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Tag: apple

  • Signs that South Korean handset barrier may be lifted offers alluring prospect to foreign manufacturers










    South Korean regulations requiring handset applications to be based on a homegrown technology are largely why the country’s mobile phone market is dominated by Samsung Electronics and LG Electronics.
    As a result of the WIPI ruling – the acronym stands for wireless internet platform for interoperability – foreign companies have found it too expensive to produce handsets tailored for South Korean consumers.
    Nokia is virtually absent in the country and Motorola is a minor competitor with less than 5 per cent of the market. Apple has kept its iPhone out of the market because of the WIPI rule.
    Yet international handset makers are keen to enter South Korea, one of the world’s most technologically advanced and expensive telecoms markets.
    Now President Lee Myung-bak’s newly elected government has expressed a willingness to soften the WIPI rule, potentially opening the door to foreign handset makers.
    The move comes as criticism of the WIPI regulations grows, based on the argument that it restricts Korean consumers’ choices,
    Some analysts believe that, even if Korea does soften its rules, foreign companies could still find it tough to break the into the Samsung and LG-dominated market.
    But there is no doubt that if the protection barrier is removed there will be no shortage of foreign handset seeking to end their dominance.



  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.