Consumer Technology World Brief

Raspberry Pi is definitely in the news again with Google Inc. donating 15,000 units to schools in the U.K. “This is a brilliant way for us to find kids all over the country whose aptitude for computing can now be explored properly,” wrote a Raspberry Pi Foundation representative in a blog post. “We believe that access to tools is a fundamental necessity in finding out who you are and what you’re good at. We want those tools to be within everybody’s grasp, right from the start”. There has been a lot of debate on the purpose and how sufficient is the current computer knowledge being taught to the younger generations as the whole world progresses towards a more technological centric approach to live our lives. There is a definite lack of structure to encourage students to explore their creativity and expand their experience with computer programming and modeling which is proving to be an important skill in the demands of today’s computer based innovation industry.

The smartphone patent wars have lit up courtrooms around the world. The makers of protective cases that shield cell phones from coffee spills and sticky-fingered toddlers are entangled in countless lawsuits seeking to protect their designs. Some cases are billed as virtually destruction-proof, said to protect precious electronics from crushing blows or cresting waves. But now similar fights are escalating over what swaddles the gadgets, as the smartphone case market has become a roughly USD 1 billion annual industry, according to NPD Group, a market research firm. More than 100 million Apple and Samsung phones were shipped in the most recent quarter, indicating the still prevalent high demand for these phones. The damage claims in the case design fights are tiny compared with the smartphone wars, but the lawsuits could help spur a shakeout in a crowded market.

North America Review

President Obama signed into law a bill raising the government’s borrowing limit, averting a default and delaying the next clash over the nation’s debt until later this year. The legislation temporarily suspends the USD 16.4 trillion limit on federal borrowing. Experts say that will allow the government to borrow about USD 450 billion to meet interest payments and other obligations. The Senate gave the bill final approval last week. Despite strong resistance from Republican leaders to new tax revenues, Democrats said that they expected the onset of federal furloughs and layoffs on March 1 to make Republicans more receptive to an emerging solution that would combine spending cuts with revenue from closing tax loopholes.

Samsung Electronics is looking for some Silicon Valley magic. The company, a household name in televisions and mobile devices, is expanding its presence in the region with a new USD 100 million venture fund that will invest in early-stage startups, particularly those in remote computing, cyber security, mobility and mobile privacy. The idea is for the South Korean corporation to provide funding and partnership opportunities to startups that will ultimately drive growth for its vast electronics components business. The fund, called Samsung Catalyst Fund, will work alongside the existing and bigger USD 1 billion Samsung Venture Fund, which already helps mold and nurture start-ups. Their role is definitely not one of an incubator but one of a seed investment fund and they are able to bring the necessary expertise to these companies.

Asia Review

Japan’s biggest banks are following Goldman Sachs Group Inc. into domestic solar-power projects, anticipating an eightfold increase for investments in the industry. Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. expect the market to be worth as much as 1.8 trillion yen (USD 19 billion) over the next three years. That’s more than eight times the roughly 223 billion yen of investment into Japanese solar installations in 2012, according to data compiled by Bloomberg. The subsidy program Japan’s government started in July is forecast to turn it into the world’s third-largest market for solar power in 2013 behind China and either the U.S. or Italy. The incentive pays about triple the amounts Germany extends for its solar industries and already has lured solar backers from Goldman Sachs to International Business Machines Corp

Asia is no longer merely a source of comparative advantage based on low-cost labor; it is fast becoming a source of competitive advantage based on management innovation. The implication is clear: Asia can now compete on much more than price. The threat of competition from Asia worries Western executives in nearly every product and service industry. The chief concern for many is the impact of low-cost Chinese manufacturing and Indian services on global pricing. Focusing on this concern alone represents a profound misunderstanding of the nature of the competitive threat. The emergence of developing markets as seedbeds of innovation is a profound and unsettling change for leaders in the developed world. The best response—for companies and countries alike—is to embrace this shift with the flexibility, the speed, and the openness to new ideas that accompany a truly global perspective.

Europe Review

The European Central Bank said after its January policy setting meeting, when it left interest rates on hold at 0.75 percent, that there were already signs of stabilization, but official data on Tuesday showed retail sales fell by the largest margin in eight months in December. “New business in the sector improved, and business expectations are also becoming increasingly optimistic. The employment component showed a less encouraging development though,” said Evelyn Herrmann at BNP Paribas. Unemployment hit a record 11.7 percent of the working population in December, but inflation fell to a two-year low of 2 percent in January. Euro zone factories had their best month in nearly a year during January as burgeoning German output offered support, data released last week showed.

Europe’s future commitment to the project, known as Galileo and designed to create a new, improved and European-controlled version of America’s Global Positioning System, is to be decided in Brussels on Thursday and Friday, when European leaders will try for a second time, after talks failed in November, to hash out a long-term budget for the 27-nation bloc. But Galileo’s backers are confident, so much so that they are asking for USD 8 billion beyond the more than USD 4 billion already spent. Officials at the European Commission now stress that Galileo is not meant as a rival to the American system but as a European-controlled extension of a shared global navigation network. They acknowledge that Galileo, most of whose services will be free like those of GPS, will not earn much. Airlines, shipping companies and some other commercial users will probably be asked to pay for certain data.