Google Thursday rebuffed European Commission concerns that the company's Android operating system is hurting competition by skirting antitrust rules and imposing restrictions on device makers and mobile network operators (see 1604200001). In response to the EC's April statement of objections, General Counsel Kent Walker said in a blog post that the free and open source Android expanded competition. He wrote that Android competes with Apple iOS, and Google and hardware makers established a "minimum level of compatibility" for Android devices to minimize fragmentation. "We give phone makers wide latitude to build devices that go above that baseline, which is why you see such a varied universe of Android devices," he wrote. He added that Google's apps account for less than one-third of preloaded apps, which consumers "can swipe away." Hardware makers and carriers can install rival apps. Walker said Google provides free distribution of some products like Google Search and Google Play rather than charge upfront licensing fees. Thomas Vinje, counsel to FairSearch, a group representing Google's competitors, said in a statement that the company is "abusing its dominance to prevent competition and innovation." He said the EC "must pursue its case to a conclusion, and require Google to change its behavior, so consumers can benefit from the resulting innovation emerging from a competitive marketplace for search, browsers, and everything else on a smart phone." Computer & Communications Industry Association Europe Director Jakob Kucharczyk said in a statement that Android has been "fundamentally important" to the development of Europe's mobile economy "spurring competition, innovation and consumer choice." He restated many of Walker's points and added that they are "elements of a highly competitive and balanced environment.”

Responding to what it called a “significant uptick” in customers installing mobile security to protect their devices, Norton by Symantec introduced an Android- and iOS-compatible version of its flagship mobile security product. The software’s App Adviser feature deploys proactive protections against malicious apps and other threats and includes a “report card” feature along with integration with Norton Safe Search and Web Protection, said the announcement. Norton Mobile Security (for Android 4.0.3 and later and iOS 8.0 and later) is priced at a first-year $20 discount on the Norton e-commerce site for $9.99.

Some 97 percent of American travelers who own smartphones use the devices to enhance their travel experiences, said a CTA survey released Tuesday. Respondents cited smartphones (64 percent), digital cameras (61 percent), tablets (27 percent) and laptops (17 percent) as the tech products they use most on vacation. Eighty-one percent said they value experiences more than possessions. About 9 percent said they favored possessions, while 10 percent said they value both equally. Among the most valued experiences were time with family and friends (40 percent), experiencing new cultures (28 percent), visiting new places (22 percent) and adventurous activities (14 percent). CTA worked with Integrated Insights on the survey, an online study of 600 participants done Aug. 1-8.

Revised rules on wireless emergency alerts are to take effect 60 days from Tuesday, after expected publication in the Federal Register. “By this action, the Commission adopts rules that will improve Alert Message content in order to help communities communicate clearly and effectively about imminent threats and local crises,” an FCC notice said. “It also adopts rules to meet alert originators’ needs for the delivery of the Alert Messages they transmit and creates a framework that will allow emergency managers to test, exercise, and raise public awareness about WEA.” FCC members approved the revised rules in September over a partial dissent by Commissioner Mike O’Rielly (see 1609290060).

Samsung faces some “short-term challenges” after the recall of the Note7 “but nothing that will darken its long-term prospects,” according to an IDC consumer survey conducted Oct. 17-18 with 1,082 U.S. consumers. Survey respondents included 507 current Samsung smartphone owners, 347 past Samsung smartphone owners and 228 smartphone owners who never owned the Samsung brand, said IDC in a news release. Only 24 Note7 customers were part of the survey due to the limited installed base, it said. Survey results show “most consumers are unaffected" by the recall, which analyst Ramon Llamas called “good news for Samsung.” A minority of Samsung owners said they're unlikely to buy a Samsung smartphone in the future, and the company will have to win back those customers' trust, Llamas said. Samsung offered monetary incentives, but most consumers “want to learn the root causes of the problem and how Samsung intends to fix them,” he said. Half of the two dozen Note7 owners polled said they have or will choose an Apple iPhone to replace their recalled phone, and 17 percent said they would choose another Samsung phone, said IDC. Most chose to return their phone through a carrier's physical store, it said. The recall “doesn't appear to be harming the broader Samsung brand so far,” said IDC, with the majority of respondents saying the event won't affect decisions to buy other, non-smartphone Samsung products such as televisions and appliances. Survey participants’ view of Samsung’s response to the Note7 recall was mostly “neutral to positive,” said IDC, with 13 percent not even aware of the recall when polled. "The Note7 recall along with all its repercussions, represents a significant event in the world of consumer electronics," said IDC analyst Anthony Scarsella. The recall may hurt the Samsung brand short term, but “the truth is that Samsung remains the clear market leader in the worldwide smartphone market,” Scarsella said. Moving forward, Samsung will need to “put the Note7 to rest as quickly as possible and focus all efforts on producing a stellar Galaxy S8 come next spring,” he said. If the S8 delivers “on all fronts,” consumers will quickly forget the Note7 fiasco.”

Forty-nine percent of mobile customers say they would stick with their current mobile carrier if they found out it was working with the government to monitor mobile usage in search of terrorist activities, said a KPMG Consumer survey. But 82 percent said they would leave if they found the carrier was “simply accumulating personal information for other reasons without their knowledge.” KPMG surveyed 449 consumers. “With today’s global uncertainty and the fear that Americans can be placed in harm’s way at any moment, it’s not surprising that nearly half of consumers would be comfortable with, and even expectant of, the government monitoring mobile usage in order to catch terrorists before they act,” said Paul Wissmann, national sector leader with KPMG’s Media and Telecommunications practice. “What consumers should be wary of is if the government, or a mobile carrier, begins collecting our personal information for reasons beyond protecting our physical safety. Doing so can directly lead to consumer outrage and can be devastating to mobile carriers’ bottom line.”

The worldwide smartwatch market experienced “growing pains” in Q3, plummeting 52 percent from the year-ago quarter to 2.7 million units, IDC reported Monday. "The sharp decline in smartwatch shipment volumes reflects the way platforms and vendors are realigning," said analyst Ramon Llamas. The second-generation Apple Watch, with a new look and feel, didn’t hit the market until the end of September, Llamas said. Google’s decision to hold back Android Wear 2.0 affected its OEM partners, which have to decide whether to launch devices before or after the holidays, he said. Samsung’s Gear S3, announced at IFA last month, hasn't been released yet. “Collectively, this left vendors relying on older, aging devices to satisfy customers,” Llamas said. More ominous for the market is the recognition that “at present smartwatches are not for everyone," said analyst Jitesh Ubrani. "Having a clear purpose and use case is paramount, hence many vendors are focusing on fitness due to its simplicity.” Differentiating the smartwatch experience from that of the smartphone “will be key,” Ubrani said. Early signs of differentiation are emerging as cellular integration is increasing among commercial users, Ubrani said. Apple held its commanding lead in the market with 41.3 percent share on 1.1 million shipments, but it also posted the largest year-over-year decline among the leaders. Its Series One and Series Two Watches “did little to stem that decline,” although lower price points and improved experiences could bring about a rebound, said IDC. Garmin’s Connect IQ smartwatches and fenix Chronos GPS fitness watch and their focus on health and fitness helped Garmin narrow the gap with Apple and widen its lead over Samsung, the research firm said. Garmin’s Q3 share was 20.5 percent on 600,000 shipments. Samsung shipments were relatively flat at 400,000 units, representing 14.4 percent share, it said. Shipments plunged for Lenovo, 73 percent to 100,000 units, and Pebble by 54 percent to 100,000 units.

Kodak unveiled the Ektra smartphone ($488) targeted to photographers that’s due to launch in Europe before year-end. The “photography-led” smartphone is designed for camera enthusiasts and experts, said a Kodak announcement. It includes a 21-megapixel fast-focus sensor with f 2.0 aperture, 13-megapixel front camera with phase-detection auto focus and f 2.2 aperture, it said. Adjustments can be made in real time using a haptic-touch single-lens-reflex-style selection dial for several settings: high dynamic range, landscape, portrait, macro, sport, night, panorama and bokeh, Kodak said. Also built in: a Super 8 video recorder, Android 6.0 operating system, printing app and social media sharing functionality. A Kodak spokesman told us the success of the Ektra in Europe will dictate "if and when" the company brings the phone to the U.S. The phone will be available across Western Europe with a focus on the U.K. and Germany, he said. Kodak's brand licensee and manufacturer of the phone, Bullitt Group, is U.K.-based, "hence the decision to begin there," he said.

Three consumers in California, Nevada and Pennsylvania hit Samsung with the second known federal class-action complaint over the Galaxy Note7. In the first complaint, an Illinois resident alleged Samsung’s negligence caused him to suffer serious burns when his recharging Note7 exploded overnight (see 1610030052). Plaintiffs in the new complaint (in Pacer), filed Sunday in U.S. District Court in Newark, New Jersey, make no such injury claims. Instead, they allege they had to wait three weeks or more for replacement Note7s to arrive in stores, while continuing to incur “monthly device and plan charges associated with their Note7s” that Samsung didn't offer to reimburse as part of the recall. Samsung, in its Oct. 13 expanded recall notice, offered a variety of financial consolations to Note7 owners, including up to a $100 “bill credit” from a carrier or retailer to those who exchange their Note7 for another Samsung smartphone as a "token of appreciation" for their loyalty and inconvenience. Samsung decided Oct. 11 to permanently scrap the Note7 for fear even the batteries in its replacement phones could be prone to overheating or fire (see 1610110042). Samsung doesn't comment on pending litigation, a spokeswoman emailed us Tuesday on the latest complaint.

Adoption of the iPhone 7, 7 Plus and iOS 10 is “strong” -- 1.3 percentage points higher than two weeks ago -- but adoption over the period was higher for the iPhone 6 and 6 Plus two years ago, said a Localytics study Tuesday. IPhone 7 models have 5.1 percent of total iPhone market share, said Localytics, with 3.6 percent iPhone 7s and 1.5 percent the iPhone 7 Plus. IPhone adoption has slowed in China where the 7 models are 3.8 percent of total iPhone share, said Localytics. The digital analytics/marketing firm attributed the lower share in China to resellers trying to smuggle phones outside of the country to sell them at a higher price, leading to supply shortages. Demand “seems to exist” for the iPhone 7 phones, but “high prices set by the re-sellers may also be turning Chinese consumers off from the new phones,” it said: The global one-month share for combined 7 models is faring better than the iPhone 6S and 6S Plus a year ago, at 4.3 percent share after one month. "Even though the ‘7’ models have strong overall adoption, demand does seem to have slowed down,” Localytics said. Hong Kong, Taiwan, and Japan experienced high adoption with the new iPhone 7 models, which are 7.7 percent of total iPhone market share in Hong Kong, 7.4 percent in Taiwan, and 7.1 percent in Japan, with the U.S. having the fourth-highest adoption. Demand was especially high in Hong Kong, where lines outside of Apple stores were reported, even with rising popularity of preordering, it said. Adoption of iOS 10 has continued to increase since its Sept. 13 release, reaching 60 percent adoption on eligible devices, it said. By comparison, iOS 9 was adopted by 56 percent of eligible devices and iOS 8 by 39 percent one month after release, it said. For the study, Localytics examined more than 70 million iOS devices. Meanwhile, Barron’s reported Tuesday that Stifel Nicolaus raised its price target for Apple to $130 from $120, reflecting iPhone shipments of 47 million vs. its prior 42.2 million estimate.