Nokia’s intention to compete in the Smartphone market by launching an array of devices will lead to a substantial and prolonged “upside” for the mobile giant.
Gus Papageorgiou, an analyst at Scotia Bank, said he believes Nokia is undervalued after hearing its CEO outline future growth plans.
Among the reasons for his optimism is the company’s aggressive plan to compete in the high-end Smartphone market, so far largely dominated by the rivalry between Research in Motion’s Blackberry and Apple’s iPhone.
Nokia is launching a range of new Smartphones and repositioning its image away from the hardware/”mobile phone” tag, by integrating services with its handsets to deliver web-enabled customer solutions.
“Although Nokia’s primary objective with this strategy is to differentiate its device portfolio, its secondary strategy is to derive a new revenue stream,” Mr Papageorgiou wrote after attending last week’s investor reception.
Beyond web repositioning, the company also re-aligned recruitment recently, hiring many business and technology staff with specific Internet and e-commerce skillsets.
The Scotia Bank analyst also pointed to strong fundamentals such as low production price-points, and very high volumes that play in favour of the Finnish manufacturer, especially on the middle-market segment.
Nokia’s N-series multimedia devices shipped close to 10 million units in the first quarter of 2008 alone.
Author: admin
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Analyst declares Nokia "undervalued" based on growth plans in the Smartphone market
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Popularity of RIM's Blackberry Curve points to strong Q1 results for handset maker
The success of Research In Motion’s Blackberry Curve will ensure the company announces good first quarter 2008 results, according to analysts.
Simona Jankowski, an analyst with Goldman Sachs, said results, driven by US sales of its Curve at Verizon Wireless, were likely to be at the high end of current guidance when revealed on June 25.
“Our view is based on very strong retail checks suggesting that the Curve remains the most popular device among consumers and small and medium businesses alike, partially offset by a softer enterprise environment,” she said.
However, Jankowski added that she expected RIM’s guidance for the next quarter to fall below Wall Street consensus.
Maynard Um, an analyst at UBS, agreed with the prognosis on the current quarter and said that results for the first fiscal quarter should reach the high end of RIM’s prior guidance of USD$2.23 billion to USD$2.3 billion.
In contrast to Goldman Sachs, however, Um said he sees various factors favouring RIM’s outlook for subsequent quarters.
He pointed to RIM’s launch of its Bold handset appears on target for mid- to late-July, which should boost fiscal second-quarter results.
Additional launches later this year — including a clamshell-style Pearl, a 3G world phone and an iDEN BlackBerry — should drive strong sales in the fiscal third quarter, according to Um.
The UBS analyst also said that the 3G iPhone’s availability worldwide would drive network operators without the Apple Inc. device to subsidise other high-end handsets, including BlackBerrys.
In the US market, Avian Securities LLC’s May handset survey found RIM’s BlackBerry Curve and Pearl to be the two top-selling handsets.
“RIM’s strength in our survey continues to be broad based, as the company was No. 1 or No. 2 at all four (top-tier) carriers, driven by the continued momentum of the Curve and Pearl franchises,” according to analyst Matt Thornton.
“RIM gained share at three of four carriers and the Curve and Pearl remained the top two devices, with the Curve moving to No. 1 with the recent launch of a CDMA Curve at Verizon Wireless.” -
Price biggest factor in deterring purchase of iPhone
Nearly a quarter of US consumers questioned in a survey highlighted price as the main reason why they were not considering buying an Apple iPhone 3G.
Another impediment to purchase was people’s preference for a network carrier other than AT&T, Apple’s exclusive provider of the handsets in the US.
Only 4 per cent of those surveyed by PriceGrabber.com, a part of Experian, currently own an iPhone, but 42 per cent said they are considering buying one.
The study investigated purchasing trends and smartphone pricing history based on a survey of 3,066 online consumers conducted from May 20 to June 5, 2008.
Of the remaining 54 per cent who do not intend to purchase the iPhone, 41 per cent – or 22 per cent of the total – said that the mobile device costs too much.
The researchers pointed to the recent announcement of the lower-priced iPhone 3G, which they concluded could persuade more online consumers to buy one of the new smartphones.
That could hinge on how potential buyers view the expensive data plans and contract agreements that come with the iPhone – some of which are required for at least two years.
Apple has announced that it plans to sell at least 8 million new iPhones worldwide by the end of 2008.
In the UK, where the first-generation iPhone was not exactly the success that Apple had hoped for, interest in the latest version is high.
More than 130,000 people have expressed their desire to buy an iPhone 3G since O2, the UK’s largest mobile operator and exclusive iPhone carrier, has announced the upcoming availability of iPhone 3G.
This represents a huge increase over the interest shown by the British consumers for the first handset.
On the corporate side, Apple appears to be appealing to more US business users.
Of the 4 per cent of respondents surveyed by PriceGrabber who currently own an iPhone, 40 per cent own two smartphone devices — one device for work and the iPhone for personal use.
More than half of those respondents plan to get rid of their second device because of the Apple’s new synching capabilities.
Survey respondents also indicated that the MP3 player within the iPhone is one of their least favorite features.
The majority of online consumers say that the fingertip navigation feature is the best feature of the iPhone, while 17 per cent chose the Web browsing connection and 16 per cent enjoy the integrated applications. -
Shift towards wireless HDTV expected to be gradual as technology evolves
The race to perfect a wireless HDTV system is being contested by three competing technologies, each one with particular advantages without offering the complete package.
But within three years one will have emerged as the dominant system, according to a study by ABI Research.
This is expected to take global installations from an estimated 100,000 this year to the milestone one million by 2012.
Steve Wilson, principal analyst on the report “Wireless Video Cable Replacement Market and Technologies”, said the wireless HDTV market was still in its “incubation” stage.
He said a “battle of technologies” was being fought by the three contending systems, loosely characterised as 5 GHz, 60 GHz, and ultra wideband (UWB).
“5 GHz technology is better understood and more proven but achieving the required data rates requires new approaches and more complex solutions,” he said.
“UWB technology has bandwidth advantages at in-room distances but drops rapidly at greater ranges.
“60 GHz allows high data rates, but so far only one company is even close to a viable solution.”
Among the advantages of wireless HDTV are simplification of installation and the flexibility it offers in positioning TVs.
There are both commercial applications – digital signage, for example – and domestic applications such as wall-mounting a flat-screen HDTV.
“The initial sweet spot in the market is where wired installation would be difficult or complicated,” said Wilson.
He said small numbers of 5 GHz and UWB devices are currently shipping, while demo products of 60 GHz systems are expected early next year.
“Over the next two to three years, we’re going to see one or two of these wireless HDTV approaches emerge as the primary ones,” he added.
All the wireless HDTV silicon vendors are venture-backed startups and most established wireless vendors are waiting to see how the market evolves.
Product manufacturers are moving forward with different strategies.
Some, like Westinghouse and Belkin, are initially targeting commercial and custom installers where there is clear value-add.
In contrast, some TV manufacturers such as Sharp and Hitachi are targeting buyers of their latest technology, offering design-oriented, elegant products that come with a wireless connectivity option. -
The future is bright for new breed of handheld multi-media devices pitched between the iPhone and notebook computer
Smaller than a notebook computer with a larger screen than a Smartphone – this is how the authors of research into Mobile Internet Devices (MIDs) define them.
Consumers may still be relatively unaware of this emerging class of device, but that’s unlikely to be the case for long.
Global sales of MIDs expected to leap from 305,000 units shipped in 2008 to a projected 40 million in 2012, generating USD12 billion in revenue.
At least that’s the conclusion of a survey by semiconductor analysts Forward Concepts, which examined the market potential for MIDs and provided forecasts for both the devices and the integrated circuits that enable them.
It says that MIDs will have an unprecedented level of multimedia capabilities and typically will come in a tablet-like form factor.
“In our opinion, MIDs are not designed to replace mobile phones (or Smartphones) but to be used as companion devices,” the report states.
“They will rival notebook computers in features and capabilities yet come in a significantly smaller, lighter, fit-into-your-coat-pocket form factor, thus spurring the birth of a whole new class of mobile multimedia devices that fall in between a Smartphone and notebook/tablet computer.”
Titled Strategies & Insight into the Emerging Class of Mobile Internet/Multimedia Devices, the study says MIDs represent a new class of mobile communications and lifestyle devices.
Their hardware, software and form factor will require design from the ground up in order to meet market requirements for features, price, performance, and power requirements.
“The user interface will be key to success and will likely need to be capable of responding not only to touch-based inputs but also keep pace with other evolving input methods such as ones based on motion, gesture, placement, and so on,” the report continues.
“Although Apple’s 3G iPhone ploughs new ground in internet access, user interaction and utility, we don’t consider it to be a MID, since we believe a true MID also requires a larger (4- to 6-inch) screen with higher resolution (VGA), TV out and optional Mobile TV capabilities.”
Integrated circuits for MIDs are forecast to grow from USD 29 million in 2008 to USD 2.6 billion in 2012, with Texas Instruments and Qualcomm described by the survey as being the two best-positioned non-X86 semiconductor vendors for supplying stand-alone applications processors for all classes of MIDs.
It says Intel has a much better shot at UMPCs, being predominantly an enterprise play, where x86 compatibility is important, and with battery life expectations in line with notebooks. -
Surging demand for mobile connectivity and services such as HD streaming IPTV poses dilemma for broadband network operators in Europe
The number of notebook PCs with HSPA/LTE mobile broadband connectivity in Europe will grow from 8.4 million in 2007 to 49 million in 2013, according to researchers.
A study by analyst firm Berg Insight says the development will be driven by consumer demand for ubiquitous internet access.
It forecasts that rather than replacing fixed networks for internet access, mobile broadband will be a complementary access technology to the connection available at home.
But Tobias Ryberg, a senior analyst at Berg Insight, said the explosion in network utilisation – which equates to a compound annual growth rate (CAGR) of 34.1 – will present the mobile network infrastructure with a “formidable challenge”.
As embedded HSPA/LTE chipsets gradually become a standard feature in notebook PCs designed for the European market over the coming three to five years, end-users will simply need to insert a SIM-card into their computer to get online at virtually any location.
“Every mobile broadband service provider has a dilemma,” he said. “On the one hand they have a highly attractive proposition – a novel mobile service with high ARPU.
“On the other hand, the very popularity of the service stretches the mobile network infrastructure to its utmost limit – threatening to degrade the level of service for all subscribers.”
Mobile data traffic, primarily generated by USB-sticks and PC-cards, already exceeds mobile voice traffic in terms of volumes on advanced markets.
In Sweden for example, some half a million mobile broadband terminals are estimated to have generated twice as much network load as all 10 million handsets in the country combined.
Consumers already account for 80 per cent of the data volume in spite of only making up roughly 40 per cent of the mobile broadband subscriber base.
The report says the main response by operators has been to impose some restrictions on data traffic.
It adds that the actual data speed is normally much lower than advertised due to lack of network capacity.
Ryberg concludes that significant network investments are urgently needed if operators want to keep up with demand.
“In a few years, internet users will expect to be able to view full-HD streaming IPTV via their Internet connection,” he said.
“Then it will not do to offer 14.4 Mbps which is actually 1 Mbps or unlimited data traffic which is in reality limited to a few gigabyte per month.” -
Study says 2008 will be the year of HDTV in Asia
Seventy-five per cent of pay TV operators in Asia have, or expect to have, HDTV programming by the end of 2008.
But the lack of substantial HDTV content – both local and international – is seen as being the most important roadblock for developing the HDTV sector in the region.
These are among of the findings of a survey carried out for MEASAT Satellite Systems by Euroconsult into the development of high definition television in the Asia-Pacific region.
The study, which was conducted during May, polled the rationale, benefits, challenges and expectations of HDTV amongst the regions’ leading pay TV
operators.
A total of 25 operators in 15 markets, collectively serving more than 24 million subscribers, were interviewed.
It showed operators as generally bullish on the outlook for HDTV, with a majority expecting it to increase ARPU or profits on its own.
HDTV, which most saw as “here to stay” and destined to become a “must have” offering, had been identified as a key strategic priority for their business.
The study indicated that the rollout of HDTV is being spearheaded by newer pay TV platforms looking to differentiate their offerings from existing platforms.
More established platforms were taking a slower approach to implementing HDTV.
Interviews conducted suggested that HDTV was seen as not particularly easy or difficult to introduce.
The lack of substantial HDTV content – both local and international – was viewed consistently as the most important roadblock for developing the HDTV sector in the region.
Paul Brown-Kenyon, chief operating officer of MEASAT, said the results of the study were very interesting.
“The insights will help us determine how best we can support our customers and partners in the development of this important segment,” he said
Pacome Revillon, managing director of Euroconsult, said the study provided clear evidence of faster development of HD offerings in Asia than previously expected.
“Opportunity for growth and increasing competitive pressure are the primary factors driving pay-TV broadcasters to develop an HD offer,” he said. -
HDTV poses challenge to crowds at live sports events as fans opt for armchairs
It used to be that fighting your way through crowds to get a close-up of sporting stars such as Tiger Woods and Rafael Nadal was infinitely better than sitting at home watching the TV coverage.
But as growing numbers of sports fans upgrade to HDTVs it would appear that the lure of live events could be diminishing.
In the US, a top football club is experiencing what is likely to be a growing trend: a fall in season tickets sales as supporters decide they get a better view staying at home and watching games on their HDTVs.
Steve LaCroix, the Minnesota Vikings’ vice president of sales and marketing, said that HDTV is making his job more difficult.
The Vikings recently announced that its 2008 season ticket base would be 55,000, down 6,000 from just a few years ago.
“(But) I don’t think the renewal percentage is a factor of a fan-base erosion or anything,” he said.
“It’s just a matter of the challenge of the Metrodome and people leaving their high definition televisions at home to come sit in the Metrodome in some of the upper sections.”
The Vikings, whose regular season games are broadcast by Fox, can usually be seen each week in HD.
The Vikings’ experience is likely to become an increasingly common one – especially as ticket prices rise and networks and regional sports channels expand their HD lineups. -
JVC launches HD camcorder with ability to record up to 50 hours of video
The first ever AVC/MPEG-2 HD camcorders are to go on sale this summer.
JVC’s Everio HD30 and HD40 are the first camcorders that capture picture in AVCHD (H.264) or MPEG-2 format with the ability to use either.
The dual-format provides access to the superior long time compression afforded by AVCHD, as well as MPEG-2’s superior editing and post-production environment.
With the ability to record up to 50 hours of 1920×1080 video in Extended Play mode, the HD40 also claims to be the “longest-running HD camcorder available”.
Full quality recording time is 15 hours.
The HD40 boasts a 120GB HDD and the HD30 offers the same recording capabilities but with a built-in 80GB HDD instead.
JVC is also offering a third HD camcorder aimed more at the entry level. The HD10 has a 40GB HDD and has a 1440×1080 resolution.
All three Everio models supports HDMI 1.3 output with Deep Color on compatible HDTVs, a newer HD Gigabrid Duo image processing chip and the option of using either Firewire or USB for transfers.
The camera lines come with Windows editing software and a plug-in to allow MPEG-2 editing in Final Cut Pro and iMovie. AVCHD support is already built into Apple’s latest software.
The camcorders are to go on sale in early August with price tags of $800 USD for the HD10, $1,000 USD for the HD30, and $1,300 USD for the high end HD40. -
Deal signed with Intelsat to provide HD transmissions from Beijing Olympic Games
The European Broadcasting Union (EBU) has signed a multi transponder deal with Intelsat Ltd for the video carriage of the 2008 Beijing Olympic Games to Europe.
C-/Ku-band cross-strap capacity on the Intelsat 706 satellite, located at 50.2 degrees East, will be used to distribute the all high definition event to EBU members.
Intelsat is the only global satellite operator to have provided coverage of every Olympic Games since 1968.
The EBU, of which a large proportion of the major European broadcasters are members, provides a full range of network services, including but not limited to HD transmissions to broadband video carriage.
Stefan Kurten, director of the Eurovision Operations Department, said: “By using Intelsat to deliver the Summer Games, we are confident that our members will benefit from the reliable service Intelsat offers when it comes to large scale events.”