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  • "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.

  • 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.

  • Launch of iPhone fails to dent RIM's optimism for Blackberry as profit and revenue doubles in Q1


    Strong sales of Blackberry devices have helped Smartphone-maker Research in Motion Ltd (RIM) to more than double its first quarter profit and revenue.
    The Canadian company earned US$482.5 million for the three months that ended May 31, up from US$223.2 million in the same period last year.
    RIM’s revenue increased to US$2.24 billion from US$1.08 billion for the same period.
    There was a net gain of 2.3 million BlackBerry subscribers in the quarter, six per cent higher than in the fourth quarter, to bring the total number of subscribers to more than 16 million.
    Around 5.4 million new devices were shipped by the company in the first quarter of 2008.
    Jim Balsillie, co-chief executive of RIM, said revenue had increased 107 per cent in the quarter, a rise he attributed to the continued popularity of the BlackBerry platform in business, government and consumer segments.
    “Our comprehensive technology and business strategies continue to reap strong results in the market, and RIM is well positioned to build on its momentum throughout the remainder of fiscal 2009,” he said.
    “As we prepare this summer to ship our 40 millionth BlackBerry smartphone, we continue to steadily scale our business and partnerships to support the opportunities ahead in this thriving sector.”
    But despite the buoyant results, financial markets took an unfavourable view of the the company missing analysts’ earnings per share estimates by a penny and giving disappointing guidance for next quarter.
    The news sent shares of RIM tumbling in after-hours trading, down 7.61 per cent, to US$ 10.84.
    RIM expects its revenue in the second quarter, which ends August 31, to be in the range of US$2.55 billion to US$2.65 billion.
    Balsillie said RIM’s strong product portfolio and the continued commitment by carrier partners to promote BlackBerry throughout the summer months, would ensure healthy growth in Q2
    The company’s Kickstart flip phone and the BlackBerry Bold, a touch-screen device, are both due for launch in the second quarter.

  • 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.”