Worst PC sales drop in history

NEW YORK (CNNMoney)

PC sales certainly haven't been good over the past year or so, but this past quarter was record-setting bad.

Shipments of PCs fell 14% worldwide last quarter, according to IDC. It was the worst yearly decline since IDC began tracking the data in 1994.

The drop in PC shipments was nearly twice as bad as the 7.7% decline IDC expected, and it marked the fourth consecutive quarter in which PC shipments fell year-over-year.

Gartner, another technology consultancy, posted similar figures on Wednesday. The analysis firm said 79 million PCs were shipped worldwide in the first quarter -- the fewest number of shipments since the second quarter of 2009.

PC industry titans have tried to innovate themselves out of their sales slump, but recent attempts have failed. Ultrabooks, super-thin notebook computers, debuted to great fanfare in 2011. But sales disappointed, and firms quickly slashed their ultrabook sales forecasts.

In October 2012, Microsoft (MSFT, Fortune 500) debuted Windows 8, which received mixed reviews, and sales have been muted compared with past Windows launches.

Bob O'Donnell, a vice president at IDC, said in the company's report that "the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market."

He slammed WIndows 8's "radical changes" to the user interface, particularly the removal of the iconic start button, and intimated that the switch is confusing for customers.

"Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market," O'Donnell said in the report.

Microsoft and its rivals felt the crunch in after-hours trading. Microsoft's shares fell 1.3%, while Intel (INTC, Fortune 500) and Hewlett-Packard (HPQ, Fortune 500) were down about 1.7%. Dell (DELL, Fortune 500), which is planning to go private after a dismal few quarters, remained flat. 

My month with the Chromebook Pixel: A review

(CNN) -- When Google announced its cloud-based Chromebook Pixel laptop, the tech community was left puzzled.

They couldn't put a little category box around the Pixel, so they began berating the only thing they could: the software. But sometimes a new product comes along that represents a major shift in how we have learned to do things.

Google loaned me a Pixel for this review, and I liked it so much that after I returned the review model I purchased my own. I've been using it for more than a month, but it only takes turning the computer on once to realize how different it is from anything else out there.

First, though, some background: Google's Chromebooks are built on the promise of cloud computing, where your files live not on your hard drive but on Web servers. Everything you upload is just a click away if you want it to be.

The files don't physically have to be in the same location as the worker. More and more people are embracing the cloud, not just at work, but on their personal machines, too.

They upload all sorts of files, accessible anywhere. Enter the Chromebook.

Within the last two years, Google has started selling these affordable computers that run an operating system called Chrome OS.

Chrome OS, and its open-source sibling, Chromium OS, are Google's answer to the desktop computer. Built for the cloud, they run through a combination of the Chrome OS browser and Web apps.

Up to now, the computers have been inexpensive and fast. But Google has done something unexpected with the new Chromebook Pixel.

This new computer is still very much a Chromebook, but it boasts sturdy, Apple-like aluminium unibody design. It also has a gorgeous touchscreen that demands to be seen and touched. You can interact with all your content with just a swipe of your finger.

After the computer boots up, simply log into your Google account and all your apps, e-mail, calendar appointments and contacts load instantly. Google has created a seductive app launcher, sort of like how Apple operates with its iLife suite but still unique. Instead of a physical computer dictating how you do what you do, the Chromebook Pixel is offering you a way to work and connect that requires only your username and password.

Let's jump right into some of my favorite features:

-- Trackpad. It's the best I have ever used. It is fluid and responsive and in my opinion, better than the MacBook Pro trackpads I've used in the past.

-- Keyboard action response. It is not too firm but not too mushy, as I have experienced on some Apple laptops. Depressing a key on the chiclet-style keyboard produces just the right amount of pushback. I have found that the action of the keys is just stiff enough to prevent accidental bumping of other keys while your hands move across the keyboard.

-- Display. The resolution on the screen, my favorite feature, is simply amazing, although it's more than just the crispness of the screen. The way it renders colors is completely unique. I have used MacBook "Retina display" laptops before, but I prefer the color of the Pixel's display, which appear warmer and more alive. The screen's viewing angles are wide and have very little glare -- perfect for viewing in a group setting.

Now here are three features I don't like so much:

-- Battery Life. I am usually plugged into a wall socket for power, but on the rare chance I venture out without the charger; I'm disappointed how quickly the battery gets to red. I wonder if there is a software update that can do some improvement on power management of the battery?

-- Charging port. It can sometimes get unhinged from the computer by the tiniest accidental pull of the wire. I wish the computer held the power cord a little more snugly so I would not have to keep plugging it back in.

-- Fan noise. I don't usually hear the fan running unless I have a lot of windows open on my screen or am watching a hi-def video. But the Pixel's fan can get spinning very fast and loud. I wonder if a software update would be able correct this when the fan speed switches to hyper-drive.

Still, on balance the Chromebook Pixel is a fine machine. The computer is very quick, thanks to a beefy processor and the fact that most tasks are done via apps online. Its Chrome OS has a history of being secure (although cloud computing will never be as protected as a local personal hard-drive). Earlier this year Google held a competitive hackathon and offered $3.14 million in prize money if anyone could infiltrate Chrome OS.. No winner was announced.

If you're looking for a speedy, sturdy machine and are comfortable living in the cloud, the Pixel may be for you. Overall I found this computer to be a refreshing approach to computing in the cloud, thanks to its hi-def screen and wicked fast computing power. My month with the Pixel thoroughly changed my thinking on how a computer should behave while handling my files.

With the Pixel, I'm totally on cloud nine.

What's been your experience with the Chromebook Pixel? Or are you considering buying one? Let us know in the comments below.

At long last, Microsoft has an Apple-beating vision

Microsoft's upcoming Windows 'Blue' update could merge desktop and mobile.

NEW YORK (CNNMoney)

For the first time in many years, Microsoft has a vision.

In November 2012, CEO Steve Ballmer proclaimed that Microsoft (MSFT, Fortune 500)is no longer just a software company that licensed its operating system to PC makers to use as they pleased. Instead, Microsoft is now a devices and services company that develops its own end-to-end experience for consumers. Ballmer said Microsoft wants to maintain firm control over how its products are used.

Instead of a mishmash of systems out there using outdated Microsoft software with glaring compatibility issues, "Blue" could ensure that Microsoft's own products evolve at the same rate as the rest of the tech world.

If this is starting to sounds a lot like how Apple (AAPL, Fortune 500) and Google(GOOG, Fortune 500) do business, that's intentional.

But Microsoft's plan may be even better than anything Apple or Google currently have to offer. If -- and it's still a lofty if -- there's a shred of validity to rumors that Microsoft will merge the Windows and Windows Phone platforms, "Blue" could end up being a huge deal. Dissolving the barrier between mobile and desktop would be nothing short of impressive.

That would mean the main difference between Microsoft's products would be the size of the hardware they run on. It's the post-PC concept at its ideal peak.

Related story: Where Microsoft geeks go to 'Do epic $#!+'

As the rest of the tech world tries to merge desktop and mobile computing, Microsoft is in a favorable position to get there first. A single, unified Windows experience across PCs, tablets and smartphones could make Blue a world beater -- even if Microsoft isn't remotely controlling the mobile market at the moment.

Microsoft still has 90% of the PC market in its corner, and it has the ability to move towards mobile-PC convergence from its strong base of more than 1 billion loyal customers.

Now is the time for Microsoft to act. In the past, the company was not structured to address a challenge like this. To even be in a position to attempt to break down the walls between mobile and PCs, Microsoft needed the ability to do a few important things.

First, it had to exert tight control over the third-party apps that run on its devices. Windows store -- check.

Second, Microsoft had to establish specific hardware guidelines for partners looking to build Windows and Windows Phone products. Surface and the Nokia partnership -- check.

Lastly, the company had to speed up its product cycle so that it could swiftly right its wrongs if need be. Blue -- check.

The last point is a big one. Although Windows 8 presented some innovative ideas that made futurists drool, the final execution was flawed, inconsistent and incomplete. Nowsales are slumping. Thanks to the advent of digital software distribution and Microsoft's plans for frequent updates, Microsoft has the chance to avoid another Windows Vista situation where it had to rush out Windows 7 months ahead of schedule to stop the bleeding.

Of course, the greatest product in the world means little if a company can't make money off of it, and a large chunk of Microsoft's cash flow comes from selling Windows as a standalone product. But if Microsoft wants to get ahead of Apple and Google, it has to think outside of the box.

Eventually, that means Microsoft will have to find a way to offer its software and operating systems to consumers at no cost and find other ways to make money, says Al HIlwa, analyst at IDC. That would mean further growing its Surface line of hardware, services like Skydrive, and its app stores.

"It stands to reason that if Microsoft's revenues over the years shift from software and upgrades to devices and services, big releases are no longer necessary," says Hilwa. "A more incremental approach to feeding new technology into devices is more appropriate."

That could be the glimmer of hope Microsoft needs to push forward with "Blue," proving that it's possible for the company to shed it's once-successful identity in hopes of creating a new -- very successful -- one. 

Apple reportedly discussing deeper Yahoo service integration for iOS

It was reported on Tuesday that Apple and Yahoo are reportedly in talks regarding how to better integrate the search company's various services into iOS, building on existing features like sports scores and weather information. 
While Apple already uses data from Yahoo Finance, weather and sports stats to power various first-party apps, including its Siri virtual assistant, sources tell The Wall Street Journal that the two companies arelooking to expand their partnership. 

Examples of Yahoo data on iOS.

According to a person familiar with the discussions, data from Yahoo News and other Yahoo Web properties could be "preloaded" onto Apple's iOS devices, with much of the focus being directed toward Siri functionality. Currently, Yahoo's presence on iOS is limited to the Stocks app, the Weather app, a search option in mobile Safari and sports scores as accessed through Siri. 

The Journal points out that no concrete deals have been made and the talks are still their early stages.

Although speculation, Apple could potentially be looking to further deprecate Google integration in iOS, replacing existing services with those from Yahoo. With iOS 6, Apple made clear that it is looking to expel Google from first-party apps, as the company deprecated the search giant's data from the Maps app and removed the built-in YouTube app, both of which were iOS mainstays since 2007.

Patent filing suggests Apple is working on 'Street View' mapping technology

Custom Search

An Apple patent application discovered on Thursday hints that the company is looking to deploy on mobile devices a virtual navigation system based on panoramic location data, much like the popular "Street View" seen in Google Maps. 
Published by the U.S. Patent and Trademark Office, Apple's "3D Position Tracking for Panoramic Imagery Navigation" describes a graphical user interface that leverages an iPhone or iPad's onboard sensors to navigate panoramic imagery. 

Source: USPTO

According to the filing, Apple's invention improves upon current technology, like Google's Street View, which boxes users into a "bubble" that can only be navigated through an input device like a mouse or multitouch screen. For example, in a conventional GUI, the user must "jump" to a panoramic "bubble" at a given intersection and pan within said bubble to move in a desired direction; a tedious experience for mobile device users on the go.

Instead of the traditional approach, Apple proposes tracking subsystems and onboard sensors deployed within a mobile device be used to translate a user's physical motion into a panoramic navigation UI. In the examples that follow, data from accelerometers, cameras, gyroscopes and other sensors are used to "move" a user through virtual street-level panoramic space.

First, the invention notes a user must first enter the street-level view, which can be accomplished by "pinching in" on a map, or by selecting a dropped pin icon. Once in street view mode, a user can move their device up, down, left or right to view panoramic imagery supplied either by built-in storage or streamed wirelessly over cellular data networks. Movement is controlled by moving the device forward and back.

Illustration of device transitional movement from original position (104) with informational overlay (103b).

Throughout the process, onboard sensors are collecting movement data, including linear and velocity metrics, and translating the motions into the GUI. 

Further, the filing notes informational bubbles can be displayed on the virtual environment to point out places of interest such as buildings or shops. Information is stored in layers, an example being "businesses," and can be displayed according to a user's preferences. In some embodiments, the bubbles can be hidden to reduce clutter on smaller device screens.

In an alternative implementation, the system can translate movement data from an imaging sensor in what is called "optical flow," which reads apparent patterns of motion of objects in a panoramic image in relation to an observer. By scaling distance data, a device can display the appropriate virtual location of a user within the environment.

One particularly intriguing idea is the use of multiple displays to increase the visible area of a panoramic image. Devices can communicate wirelessly to display concurrent information regarding the virtual environment. 

Finally, the application mentions the use of interior imaging data for use in some implementations, allowing users to "walk into" a building using their device. When inside structures, other actions can be performed, such as "selecting an object for purchase," though further detail regarding that level of functionality was not discussed. 

Apple's iOS Maps currently lacks a street-level viewing option as it simply doesn't have the imaging data. This feature, which is available on Google's mapping service thanks to its Street View initiative, was sorely missed by some iOS device users with the introduction of the Maps app in iOS 6. 

It is unclear if and when Apple will implement the invention in a future iteration of Maps, but the filing shows the company is at least actively investigating a competitor to Google's solution. 

Apple's patent application was filed in September of 2011 and credits Patrick Piemonte and Billy Chen as its inventors.

The 'hallelujah moment' behind the invention of the Post-it note

St Paul, Minnesota (CNN) -- It's been described as the solution to a problem nobody realized existed.

But that hasn't stopped the humble Post-it Note from becoming a ubiquitous fixture of stationery cupboards worldwide, with manufacturers 3M producing 50 billion each year.

The sticky yellow squares did not always look destined to set the office supply world alight. In fact, it took 12 years from when the technology behind the product was first developed, to Post-its hitting the market.

The story of the Post-it -- the self-attaching note that adheres in such a way that it can be removed without causing damage -- begins in 1968.

"It was part of my job as a researcher to develop new adhesives, and at that time we wanted to develop bigger, stronger, tougher adhesives," he said. "This was none of those."Spencer Silver, a chemist for the giant multinational Minnesotan company 3M, was attempting to develop a better adhesive.

What he came up with were microspheres, which retained their stickiness and had a "removability characteristic," allowing attached surfaces to be peeled apart easily.

For years he struggled to find a use for his invention, preaching the merits of his creation to unreceptive colleagues.

"I got to be known as 'Mr Persistent,' because I wouldn't give up," he said.

Samsung to open brand shops in Best Buy stores; Wall Street approves

NEW YORK (Reuters) - Samsung Electronics Co Ltd is planning to install its brand shops in more than 1,400 Best Buy Co Inc stores this year, a move that some on Wall Street said could help the world's largest consumer electronics chain boost in-store traffic, sales and profitability.

The news pushed Best Buy shares up 12.5 percent to $24.36 on Thursday.

The store-within-a-store effort is a key element of Best Buy's turnaround plan, which includes dedicating more space to more-profitable products like tablets and mobile phones. The company is also trying to use its clout with suppliers to fight online and discount rivals.

JPMorgan analyst Christopher Horvers said the Samsung deal was "another step in the right direction" and better positioned Best Buy against online retailer Amazon.com Inc .

"Retailers and vendors are learning how to better cope with online and pricing challenges to become more profitable omnichannel retailers," Horvers said.

The expanded partnership with Samsung is akin to the Best Buy's tie-up with Apple Inc as well as Dick's Sporting Goods Inc's partnerships with vendors Nike Inc , Under Armour Inc and North Face .

Best Buy's latest move "is a clear indication" that the retailer is better using its key partnerships to boost traffic and sales, Horvers said.

Janney Capital Markets analyst David Strasser said the move was "a wakeup call" for Best Buy's other key partners - Google Inc , Sony Corp and Microsoft Corp .

"These vendors will also need to take up more space and invest more heavily in Best Buy as a distribution partner," Strasser said.

Retailers such as Best Buy are also trying to find ways to appeal to shoppers who own more than one mobile computing device and are looking to connect them together and share content across multiple screens.

The "Samsung Experience" shops will showcase the entire range of the manufacturer's mobile products, including smartphones, tablets, laptops, connected cameras and accessories.

Some Best Buy stores will also have Samsung employees to help customers buy and activate their mobile devices. The specially trained Samsung staff will also help with product demonstrations, warranty registration and post-purchase support.

The shops will vary in size, with the largest being about 460 square feet.

(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)