Google "to set up online tablet store"

Google is considering setting up its own online tablet shop to boost Android sales.

While Google's mobile OS has been a success on smartphones, tablets running Android have made less of a dent in the Apple iPad's dominant market share.

Google will try to counter that by selling tablets directly to consumers via its own online store, with some co-branded devices, according to anonymous sources cited by The Wall Street Journal.

Google is also considering subsidising the cost of tablets to bring prices down and drive takeup, one source claimed.

Google acquired manufacturer Motorola, which made the Android-powered Xoom tablet, but the Journal's sources say the store will also sell tablets by other partners, including Samsung and Asus. The latter is expected to release a co-branded tablet with Google later this year.

The tech giant tried a similar tactic with smartphones in January 2010, selling its first handset, the Nexus One, directly to consumers online. While Google said it sold 300,000 smartphones via the online store, it was shut down several months after it opened.

"It's clear that many customers like a hands-on experience before buying a phone," Android head Andy Rubin said at the time.

Google declined to comment on the report.

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Apple iPhoto ditches Google Maps

Apple has ditched Google Maps for its iPhoto application, becoming the second company to shift to an open source alternative in the last ten days.

The iPhone manufacturer will use data from OpenStreetMap to show where a photograph was taken.

“The desktop version of iPhoto, and indeed all of Apple’s iOS apps until now, use Google Maps,” OpenStreetMap said. “The new iPhoto for iOS, however, uses Apple’s own map tiles – made from OpenStreetMap.”

The crowd-sourced data will be tweaked and re-presented by Apple, although the dataset set being used is, according to OpenStreetMap, an older version of the mapping data from 2010.

Last week, location service FourSquare said it too would be moving away from Google's maps, citing changes to the way the company charged for access to its information.

Google announced changes to its Maps API rates last year, with fees of $4 per thousand requests among other licencing models.

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Analyst: Apple makes $1bn from Google search

Apple made more from Google searches performed on its devices than the search giant last year, according to analysis from financial house Macquarie.

Macquarie analyst Ben Schachter said publicly available income statements showed Apple was paid almost $1bn by Google to use its search tools as the default option on its computers and smartphones.

Searches from Apple devices netted the company $1.3bn, leaving Google $335m in revenue from the deal, according to research cited by Professional Investment Services.

In a note to investors following Apple ditching Google Maps in its iPhoto app, Schachter said the numbers suggest Google wouldn't be financially hampered if Apple chose to also move away from the company's search tools, given that £335m makes up less than 1% of Google's net search revenue.

However, the Macquarie analyst noted that in the longer term, if Apple's products continue to grab more market share, the damage could be more substantial.

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Android apps face ban for not using Google Wallet

Google has been accused of pressuring application and mobile game developers into using its in-house payment service, Google Wallet, as the search giant tries to emulate the financial success of Apple's iOS platform.

Google warned several developers in recent months that if they continued to use other, often cheaper, payment methods - such as PayPal, Zong and Boku – that their apps would be removed from Android Market, now known as Google Play, according to developers, executives and investors in mobile gaming and payment sectors.

Google's payment service charges a higher cut per transaction than some rivals', suggesting Google is using its powerful position in the mobile apps market to promote an in-house offering.

It's probably naive of developers to think they could keep choosing different payment providers

In one email sent to a developer in late August – seen by Reuters this week - Google said the developer had 30 days to comply, otherwise the developer's apps would be "suspended" from Android Market.

"Google told people that if they used other payment services they would be breaking the terms of use," said Si Shen, founder and chief executive of Papaya, a social gaming network on Android. "Whether it's right or wrong, we have to follow the rules."

Papaya placed social games on Android more than two years ago. At that time, the search company's payment service - now known as Google Wallet - was not available for Android app payments, Shen explained.

She said Papaya used PayPal, owned by eBay, and Zong, a mobile payments company that has since been acquired by eBay. Papaya has now dropped PayPal and Zong in favour of Google Wallet for in-app billing, she said.

"If we had a choice, the freedom to choose which billing service, then that's even better. But if we have to follow the rules, we will," she added. "I want to maintain a very good relationship with Google. We are very collaborative. It's very important to the business."

Simpler process

The initiative is important for Google. While Android Market has been a hit in terms of the number of smartphones using the platform, there has not been a commensurate increase in purchase activity by users.

This is partly because the buying experience has been varied and confusing for users, experts said, reducing the chance that Android users will go through with a purchase.

By pushing all app developers to use Google's payment system, the experience should be simpler, increasing conversion.

"On Android it used to be laissez faire - you could use any payment provider you liked," said Todd Hooper, chief executive of Zipline Games.

"It's probably naive of developers to think they could keep choosing different payment providers," he added. "If purchasing on Android is all over the place, that is worrying."

Apple's iOS platform generates higher conversion rates mainly because the company required developers to use its own payment system from day one, according to Hooper.

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Apple's iPad announcement: live

Apple is unveiling the next-gen iPad, and we'll have all the news from the UK press conference.

As usual, rumour and speculation abounds: reports suggest it will be called the iPad HD, not the iPad 3, and will feature a Retina display, support 4G, and drop the "home" button. We don't have much longer to wait to find out if any of those rumours are true.

Updates will appear here from 6pm. The page will update automatically, so there's no need to hit refresh.

• Apple isn't killing the iPad 2 - it will drop in price by $10o. The 16GB Wi-Fi version will cost $399.
• Rehashing the new specs and features. Name must be coming soon..
• iPhoto will be $4.99. Available today.
• Slick-looking photo editing tool auto-corrects the horizon, and it will seek out similar photos for you.
• iPhoto for iPad supports up to 19-megapixel photos.
• Demo photos are lovely shots from Antarctica. Baby seals are adorable on a Retina display.
• That features multitouch editing, professional effects, brushes, and photo beaming - letting you send between devices.
• And now iPhoto for iPad.
• That's also a free update, which is nice.
• And, on to iMovie, improving storyboards, themes and graphics.
• Garage Band has been updated too, allowing up to four iPads to be linked for shared recording.
• iWork being updated for the Retina display. It'll be a free update, and same price as before.
• Game demo. Here's a game: guess the name of the New iPad.
• Autodesk has a drawing app. It looks nice on the nicer screen. Noticing a trend?
• Demoing games and apps now. Breaking news: they look better on a better display.
• Apps will scale up automatically, as they did for the iPhone, Apple says, so the Retina display won't be a burden on developers.
• Preorders start today, including in the UK; available 16 March.
• Same prices as last one. Wi-Fi is $599/32GB and $699/64GB. 4G is $629/$729/$829.
• $499.
• Weighs in at 1.4lbs, and 9.4mm. (We'll translate that weight to British as soon as we get a chance.)
• It offers ten hours of battery life on Wi-Fi, and nine on 4G.
• New iPad - which is what we hope it's name turns out to be - will be able to be used as a personal hotspot, assuming the mobile operator allows it.
• New iPad gets 4G. It will feature HSPA+ (21Mbits/sec) and dual-carrier HSDPA (up to 42Mbits/sec) and LTE support.

• Dictate emails rather than typing.
• Another new feature: voice dictation. Siri is surely next?
• 1080p video recording, with stabilisation software and noise reduction.
• Next up: the iSight camera. That's a 5-megapixel camera, with five element lens.
• Apple claims the A5X is four times faster than the Tegra 3.
• The processor is an A5X, with quad-core graphics.
• That's 3.1 million pixels - more than an HD TV.
• The 9.7in display is 2,048 x 1,536.

• It'll feature a Retina display, and despite rumours, it will still have a home button.
• And here's the new iPad. But what's it called?
• Taking a dig at Twitter app running on Galaxy Tab, saying it's an app designed for a smartphone, not a tablet.
• There are more than 200,000 apps designed specifically for the iPad.
• Tim Cook revealing results of a survey, which unsurprisingly found that people love their iPads.
• 15m sold last quarter, which is more sales than any PC maker had, he says.
• And on to the iPad. Cook is mercifully quick.
• Price is $99. Available next week, with preorders today.
• Pulls in iTunes playlists via iCloud. Supports NetFlix and can download films from your iCloud account.
• Demoing the new interface.
• ...which is handy for the new Apple TV, which also supports 1080p.
• Apple's iCloud now supports movies, in 1080p.
• 25billionth app was downloaded in China. They don't just make the products, they use them, too.
• Japan is getting Siri. But when will Apple create one that can understand the Scottish, eh?
• Cook is talking about Siri now. In case you've forgotten, that's the voice-activated assistant Apple unveiled six months ago.
• Apple's sold 315m iOS devices so far.
• Apple apparently has a new store in Amsterdam. Exciting times.
• Those made up 76% of Apple's revenue.
• Cook points out that Apple sold 172m iPods, iPads and iPhones last year. That's a few.
• Tim Cook is on stage. He's already used the phrase "post-PC".
• We're waiting for the show to start... and to find out if any of the rumoured specs are true. Who knows, Apple could surprise and launch a revamped iPod instead. (We don't actually think that will happen.)

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Gate's firm launches online music service

Microsoft co-founder Bill Gates' privately held company Corbis, which provides photos and film video for advertisers, is launching an online music service.

The GreenLight Music service boasts more than one million tracks from catalogs controlled by Warner Music, EMI, Universal and Sony.

Corbis, which the Microsoft chairman started in 1989 by securing the digital rights to such art masterpieces as the Mona Lisa and Whistler's Mother, created GreenLight in 2008 and used it to jumpstart efforts to transform itself.

Its new music service will let customers license a range of songs for online websites, advertising and other professional uses. Users bid on the tracks, with the labels negotiating the final price.

Under Corbis CEO Gary Shenk, the company has been steadily buying and starting entertainment services. In January, it acquired Norm Marshall & Associates, which brokers deals to place clients' products in movies and on TV shows.

In February, it launched On Demand Entertainment, a subscription service which allows users to license celebrity photos and other entertainment images.

"Our customers want to connect to entertainment to break through the clutter so we decided to give them access to iconic entertainment," said Shenk. In one case, he said, Corbis provided video clips for Hasbro to include in its online version of Trivial Pursuit.

The use of the Monkees' song Daydream Believer was recently licensed for $1,875 for a corporate meeting, the company said.

"It's our responsibility to find new and innovative ways to help EMI's artists achieve the success they always dreamed of," Brian Monaco, EMI's executive vice-president of sales and strategic management, said in a statement. "And we're committed to finding ways to simply the sync licensing process."

Green Light marks Corbis' tentative foray into the market for online music sales. But Shenk said the company has no plans at the moment to create a service for consumers similar to Apple's iTunes or Google's music service.

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Anonymous targets Panda Security following arrests

Anonymous has apparently retaliated against the arrest of LulzSec hackers by taking down Panda Security's website.

Yesterday, US agents arrested hackers associated with Anonymous splinter group LulzSec, after one of the group's central figures turned witness for the FBI after an arrest last year.

“This is devastating to the organisation,” an FBI official said, according to Fox News. “We’re chopping off the head of LulzSec.”

While it remains to be seen whether the arrests have destroyed LulzSec, Anonymous hackers made it clear they were still at work, knocking a collection of Panda Security's websites offline, and posting their own message on one.

We probably won’t see any more hacks as the ones LulzSec had been perpetrating, and Anonymous will only use their known childish tactic of DDoS using their LOIC tool

The hackers accused Panda Security of working with law enforcement officials. "They helped to jail 25 Anonymous in different countries and they were actively participating in our IRC channels trying to dox many others," the message posted on a downed Panda site claimed.

While the main Panda website had recovered at the time of writing, parts of it were still offline. "We can say that an external server that hosted some subdomains was attacked, that’s why the main site of Panda has not been defaced," a Panda spokesman told PC Pro. "All operations (updates, cloud, etc) are working as usual, as they are not related to this server."

"The attacked server has been shutdown to study how the attack has been performed," he added.

Before the hack, Panda's technical director Luis Corrons posted a short blog post titled "where is the Lulz now", welcoming the arrests as "good news" - and apparently correctly predicting it wasn't the end of Anonymous, if not its tactics.

"Will this mean the end of Anonymous? No. It will mean the end of LulzSec, but Anonymous existed before LulzSec and will continue existing," he wrote. "However we probably won’t see any more hacks as the ones LulzSec had been perpetrating, and Anonymous will only use their known childish tactic of DDoS using their LOIC tool."

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