Category Archives: Retail

The tech community has been mostly unified in semi-harsh criticism of Microsoft’s Surface hardware. It’s like schoolyard bullies going after the geeky kid that stands by himself on the playground, thick glasses, and button-down shirt, twiddling his thumbs as everyone else plays sports (I know what it’s like — I was a geeky kid like that). Bloggers have been commenting about the seemingly deficient battery life, the weight, the size, and the cognitive dissonance of going back and forth from the Modern UI to the classic desktop. On top of that, many have been bloviating about how the “Surface is no iPad killer.”

Let me stand apart from the fray and discuss why I think the Surface devices are forging a completely new paradigm shift for computing.

When Apple introduced the iPad in 2010, they ushered in the “tablet era” and revolutionized mobile computing. Although people have been moving to laptops and away from desktop computers for quite some time, in one fell swoop the iPad sped up the move away from being tethered to a desktop. Combined with the App Store, Apple made mobile computing and the cloud real for the masses. In my opinion, the iPad represented the first real example of how mobile computing and cloud technology combine to provide an experience of how people really want to connect with devices and each other. I knew something big was afoot when I was in a mall watching an older gentleman swiping through screens on his iPad. In one device, Apple captured how most people want to interact with technology.

Humans are funny creatures, however. They will naturally try to evolve their own perceptions of what a device means to them and try to make it adapt to their environment, needs and desires. People love the “lean-back” experience of consuming content on the iPad. But many wanted it to do more — they want productivity apps. They want to work with it. They want to always BE with it and make it an integral part of their lives. Many already do this with their smartphones. Inevitably, developers starting building apps to unleash the power of productivity on the iPad.

The app world has moved fast. Developers are innovating at lightning speed. Much faster than Apple’s UI and OS developers can keep up. Supporting two devices that are selling faster than  Chinese kids can screw them together, combined with updating the OS and the built-in apps to keep up with how people are using them, has kept Apple on the edge of its capabilities. Compromises are made. The fragmentation of its operating systems are starting to show. The rough edges are exposed. The “old-school” textured backgrounds in iOS, the debacle of Maps, the bandwidth leaks, and so on show a company splitting at the seams with its strategy as it tries to stay the dominant player in the market.

Along comes Microsoft with a different perspective of how an operating system should support its users. Instead of two OS’s and a fragmentation between devices, Microsoft builds a new OS to blend the lean-back experience with the desktop experience and give the user control over how to interact with their device. They decide to build their own hardware to control the experience. They fundamentally provide a different perspective on what a “tablet” computing experience represents. Enabling the lean-back (what I call the “entertainment mode”) with the “productivity mode” in a form factor that supports both touch and input devices tells the world they’re not going to dictate how their users should interact with the device. In one operating system, Microsoft is saying, “you can traverse between your tablet, your laptop and the Xbox and determine how you want to interact with the device in a seamless fashion, picking up where you left off.” A completely different approach than Apple, which has a disturbingly complex and confusing cloud strategy, a stretched-to-the-max hardware strategy. It seems like Apple’s current strategy is to tack on a few “blingies” to the existing line and host a new launch party. (See the convoluted iPad product family as an example.)

The Surface Pro sold out at Microsoft's Palo Alto retail store today.

Then there is the contrast between the user interfaces. Microsoft’s Modern UI is nimble, flexible, and approachable. iOS is still trying to shake off the legacy of the Jobsian look-and-feel, which is to try and be cute and clever with “real-world” textures and metaphors to physical objects. Firing Forstall was necessary, but Apple is years away from where Microsoft is already. Windows 8 begs you to touch. It wants you to interact with it. I’m tired of fumbling around iOS, falling into holes where the way I use my device is just not well thought out.

Having said all this: The Surface devices, in my opinion, represent how I will interact with my mobile device. When I want to consume content, it provides me a quick, snappy way to engage. It supports an app store experience like any other device. When I need to be productive and “get things done” I have the perfect interface in which to focus on work. I don’t have to try and make the OS work for me and accept compromises (I mean, just try to get Pages to really WORK on iOS — and many features on iPad’s version of Pages are different than OS X’s version).

Bloggers are beating Microsoft up, but history will show it has the right strategy. The Surface devices are representative of how humans want to interact. Sure, battery life will get better, the devices will get thinner. This is version 1, folks. Right now, Apple is the schoolyard bully, throwing it’s punches — but I’d rather be Microsoft right now: the geeky kid with the pocket protector, holding the key to “getting the girl”.

 

 

Many of us accept friend requests from people we don’t know on social networks for different reasons. We may want to grow our network, connect to influencers, or simply find new people to share with. However, you may want to be a bit more careful who you accept those friend requests from. Especially if you owe money.

It seems like those pesky debt collectors have turned to friending people on social networks to publicly shame them into paying their bills. So if you get a friend request from a complete stranger that also happens to be a hottie in a bikini, be sure to second guess the request.

Federal regulators are weighing new restrictions on how debt collectors can use social networks as they work to impose federal oversight over the debt collection industry for the first time. Read more about this at Bloomberg.

Found this terrific post on the emerging “peer-to-peer” economy and its potential problems. A lot has been circulating recently about Uber‘s service and others like it. Tom Slee has taken the time to uncover some of the issues that unregulated services bring with them:

In Peer-to-Peer Hucksterism Slee contrasts what the founders of AirBnB and Uber are saying about “community” versus what they’re doing as a “business”. As P2P becomes more prevalent and becomes funded and backed by billionaire venture capitalists, it begs the question about how much regulation is needed. Especially in light of the tragic rape of the young Indian woman who was traveling on an unregulated bus.

For years I’ve been buying my phones on contract with whatever provider I’m with. For many years, that was AT&T. I got the first iPhone in 2007 on a two-year contract. I got the 8GB model, if memory serves me, and paid the subsidized price. Since then, I’ve always bought smartphones on subsidy, and just agreed to the contract. If I was fortunate, my provider would give me an “early” upgrade option… because the first problem with buying on contract for an early adopter like me is new phones are released every year. But providers make you sign two-year agreements. And if you sign a two-year agreement today on a Verizon iPhone, you’ll pay as little as $199 for the phone with the contract. However, if you want to go off contract, you’ll need to fork over $800 for a 16gb iPhone 5. At first glance, it seems like a high price to pay. But, I am finding it much more convenient to buy my phones off contract. Here’s why:

I have accepted the fact that I’m an “early adopter” tech geek. I don’t work for a company or an organization that will supply me test gadgets, so I’m on my own. I like to try new products out, and I like to have the latest, greatest. I lease my cars in the shortest contracts I can, cause I’m gonna want a new car as soon as I can get one. Bottom line. Same thing with gadgets. I’m tired of being locked into provider contracts and not being able to “upgrade” my way to the latest and greatest one. And if you consider the actual price you pay, it may be a better deal to go off contract. For example, a 16GB iPhone 5 is $199 with a two year agreement on Verizon. Verizon will charge you $30/per month to have the smartphone on your account. If you are on their “share everything” plan, your data cost is separate, based on what amount you’ll use. So at the bare minimum $30×24=$720, plus the $200 you pay up-front. That’s $120 more than the phone itself on the open market. Next year, when iPhone 6 inevitable comes out, you drop your iPhone 5 on Craigslist and get about half your money back to apply to the new, shinier one. That there is reason alone to go off contract and just buy the phone outright. Now, this works for me because I have a Verizon account with other devices. You may not get that same price if you don’t have other devices, or a “family plan”. But it’s a compelling argument to consider off contract.

The other reason I like doing this is it lets me explore other options. This weekend I picked up an HTC 8x Windows Phone to give it a try. I’m able to activate the SIM on my Verizon account and switch between the iPhone and the new HTC phone without having to add another line. I can bounce back and forth to give the new phone a real tryout or I can just keep multiple phones to move back and forth with. It’s easier to do this now that all my information is not tied to one device. With my contacts and apps in the cloud, I can move between multiple devices without a lot of hassle. Most people won’t do something like this, but I’m a gadget geek… so it makes sense to me. I see off contract as more freedom. It’s not for everyone. But, just like when you lease or buy a car, be sure you understand the impact of your subsidy in the fine print. You may find it more appropriate for you to free yourself from those two-year agreements.

Mobile payment systems are about to become real as companies introduce their offerings and technology to the world. Buying goods or services with your smartphone is almost second nature. We’re all getting used to searching and tapping or scanning to pay.

Scan and pay will be the paradigm shift that transforms mobile commerce. Combine scan and pay with intelligent apps and you have a powerhouse waiting to be unleashed: If you’re paying for something at the register with your smartphone, the retailer may offer you 25% off if you immediately sign up for their credit card, or offer you a heavily discounted scarf to go with your new fall coat. Impulsive shoppers better destroy their smartphones now and pull out the old flip-phone from 2001. The key to merchant success is instant analysis of what you’re buying so they can offer you a complementary or similar item to “buy now”.

Visa, PayPal, Square and Google have been tinkering in this space for quite some time and it looks like their offerings are about to show some fruition. Mobile transactions are already totaling $240 billion annually, but a recent study by Juniper Research reports that by 2015, the transaction totals may reach over $670 billion.

Smartphones, with their built-in carrier service and vast library of available apps, are perfect “wallets” — you always have it with you, and it can securely store your financial information. Some carriers in the US are beginning to test systems that will allow consumers with smartphones that have NFC (near field communication) chips to make purchases by touching the device to a merchant payment terminal. You may be wondering: what is NFC? NFC works like this:

  1. A simple connection between two devices is initiated with a physical touch
  2. There must be an “initiator” and a “target”. Your smartphone would be the initiator when making a purchase
  3. The initiator generates a radio frequency (RF) field with a range of about 4 centimeters
  4. The target picks up the RF field and receives the data completing the payment request

But your smartphone is not simply a payment mechanism. Remember the word “smart” connected to the word “phone”. Retailers will be able to offer you loyalty points, coupons, and redeemable items via your smartphone directly before or after your purchase. Starbucks is already doing this with their updated app: buying a latte earns you points that add up to free items.

As is typical in the tech industry, the different players are fighting it out for dominance. Verizon Wireless won’t allow Google’s Wallet on any of their devices, and AT&T was disabling NFC on phones to stop them from using Google Wallet. T-Mobile is piloting its own Isis payment system in Salt Lake City and Austin.

The tech wars will ultimately provide a winner — more than likely multiple systems for quite awhile. Once there is convergence, however, you’ll be the actual winner — and from then on you can leave your over-stuffed wallet with all that old-school paper money at home.

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