP3Tunes.
Google, meanwhile, is in transition. After retaking the reins as CEO next week, co-founder Larry Page is trimming less promising projects to refocus company efforts on mobile services, including cloud. Last week, Google started testing "Google Music," its own cloud music service, which combines both downloading and streaming capabilities.
Digital music leader Apple is working on its cloud service as well. The music locker is expected to debut with iOS 5, according to people familiar with the matter, and include music locker capabilities and friends and family finder. That service is expected in the fall.
A previewed is anticipated at Apple's Worldwide Developers Conference this June. Apple is also negotiating with record companies to allow iTunes customers the ability to listen to music on multiple devices.
Mobile Payments Gets Crowded
Many of the same competitors are also racing to introduce mobile-payment systems, allowing shoppers will wave or tap their phone to pay at the register.
Google, for instance, is teaming up with Citigroup and MasterCard to turn Android phones into mobile wallets for people with a Citigroup-issued debit or credit card. The Internet giant won't get a cut of the transaction fees, but it will gain access to customer data, which could be used to sell highly-targeted ads.
Google is currently testing a mobile payments system -- using near-field communication, or NFC, technology -- in New York and San Francisco.
Samsung is working with Visa and the Olympics to show off their NFC system in London 2012. Samsung's special Olympic phones will be equipped with Visa-enabled SIM cards, which will allow visitors to shop at the half million tourist areas.
Microsoft is also adding mobile-payment capabilities to its smartphones. The next version of its Windows Phone software will integrate NFC technology and help consumers store data for payment accounts, gift cards, store loyalty cards and coupons.
Amazon may be the first into cloud music, but it is behind in its mobile-payment initiative. The online retailer is reportedly considering offering an NFC system on smartphones. It's not immediately clear what Amazon has in mind, but it could leverage its deep database of online buying behavior for use in brick-and-mortar stores.
Opposition Mounts Against AT&T
Several states plan to investigate AT&T's potentially anti-competitive acquisition of T-Mobile. Attorneys general in New York, Connecticut and Minnesota have voiced concerns about the proposed merger, which would create a virtual duopoly, with two carriers controlling nearly 80 percent of the market. Since T-Mobile is often a lower-cost option, customers may see an increase in price for service, in addition to reduced handset selection with one less carrier.
AT&T is also facing opposition from rival Sprint, which plans to formally voice concerns about the merger during the vetting process with the FCC and Justice Department -- regulatory bodies which must approve the deal for it to take effect. But Sprint is struggling to make its voice heard. The carrier spent just $2.5 million on lobbying last year. AT&T spent six times that amount, according to campaign spending research site OpenSecrets.org.
AT&T, meanwhile, is prepared to make concessions in exchange for deal approval. Its chief executive Randall Stephenson said he "anticipates there will be some markets we will have to divest." That may include a transfer of assets to competitors, such as market share or spectrum, to keep the newly formed mega-carrier from dominating the industry.
The FCC is also considering imposing new rules that would require carriers to let customers from other companies to roam on their data networks. Right now, carriers are being obstructive from creating the data roaming agreements at reasonable rates. The agreements would allow smaller wireless providers to more effectively compete with national carriers and help to make sure mobile customers had access to data everywhere.
Apple Readies iPhone 5, Lawsuits
Apple is expected to unveil the iPhone 5 at WWDC on June 6. Historically an event where Apple announces its next iPhone and iOS software, the iPhone 5 is reported to have a slightly larger screen size and a metal case. The handset is supposedly roughly the same size and shape as the iPhone 4, with the placement of the camera and buttons unchanged.
Apple could sell up to 100 million iPhone 5 devices, said research Asymco, according to compiled data of monthly sales for all four iPhone models. The current iPhone 4 is set to sell around 60 million units by the time its successor is rolled out.
The company may be working on a 3D version of a future iPhone, according to patent request. The application, filed with the U.S. Patent and Trademark Office and titled "Systems and Methods for an Imaging System Using Multiple Image Sensors," details the potential for an iPhone to use two cameras to make 3D videos and pictures.
The system would be based on hardware instead of software, which could make for better image quality, according to the patent application. Instead of software that guesses dimensional disparity, Apple would use "deterministic calculation for stereo disparity compensation."
In the courtroom, Apple and Microsoft have hired linguists to serve as experts in the ongoing suit over whether Apple can trademark the term "app store." Microsoft linguistic argues that "app store" is generic and shouldn't be allowed to be trademarked. Apple expert tried to show that the term is a proper noun, tied to Apple's online marketplace. The battle is part of a larger war over protecting lucrative sales in a burgeoning app market.
In another case, the U.S. International Trade Commission, or ITC, ruled that Apple did not infringe on Nokia's patents in the iPhone and iPod. The judge's decision will be forwarded to a commission for a 60-day review period to determine whether or not to adopt the ruling.
Undeterred, Nokia filed another lawsuit against Apple, this time claiming patent infringement on multi-tasking operating systems, data synchronization, positioning, call quality and the use of Bluetooth accessories. The patents cover tablet and computer devices, as well as phones and music players.
Legal disputes between the two companies are being waged in Germany, the Netherlands and the U.K. Each side accuses the other of infringing on an increasing number of patents.
Google Angers FTC, Android Partners
Google has agreed create a privacy program for current and future products after the Federal Trade Commission imposed new rules on the Internet giant. The company will now protects users' names, e-mail, contact information, location data, and the unique identifiers for their personal devices, after a dustup where its Buzz social network publically listed contacts without their consent.
Users must now explicitly opt-in to allow Google to share information with outsiders.
In other news, Google has also been intensifying efforts to cut down fragmentation of Android. The company has been asking Android distributors to sign a "non-fragmentation clause," giving it final approval of code tweaks that licensees add to the original software.
But the clause is angering companies like LG, Toshiba, Samsung and even Facebook, which has been trying to develop an Android device. They see it as a move away from the Android's open-source origins, and Google has reportedly tried to hold up the release of Verizon Android phones that use rival Microsoft's Bing search function.
Unfortunately, Google won't have the help of former chief Eric Schmidt, who was voted the top tech company CEO, according to research firm Glassdoor. Surveying employees at top Silicon Valley companies, Schmidt received the highest approval rating, at 98 percent. By comparison Apple CEO Steve Jobs held a 95 percent rating, down from 98 percent a year earlier.
