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On Tuesday Virgin Mobile issued a statement that the two companies were in talks, and a Helio spokesman confirmed the news. The company has been rumored to be in talks over a merger since last week.

“These discussions are in early stages and there are no assurances that any transaction will result,” Rick Heineman, a spokesman for Helio said in an email. “We will not have additional comments unless an agreement is reached.”

Virgin Mobile, which offers a prepaid service targeted at teen-agers and people with poor credit, has a reputation for being hip. It also happens to be one of the most successful MVNOs on the market with some 5 million subscribers.

Virgin Mobile USA and Helio have confirmed that they are in early stages of talks to merge the companies.

Virgin Mobile USA and Helio, which is a joint venture owned by Korean carrier SK Telecom and EarthLink, are both MVNOs or mobile virtual network operators. They lease network capacity from Sprint Nextel and resell the service to customers.

Helio, which also appeals to young hipsters, goes after a different segment of the population with high-end phones and a comprehensive post paid service package that includes voice as well as data services like Internet surfing, music downloads and video. Helio has a much smaller subscriber base of only 200,000 customers.

As the U.S. market surpasses 84 percent penetration, growth in the market is expected to slow over the next few years. And experts expect smaller carriers to consolidate. Already the wireless reseller market has struggled with operators such as Disney Mobile, Mobile ESPN, and Amp’d calling it quits.

A merger between Virgin Mobile USA and Helio makes sense since they compliment each other. And it could keep the companies afloat as they compete more aggressively with larger players AT&T and Verizon Wireless as well as regional players like Metro PCS and Leap Wireless.

A couple of interesting phones passed through the Federal Communications Commission this week. One is the LG VX1100 and the other is a new HTC Windows Mobile smartphone for CDMA networks. Because the FCC has to certify every phone sold in the United States, not to mention test its digital SAR rating, the agency’s online database offers a lot of sneak peeks to those who dig. And to save you the trouble, Crave has combed through the database for you. Here are a selection of filings from the past week on new and upcoming cell phones. Click through to read the full report.

HTC CEDA200

Huawei C3100

Huawei (Vodafone) V736

LG GB250g

LG L-04A

LG GR500

LG VX1100

Motorola

Nokia (RM-465)

So, how does it sound?

To date, Altec Lansing’s little portable Orbit speaker has come in a few different colors and designs. The latest offering, the Orbit USB ($49.95), offers USB connectivity so you can conveniently plug it into your laptop.

In going to USB, the overall design of the speaker hasn’t really changed (though we do prefer the black finish), but Altec has added a flip-out kickstand to the bottom, so you can prop it up at a 45-degree angle. Previously, the speaker fired upward or you could stand it up on its side, though not an angle. The kickstand is definitely a nice bonus and it appears to slightly improve the sound quality by having the speaker fire in a more optimal direction.

The following product is available:

On Sale Now: $32.12 – $49.95
View the latest prices for Altec Lansing Orbit USB iML237

(Credit:
Altec Lansing)

Read the full review of Altec Lansing’s Orbit USB iML237 to find out.

Earlier Orbits were battery powered, but the iML237 has no battery option; you must plug the USB cable into a computer for power. It’s also worth noting that with other Orbits you had the option of using the integrated 3.5 millimeter plug to connect to a computer’s speaker port or directly to an MP3 player or other device with an audio output. However, this model, as we said, is only designed for use with a computer.

Apple has transformed itself from a computing company to a personal digital devices company, seemingly overnight. In this quarter, a front-rank mobile phone company clearly emerged. The GAAP numbers show it. The non-GAAP numbers show it even more.
–Tom Steinert-Threlkeld, Between the Lines

With $25 billion in cash and short-term securities stored away on its balance sheet, Apple is in a uniquely comfortable position from which to weather the econaclypse. And perhaps a uniquely opportunistic one, as well. Could this mean that Apple is considering an acquisition–a major acquisition? It’s hard to say, but the fact that Jobs dropped such a hint at all is certainly interesting. Perhaps it’s time for that long-rumored merger with Adobe.
–John Paczkowski, All Things Digital

When Steve Jobs got on the phone to answer Wall Street’s questions Tuesday afternoon during Apple’s earnings call, it was a signal that Apple knows investors are scared. The last time I recall the Apple CEO doing that was eight years ago, when Apple missed its numbers in one of the first signs that the dot-com bust would hammer Silicon Valley.
–Jon Fortt, Fortune

Here’s what a few of them had to say:

Wired.com cited analysts who said Apple is particularly vulnerable to a recession because its computers generally come with pretty high price tags, writing:

There will be a lot of people looking at a lot of stuff at the Apple Store, and they’ll probably come out with [iPod] nanos or shuffles,” Endpoint Technologies analyst Roger Kay told Wired. “That’s what people are going to feel like they’re going to afford this year.”
–Brian X. Chen, Epicenter

Steinert-Threlkeld also has a nice breakdown of why the fact that Apple reported both GAAP and non-GAAP numbers matters.

Tech reporters were quick to weigh in with their two cents on Apple’s earnings report, maybe the most surprising part of which was the rare appearance of CEO Steve Jobs on the call.

No one actually believes Apple’s “guidance.” For years, it’s been shown to lowball the actual number so it can surprise Wall Street, a maneuver that no longer surprises anyone. This has reduced Apple’s quarterly earnings call to an exercise in which its chief financial officer pretends he’s not lying, and bank analysts pretend they believe him. No wonder Apple CEO Steve Jobs avoids the charade altogether.
–Owen Thomas, Valleywag

(Credit:
Microsoft)

In the meantime, feel free to drop me a note on what you want to see covered. I’ll also be answering questions on Friday as part of CNET’s Editor’s Office Hours feature.

You can bookmark that page and be sure that whenever you check it you will be up on the latest PDC-related info as well as catch any stories on the products expected to make headlines at the show.

Once the show gets under way, check back for in-depth keynote coverage, executive interviews, photo galleries, videos, and more.

With less than two weeks until Microsoft’s Professional Developer Conference kicks off in Los Angeles, news is starting to trickle out.

Come October 27, that trickle will turn into a flood. Here at CNET News we want to make sure you keep your head above water. To that end, our PDC page is already up and running.

Already there are a ton of posts up, including our scoop on the Surface developer kit, the latest on Windows 7 along with what little we know about Windows Cloud, or Windows Strata, or whatever Microsoft’s “Cloud OS” will eventually come to be known as.

These small touches to how you treat employees are often the most intimate ones, and they communicate how deeply felt the relationship is (or not, as the case may be). Southwest, for example, seems to give its flight staff a great deal of autonomy when it comes to how they intereact with passengers, but bounded by some established guidelines. This has famously led to some staff singing the safety announcements and adding comedic commentary (I once heard one say “There may be fifty ways to leave your lover, but there are only four ways off this big bird!”). It also probably led to the more recent episodes of passengers getting walked off planes for risque clothing…just goes to show that what constitutes a “good” UX is different for different people.

While any company can luck out with one-off good experiences, a long term systemic philosophy of treating employees right fosters a mindset that is focused on thinking about the needs of others, which ideally translates into the products the employees create for the company’s customers.

Cable TV companies are famously indifferent to user experiences, and my provider, Comcast, recently showcased one example. They finally started allowing previews of on-demand movies, but check out how they managed to mess up the experience:

That giant blue box stays on screen for the entire duration of the preview, obscuring a good chunk of it (even more for non-widescreen previews than what you see here). It’s really distracting.

[W]hen you look at a company like American, with its poisonous employee relations and its glum customer base, and compare it with Southwest, with its happy employees and contented customers, you can’t help thinking that Mr. Kelleher was on to something when he put employees first. “There isn’t any customer satisfaction without employee satisfaction,” said Gordon Bethune, the former chief executive of Continental Airlines, and an old friend of Mr. Kelleher’s. “He recognized that good employee relations would affect the bottom line. He knew that having employees who wanted to do a good job would drive revenue and lower costs.”

This isn’t really surprising for a service company like Southwest, but the same rule applies, I believe, to companies that make products. Employee happiness often comes from walking the walk — in other words not just making big pronouncements about how much you love your employees (Kelleher wept when talking about his employess in his going-away speech), but in seeing those through in actions big and small. And often it’s the small ones that show how you actually mean. It’s kind of like what they say about ethics – it’s what you do when nobody’s looking.

Over the years, whenever reporters would ask him the secret to Southwest’s success, Mr. Kelleher had a stock response. “You have to treat your employees like customers,” he told Fortune in 2001. “When you treat them right, then they will treat your outside customers right. That has been a powerful competitive weapon for us.”…

(Credit:
Adam Richardson)

Creating good User Experiences (UX) over and over again means creating first good Employee Experiences (EX – I’m trademarking that!). That’s the lesson from Southwest airlines according to an NY Times article about retiring co-founder Herbert Kelleher:

You wouldn’t see something like this if Southwest ran a cable system.

He admits that he’s a proponent of “small ball” rather than “home run ball,” and it’s hard to judge whether that makes him old-school or PR avant-garde:

He refers to the Feiler Faster Thesis, which states that people’s ability to retain and process information has accelerated, resulting in significantly faster news cycles:

“Taking the iPhone out of my pocket in a public place makes me uncomfortable. Some people ask nicely about it: ‘How do you like it?’ But I’m keenly aware that others don’t have what I have and they notice it. The iPhone is a great phone but I’m conscious that it’s helping to define ‘the rest of us versus them.’”

Sure, there was the MacBook Air and the buzz around “thinnovation.” But wasn’t that–pun intended–too “thin” for a big media splash, especially compared with past years? Now that MacWorld is over, pundits are reviewing Apple’s PR efforts, and when the expectations are so high (and a company is so good at it), it is not too surprising that some are disappointed with what they’ve seen this year. Frank Shaw, a PR professional at Waggener Edstrom, Microsoft’s lead PR agency, is one of them, and you have to give him credit for being so vocal in public despite his affiliation with the Apple rival. (It would be easy to dismiss his criticism as just a Microsoft cabal.) Shaw is wondering whether Apple’s shock and awe, event-focused product launch PR philosophy has lost its relevance in a time of always-on communications:

“So in this world, is a twice a year news bang sufficient? The answer could be yes–but there is little room for events like today in that world. Apple stepped to the plate today, IMHO, and hit…a single. The company won’t be up to bat again for a while…if you are only up a few times a year, you better hit some home runs.”

iPhone guilt

“Whether it’s the latest from Web 2.0 or Apple Computer, do we need to ask what it means for those who aren’t able to take part? Does it help them catch up or put them further behind? That calculation is part of the social cost of any new technology. We might think of it like we’re starting to think about our oversized carbon footprint and its impact on the physical world. Is there any way to offset the negative social impact of the technology that we’re so busily developing?”

“It’s a challenge for the ‘best of us’ to address.”

Dougherty’s moral treatise poses some uncomfortable questions:

But Apple products raise more than just PR questions. On the O’Reilly blog, Dale Dougherty takes Apple’s 1984 slogan “The computer for the rest of us” as a starting point to meditate on the “rest of the rest of us”–those excluded from our high-tech frenzy and without the means to participate in the Apple universe of godly gadgets. He does so because he feels “iPhone guilt”:

“The concept of holding news, building expectations, and then unveiling a massive surprise has been super effective, and no more so than last year with the
iPhone. It was a tour de force from a communications standpoint. This recent Macworld? Not so much.”

(Credit: Seattle Post Intelligencer)

“Is the high-tech world indifferent to the problems of the poor? Do we have any competence that matters in helping them find a better life? Or are we just making ‘the happy few’ that much happier? What is a social network if the people facing the toughest problems are not part of it? They don’t need more signs that tell them that they are on their own. The have-nots don’t do networking. It doesn’t get them anywhere.”

“I’ve never been a big fan of ‘giving up control of the message’ or ‘information wants to be free’ or ‘user generated content will rule the world’ or ‘it’s all about the conversation.’ But I’m a huge believer in the value of ongoing communication, to the right audiences, about the topics they care most about, in a regular, sustained way.”

Is Apple’s PR wearing thin?

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As demand for software development increases, and the number of students pursuing software engineering and computer science degrees declines, meeting future demands will require increasing the output and productivity of each programmer. While tools that enhance productivity continue to capture attention, the best solution may lie in effectively and efficiently exploiting reusable code. But many challenges exist there as well, including minimizing the time required to find the perfect module and avoiding the need to modify reusable software.

We’ve come a long way.

commentary

Open source also covers several of the 25 ways Baseline lists to lower costs. Much of IT’s pressing needs are resolved by a greater reliance on open-source software, making the big question in IT not “why” to use open source but “how,” as The 451 Group’s Matthew Aslett notes.

Baseline Magazine lists seven “grand challenges” facing IT in 2008, at least one of which is handily covered by greater adoption of open source. With universities churning out fewer programmers and development timelines shortening, there’s only one solution: Reuse code. In other words, turn to open source if you want a 100X return on your developers: