Business News Holding

Category: smartphone

  • Smartphone demand undented by economic woes

    Global demand for mobile devices still expected to reach 1.3 billion units in 2008 despite financial uncertainties, according to ABI Research

    The fact many global economies are teetering on the brink of recession doesn’t appear to have diminished consumer demand for top-end mobile phones.

    As the recent launch of the 3G iPhone demonstrated, the public appetite for the latest, most sophisticated smartphones is strong.

    Now a report by ABI Research suggests that while handset sales in developed markets were flat, those that did purchase were willing to pay more for the newest smartphones.

    As a result of this, it estimates that the mobile device market will deliver 13 per cent growth to take 2008 annual shipments to 1.3 billion units.

    It shows that in the second quarter of 2008, Tier One handset vendors enjoyed year-over-year unit shipment growth of between 15 and 22 per cent.

    An estimated 301 million units were shipped during the quarter, according to the analysts.

    Jake Saunders, vice president of ABI Research, said: “If there is an economic slowdown, no one bothered to tell the mobile device buying public.

    “In particular, consumers in emerging markets in Asia, the Middle East, Africa and South America shrugged off inflation fears to sign up as mobile phone users.

    “These healthy gains in net subscriber additions are stimulating replacement and upgrade sales.
    “In developed markets handset purchases tended to be flat, but those consumers who did purchase dug deeper and paid out more for coveted higher-end handsets and smartphones.”

    In terms of market share, the report Mobile Devices Market Sizing and Share, shows that Nokia has passed the 40 per cent threshold for the first time (40.3%).

    Samsung secured second place with 15.2 per cent, while Motorola barely managed to keep ahead of LG with its 9.3 per cent versus LG’s 9.2 per cent, and both edged out Sony Ericsson (8.3 per cent).

    There is a distinct possibility that LG might overtake Motorola by the end of 3Q 2008, putting Motorola into fourth place.

    “There is admittedly turmoil in the global economy, but the mass market’s fascination with getting the latest and greatest handset shows no sign of abating,” said ABI’s research director Kevin Burden.

    However, even with the expected 1H 2008 success of Tier One handset vendors – with Apple’s latest iPhone leading the charge – Nokia’s overall market share is likely to hold.

    This is in large part down to it refreshing its portfolio in the mid-tier and high end categories and pretty much cornering the ultra-low cost handset market.

  • Touchscreens to become more than just smartphone feature

    Touchscreen–equipped mobile handset shipments are to exceed 230 Million by 2012 as technology spreads to feature phones

    The popularity of touchscreens in smartphones and their influence in driving data revenues will cause the technology to rapidly spread to other handsets.

    A report from IMS Research credits the original iPhone for sparking interest in touchscreen phones.
    But its says what is currently a steady growth in sales of touchscreen-equipped mobile handsets will become even stronger.

    The report forecasts that while fewer than 30 million touchscreen phones were sold in 2007, this will surge to over 230 million by 2012.

    It cites numerous signs that show touchscreens are poised to significantly increase their presence in the mobile handset market.

    Among them are recent announcements from the three largest mobile phone manufacturers which have highlighted a trend in the increased production of phones using touch technology.

    In July, LG revealed that it had sold 7 million touchscreen handsets. This announcement came just five quarters after LG launched its very first touchscreen mobile phone.

    Showing similar success, Samsung recently released the Instinct, a full touchscreen handset, through Sprint.
    Just one week after the launch, Sprint announced that the Instinct had already become the best selling EV-DO device in the carrier’s history.

    Not to be outdone, Apple reported selling 1 million of the new 3G iPhone handsets in just the first three days of its release.

    Femi Omoni , IMS Research analyst and report author, said the original iPhone was the catalyst that created this huge market interest in touchscreen phones.

    “The fact that it was not only popular with consumers, but also helped drive data revenues proved how important touchscreen handsets can be,” he said. “Now all of the network operators and handset manufacturers want a piece of the pie.”

    The impressive growth that IMS Research is predicting will not be driven solely by the smartphone segment either.

    According to the report Touchscreens & Input Technologies for Mobile Handsets, touchscreens will increasingly penetrate the much larger feature phone segment.
    In fact, Nokia just announced that its initial foray into the touchscreen market will be targeted at the “volume market” because that segment of the population is the largest consumer of mobile phones.

  • Verizon gets a bite of Apple's success

    iPhone credited with spurring Verizon’s smartphone sales as Q2 earnings exceed predictions

    Verizon Wireless has exceeded analysts’s predictions and posted impressive second quarter earnings of US$1.88 billion.
    A key factor in the results was increased smartphone sales, which now account for 30 per cent of the US carrier’s device sales.

    Denny Strigl, Verizon’s president and COO, even went as far as to give the build up of interest for the 3G iPhone’s launch earlier this month some of the credit for his company’s results.

    Verizon, currently the number two phone service provider, is fighting the Apple handset’s exclusive carrier, AT&T, for the market leadership slot.
    “As we saw with the initial introduction, the iPhone has actually stimulated smartphone sales,” he said.

    Verizon Wireless’s revenue for the second quarter was US$24.12 billion, up from US$23.27 billion in the first quarter and a 3.7 per cent increase compared with second quarter 2007.

    Shrugging of a sluggish economy, the company attributed strong growth in wireless services and demand for data services as the primary stimulators in the results.

    Businesses or individual smartphone users don’t appear to be switching off services, pulling back on data services or putting off handset upgrades.

    Verizon Wireless added 1.5 million subscribers in the second quarter bringing its total subscriber base to 68.7 million.
    Last week AT&T reported adding more than a million subscribers.

  • Samsung launches 8-megapixel smartphone

    i8510 – or the Innov8 – offers strong combination of business and entertainment features

    Samsung has launched the i8510, its first 8-megapixel camera phone, which comes with autofocus features, face recognition, image stabilizer, and flash.

    The smartphone uses the Symbian v9.3 operating system and features on-board software that allows users to edit and personalise photos.

    The camera records video at 30 frames per second and comes with a secondary camera to make video calls.

    For mobile professionals, the Innov8 offers multiple ways to connect. It’s HSDPA-compatible, so users outwith the US can get a maximum downlink speed of 7.2 Mbps.

    There’s also integrated Wi-Fi for high-speed connection, and an EDGE connection. The smartphone can receive push e-mail, has an HTML browser, and is Bluetooth-capable.

    Although lacking a touch-enabled display, its 2.8-inch LCD screen has an accelerometer sensor, and it can be navigated with a 4-way navigation key and an optical mouse. Samsung did not elaborate on how the optical mouse would be implemented.

    The Innov8 has an integrated GPS that can be used to geo-tag photos, as well as utilise cellular data for assisted-GPS services.
    Handsets come with 8 or 16 GB of memory on-board and that can be expanded up to 8 GB via the microSD slot.

    On the multimedia side, the Innov8 has a host of options. The handset, which has a standard headphone jack, can play multiple audio formats, and it has a built-in FM radio. The video player is capable of playing many codecs, including DivX.

    Measuring 4.2 by 2.1 by .7 inches, the Innov8 will be launched in Europe in August, with global release to follow in September.
    No details have so far been released on pricing.

  • AT&T extends Navigator GPS coverage

    Navigator coverage now almost on a par with many standalone GPS units

    AT&T Navigator is now available in 20 countries after the service was extended to offer international coverage.

    It means that Navigator, which can be used on any AT&T smartphone with a built-in GPS chip, now operates in many countries in western Europe, North American, the US Caribbean, and six Chinese cities – Beijing, Shanghai, Qingdao, Shenyang, Tianjin and Qinhuangdao.

    Jeff Bradley, senior vice president, mobility marketing and operations for AT&T’s wireless operation, said the operator now gave customers the ability to use their mobile phones in more countries than any other US carrier.

    “They now can use our robust GPS-based navigation offering whether at home or abroad to easily get from point A to point B or to find and get directed to a local business or service,” he said.

    The AT&T Navigator Global Edition comes with voice turn-by-turn directions, or text turn-by-turn directions. Both of these come in different language settings including English, German, Italian, or Spanish.

    The service provides a level of coverage which almost on a par with many standalone GPS units.
    The Navigator Global Edition sports a business finder that searches business matches in the US and overseas countries from among more than19 million business and service database.

    Handsets capable of this service, which costs US$19.98, include AT&T Tilt, BlackBerry 8800, BlackBerry 8820, BlackBerry Curve 8310, BlackBerry Pearl 8110, BlackJack II and MOTO Q9h.

  • US iPhone 3G launch sales double first version

    Stocks of iPhone 3G still scarce as more than 500,000 sold in first week by AT&T

    A fortnight after the iPhone 3G was launched many Apple retail stores have no handsets in stock and lengthy queues form outside those that do.

    Now AT&T has provided frustrated buyers with further evidence that Apple’s latest handset is popular – the carrier has sold twice as many Apple iPhone 3G units upon launch as they did a year ago with the first generation iPhone.

    The company also noted that it had more than doubled its smartphone users year-on-year since June 2007, from 8 per cent to 18 per cent.

    Although official numbers have never been published by AT&T, it is generally estimated that 270,000 first generation iPhones were sold in the opening weekend after launch.

    Based on AT&T’s latest comments suggest at least 500,000 iPhone 3G units have been sold in the US by AT&T.
    That will be little consolation to many potential purchasers who have so far not been able to buy a 3G iPhone.

    AT&T also reported that they added 1.3 million new subscribers, pushing its user base to 72.9 million, making it the largest carrier in the US over Verizon.

    Apple will continue its iPhone 3G roll-out next month by releasing the touchscreen smartphone in 20 more countries.

    The second-generation iPhone has so far been launched in 22, with an estimated 1 million iPhone 3Gs sold globally in the first weekend after its release.

    With another 20 markets opening next month, Apple to take its tally up to 70 countries by the end of the year – with the goal of selling 10 million iPhones by the end of 2008.

  • Motorola sues former executive now with Apple


    Motorola has sued a former executive for allegedly violating a non-compete agreement and threatening to reveal its trade secrets by taking a job with Apple’s iPhone division, the mobile phone maker said in a lawsuit.

    Michael Fenger accepted “millions of dollars in cash, restricted stock units, and stock options” in exchange for agreeing not to join a competitor for two years after leaving Motorola, where he oversaw mobile devices in Europe, the Middle East and Africa, the lawsuit said.

    According to the lawsuit filed in Illinois last week he took the iPhone job on March 31, less than a month after leaving Motorola.
    Fenger, who now serves as vice president of global iPhone sales, also employed two high-level Motorola employees who have access to Motorola’s trade secrets and customer relationships, the suit said.

    An Apple spokeswoman said the company had no comment on the lawsuit. Fenger could not be reached for comment.
    Motorola, based in the Chicago suburb of Schaumburg, is asking the Cook County court to stop Fenger from working for Apple for two years and to bar him from soliciting or hiring Motorola employees or disclosing Motorola’s confidential information.
    It is demanding damages and repayment of stock options given to him in exchange for signing the non-compete agreement.

  • Sony Ericsson cuts jobs as demand falls for its smartphones

    Plummeting demand for its high-end smartphones and inflation eroding margins for inexpensive mobile phones leads to job cuts

    The world’s fifth-placed handset maker is to shed 2,000 jobs as the company reports a Q2 operating loss of US$3.17 million.
    Sony Ericsson a drop in net income from US$347.6 million a year ago to US$9.48 million, while sales slumped 9.4 per cent to US$4.4 billion.

    Unit sales in the quarter reached 24.4 million, down from 24.9 million units a year ago.
    The closely watched average selling price per unit was US$183. A year ago, Sony Ericsson’s average price per unit was US$197.50.

    The joint venture between Sony and Ericsson AB also forecast further bad news in the third quarter.
    “Challenging market conditions are expected to prevail this quarter,” the company said in a statement.

    Sony Ericsson said the 2,000 job cuts among the company’s 11,900 employees will save US$474 million annually.
    The July 18 results marked the second consecutive quarter that Sony Ericsson has issued a profit warning before issuing quarterly results.

    A little more than a year ago, Sony Ericsson was the number four handset maker, pushing Motorola for the number 3 spot.
    Since then, however, the company has fallen to fifth while LG Electronics has taken over the fourth spot.

    Dick Komiyama, CEO of Sony Ericsson, said: “We are aligning our operations and resources worldwide to meet an increasingly competitive business environment and to help restore our capability for profitable growth.”

    Sony Ericsson is the second of the world’s handset makers to announce its quarterly results since research firm Gartner slashed its forecast for the mobile phone market to between 10 per cent and 11 per cent growth from a May estimate of 10 per cent and 15 per cent.
    In 2007, mobile phone growth margins were 16 per cent.

    Finnish mobile phone maker Nokia issued second quarter results earlier this week that were in line with analyst predictions.
    LG Electronics will announce its second quarter results on July 21, followed by Samsung on July 25 and Motorola on July 31.

  • Ad targetting to US teens expected to boom

    Smartphone ownership among American teens will mushroom beyond current 20 per cent – presenting massive opportunities for ad targetting

    Research shows that American teenagers have at their disposal an estimated US$200 billion annually in discretionary spending.
    The marketing agency Fuse recently interviewed execs from companies like Sony, MTV Networks, Yahoo and Nokia to get their take on what the future of technology will look like for the teen market.

    Among the conclusions was that the mobile phone in the US will supplant the PC in terms of popularity for teenagers.
    While currently only 20 per cent of US youngsters own a smartphone, both mobile and content companies are certain this rate will rise dramatically.

    Bill Carter, a partner at Fuse, presenting his findings at this year’s YPulse Mashup convention in San Fransisco, said smartphones like the iPhone are just the beginning for multi-functional devices.
    “Uses of mobile devices will expand to include all kinds of bar code applications and prepaid debit card payment methods,” he said.

    This prediction is a large part of the reason why geographic ad targeting to teens is expected to increase dramatically in coming years.

    Currently, providers analyse about 4 billion Protocol addresses to provide what is called street-level targeting to consumers.

    Companies can then reach teens directly via their phone with ads and info on nearby places to go like nightspots.

    “When you combine this new technology with teens giving their permission to market to them, the growth could be exponential,” said Carter.

    He predicts that teens will end up buying subscription based music services, a lot like the cable TV model.

    Carter also feels that other tech platforms will actually save not kill TV networks.
    The analog-to-digital conversion will allow teens to watch live TV on their smartphones.
    This will then in turn help the TV networks to target their programming to specific audiences, which will maintain the cost of advertising.
    What it boils down to is “the device is inconsequential compared to the content,” he said.

  • "Iconic" new smartphone models will entice buyers

    Launch of latest smartphones by Apple, RIM, Nokia and Samsung will ensure handset markets enjoy strong end to 2008

    Some impressive mobile phone product launches between now and the year-end will help the world’s mobile handset markets finish 2008 with strong sales, according to ABI Research.

    Spurred on by the launch of Apple’s second-generation iPhone, rival handset vendors such as RIM, Nokia and Samsung are also expected to debut new models in the second half of 2008.

    Kevin Burden, director of ABI Research, said such “iconic” models generate a lot of interest around the handset industry and get consumers thinking about replacement.
    “2008 should still be a very good year for the global mobile phone market,” he said.
    “While Q2 performance figures are still preliminary until finalised at the end of July, early indications do not point to an aggressively weak quarter.

    “Historically, the second half of the year has always outperformed the first, and despite nearly global economic problems, a second half lift is still expected, although likely lower than the near 20 per cent increase the worldwide market has seen in recent years.”

    Burden said that greater simplicity in handset design had been a powerful driver in new adoption over the last two years.
    He said a lot of advanced technologies and applications hade been built into phones but there had often been technical or ease-of-use barriers that prevented wide adoption.

    “The trend now is about making better use of what we have rather than introducing a flood of new services and network features,” he said.
    “That’s going to go a long way towards ensuring users’ acceptance of new phones and new applications.”

    Burden was speaking after the release of the latest update to ABI Research’s Mobile Device Market Share Analysis and Forecasts.
    It reports that many usability issues will also be progressively worked out as the industry increasingly moves towards standardised operating systems.

    Proprietary real-time operating systems can be painful to manage for operators as well as for users.
    Open operating systems will continue to migrate down phone vendors’ product lines, increasing the penetration of devices using standardised and predictable platforms and boosting overall ease of use.