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The World's Largest Order Ever?

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US carrier Sprint makes a $20 billion bet on the iPhone 4S, the Wall Street Journal reports-- committing to buy "at least 30.5 million iPhones," a possibly record breaking non-military order.

Sprint iPhoneWith such an order Sprint (the no. 3 US carrier) might only start making money from the deal on 2014.

The carrier however hopes the gamble will put it in a better position with customers, gaining revenue in the process. Either that or it ends up losing, big time.

Both Sprint and Apple decline to comment by the time of writing.

Sprint also has another ace up its customer-enticement sleeve-- unlimited data plans. However, the WSJ says "Sprint would have to double its rolls of contract customers, convert all of them to the Apple device or a combination of the two."

Is the iPhone 4S (arguably a minor upgrade on the iPhone 4) worth such risk from any retailer? TrendForce does predict iPhone 4S shipments "may surpass 100M" by 2012, even if one might argue on the generosity of such a forecast.

We'll get to know how the iPhone 4S "wow" factor-- or lack thereof-- will propel Apple to further market success after Octer 14, when the device launches in the US.

Go Inside Sprint's Bet on iPhone (WSJ.com, subscription required)

Go The iPhone 4 Gets an "S"

Go TrendForce: iPhone 4S Sales Expected to Exceed 100M

The iPhone 4 Gets an "S" (For Effort?)

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Like the rumour-based oracles predicted, Apple unveils the 2011 iPhone model at Let's Talk iPhone-- only not the "iPhone 5," but the iPhone 4S, a hardware upgrade on the previous model.

The revelation proved disappointing for the Apple disciples expecting something entirely new (as if Apple would reinvent the wheel), 4G (lacking) or an improved display (the iPhone4 Retina Display remains).

iPhone 4SInside is the dual-core A5 processor from the iPad 2, which Apple says improves on both graphics and iOS performance. Cameras also get an improvement-- iPhoneographers will be able to play with an 8MP camera handling 1080p video, complete with hybrid IR filter, real-time image stablisation and temporal noise reduction.

Connections come through HSPA+, with GSM and CDMA antennas making it an "international" smartphone.

What's new is "Siri"-- the voice-controlled virtual assistant that speaks back, Hal 9000-style (only in a soothing female voice). In a very non-Apple (but very Google) move, Siri will actually launch in beta alongside the iPhone 4S.

A bullish Tim Cook took to the stage like a duck takes to water-- if not a low-key Steve Jobs, opening his appearance with "I love Apple!" before rattling out hyperbole and statistics. Other Apple executives also took the stage (including Scott Forstall, Eddy Cue and Phil Schiller), in a move only pointing out the elephant in the room that was the absence of Jobs.

The main question-- how will the iPhone 4S fare against the increasingly confident Android competition? Will such a simple upgrade fuel sales? TrendForce at least believes so, saying "a strong market demand remains" and predicting WW 2012 iPhone 4S shipments may reach 100M (resulting in a boon for the NAND flash market as it could cause flash undersupply, triggering a price increase).

Meanwhile iSuppli predicts Apple will remain on top of the smartphone pecking order, leading the general smartphone category to reach global shipments of over 1 billion units by 2015.

Technology-wise, the iPhone 4S races neck to neck against the latest Androids, while windows Phone remains something of a dark horse (with the promise of both "Mango" and WP7-powered Nokia handsets).

The iPhone 4S will be launch in the US on October 14, with other territories to follow soon-- or maybe later, if Apple wants international versions of Siri available.

Go iPhone 4S

Go TrendForce: iPhone 4S Sales Expected to Exceed 100M

Go IHS iSuppli Fast Facts on Apple's New iPhone Introduction

Notebook PCs Keep on Fighting

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Doomsayers predicting the demise of the notebook PC might be wrong-- IHS iSuppli predicts the "notebook market will live to fight another day," saying WW shipments will reach 325M by 2015.

The 2015 forecast is up 105M from the total iSuppli predicts for 2011 shipments-- 220M.

While the notebook market will receive a bit of a beating from tablets (with shipments slowing down), the platform will retain a key role, especially in enterprise segments.

Netbook Market

The analyst also describes notebooks as "a useful tool that has become an essential part of modern life-- rather than a luxury item."

Notebook will remain superior platforms for content creation taks (rich document building, video and photo editing), and thus the notebook PC market will continue being "an important, expanding" (if slowing down) market.

However, netbooks will receive quite the battering from tablets-- with shipments declining to 12.5M in 2011, before dwindling down to 13.5M in 2015. The decline of the once-hot segment is due to netbooks providing a similar user experience to tablets as highly portable multimedia consumption devices.

Tables will go from strength to strength-- iSuppli predicts WW tablet shipments will reach 60M in 2011, with 250% Y-o-Y growth, and expects tablet shipments to reach 275M in 2015.

Tablet PCs will also grow following the 2012 launch of the tablet-oriented Windows 8, with shipments reaching 45.2M by 2015.

Go Despite Media Tablet Inroads, the Notebook PC Lives On (IHS iSuppli)

So Long Napster, and Thank You for the Best Buy Music

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Best Buy gives up on the digital music market and sells Napster to Rhapsody for a minority stake in the online music provider.

Napster Best BuyNapster-- hugely popular source of pirated music turned legitimate paid music service-- was bought by Best Buy 3 years ago for $121M. Back then, according to Gartner, Napster had an estimated 700000 subscribers.

It now has less than half of that amount-- around 200000-300000, with Best Buy failing to use its retail network to promote the service.

Napster will shut down once the deal is finalised, migrating subscribers to Rhapsody.

The online music market remains a wild, competitive jungle-- made even more competitive by free services such as the European Spotify, Pandora and Grooveshark.

Go Rhapsody to Acquire Napster

What's the Price of Failure? At HP, it's $7.2 Million...

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Massive severance packages and golden parachutes are everything but news, but it's always worth pointing them out. Like in the case ex-HP CEO Leo Apotheker, who leaves the company with a very tidy sum-- a $7.2 million, to be precise.

Apotheker In additional, he also receives a $2.4 million bonus and $3.7M in stock, as the regulatory filing from the US Securities and Exchange Commission shows. And HP will even pay the lawyers negotiating the package!

One would think Apotheker led HP to a prosperous new golden age, rather than getting kicked out after 11 months on the job after the company dropped by 45% in value...

Meanwhile replacement Meg Whitman will receive a base salary of $1 a year (according to the same regulatory filing) together with the option to buy more than 1.9M HP shares and a 2012 bonus worth anything between $2.4-6M.

Such facts say alot on how corporate culture throws money around in wild abandon (at its own, mind) during a recession, right?

Go Leo Apotheker Severence SEC Filing

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