Interesting co-opetition between Apple and Samsung

Samsung and Apple have been vehemently fighting each other over smartphone patents and the market share in various countries, but very few of us know that the two companies remain close collaborators on manufacturing Apple's iPhone. Samsung has a contract for supplying the application processors used in Apple's iPhone!!!! Interesting example of co-opetition. 

However as per market news, Samsung may lose its supply contract for the application processors used in Apple's iPhone for the coming year. Apple is now expected to award the contract to TSMC to manufacture all the application processors (APs) used in the 2014 model of its iPhone. Let's wait for the news to be confirmed officially

Samsung's Smart Pad likely to hit the market before Apple's IPad 5

As per some reports Samsung is planning to launch a 6.3 inch Android smartphone in next 2 to 3 months. So the space between a 5 inch smart phone and a seven inch tablet is going to be filled by a converged device "Smart pad". If rumors are to be believed this is part of Samsung's Project Möbius, the code-name for Samsung's mammoth smartphone device, which is tipped to launch as the Samsung Galaxy Mega. It is quiet possible that Samsung may launch it with Google's next in line Android operating system i.e. Android 5.0 Key Lime Pie further smoothened by Samsung's customized Touchwiz user interface. A dual-core Exynos processor, an 8MP rear-facing camera, a 2MP front-facing camera are likely features. You may have to wait to check for affordability!!! 

The Smart Pad is likely to be launched ahead of Apple's next generation iPad whose production is expected to start at the Chinese assembly plants in July-August 2013. The 5th-generation 9.7-inch version iPad is expected to be thinner and lighter than the fourth-generation one and will adopt a slim bezel design, similar to that of the iPad mini.

Disclaimer

The views and opinions expressed in articles on this blog are those of the authors and do not necessarily reflect the official policy or position of any agency or organisation they serve.

Nokia's market share continue to slip in Western Europe

­According to IDC, The Western European Mobile Phone market recorded another quarter of year-on-year declines in the second quarter of 2009 (2Q09). Handset vendors shipped 42 million units to Western Europe, down 6% from 2Q08.

The switch from traditional mobile phones to converged mobile devices continued to be a major trend in Western Europe. Traditional mobile phones declined 12% during the quarter to 33.2 million units, and converged mobile devices (commonly known as smart phones) experienced a healthy 25% increase during the quarter to 8.8 million units, when compared to the same period last year. For the full year, IDC believes that the Western European market will decline 10%. Demand for converged mobile devices will continue to grow, but will not be strong enough to reverse the overall market decline as they represent only 21% of total shipments. On the other hand, traditional mobile phones will continue to decline, though at a lower rate, as vendors adjust their portfolios, bringing more features to the low-end devices.

But, the fact that caught my attention was that amongst the biggest handset vendors, Korean manufacturers continue to perform better than Scandinavian phone makers. For the first time, Samsung and LG together shipped more devices to Western Europe than Nokia. Nokia continues to be the market leader, with 36.3% market share, but the gap to Samsung, the second biggest vendor with 28.9% market share, continues to diminish. On the other hand, LG continues to challenge Sony Ericsson's market position, and the success of its touch screen handsets allowed LG to get 11.5% market share, the highest ever in Western Europe. The table below gives a better understanding -




Top Western European Mobile Phone Vendors,
Shipments and Market Share, 2Q09 (Units in Millions)
Vendor         2Q09 Unit    2Q09 Market      2Q08 Unit    2Q08Market    2Q09/2Q08
                     Shipments             Share       Shipments            Share          Change
Nokia             15.3                    36%                19                     43%             -19%
Samsung         12.2                    29%                10.9                  24%              12%
Sony Ericsson 5.1                      12%                6.2                    14%             -18%
LG                 4.8                      11%                2.8                      6%               71%
Apple             1.4                        3%                0.2                      0%             600%
RIM               1.2                        3%                0.8                      2%               50%
Others            2                           5%                4.7                    11%              -57%
Total              42                     100%                44.6                 100%                -6%

Source: IDC European Quarterly Mobile Phone Tracker, August 26, 2009
Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.

Nokia needs to connect differently.

New "Tilt" in the enterprise phone segment

BlackBerry , iPhone and now Tilt. AT&T is launching new enterprise segment phone. This has not been one of my favorite topics, but the enthusiasm raised by iphone has forced me to look into the features of new "Tilt". We might soon have them in India (Provided DoT acts fast on new applications for licences)

The new "Tilt" phone from AT&T, that may be available in mear future may become the next enterprise phone that may also fit the bill (unlike ipone).
AT&T says the Tilt is its first Windows Mobile 6 smart device, featuring a slide-out QWERTY keypad, a 3-megapixel camera, 3G data speeds from AT&T's UMTS/HSDPA-based BroadbandConnect network and complete global connectivity.
Windows Mobile 6 Tilt users get "the familiar look and feel of their desktop computers at home or in the office," the carrier says, enabling them to view e-mail in their original rich HTML format with live links to Web and Microsoft Office SharePoint sites. All Windows Mobile 6 devices include Microsoft's Direct Push Technology for e-mail delivery and automatic synchronization of Outlook calendars, tasks and contacts through Microsoft Exchange Server. Especially important to enterprises, Windows Mobile 6 offers important device security and management features, including capability to remotely wipe all data from a device should it be lost or stolen, thus helping to ensure that confidential information remains that way.
In addition to Microsoft Direct Push, the AT&T claims its Tilt will be "the first Windows Mobile device in North America to include BlackBerry Connect v4.0 software, which provides BlackBerry e-mail service, security and device management for IT administrators and the benefit for users of wireless synchronization of e-mail, calendar, contacts, task list and memo pad information." BlackBerry Connect v4.0 supports push e-mail for Microsoft Exchange, IBM Lotus Domino and Novell GroupWise through the BlackBerry Enterprise Server and personal e-mail through the BlackBerry Internet Service.
Customers also can use the Tilt to access personal e-mail through AT&T's Xpress Mail service. By completing five steps, AT&T customers can set up their Xpress Mail accounts and begin getting personal e-mail from most major POP3/IMAP personal e-mail services pushed to their AT&T Tilt at preset intervals. They also can sync their calendars, access contact lists and view attachments.
Designed by HTC, which really has been putting itself out there this year at wireless industry shows, the AT&T Tilt also features a 2.8-inch color screen that slides back to reveal a full QWERTY keyboard, and then it "tilts" up to position the screen for reading or creating e-mail, browsing online, using applications or just playing videos and games. The Tilt supports Bluetooth 2.0, allowing as many as six Bluetooth devices to be connected simultaneously to the device; Bluetooth Stereo also is supported.

In addition, the AT&T Tilt features the latest version of TeleNav GPS Navigator that provides GPS-enabled turn-by-turn voice and on-screen driving or walking directions, colorful 3-D moving maps and traffic delay alerts with one-click rerouting. The new GPS version also includes address sharing that allows users to share their current locations or the location of their favorite businesses with other mobile users. Business users have access to TeleNav Track, a mobile workforce-management solution that includes GPS-enabled tracking, time sheets, wireless forms, navigation, job dispatching and bar-code scanning.

Regarding the mobile enterprise need for speed, with 3G broadband speed connectivity across the globe and tri-band UMTS/HSDPA capabilities, the Tilt can operate in Japan and South Korea along with the more than 135 countries in which AT&T offers UMTS, EDGE or GPRS international data roaming. For voice, AT&T says road warriors can make or receive phone calls in more than 190 countries
In the States, the Tilt can connect to AT&T's BroadbandConnect network in more than 170 major metropolitan areas, and coverage outside of 3G service areas is available via AT&T's EDGE network where available. Wi-Fi connections are supported by the 802.11b and g frequencies, and enterprise users can use the Tilt to link to corporate wireless LANs or home Wi-Fi networks.
The new phone is pretty affordable at $299.99 after rebate; customers are held to a two-year contract. Unlimited monthly data plans for corporate e-mail are $44.99 with a voice contract. Data plans for personal e-mail, begin at $29.99 a month for 20 MB; that price reflects a $5/month discount for voice and requires that an eligible wireless voice plan be activated and maintained on the same device (limited to one discounted price per eligible voice plan, the carrier says). AT&T also offers an international data plan for the Tilt -- 20 MB in nearly 30 countries -- for an additional $24.99 a month. TeleNav GPS Navigator is available for additional monthly charges of $5.99 for 10 trips and $9.99 for unlimited trips. TeleNav Track service plans range from $12.99 to $21.99 for each device.
In a related product announcement across the border, Rogers Wireless in Canada says it is increasing its presence Windows Mobile market with the introduction of the Palm Treo 750 smartphone and the MOTO Q 9h. The carrier also announced a free online Windows Mobile 6 upgrade for the HTC S621. In support, Rogers launched an ad campaign earlier this week raise enterprise awareness about how Windows Mobile-based applications help mobile professionals stay productive while away from the office.
"The Canadian converged mobile device market has experienced tremendous growth over the past few years registering 56 percent year-over-year growth in 2006. This has been fuelled largely by Canadian organizations' need to improve employee effectiveness by helping them access company information," says Eddie Chan, research analyst/Mobile/Personal Computing & Technology at IDC Canada. "The availability of high-speed connectivity, combined with the familiarity of the Windows-based platform in a mobile environment, such as Windows Mobile 6, can help organizations and their employees realize the benefits of a mobile solution."

(The features have been sourced ffrom telecom news break story)

ZTE overtake LG to become largest CDMA handset supplier to Indian market

China's ZTE is reported to have overtaken Korea's LG Electronics to become the largest supplier of CDMA handsets to the Indian mobile phone market. The handset manufacturer now has a 26% market share according to market sources cited by the DigiTimes news publication.
ZTE originally entered the Indian market through an agreement with Tata Telecom in 2005 and now includes BSNL and the dominant CDMA operator, Reliance Communications as its customers.
ZTE is reported to have shipped some 15 million handsets in 2006, but had already passed that landmark by the beginning of June this year. The company is expected to ship something like 40 million handsets in total this year.

Mobile handset accessories will generate $80 billions of revenues by 2012!!

According to ABI Research - The market for mobile-phone accessories will generate more than $32 billion in revenues this year, more than the $28 billion expected from the smartphone market.
Some 77 percent of these revenues will come from the sales of "after-market" accessories and the remaining from "in-box" accessories shipments. The firm expects the market for handset accessories to grow steadily in the next five years, generating more than $80 billion in revenues in 2012.
Handset vendors and mobile operators are showing greater interest as accessories provide high margins and also opportunities to promote their brand and expand their product offerings. The growing interest among mobile operators is also driven by the realization that mobile phone accessories can lead to higher ARPUs.
Handset vendors now recognize that to increase sales of their high-end wireless handsets and smartphones, they need to provide accessories that allow users to fully enjoy and benefit from the features provided in those handsets. Nokia is addressing the handset accessory market with a distinctive approach of "mobile enhancement" products, while
Motorola is playing special emphasis on the growing "personalization" and "self-expression" trends.

Average American cell phone user keeps his handset for 17.5 months!!

According to a new study by J.D. Power and Associates, the average cellular phone user is keeping his handset 17.5 months, longer than has been the case in the past. The length of ownership is up from 16.6 months in just half a year - the consumer survey house's last reporting period was November. While the difference may not seem that great, it is the first increase in average ownership spotted by J.D. Power since way back in 2002, when the average length of ownership was 18.4 months.


"One possible reason for this significant increase in the length of handset ownership is that more customers are initiating or renewing their service contracts for a longer period -- typically for two years, as opposed to just one year, which was customary a few years ago," said Kirk Parsons, senior director of wireless services at J.D. Power.
Parsons also warned that the increasing length of ownership may be a double-edged sword for carrier. "While these longer contracts help wireless carriers recover the costs associated with offering subsidized cell phones, customers tend to hold on to their current cell phones longer to avoid termination fees when switching service, which may ultimately lead to lower renewal rates," he said.


In addition to keeping phones longer, the J.D. Power study also documents a continued decline in the amount American consumers pay for their handsets, a total it said has declined from an average of $103 in 2002 to $93 this year. And 36 percent of those surveyed - 21,520 cellphone users who had their phones for two years or less - said they got their handset for free, up from 28 percent five years ago.
"It's clear that wireless service carriers are using mobile phones as bait to increase consumer traffic, applying discounts either through rebates or free limited-time offers," said Parsons. Again, though, he had a warning: "The problem with this strategy is that, in most cases, the discounted handsets being offered are older models, which typically lack the latest technological advancements or desired design features."

Other findings of interest in the J.D. Power study included:
>>69 percent of all cell phones owned are a clamshell design, an increase of 19 percent from last year. That compares to 29 percent for the candy-bar style, and 2 percent for the slide-cover design.
>>Handset features used most frequently are: Speakerphone (51 percent); camera (35 percent); services to send/receive short messages (22 percent); and gaming (16 percent).
>>More than one-half of all current wireless users compared other handset brands before selecting their current wireless phone. Those customers who compare phones during the selection process are more likely to be satisfied overall with their current handset than those who do not.

Blackberry maker RIM (Research in Motion) to setup R&D support base in India

As per media reports, Blackberry-maker Research In Motion (RIM) will soon set up its R&D and customer support base in India. The company could in fact look at turning India into a hub for its customer support services eventually. The Ontario, Canada-based company is yet to finalise the size of investment.

The company is also working with a number of Indian software development companies popularly referred to as independent software vendors (ISVs) for developing enterprise applications that run on its mainstay Blackberry Enterprise Server (BES). It is BES that runs all the enterprise-centric apps based on RIM’s highly successful `Push services’ platform, including corporate e-mails, for its corporate customers.

Nokia planning to enhance its handset production capacity in India ?

Nokia is reported to be ramping up production capacity at its Indian factory after the company was able to ship 25 million handsets in one year from the facility. About 80% of the handsets produced at the Chennai factory are for the domestic market, with the rest exported to neighbouring countries - excluding Pakistan where local dealers have difficulty selling Indian produced phones.

Nokia launches new models based on shared handset concept for emerging market

Nokia Corp, the world’s largest handset maker, has launched seven mobile phones priced between Rs 2,000 - Rs 5,000 (excluding taxes) for emerging markets. The global launch was done from India! This intensified the competition in the entry-level mobile segment in India. The launch includes two models which are intended for shared use by families or entire villages. Incidentally, Nokia’s launch comes just a day after Indian CDMA major Reliance Communications announced the launch of its cheapest ever handset at Rs 777 (See our story - Handsets at Rs 777 ). In contrast, the Nokia 2505, the only CDMA handset which featured in Thursday’s launch is priced at about Rs 4,750. Reliance’s counterpart in the CDMA space, Tata Tele offers handsets priced at Rs 1,200 and upwards.

The entry level segment in India is set to see further competition with the entry of UK-based telecom operator Vodafone who is all out to tackle the rural market with ultra-low cost handsets and bundled services. Vodafone has a tie-up with Chinese manufacturer ZTE for entry-level handsets. GSM operator Spice, which also manufactures handsets will soon launch Rs 1000 phones, while US-based handset major Motorola offers entry-level products priced Rs 1,200 upwards.

Nokia is estimated to have close to 60% market share in the mobile segment in India, and is also the dominant player in the entry-level segment, where it leads rivals Motorola, Samsung, Chinese and Taiwanese manufacturers. Nokia’s shared models — 1200 and 1208, which cost over Rs 2,000 are equipped with call-tracking and multiple phone books — features which allow many people to use a common handset on a shared basis. Other built-in features in these latest handsets, specifically incorporated for emerging markets include pre-set time and cost barriers, which allows calls to be terminated once it reaches a certain limit. Nokia’s launch assumes importance as the shared mobile handset concept in villages is viewed as the right strategy to improve penetration in rural India. This phenomenon is already popular in some parts of the country. The latest launch was meant for emerging markets such as India, China, Africa and Latin America.

Nokia Siemens plans to slash 9000 jobs

Nokia Siemens Networks is slashing 9,000 jobs, with the biggest cuts coming in Germany and Finland. The cutback represents the upper end of staff reductions of between 10 percent and 15 percent out of a total of 60,000 workers that Nokia and Siemens had envisioned when they first unveiled their joint-venture plans last year. The goal of these cuts is to save the venture as much as $2 billion per year by the end of 2010.
Nokia Siemens will attempt to transfer at least some workers, rather than simply lay them off, into businesses affiliated with the joint venture, which finally got off the ground last month. It did not estimate how many of the 9,000 would end up in the "transfer" category.

Nokia Siemens already has launched negotiations with employee representatives in Germany and Finland, with similar talks in other countries to start in the coming months. In Finland, where the company has 10,000 employees, Nokia Siemens plans an initial staff reduction of 700 employees. By the end of 2010, the company said, it expects an "adjustment" in Finland in the range of between 1,500 and 1,700 employees, including the initial 700. In Germany, the company expects staff cuts of between 2,800 and 2,900 employees between now and the end of 2010, from an initial base of approximately 13,000. The company did not detail the size of planned cuts in any other countries; it has at least some presence in every corner of the globe, with operations in 150 countries.
Nokia Siemens Networks combines what was Nokia's Networks Business Group and Siemens' carrier-related operations for fixed and mobile networks. A large part of the rationale for combining the companies' two operations was cost synergies - the largest of which is the reduction in headcount.

Handsets at Rs 777 in India!!!

India's leading telecom service provider Reliance Communications has launched mobile handsets for as low as Rs 777 (less than $19), for the first time in India. The price of the handsets, named as Classic 202, Classic 204 and Classic 203, starts from Rs 777 and goes up to Rs 888 with facility of payment in installments.

The Anil Ambani-controlled company has said it would invest Rs.100 billion this year as capital expenditure towards expansion.

Almost 28 million handets are sold daily!!!

Can you believe this -
The global handset market grew 12 percent in the first quarter over the year-ago quarter to 252 million units. This is the first time in two years that growth fell below 20 percent, reports to Strategy Analytics.
Strategy Analytics forecasted 265 million units for the second quarter, a modest 13-percent growth rate year-on-year.
IDC estimated that unit shipments for the quarter were 256 million units. This is a 10-percent increase year-on-year.

Sony Erricsson's handset profits up, Motorola reported loss

As per media reports, Sony Ericsson Mobile Communications quarter 1 earnings for 2007 has more than doubled on strong sales of its "Walkman" music-capable handsets. Sony totally outclassed its larger rivals Nokia and Motorola, which had reported reduced profits and a horrid little loss, respectively.
Net profit for Sony Ericsson was $346 million in the first three months of the year, up from $148 million in the same period last year. Sales soared 47 percent, to $3.99 billion from $2.7 billion in the first quarter of 2006. Units shipped in the quarter reached 21.8 million, a 63-percent increase from the 13.3 million shipped in the first quarter of 2006, although considerably fewer than the 26 million phones shipped in the final quarter of last year.
The lesser performance came despite a decrease in average selling prices (ASPs), from $202 per unit in the first quarter of 2006 to $182, reflecting the company's thrust into developing markets.

In the year 2007 global handset market sales of more than 1.1 billion units is forcasted.
In the worst showing of the week, Motorola reported its first quarterly loss in three years ($181 million), hurt by costs and stumbling sales. The company's worldwide market share for handsets dropped to about 17.5 percent, down from 22 percent in 2006.