Business News Holding

Category: smartphone

  • Brightpoint to implement cost-cutting in Europe after predicting slowdown in handset sales






    The mobile phone distributor, Brightpoint, is to take cost-cutting measures across its global operations over fears of a slowdown in handset sales.
    The company said it now expects the global handset market to reach 1.25-1.30 billion units this year, down from a previous estimate of 1.25-1.35 billion.
    Second-quarter sell-in units are expected to be “flat to slightly up” compared to the first three months of the year.
    This contrasts with a previous forecast for 3-5 per cent growth by the distributor.
    The cost-cutting will come mainly in Europe, at the former Dangaard operations.
    Brightpoint is cutting 50-75 jobs at its European head office in Denmark, and eliminating another 225-250 positions across its other European operations.
    This is expected to result in annual cost savings of US$25-30 million.
    Brightpoint is implementing other cost reduction initiatives in its Americas and Asia Pacific divisions as well as within its corporate and global information technology organisations.
    The company has simultaneously begun the evaluation and design phases of a European shared service facility and warehouse consolidation and automation projects.
    These measures are expected to contribute “significant additional cost synergies” as they are implemented over the next 6-24 months.
    Brightpoint also announced the resignation of Dangaard founder Steen Pedersen, currently president of Brightpoint Europe, from 19 November.
    Michael Koehn Milland, currently co-COO and president of international operations at Brightpoint, will take the new role of president for Europe, the Middle East and Africa.
    Milland will be responsible for global business development with the objective of increasing Brightpoint’s market share worldwide.
    Mark Howell, the other co-COO, will take up the position of president Americas and also oversee all global logistics operations.

  • Apple's earnings from iPhone could be higher than first estimated






    As pricing details continue to emerge about the new iPhone, one analyst estimates that Apple stands to make more from each device than previously thought.
    Gene Munster, of investment bank Piper Jaffray, said that AT&T’s complete official pricing for iPhone 3G units suggests Apple is making more from the reportedly abundant iPhone stock than estimated in the past.
    Although the US$199 starting price is much lower for the customers themselves, the US$599 pay-as-you-go price suggests that the carrier subsidy cuts much deeper.
    If so, then this hides potentially greater profits for Apple, which could be asking US$500 for each iPhone versus an earlier estimate of US$425.
    “This discrepancy leads us to believe our [average selling price] is conservative,” said Munster.
    The analyst said that a change of this level would boost Apple’s revenue for 2009 by eight per cent.
    Reitzes also points out that steep drops in the prices of NAND flash memory could further help Apple’s bottom line by reducing the manufacturing costs of each iPhone.
    However, such is the iPhone’s hunger for flash chips – Apple is understood to have ordered 50 million of Samsung’s eight gigabit (one gigabyte) – that Samsung’s supply is reportedly being put under pressure.
    Each iPhone typically uses multiple stacked chips.
    Some of Samsung’s smaller customers are apparently being told that their own orders are being reduced to keep Apple in healthy supply.
    The situation has been compounded by Samsung reducing production in April and May to prevent an oversupply later in the year, while Apple also reportedly ordered half as many NAND chips in June.
    Meanwhile, Toni Sacconaghi, research analyst with Bernstein Research, said he now expects Apple to sell 8.5 million iPhones for the rest of the calendar year, bringing his forecasted total for all of 2008 to 11 million units.
    The analyst expects 19.5 million units to be sold in 2009.
    Sacconaghi thinks the company can take 15 per cent of the post-paid US handset market in calendar 2009, and 6 per cent share of the post-paid market outside the US.
    “These are impressive numbers given the iPhone remains positioned at the very high end of the mobile handset market,” he said.
    Outside the US, Sacconaghi notes that the significant increase in the number of countries in which Apple will sell the phone should lead to much higher non-US sales than for the first generation phone – he expects the penetration rate will be 2.5 times higher.

  • Boost for mobile broadband as T-Mobile UK improves photo and video upload speeds


    Mobile operator T-Mobile UK has deployed HSUPA technology on a nationwide basis to improve upload speeds for users.
    The operator has promised the change will result in an improvement of to fivefold in the time it takes to upload photos and videos to web sites at speeds of up to 1.4Mbps.
    T-Mobile claims it is the first UK carrier to have committed to the data access protocol.
    The company said it is also upgrading the download capability of its HSDPA 3G network to 7.2Mbps, initially within the M25 zone encircling London but rolling out to other major cities during the second half of the year.
    T-Mobile is also trying to drive data usage, by cutting data roaming charges 80 per cent, to £1.50 per MB while travelling in EU member countries.
    Customers signing up for Mobile Broadband before October will also receive a £5 discount, knocking the price down to £10 per month.
    An online ‘postcode checker’ also allows potential customers to gauge the coverage and strength of 3G signal at their home.
    Jim Hyde, T-Mobile UK’s chief executive, said: “Mobile Broadband has come of age.
    “Today, 25 per cent of new contract customers are signing up and we expect to quadruple our user base in 2008.”

  • Nokia knocked off prime spot as iPhone and HTC hit top of the chart


    Nokia may still be the world’s leading mobile phone supplier but it’s been toppled from its pedestal when it comes to phone cases.
    Krusell, the Swedish manufacturer of carrying cases for portable electronics, has released its “Top 10” – list for June 2008.
    The list is based upon the number of pieces of model specific mobile and smartphone cases that have been ordered from the company during June 2008.
    Its chart is unique, according to Krusell, due to the fact that it reflects the sales of phones on six continents and in more than 50 countries around the globe.
    Ulf Sandberg, managing director at Krusell, said that many companies in the accessory industry were currentlyloading their warehouses with iPhone accessories ahead of the European launch of the 3G version on July 11.
    This has catapaulted its iPhone cases into best seller slot for June.
    “Since the iPhones are to be considered as high end devices, we know by experience that the device will have a high case rate and are prepared for a rush for iPhone cases during the coming month,” he said.

    The June chart:
    1. (8) Apple iPhone
    2. (5) HTC Diamond
    3. (3) Nokia E51
    4. (2) Nokia 6300
    5. (1) Nokia 3109
    6. (9) LG KU990
    7. (6) Nokia N95 8GB
    8. (4) Sony Ericsson K810i
    9. (-) Sony Ericsson K530i
    10 (10) Sony Ericsson W890i

    () = Last month’s position.

  • Smartphones and low-cost mobile phones set to see most significant growth at expense of mid-tier handsets


    The top and bottom ends of the wireless handset markets are to enjoy the best growth rates over the next five years, according to researchers.
    This will be at the expense of mid-range models, commonly called “enhanced” phones. The enhanced phone sector is currently the largest in terms of shipments, with 854 million units shipped in 2007.
    But it will be overtaken by both other classes in 2013, with just 441 million shipping.
    Kevin Burden, a director of ABI Research and author of the report “Mobile devices annual market overview”, said: “As we see more user sophistication and demand for high-end features, handset manufacturers will continue to push functions of high-level smartphone operating systems further down their product lines.
    “Their smartphone portfolios will grow, and with them, the entire smartphone market.”
    The report said this was seen as desireable by operators as well, who wanted more smartphone users because of the higher average revenue per user (ARPU) they generated.
    It added that the operators also like phones with standard operating systems that are optimised for their content delivery platforms.
    At the other end of the market, demand will be driven by the huge emerging markets in countries such as China, India, and Brazil.
    Here, the ABI report said the low-cost and ultra-low-cost handset categories were set to become the largest classes of mobile phones by 2013 in terms of shipments, though not in terms of revenue.
    “While the unit shipments of ultra-low-cost handsets will be dramatic over the forecast period, the device class is only expected to account for 6 per cent of the market’s overall revenue,” said Burden.
    “But vendors will continue to pursue these markets for the sake of brand-building and the prospect of eventual upward migration by users.”
    Since no single mobile device will serve the needs of everyone, a number of other form factors will compete for users’ mobile computing cycles.
    In particular, MIDs (Mobile Internet Devices) and UMPCs (Ultra-mobile PCs) show promise for wider consumer acceptance.
    According to the ABI report, prices will be moderate (eventually under US$200 for many MIDs) and the devices wiill deliver a superior mobile Internet experience.

  • Mobile software set for rapid growth as inexpensive smartphones ring changes


    The mobile software market will be worth an estimated US$ 67.3 billion in 2013 – up from US$ 17.9 in 2007 – as the number of mobile devices grows and minutes of use increases steadily.
    This revenue growth will be fuelled by mobile carriers’ willingness to carry data apart from voice and the introduction of third-generation (3G) smartphones.
    That’s the conclusion of analysts at Frost & Sullivan in their report “World Next-Generation Mobile Software Market”.
    They say that with the expansion of memory, an increase in processor speed and the availability of better networks that allow for faster data transfer, mobile software is in for exponential growth.
    Daniel Longfield, research analyst at Frost & Sullivan, said there was a mass move towards mobile devices as people used them for tasks that a few years ago were performed on a desktop computer, a laptop, a MP3 player, an electronic gaming platform, or a digital camera.
    He said mobile software was key to placing mobile devices at the forefront of consumer habits by incorporating the applications and capabilities of other electronic devices into mobile devices.
    This, in turn, will benefit all members of the mobile value chain.
    “Over the next decade, the cycle of software development, where many mobile software products and applications were developed originally for other types of devices, will reverse,” said Longfield.
    “This reversal is likely because the number of mobile devices manufactured is expected to continue to outpace all other types of personal electronics and also due to smartphones possessing more processing speed and memory.”
    The report predicts that the mobile software market will grow at a faster rate than the total software market, thereby increasing its segment size.
    But it warns that as mobile carriers are extremely cautious about spending, mobile software vendors will have to prove the value proposition and return on investment of their products before clinching deals.
    Going forward, the mobile software market expects to witness greater standardisation, technological advances, and competitive changes. All these will further increase the mobile software market size.
    “Mobile software vendors are poised to receive large revenue increases from carriers and other mobile market value chain members,” said Longfield.
    “However, these spoils will not come without great effort to patch endless gaps in the current carrier service infrastructure and business models.”

  • European callers become more mobile as landlines increasingly shunned


    Almost a quarter of European households have given up fixed landlines for mobile phones and online calling, according to a European Union survey.
    The poll, carried out in November and December, found that 24 per cent of European households now eschew fixed landlines in favour of mobile phones, up from 22 per cent in a survey two years earlier.
    The Czech Republic, Finland and Lithuania had the lowest number of landlines in use across the 27-nation bloc.
    The results chime with the growing interest in the use of mobile VoIP services – either via GSM/GPRS wireless standards or through WiFi – and the widespread installation of internet calling software on smartphones.
    The EU survey – which questioned 26,730 people – also found that 22 per cent are now using their personal computers for phone calls or video chatting via programs such as Skype.
    That is a rise of 5 percentage points from the last poll.
    The survey said the bloc’s newer members, most of them in eastern Europe, were leading the trend in a shift to online calling.
    In Lithuania, 61 per cent of the households were using Internet phone services.

  • Analyst upgrades estimates for iPhone production for 2008 to at least 17 million


    Apple will build at least 15 million 3G iPhones in 2008 bringing its total smartphone production to at least 17 million phones.
    At least that’s what Craig Berger, semiconductor analysts with Friedman Billings Ramsey, expects production levels to run to by the year-end.
    He has upgraded his figures after previously saying that Apple would build 13 million iPhones in 2008 (which, interestingly, included 2 million 2.5G Edge-only iPhones).
    His rationale for the change is because he thinks iPhone production in the third quarter will be higher than expected.
    In a report issued to clients, the Wall Street analyst said Q2 build volumes were 25 per cent lower than previous checks, “as Apple pushes production out a bit into Q3”.
    Specifically, Berger says that Apple will build 9 million iPhones in the third quarter, up from 2 million in the second quarter, and more than 5 million iPhones in the fourth quarter.
    His estimate for 2008 production of at least 17 million phones includes 2 million 2.5G iPhones.
    The analyst said Broadcom and Marvell stand to be amongst the largest beneficiaries of the increased iPhone build forecast, as they’re both believed to be supplying key components for the new iPhone 3G.
    In a research note, Berger said: “Apple continues to knock the cover off the ball, that its product cycle momentum is ramping and that any consumer spending malaise in the US or Europe has yet to impact Apple-related product demand.”
    The iPhone’s future in China, the world’s biggest handset market, has become a little clearer after it was confirmed that Apple is in talks over a possible distribution deal with China Mobile.

  • Vodafone to launch "world first" converged solution of services and equipment in Australia


    A three-way initiative between Vodafone Australia, Cisco and Research In Motion (RIM) is to launch an integrated business communications services in Australia known as Vodafone Business One.
    Starting later this year, it will combine all telecommunication services – fixed and mobile, voice and data, services and equipment – into one managed service with single-point accountability on installation, technical support and fleet management and one monthly invoice.
    The service will be focusing primarily on small-medium sized businesses of between 10 to 100 employees.
    By using Wi-Fi-enabled BlackBerry smartphones along with Cisco Wi-Fi and IP-PBX in the office, Vodafone Business One customers will be able to make calls within the office zone at fixed-line rates, while making calls outside the office via the Vodafone mobile network.
    Both fixed and mobile calls will be covered by a single account-level service fee.
    BlackBerry smartphones can automatically select Wi-Fi as the preferred transmission method to send and receive calls and emails, as well as access other data applications, when in the office.
    Customers can choose to use IP phones or their BlackBerry dual-mode smartphones while in the office.
    Russell Hewitt, CEO at Vodafone Australia described the service as its most significant strategic play since the launch of 3G services three years ago.
    “With the announcement of Vodafone Business One, Vodafone has evolved from being a ‘mobile-only’ provider, to the world of full-service telecommunications services, enabling Vodafone to bring the principles of innovation and competition it has delivered in the mobile space to the fixed-line arena,” he said.
    Hewitt said the service offered a genuine alternative to spending money on traditional, fixed-lines with costly line rentals.
    Vodafone says that it will begin a progressive rollout of Vodafone Business One over the coming months to small and medium-sized enterprises in New South Wales before extending the service to customers in all major business centres by the end of the year.

  • iPhone 3G costs US$ 173 to make – 23 per cent less than predecessor


    The new iPhone is expected to carry an initial hardware Bill Of Materials (BOM) and manufacturing cost of US$ 173, according to a preliminary “virtual teardown” analysis conducted by iSuppli Corp.
    If correct, the second-generation iPhone could be even more profitable for Apple than either the original iPone or the iPod.
    Dr Jagdish Rebello, director and principal analyst for iSuppli, said that at a hardware BOM and manufacturing cost of US$ 173, the new iPhone is significantly less expensive to produce than the first-generation product.
    He said this was despite major improvements in the product’s functionality and unique usability, due to the addition of 3G communications.
    “The original 8Gbyte iPhone carried a cost of US $226 after component price reductions, giving the new product a 23 per cent hardware cost reduction due to component price declines,” he said.
    Last week, a survey revealed that nearly a quarter of US consumers questioned in a survey highlighted price as the main reason why they were not considering buying an Apple iPhone 3G.
    Dr Rebello said Apple was making a significant departure in its pricing strategy from the original 2G phone, which was sold at an unsubsidised price of US$ 499.
    Unlike the first version of the iPhone, Apple will not receive a portion of the wireless carriers’ revenue from service subscriptions – making it more imperative that the company makes a profit on the actual hardware through the carrier subsidies.
    He said the estimated subsidy to be paid by the wireless carriers to Apple would be about US$ 300 per iPhone.
    “This means that with subsidies from carriers, Apple will be selling the 8Mbyte version of the second-generation iPhone to carriers at an effective price of about US$ 499 per unit, the same as the original product,” he said.
    This represents a higher BOM/manufacturing margin than that on Apple’s iPod and original iPhone, which typically are priced about 50 per cent more than their BOM and manufacturing costs.
    The analysts project that with BOM costs likely to decrease over time as component prices decline, the BOM/manufacturing cost of the second-generation iPhone will decrease to US$ 148 in 2009, down 37 per cent from US$ 173 in 2008.
    If the design remains unchanged, this cost will decline to $126 in 2012.
    iSuppli’s preliminary virtual teardown estimate of the 8Gbyte 3G iPhone’s costs doesn’t include other costs, including software development, shipping and distribution, packaging, and miscellaneous accessories included with each phone.
    Once the 3G iPhone becomes available, iSuppli will perform an actual, detailed teardown of the new iPhone’s components and cost structure.