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MICROSOFT'S NO-COST STRATEGY: At its Build conference Wednesday, Microsoft announced that it will now make the Windows 8.1 platform available for smartphone makers at zero cost. This does not apply for Windows 8.1 on desktop devices, but is limited for use on smartphones and tablets with screens smaller than 9 inches in size. Microsoft is creating an improved value proposition for its platform so that it can gain some market share and better compete with Android on the global market. Google currently charges vendors a licensing fee to install Android on new handsets.
Microsoft is likely targeting homegrown manufacturers planted in markets that will make up a majority of the next billion smartphone sales, such as China and India. Most of these manufacturers will already be churning out handsets at razor-thin margins, so a no-cost operating system will have special appeal. Cortana, Microsoft's digital assistant, will also debut as part of the Windows 8.1 phone update. (The Verge)
While it plays catch-up in the smartphone market, Microsoft wants to get a head start on the Internet Of Things. Microsoft also announced that its upcoming version of Windows 8.1 that is optimized for small screens — dubbed "Windows on the Internet Of Things"— will also be available free of charge. The approach here is to ensure that future IoT devices tie into Microsoft services like its cloud product Azure. Interestingly, Microsoft's IoT presentation slide included an image of a watch, hinting at the possibility that this version of Windows may also be compatible with wearables. (PC World)
Samsung also just rolled out its Smart Home smartphone app in the U.S. and Korea, indicating a growing rush into the IoT space. The company has massive plans to expand its entire Smart Home service to include areas with "high growth potential" including home safety and energy management, said Samsung president WonPyo Hong speaking to The Next Web. Samsung's Smart Home ecosystem may also be extended to its new Smart Bulbs and wearable devices. (The Next Web)
WHATSAPP BREAKS USER VOLUME RECORD AMID OUTAGE REPORTS: In an official tweet on Tuesday, WhatsApp, the messaging service recently acquired by Facebook for $19 billion, announced that it had set a new daily record for message volume, processing 64 billion messages in 24 hours. Reports that WhatsApp was down surfaced less than a day later, but the company had not confirmed the outage on its service-status feed late Wednesday. A previous outage at WhatsApp likely helped other mobile messaging apps gain users. (Mobile World Live, PCMag)
FAST FOOD GIANTS BATTLE FOR PAYMENTS APP SUPREMACY: “McDonald’s, Starbucks, Burger King, Subway, and Wendy’s have all kicked their mobile payment strategies into gear … their different approaches point to how this space is still evolving … many of the brands just now getting into the space are taking pages from Starbucks’ mobile payment playbook … Subway is reportedly testing mobile ordering and delivery in California with technology that lets consumers virtually build their own sandwiches.” (Mobile Commerce Daily)
BLACKBERRY LAYS LEGAL SMACKDOWN ON RYAN SEACREST: Ailing BlackBerry can chalk one up for the win column this week, after a federal judge in California issued a preliminary injunction banning a company backed by American Idol’s Ryan Seacrest from continuing to sell a $99 iPhone case with physical keyboard attachment. BlackBerry lawyers claimed that Seacrest’s Typo keyboard infringed on the company’s patents. Typo says it intends to appeal. (Reuters)
SURVEY OF I.T. PROS BRINGS GRIM NEWS FOR BLACKBERRY: A new survey of IT professionals in the financial services sector — traditionally a BlackBerry stronghold — finds that 49% plan to have none of the Canadian company’s devices in their organization in one year. Among those surveyed, BlackBerry’s share of total devices was predicted to drop from 44% to 30% in the next 12 months. (FierceMobileIT)
Judge sides with Apple against Samsung motion in early phase of patent battle. (BGR)
Apple to buy Japanese chip maker Renesas for $479 million. (Nikkei Asian Review)
NYT’s Farhad Manjoo on Oculus and the future of Virtual Reality. (NYT)
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