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  • DirectTV says high definition content is helping attract new subscribers

    The US’s leading provider of HDTV has credited its 95 channels of HD content as one of the main reason for increasing subscribers even as the economy falters.
    Paul Guyardo, DirecTV’s chief marketing officer, said the company had not been greatly affected by the US economic slowdown.
    DirecTV added 275,000 subscribers in the first quarter, compared to just 35,000 for rival Dish Network.
    He attributed the satcaster’s market-leading HD offering as a major factor in the increase.
    “I don’t want to say that we are recession-proof, but I will say that we have not been dramatically affected by the recession,” Guyardo told Advertising Age.
    “Right now is a time when people don’t necessarily have those discretionary dollars to go out to entertainment outside of the house.
    “And so now more than ever, they’re turning to their television as a source of entertainment. And at the end of the day, DirecTV is an exceptional value.”
    Guyardo said that DirecTV launched an aggressive marketing campaign last year to promote its expanded HD lineup, at a time when many consumers were starting to tighten their belts.
    The satcaster expanded its high-def channel total from nine to more than 70 last Autumn.
    “All of our awareness studies would suggest that people clearly do understand that DirecTV is the undisputed leader in HD,” he said.
    Despite adding only a small number of new high-def channels this year DirecTV is currently the leading US provider of high definition TV programming.
    With a new satellite due to come on-stream, it is unlikely to lose the top spot in the near future and is expected to expand its current offering of 96 national HD channels.
    Dish Network lies in second place, with approximately 80 channels, while the cable operators Comcast, Cablevision and Time Warner offer 40-60 high-def channels in some markets.
    In other markets, this figure drops to less than 30 HD channels.
    Verizon currently has fewer than 40 HD channels but says it will up this to150 by the end of 2008.
    AT&T’s U-Verse TV service also offers around 40 HD channels and hasn’t announced any expansion plans.
    Guyardo said that DirecTV was well positioned to attract future HD subscribers.
    “People are still investing a ton of money in big, flat-screen TVs – HDTVs,” he said.
    “The growth has definitely levelled off, but the growth is still there. And I think they want a quality picture on their 50-inch Plasma.”

  • No mention of Olympic factor as US market for flat-panel HDTVs remains strong despite economic down-turn

    Sales of LCD and plasma TVs showed a 53 per cent year-on-year increase in the US for the first quarter of 2008, with more than 7.5 million units sold.
    This represents a 7 per cent increase over industry projections for the period.
    While analysts in Japan have attributed a 35 per cent increase in flat-panel TV sales during the first half of June to the upcoming Beijing Olympics, industry executives in the US are being more cagey.
    But what those attending the DisplaySearch TV Supply Chain Conference in San Diego did agree on was that despite the state of the US economy, the North America TV market remains robust – so far.
    Paul Gagnon director of North American TV research at DisplaySearch, said the data also highlighted consumer preference for smaller LCD and plasma TVs.
    “Smaller TV sizes are doing better than larger sizes, while the larger sizes seem to be under pressure from weakened consumer spending,” he said.
    “For example, global shipments of 32” TVs exceeded our forecasts by 10 per cent, while all screen size categories above 40” fell short of expectations by 3 per cent or more.”
    The summer holiday season is expected to present a major challenge for US retailers if the present economic trend continues, according to a majority of conference attendees.
    That could translate into better deals for consumers, and those deals could remain even if the economy recovers over the next few years because panel manufacturers are adding more TV assembly lines.

  • T-Mobile Appoints New Chief Marketing Officer

    Denny Marie Post, the senior VP-global food and beverage at Starbucks is to move to T-Mobile as the mobile operator’s chief marketing officer (CMO).
    On making the announcement, Robert Dotson, president-CEO of T-Mobile USA, said in a statement: “Denny has deep and varied experience as a marketing leader in some of the most competitive retail environments in America.
    “We’re delighted she brings her extensive talents to T-Mobile to further drive our mission of enriching personal relationships.”
    According to tracking data from TNS Media Intelligence, T-Mobile spent US$607 million in advertising last year.
    Prior to working at Starbucks, Ms. Post has served as the Chief Concept Officer at fast-food chain, Burger King since April 2004.
    From 1995 to March 2004, Ms. Post served in various positions for Yum! Brands, including Chief Innovation Officer at KFC, Chief Marketing Officer for KFC, Taco Bell and Pizza Hut in Canada and VP Concept Innovation for KFC.
    The previous CMO, Michael Butler left at the beginning of the year for HomeAway, which operates the a network of vacation rental websites. Robert Dotson has been acting CMO since then.
    Earlier T-Mobile revealed its plans for the iPhone 3G in Europe with the announcement that Apple’s new handset will go on sale in Germany from as low as EUR1.
    The company said the 8 gigabyte version will be priced from EUR1 to EUR169.95, depending on the customer’s rate plan.
    The 16 gigabyte version will be priced from EUR19.95 to EUR249.95.
    T-Mobile will sell Apple’s device exclusively and customers are required to sign a two-year contract when buying the iPhone.
    The 3G iPhone will go on sale in Germany from July 11. T-Mobile will also start selling the new handset in Austria and the Netherlands the same day.
    The company will sell the phones in Croatia, the Czech Republic, Hungary, Poland and Slovakia later this year.

  • Mercedes provides mobile home for the iPhone

    The popularity of the Apple iPhone in Germany – over 100,000 people have bought iPhones there since its launch in November 2007 – has prompted Mercedes-Benz to offer what it claims is an industry first.
    The luxury car-maker has unveiled a new cradle specifically for the device which boosts reception and moves controls and display onto the steering wheel and dashboard.
    A company report said the move was an acknowledgement by Mercedes of Apple’s current dominance in the mobile arena.
    It said the cradle offered owners the means to seamlessly integrate the device’s music and telephone functions into their vehicles’ architecture.
    The cradle is available now for the Mercedes-Benz C-, E-, CLK-, CLS-, S-, CL-, SL-, M- and R-Class – as well as the in the future for the forthcoming GLK-Class).
    Available for € 249 – including VAT – the cradle is installed in the centre console, making it easy for both the driver and the passenger to reach out for the device.
    The iPhone’s media player and phone functions can be controlled with the help of the multifunction steering wheel controls, so you never really have to take your hands off the steering wheel to control the device.
    The vehicle’s display indicates the phone status, music functions and more.
    Because the device automatically connects to the vehicle aerial when inserted into the cradle it actually boosts the iPhone’s signal.
    What’s more, the iPhone is also constantly recharged when placed in its cradle.
    For non-iPhone owners, the company says future cradles for other mobile phones are on their way.

  • Samsung Instinct goes on sale 21 days before iPhone 3G

    The Samsung Instinct, touted as a worthy rival to the iPhone, has gone on sale in the US at a reduced price.
    Wireless phone network Sprint is offering the touchscreen handset for USD$129.99.
    The drop in price from the expected USD$ 199.99 is a move clearly intended to fuel rivalry with the new iPhone before it comes on the market next month.
    Sprint’s an unlimited data plan (at $69.99 per month) and two year contract agreement are similar to AT&T’s iPhone options.
    A worthy and elegant rival to the Apple handset, the Instinct measures 117 x 56 x 12.7mm and weighs 127 grams.
    It features GPS, EV-DO connectivity for high speed data transfers and a 3.1 inch TFT touchscreen display with 240 x 400 pixels.
    There’s a full HTML browser, Sprint Email, Sprint TV, Sprint Music Store, Bluetooth 2.0 with A2DP, Microsoft’s Live Search, speaker-independent voice dialing, a 2 Megapixel camera with video, and expandable memory (up to 8GB).
    The handset is MMS-capable and its 1000 mAh battery can provide up to 5.75 hours of talk-time.
    The Instinct can be bought online, from Sprint’s official website or in all of the carrier’s US stores.

  • Analyst declares Nokia "undervalued" based on growth plans in the Smartphone market


    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.

  • 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.