Monday, December 28, 2009, 6:25AM ET - U.S. Markets open in 3 hours and 5 minutes.

Valley Buzz: Blackberry Beating the iPhone, New Funding and Complications for 23andMe, and a Stay of Execution for the Boston Globe

Posted May 04, 2009 06:33pm EDT by Sarah Lacy in Internet, Media, Software and Services, Products and Trends, Biotech

UPDATE: A representative of 23andMe confirmed that Mohr, Davidsow did sell its stakes, but it predated this round of funding.

It’s just weeks before the long anticipated launch of the Palm Pre, and the smart phone wars are raging. And Verizon’s recent buy-one-get-one promotion has finally given the Blackberry Curve an edge over the iPhone, according to new first quarter stats from the NPD Group.

RIM’s consumer smart phone market share increased 15% in the quarter versus the fourth quarter of 2008. Between its devices, RIM now has nearly 50% of the consumer market. Apple and Palm each declined in share by 10%. But with more big announcements coming this summer, don’t expect this to be a permanent trend. The iPhone was second to the Curve, the BlackBerry Storm came in third place, the BlackBerry Pearl in fourth and the T-Mobile G1 was in fifth place.

Ok, Palm, the stage is more than set. Let’s see what former Apple product whiz Jon Rubenstein, $425 million from Elevation Partners, and two years of work on the Pre can do.

As for Microsoft, ZDNet bloggers are pointing out that the rise of all these mobile computers are even more bad news for the company that used to be in the middle of the information technology revolution.

Remember 23andMe, the startup that helps you decode your genes? The company has raised another $11 million in funding according to regulatory filings, a little less than half of a hoped for $24.26 million round.

Its first round of funding caused a bit of controversy in the Valley thanks to a cozy investment by Google and Genentech. 23andMe is co-founded by Anne Wojcicki, the wife of Google co-founder Sergey Brin, and Genentech’s chief executive (pre-Roche acquisition) Art Levinson is also on Google’s board.

Turns out there is drama in this round too. Existing investor Mohr Davidow Ventures has divested its stake in the company after investing in Navigenics—a direct competitor to 23andMe. While losing an investor isn’t great news, it’s not necessarily cataclysmic either. I’m betting 23andMe can find new pockets—or revisit its founders’ pockets if necessary.

Of course the biggest tech story of the day was the speculation that Amazon is launching another, larger-format Kindle on Wednesday. The chatter settled less on the device itself and more about whether it could help save the media business. Here’s our discussion with blogger Om Malik about it here.

But it seems, for this week at least, The Boston Globe doesn’t need saving. The New York Times was able to come to terms with six of the seven unions. The holdout is the writers’ union. What exactly are they thinking in a job market like this one? Henry Blodget isn’t quite sure. Also, here’s Warren Buffett on the absurdity of newspapers competing with digital formats.

14 Comments

Yahoo! Finance User
Yahoo! Finance User - Monday May 04, 2009 07:15PM EDT

This article shows either the writer has not done the Homework, or, condones Fraud, of the Stock Market. Ref: RIMM, SEC Litigations, #20902. Feb 17, 09, whereby the SEC prosecuted this company for Antifraud violations, covering period, 1998-06. This Company grew on bogus information supplied to Auditors, SEC, & S&P500, thus the Pundits touted this Company. What is the true value of this stock, and has it been re-conciled for the violation period? Why was the Fraud needed in the first place? No company value? If the SEC is in error please correct them?

John Rubenstein
John Rubenstein - Monday May 04, 2009 07:25PM EDT

i mean, really....if you have to give your phones away for free, are you really beating anybody? how do you consider this an edge?

Polski
Polski - Monday May 04, 2009 07:41PM EDT

Yes, credibility of information seems to be a problem in the Market today, thus the Sarbanes Oxley Act of 2002, was to cause Co's to get outside Audits. RIMM is not the only co guilty of such violations, but, as a Financial Advisor, has advised, it is common, neither "admit or deny" the violations, get fined , and move on to the next investor. Is this how Mr. Madoff operated? Buy US!

Yahoo! Finance User
Yahoo! Finance User - Monday May 04, 2009 07:58PM EDT

Since Oct 08 the Fundamental approach to Stocks has diminished in quality, if not value. Daily SEC Litigation filings were brought to my attn, now part of my Fundamental, and Sector analysis. If we make money is it OK to accept fraud? I like Microsoft, and Apple!

Yahoo! Finance User
Yahoo! Finance User - Monday May 04, 2009 08:08PM EDT

Talk to Apple, do they agree that RIM has 50% of the consumer market? Yo! Credibility is the issue? KKD also had some SEC problems as of late?

Yahoo! Finance User
Yahoo! Finance User - Monday May 04, 2009 11:41PM EDT

Watch The Obama Deception it will open your eyes.

Yahoo! Finance User
Yahoo! Finance User - Tuesday May 05, 2009 02:27AM EDT

The name may be the same for many of the responses, but it should be noted, that the sources are different people!

Yahoo! Finance User
Yahoo! Finance User - Tuesday May 05, 2009 02:49AM EDT

Both blackberry and Iphone are made in China

smcrash.com
smcrash.com - Tuesday May 05, 2009 03:35AM EDT

The SmartPhone market's also getting commoditized. Since we are in a recession, folks are canceling their landlines and VoIP and switching to or grabbing a better phone for their cellphone. This is because cellphone is an all-around useful device - at home, on the go, long distance calls, text, internet, ... everything. I guess the thought is: If I have only one phone, let it be a good one - a Smart one. Once that mega switch is over, it probably is already, the smartphone sales would come crashing down in an already commoditized market. The final nail would be when Nokia manages to bring a nice one to the market. How to Play it: Buy long term put options on the device makers, because shorting the stocks could be a disaster as they are pretty volatile.

Polski
Polski - Tuesday May 05, 2009 01:06PM EDT

As an almost final nail for this week, the Market dipped after the Gains of Monday. Why is this no surprise, the Market is getting predictable, and the Statistics coming out of the Industry for Phones are becoming questionable due to sources? Claim, revise, and deny later? Sort of like the current Earnings reports? Cash rules!

mmark
mmark - Tuesday May 05, 2009 10:47AM EDT

yfu. monday @11:43pm. you should have been in bed by then and slept it off. you must have had too much to drink, or you are drunk on hate, man.

Steve
Steve - Tuesday May 05, 2009 01:45PM EDT

An article on another site happened to mention that the two quarters compared by NPD are NOT the same. Apple follows "normal" quarters and its quarter ran from Jan-March. RIMM's figures are based on December-February. How can they come to any reasonable conclusion about sales when one includes the biggest holiday month of the year and the other doesn't??? Similarly, the report would have been a lot more useful if NPD had not included the units that were GIVEN AWAY by RIMM as part of its "sales."

Brian
Brian - Wednesday May 06, 2009 11:03AM EDT

Another bogus claim that RIM is outdoing Apple. Nothing could be further form the truth. RIM is running scared, that is the only reason for the (unsuccessful) 'storm'. At this point, many a sane person is waiting for the next iPhone. Also, RIM's quarter included give-aways and December, Apple's is all post holiday (when the worry over the recession intensified). I suppose it's a good headline for grabing clicks, but there is really no truth to it when you look at the details.

Brian
Brian - Wednesday May 06, 2009 11:04AM EDT

Another bogus claim that RIM is somehow outdoing Apple. Nothing could be further form the truth. RIM is running scared, that is the only reason for the (unsuccessful) 'storm'. At this point, many a sane person is waiting for the next iPhone. Also, RIM's quarter included give-aways and December, Apple's is all post holiday (when the worry over the recession intensified). I suppose it's a good headline for grabing clicks, but there is really no truth to it when you look at the details.

Yahoo! reserves the right to refuse, or remove any comment that does not comply with the Yahoo! Terms of Service. The submission of spam, hateful, or obscene messages may result in the termination of your Yahoo! ID.
About Tech Ticker - Send FeedbackDisclaimer. Copyright © 2007 Yahoo! Inc. All rights reserved.
Copyright/IP Policy - Terms of Service - Privacy Policy - Help
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges.

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.