Although reports made in May 2010 indicate that Android had outsold Apple iPhones, more recent and current reports of the 2^nd quarter of 2011 made by National Purchase Diary (NPD) on Mobile Phone Track service, which listed the top five selling smartphones in the United States for the months of April-June of 2011, indicate that Apple's iPhone 4 and iPhone 3GS outsold other Android phones on the market in the U. S. for the third calendar quarter of 2011. This was true for the previous quarter of the same year; The iPhone 4 held the top spot.  The fact that the iPhone 4 claimed top spot does not come as a surprise to the analysts; rather, it is a testament to them of how well the iPhone is revered among consumers. The iPhone 3GS, which came out in 2009 outsold newer Android phones with higher screen resolutions and more processing power. The list of the five top selling smartphones is depicted below:

1. Apple iPhone 4
2. Apple iPhone 3GS
3. HTC EVO 4G
4. Motorola Droid 3
5. Samsung Intensity II[1]

Apple’s iPhone also outsold Android devices7.8:1 at AT&T’s corporate retail stores in December. A source inside the Apple company told The Mac Observer that those stores sold some 981,000 iPhones between December 1st and December 27^th 2011, and that the Apple device accounted for some 66% of all device sales during that period (see the pie figure below) . Android devices, on the other hand, accounted for just 8.5% of sales during the same period.

According to the report, AT&T sold approximately 981,000 iPhones through AT&T corporate stores in the first 27 days of December, 2011 while 126,000 Android devices were sold during the same period. Even the basic flip and slider phones did better than Android, with 128,000 units sold.[2] However, it is important to understand that this is a report for one particular environment at a particular period in time. As the first iPhone carrier in the world, AT&T has been the dominant iPhone carrier in the U.S. since day one, and AT&T has consistently claimed that the iPhone is its best selling device.

Chart courtesy of Mac Observer: http://www.macobserver.com/tmo/article/iphone_crushes_android_at_att_corporate_stores_in_december/

A more recent report posted in ismashphone.com, dated January 25 2012, indicated that Apple sold 37 million iPhones in Q4 2011.  It appears that the iPhone 4S really helped take Apple’s handset past competing Android phones. According to research firm Kantar Worldpanel ComTech, Apple’s U.S. smartphone marketshare has doubled to 44.9 percent.[3] Meanwhile, Android marketshare in the U.S. dropped slightly to 44.8 percent. This report means that the iPhone has edged just a little bit past Android in U.S. marketshare. This is occurred after Apple’s Q1 2012 conference call, which saw themselling 37 million handsets. Meanwhile, it’s reported that marketers of Android devices, such as Motorola Mobility, HTC and Sony Ericsson saw drops this quarter.

Controversy was recently courted as Southern California Edison (SCE) prepares to cut their own staff while looking to meet their staffing needs with offshore employees skilled in the field of “IT” or Informational Technology. This has been the second major utility company in the United States to take this path towards providing services to its consumers while holding current rates at consistent levels. SCE does not disclose the exact numbers of expected lay-offs, but the LA Times reports that it is in the hundreds.  Utility companies tell their consumers that these moves are necessary as a hedge against inflation and to keep their services at rates that their customers can easily afford. Critics claim that the use of foreign workers is the first step to using an entirely foreign workforce and promoting large scale unemployment amongst American citizens. Often this has been seen as a conflict between national and international workers for the same jobs, salaries and careers.

It has been noted that this State of California utility company, much like other corporations that hire foreign workers does so primarily when there is a shortage of national citizens that can perform these jobs well. IT workers that are brought in with H-1B Visa work permits usually are college educated and hold expertise in technical areas and studies that local employees may not be especially trained in. Once again, critics decry the fact that these employees are not hired directly. On shore contracting companies operating in the continental United States are directly hired by the utility companies. These contracted companies then serve as “middle-men” and hire a wide range of foreign workers with H-1B paperwork so that they can move to the United States. The workers then perform a variety of jobs instead of American workers who were either born in the country or have achieved American citizenship on their own.

Needless to say, the amount of visas issued in a given year is a concern for U.S workers in various fields but particularly in Information Technology. As large corporations stack the employment deck with foreign workers who put in the hours for a fraction of the pay-rate for local employees, local IT professionals are finding it more difficult to find work nationally.  They encounter rejections, endless interview processes or low –ball offers from companies and recruiting agencies looking to fill positions at a bare minimum cost for coveted skill-sets.  

Meanwhile, an H-1B worker is a worker brought in on a temporary basis with a visa allowing them to work freely in the United States. Much like a student or travel visa, it is issued for on a calendar oriented basis.  Applicants who successfully renew the visa for an extended period of time can expect to work in the United States for up to ten years.  Although U.S companies hiring these employees may pay them less than their local employees, the salaries earned by H-1B Visa workers are almost always higher than these workers would earn in their own country of origin.

Both sides can agree on several issues. When it comes to these H-1B Visa workers, their assignments are generally of a contractual nature and require them to reside in this country for a period of months to years. However it is also an accepted fact that while they are in this country, they are responsible for paying rent, utilities and all other living expenses. As residents of the United States on a permanent basis, they are also liable for taxes on any salary they have earned while living here.

Dr. Norman Matloff, a professor at the University of California, Davis and writer on political matters believes the shortage to be fiction. In his writing for the University of Michigan Journal of Law Reform, he claims that “there has been no shortage of qualified American citizens to fill American computer-related jobs, and that the data offered as evidence of American corporations needing H-1B visas to address labor shortages was erroneous. The American Immigration Lawyers Association (AILA) agrees with him and describes the situation as a crisis. Likewise, other studies from Duke, Alfred P. Sloan Foundation and Georgetown University have disputed that in some years, the number of foreign programmers and engineers imported outnumbered the number of jobs created by the industry

Another blanket article about the pros and cons of Direct to Consumer (D2C) isn’t needed, I know. By now, we all know the rules for how this model enters a market: its disruption fights any given sector’s established sales model, a fuzzy compromise is temporarily met, and the lean innovator always wins out in the end.

That’s exactly how it played out in the music industry when Apple and record companies created a digital storefront in iTunes to usher music sales into the online era. What now appears to have been a stopgap compromise, iTunes was the standard model for 5-6 years until consumers realized there was no point in purchasing and owning digital media when internet speeds increased and they could listen to it for free through a music streaming service.  In 2013, streaming models are the new music consumption standard. Netflix is nearly parallel in the film and TV world, though they’ve done a better job keeping it all under one roof. Apple mastered retail sales so well that the majority of Apple products, when bought in-person, are bought at an Apple store. That’s even more impressive when you consider how few Apple stores there are in the U.S. (253) compared to big box electronics stores that sell Apple products like Best Buy (1,100) Yet while some industries have implemented a D2C approach to great success, others haven’t even dipped a toe in the D2C pool, most notably the auto industry.

What got me thinking about this topic is the recent flurry of attention Tesla Motors has received for its D2C model. It all came to a head at the beginning of July when a petition on whitehouse.gov to allow Tesla to sell directly to consumers in all 50 states reached the 100,000 signatures required for administration comment. As you might imagine, many powerful car dealership owners armed with lobbyists have made a big stink about Elon Musk, Tesla’s CEO and Product Architect, choosing to sidestep the traditional supply chain and instead opting to sell directly to their customers through their website. These dealership owners say that they’re against the idea because they want to protect consumers, but the real motive is that they want to defend their right to exist (and who wouldn’t?). They essentially have a monopoly at their position in the sales process, and they want to keep it that way. More frightening for the dealerships is the possibility that once Tesla starts selling directly to consumers, so will the big three automakers, and they fear that would be the end of the road for their business. Interestingly enough, the big three flirted with the idea of D2C in the early 90’s before they were met with fierce backlash from dealerships. I’m sure the dealership community has no interest in mounting a fight like that again. 

To say that the laws preventing Tesla from selling online are peripherally relevant would be a compliment. By and large, the laws the dealerships point to fall under the umbrella of “Franchise Laws” that were put in place at the dawn of car sales to protect franchisees against manufacturers opening their own stores and undercutting the franchise that had invested so much to sell the manufacturer’s cars.  There’s certainly a need for those laws to exist, because no owner of a dealership selling Jeeps wants Chrysler to open their own dealership next door and sell them for substantially less. However, because Tesla is independently owned and isn’t currently selling their cars through any third party dealership, this law doesn’t really apply to them. Until their cars are sold through independent dealerships, they’re incapable of undercutting anyone by implementing D2C structure.

Facebook has recently released a collection of C++ software modules that it uses to run the popular website.  With Facebook releasing Folly (the name it designated for the collection), more of the internal programs could become open source since they need different parts of the collection.

Jordan DeLong, a Facebook software engineer, said one concerning holdup to releasing additional work is that any open source project had to cut away from the dependencies on non-released internal collection code.