LONDON, UK & TOKYO, JAPAN: LiMo Foundation™, a global consortium of mobile industry leaders today announced the launch of the first LiMo Release 2 (R2) handset that supports the brand new Vodafone 360 service on a ground breaking Samsung device. This news coincides with the further announcement from LiMo today within which all operator members on the LiMo Board have reaffirmed their intent to bring LiMo R2 devices and associated services to market during 2009/2010.
The Vodafone 360 H1 by Samsung, which boasts one of the market’s sleekest and most sophisticated touchscreen user interfaces (UI), provides end users with a state-of-the-art user experience to extend and enrich their service experience through Vodafone 360. This highly evolved coupling of an advanced device with next generation operator services epitomizes the distinct capabilities of the LiMo Platform and the uniquely collaborative nature of the LiMo ecosystem. Further highly innovative and differentiated R2 devices from LiMo members will flow into all regions through 2009 and 2010.
“The collaboration between Vodafone and Samsung that resulted in the 360 H1 device is a ringing endorsement of LiMo’s uniquely independent and collaborative approach to realising key technology for the benefit of the whole industry and signals the first of a wave of R2 LiMo handsets due in the coming months,” said Morgan Gillis, Executive Director of LiMo Foundation. “The Vodafone 360 H1 by Samsung delivers an inspiring service and handset combination which illustrates the game-changing results that eventuate when a handset platform enables leading operators and vendors to realise their vision of new user experiences with full freedom.”
“As a Founder Member of the LiMo Foundation, we have been highly involved in driving the Platform forward and are truly delighted that Samsung has delivered the first R2 LiMo handset”, said JK Shin, Executive Vice President and Head of Mobile Communications division, Samsung Electronics. “Vodafone 360 H1 by Samsung is our commitment to deliver the quality and richness of the LiMo Platform to consumers worldwide. Together with Samsung'’s proven technology leadership in the mobile phone industry, I strongly believe that Samsung will provide better value to our consumers along with Vodafone’s ground breaking service, Vodafone 360.”
As Samsung’'s first LiMo based product, the Vodafone 360 H1 offers a superior mobile experience to end-users through the Vodafone 360 service. The Vodafone 360 H1 by Samsung comes with an ultra brilliant 3.5” WVGA AMOLED display and a wide range of advanced features including 720P HD video recording as well as exclusive Vodafone services. Equipped with high performance in a stylish design, the phone provides a superb user interface and seamless connectivity.
The Vodafone 360 service includes a universal contact list that integrates information from address books within various services, and a 3D zoom feature that enables users to browse through their latest interaction in chronological order.
“Vodafone is privileged and honoured to be the first operator to launch a LiMo handset based on the R2 LiMo Platform. We believe this groundbreaking smartphone and platform combination will completely revolutionize the way in which end-users access their favourite services on their mobile phone,” said Patrick Chomet, Vodafone Group Director of Terminals and a founder director of the LiMo Foundation, “We have chosen to launch our new service strategy on the LiMo Platform, which demonstrates Vodafone’'s strong belief and ongoing commitment to LiMo.”
Showing posts with label Samsung. Show all posts
Showing posts with label Samsung. Show all posts
Friday, September 25, 2009
Thursday, September 24, 2009
Samsung and Tata DOCOMO launch Samsung Galaxy I7500 in India
NEW DELHI, INDIA: Tata DOCOMO, the GSM brand of Tata Teleservices Ltd, and Samsung Mobile have launched the first Android-powered Samsung mobile phone with in-built Google Mobile Services —-- Samsung Galaxy (I7500) -- in India.
Samsung Galaxy is a cutting-edge Smartphone, featuring a 3.2” AMOLED full touch-screen and 7.2 Mbps HSDPA and WiFi connectivity, providing users access to Google Mobile services and full Web browsing at excellent speeds.
“TATA DOCOMO is a young brand that recently rolled out GSM services across eight circles (so far),” Deepak Gulati, President, TATA DOCOMO, said. “When we launched our services, we had promised our subscribers that we would bring to them the best products and services—products that will stand for innovation and a pioneering spirit, and which would offer them convenience and simplicity.
“Living up to that promise, we are launching the Samsung Galaxy with one-touch Google Mobile Services (GMS). This launch marks the beginning of TATA DOCOMO’s relationship with Samsung. We will continue working together to launch more innovative mobile offerings for Indian consumers on the Tata DOCOMO platform,” he added.
Announcing the launch, B.D. Park, Director - Telecom, Samsung India Electronics Pvt Ltd stated: “We are very happy to be launching the Company’s first Android-powered mobile phone with Google Mobile Services in partnership with TATA DOCOMO. This powerful device will allow consumers to fully experience all mobile based Google applications on this phone. With its innovative features, Samsung Galaxy will offer a strong value proposition to discerning TATA DOCOMO customers.”
Samsung Galaxy (I7500) offers users access to the full suite of Google Mobile Services, including Google Search, Google Maps, Gmail, YouTube, Google Calendar, Google Talk and Android Market.
The integrated GPS receiver enables comprehensive use of Google Maps features, such as My Location, Google Latitude, local search and detailed route description. Thousands of other applications are available in the Android Market. “Applications from the Android Market can be downloaded and installed on to this mobile over the air, without the use of a PC, thereby opening up an entire new world to the user.” states Asim Warsi, GM-Marketing, Samsung India Electronics Ltd.
Under an exclusive tie-up, Samsung and Tata DOCOMO are launching this complete touch-screen, lifestyle phone in all the Circles where Tata DOCOMO has kicked off its GSM services, with an attractive consumer offer of 500 MB free download per month, for a period of six months.
“At TATA DOCOMO, our promise has been to provide a refreshingly different experience to our fast-growing customer base,” Sunil Tandon, Regional Head, TATA DOCOMO, said. “The launch of the Samsung Android is part of that endeavor—to provide subscribers with a world-class product that lets them experience the vast range of applications of the Android Market.”
Based on Samsung’s proven product leadership, Samsung I7500 comes with latest multimedia features. The large and vivid 3.2” AMOLED display ensures brilliant representation of multimedia content and an enjoyable full-touch mobile experience.
Along with supporting a 5-megapixel camera and various multimedia codec formats, the I7500 also provides a long battery life (1500mAh) and generous memory capacity (Internal Memory of 8 GB and Expandable External Memory up to 32 GB) to enjoy all the applications and multimedia content. The phone also boasts a slim and compact design—it is a mere 11.9mm thick.
Tata DOCOMO has launched its services across eight telecom Circles in the country already, and the same has been received with great enthusiasm. Samsung Galaxy will target the tech-savvy and up market consumers who are always on the move and need to have constant access to information, entertainment and interactive mobile experience.
Samsung Galaxy comes at a special introductory price of Rs 28,990 in the Indian market.
Samsung Galaxy is a cutting-edge Smartphone, featuring a 3.2” AMOLED full touch-screen and 7.2 Mbps HSDPA and WiFi connectivity, providing users access to Google Mobile services and full Web browsing at excellent speeds.“TATA DOCOMO is a young brand that recently rolled out GSM services across eight circles (so far),” Deepak Gulati, President, TATA DOCOMO, said. “When we launched our services, we had promised our subscribers that we would bring to them the best products and services—products that will stand for innovation and a pioneering spirit, and which would offer them convenience and simplicity.
“Living up to that promise, we are launching the Samsung Galaxy with one-touch Google Mobile Services (GMS). This launch marks the beginning of TATA DOCOMO’s relationship with Samsung. We will continue working together to launch more innovative mobile offerings for Indian consumers on the Tata DOCOMO platform,” he added.
Announcing the launch, B.D. Park, Director - Telecom, Samsung India Electronics Pvt Ltd stated: “We are very happy to be launching the Company’s first Android-powered mobile phone with Google Mobile Services in partnership with TATA DOCOMO. This powerful device will allow consumers to fully experience all mobile based Google applications on this phone. With its innovative features, Samsung Galaxy will offer a strong value proposition to discerning TATA DOCOMO customers.”
Samsung Galaxy (I7500) offers users access to the full suite of Google Mobile Services, including Google Search, Google Maps, Gmail, YouTube, Google Calendar, Google Talk and Android Market.
The integrated GPS receiver enables comprehensive use of Google Maps features, such as My Location, Google Latitude, local search and detailed route description. Thousands of other applications are available in the Android Market. “Applications from the Android Market can be downloaded and installed on to this mobile over the air, without the use of a PC, thereby opening up an entire new world to the user.” states Asim Warsi, GM-Marketing, Samsung India Electronics Ltd.
Under an exclusive tie-up, Samsung and Tata DOCOMO are launching this complete touch-screen, lifestyle phone in all the Circles where Tata DOCOMO has kicked off its GSM services, with an attractive consumer offer of 500 MB free download per month, for a period of six months.
“At TATA DOCOMO, our promise has been to provide a refreshingly different experience to our fast-growing customer base,” Sunil Tandon, Regional Head, TATA DOCOMO, said. “The launch of the Samsung Android is part of that endeavor—to provide subscribers with a world-class product that lets them experience the vast range of applications of the Android Market.”
Based on Samsung’s proven product leadership, Samsung I7500 comes with latest multimedia features. The large and vivid 3.2” AMOLED display ensures brilliant representation of multimedia content and an enjoyable full-touch mobile experience.
Along with supporting a 5-megapixel camera and various multimedia codec formats, the I7500 also provides a long battery life (1500mAh) and generous memory capacity (Internal Memory of 8 GB and Expandable External Memory up to 32 GB) to enjoy all the applications and multimedia content. The phone also boasts a slim and compact design—it is a mere 11.9mm thick.
Tata DOCOMO has launched its services across eight telecom Circles in the country already, and the same has been received with great enthusiasm. Samsung Galaxy will target the tech-savvy and up market consumers who are always on the move and need to have constant access to information, entertainment and interactive mobile experience.
Samsung Galaxy comes at a special introductory price of Rs 28,990 in the Indian market.
Wednesday, August 12, 2009
Global mobile phone sales drops 6pc, smartphones grow 27pc in Q2-09
MUMBAI, INDIA: Worldwide mobile phone sales totalled 286.1 million units in the second quarter of 2009, a 6.1 percent decrease from the second quarter of 2008, according to Gartner Inc.
Smartphone sales surpassed 40 million units, a 27 percent increase from the same period last year, representing the fastest-growing segment of the mobile-devices market (Table 2).
"Despite the challenging market, some devices sold well as consumers who would usually have purchased standard midrange devices either cut back to less expensive handsets or moved up the range to get more features for their money," said Carolina Milanesi, research director at Gartner.
"Touchscreen and qwerty devices remained a major driver for replacement sales and benefited manufacturers with strong, touch-focused midtier devices. However, the decline in average selling price (ASP) accelerated in the first half of the year and particularly affected manufacturers that focus on midtier and low-end devices, where margins are already slim."
The recession continued to suppress replacement sales in both mature and emerging markets. The distribution channel has dealt with lower demand and financial pressure by using up 13.9 million units of existing stock before ordering more. Gartner expects the gap between sell-in to the channel and sell-through to customers will reduce in the second half of 2009 as the channel starts to restock.
Table 1: Worldwide Mobile Terminal Sales to End Users in 2Q09 (Thousands of Units)
Note: This table includes iDEN shipments but excludes ODM-to-OEM shipments.
Source: Gartner (August 2009)
Nokia maintained its leadership position, but its portfolio remained heavily skewed toward low-end devices. Its flagship high-end N97 smartphone met little enthusiasm at its launch in the second quarter of 2009 and has sold just 500,000 units in the channel since it started to ship in June, compared to Apple's iPhone 3G S, which sold 1 million units in its first weekend.
"The right high-end product and an increased focus on services and content are vital for Nokia if it wants to both revamp its brand and please investors with a more promising outlook in ASPs and margins," said Ms Milanesi.
Samsung and LG both had a very strong second quarter of 2009 with sales of 55 million units and 30.5 million units, respectively. Samsung's touchscreen devices, qwerty phones and smartphones drove sales in mature markets, and Gartner expects it will continue to gain market share in the second half of 2009 to close the gap with Nokia.
Gartner expects LG to keep moving into lower-tier devices to drive growth in emerging markets and be well-positioned to take advantage of China's 3G rollout as it can deliver good-value-for-money devices.
Table 2: Worldwide Smartphone Sales to End Users in 2Q09 (Thousands of Units)
Note: For HTC, Gartner counts only the company's own-branded devices, including the G1.
Note: Totals may not add to 100.0 percent due to rounding.
Source: Gartner (August 2009)
Motorola's sales of 15.9 million units were slightly better than expected, but its presence has rapidly concentrated on the Americas, and it has lost most of its share of the Western European market, where it sold fewer than 1 million units in the second quarter of 2009. Most operators and customers will be waiting for Motorola's new Android-based products planned for the fourth quarter of 2009.
Sony Ericsson's market share dropped 2.8 percentage points year-on-year in the second quarter of 2009 but its volume dropped 41 per cent. Although the market environment was challenging, Gartner attributes Sony Ericsson's poor performance to its uncompetitive range of handsets.
"Sony Ericsson has neglected to exploit key trends such as qwerty products for messaging and e-mail, internet browsing and navigation. If it wants to build the presence of its three new products announced this quarter in the channel and capture Christmas sales, the products need to come to market early in the fourth quarter of 2009," Ms Milanesi added.
"Smartphone sales were strong during the second quarter of 2009, with sales of 40.9 million units in line with Gartner's forecast of 27 per cent year-on-year sales growth for 2009," said Ms Milanesi. "Given the higher margins, smartphones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining ASPs."
Apple's expansion into a larger number of countries in the past year has produced a clear effect on sales volumes, as have the recent price adjustments on the 8GB 3G iPhone. Sales of 5.4 million units in the second quarter of 2009 indicated a 51 percent growth in shipments and helped Apple maintain the No. 3 position in the smartphone market, where it has stayed since the third quarter of 2008.
Apple brought its much-anticipated new device — the iPhone 3G S — to market at the end of the second quarter of 2009, but its full potential will only start to show in the sales figures in the second half of 2009.
At the high end of the smartphone market, HTC remained in the No. 4 position behind Apple, where it has been since the third quarter of 2008. It reported lower expectations for the second half of 2009 due to product delays and now expects 2009 revenue to decline by low- to mid-single digits year-on-year, far below its previous outlook of 10 per cent annual growth.
In the smartphone operating system (OS) market, Symbian held 51 percent share, down from 57 percent a year ago, while RIM and Apple grew their shares year-on-year. Android's share was just under 2 percent of the market and more Android-based devices will come to market in the fourth quarter of 2009, intensifying competition in the smartphone OS market, particularly for Symbian and Windows Mobile. Microsoft's share continued to drop year-on-year to account for 9 percent of the market in the second quarter of 2009.
"Microsoft licensees HTC and Samsung continued to add features to their own interfaces, on top of Windows Mobile, to create more competitive products and make up for the usability constraints of the Microsoft platform," said Roberta Cozza, principal analyst at Gartner.
This quarter also saw the debut of the long-awaited Palm Pre based on the new web operating system. "This device attracted a lot of media attention but showed mixed results at the cash register as sales only reached 205,000 units," said Ms Cozza.
"Palm currently ranks 10th in the smartphone market and Gartner remains concerned about its ability to gain traction outside the US market, where its brand is less strong."
"For the remainder of 2009, manufacturers must offer products with the features that consumers and operators are demanding most strongly — like touchscreens, focus on user interfaces and application/content ecosystems — and work hard to keep operators loyal," concluded Ms Milanesi.
"We expect competition to intensify in the second half of 2009. Mobile operators are likely to drive competition among manufacturers as they start selling e-book readers and mini-notebooks from other manufacturers to foster mobile broadband subscriptions.
"Operators are also starting to subsidise e-book readers and mini notebooks on contract and this means that there will be less subsidy available to drive sales of mobile phones and smartphones. In turn, operators will demand lower prices from phone manufacturers, which will be under even more pressure to deliver strong feature sets at the lowest possible price."
Smartphone sales surpassed 40 million units, a 27 percent increase from the same period last year, representing the fastest-growing segment of the mobile-devices market (Table 2).
"Despite the challenging market, some devices sold well as consumers who would usually have purchased standard midrange devices either cut back to less expensive handsets or moved up the range to get more features for their money," said Carolina Milanesi, research director at Gartner.
"Touchscreen and qwerty devices remained a major driver for replacement sales and benefited manufacturers with strong, touch-focused midtier devices. However, the decline in average selling price (ASP) accelerated in the first half of the year and particularly affected manufacturers that focus on midtier and low-end devices, where margins are already slim."
The recession continued to suppress replacement sales in both mature and emerging markets. The distribution channel has dealt with lower demand and financial pressure by using up 13.9 million units of existing stock before ordering more. Gartner expects the gap between sell-in to the channel and sell-through to customers will reduce in the second half of 2009 as the channel starts to restock.
Table 1: Worldwide Mobile Terminal Sales to End Users in 2Q09 (Thousands of Units)
Note: This table includes iDEN shipments but excludes ODM-to-OEM shipments.Source: Gartner (August 2009)
Nokia maintained its leadership position, but its portfolio remained heavily skewed toward low-end devices. Its flagship high-end N97 smartphone met little enthusiasm at its launch in the second quarter of 2009 and has sold just 500,000 units in the channel since it started to ship in June, compared to Apple's iPhone 3G S, which sold 1 million units in its first weekend.
"The right high-end product and an increased focus on services and content are vital for Nokia if it wants to both revamp its brand and please investors with a more promising outlook in ASPs and margins," said Ms Milanesi.
Samsung and LG both had a very strong second quarter of 2009 with sales of 55 million units and 30.5 million units, respectively. Samsung's touchscreen devices, qwerty phones and smartphones drove sales in mature markets, and Gartner expects it will continue to gain market share in the second half of 2009 to close the gap with Nokia.
Gartner expects LG to keep moving into lower-tier devices to drive growth in emerging markets and be well-positioned to take advantage of China's 3G rollout as it can deliver good-value-for-money devices.
Table 2: Worldwide Smartphone Sales to End Users in 2Q09 (Thousands of Units)
Note: For HTC, Gartner counts only the company's own-branded devices, including the G1.Note: Totals may not add to 100.0 percent due to rounding.
Source: Gartner (August 2009)
Motorola's sales of 15.9 million units were slightly better than expected, but its presence has rapidly concentrated on the Americas, and it has lost most of its share of the Western European market, where it sold fewer than 1 million units in the second quarter of 2009. Most operators and customers will be waiting for Motorola's new Android-based products planned for the fourth quarter of 2009.
Sony Ericsson's market share dropped 2.8 percentage points year-on-year in the second quarter of 2009 but its volume dropped 41 per cent. Although the market environment was challenging, Gartner attributes Sony Ericsson's poor performance to its uncompetitive range of handsets.
"Sony Ericsson has neglected to exploit key trends such as qwerty products for messaging and e-mail, internet browsing and navigation. If it wants to build the presence of its three new products announced this quarter in the channel and capture Christmas sales, the products need to come to market early in the fourth quarter of 2009," Ms Milanesi added.
"Smartphone sales were strong during the second quarter of 2009, with sales of 40.9 million units in line with Gartner's forecast of 27 per cent year-on-year sales growth for 2009," said Ms Milanesi. "Given the higher margins, smartphones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining ASPs."
Apple's expansion into a larger number of countries in the past year has produced a clear effect on sales volumes, as have the recent price adjustments on the 8GB 3G iPhone. Sales of 5.4 million units in the second quarter of 2009 indicated a 51 percent growth in shipments and helped Apple maintain the No. 3 position in the smartphone market, where it has stayed since the third quarter of 2008.
Apple brought its much-anticipated new device — the iPhone 3G S — to market at the end of the second quarter of 2009, but its full potential will only start to show in the sales figures in the second half of 2009.
At the high end of the smartphone market, HTC remained in the No. 4 position behind Apple, where it has been since the third quarter of 2008. It reported lower expectations for the second half of 2009 due to product delays and now expects 2009 revenue to decline by low- to mid-single digits year-on-year, far below its previous outlook of 10 per cent annual growth.
In the smartphone operating system (OS) market, Symbian held 51 percent share, down from 57 percent a year ago, while RIM and Apple grew their shares year-on-year. Android's share was just under 2 percent of the market and more Android-based devices will come to market in the fourth quarter of 2009, intensifying competition in the smartphone OS market, particularly for Symbian and Windows Mobile. Microsoft's share continued to drop year-on-year to account for 9 percent of the market in the second quarter of 2009.
"Microsoft licensees HTC and Samsung continued to add features to their own interfaces, on top of Windows Mobile, to create more competitive products and make up for the usability constraints of the Microsoft platform," said Roberta Cozza, principal analyst at Gartner.
This quarter also saw the debut of the long-awaited Palm Pre based on the new web operating system. "This device attracted a lot of media attention but showed mixed results at the cash register as sales only reached 205,000 units," said Ms Cozza.
"Palm currently ranks 10th in the smartphone market and Gartner remains concerned about its ability to gain traction outside the US market, where its brand is less strong."
"For the remainder of 2009, manufacturers must offer products with the features that consumers and operators are demanding most strongly — like touchscreens, focus on user interfaces and application/content ecosystems — and work hard to keep operators loyal," concluded Ms Milanesi.
"We expect competition to intensify in the second half of 2009. Mobile operators are likely to drive competition among manufacturers as they start selling e-book readers and mini-notebooks from other manufacturers to foster mobile broadband subscriptions.
"Operators are also starting to subsidise e-book readers and mini notebooks on contract and this means that there will be less subsidy available to drive sales of mobile phones and smartphones. In turn, operators will demand lower prices from phone manufacturers, which will be under even more pressure to deliver strong feature sets at the lowest possible price."
Friday, August 7, 2009
Seasonality and weak economies lower mobile phone demand in Q1’09
AUSTIN, USA: While mobile phone display shipments in developed nations such as the US, Europe and Japan slipped in Q1’09 due to seasonality and the weak economy, this segment is expected to improve through 2009 due to relatively strong demand for smart phones, video capabilities and the growing China mobile phone market.
According to the DisplaySearch Q2’09 Quarterly Mobile Phone Shipment and Forecast Report, total mobile phone display shipments fell 11 percent Q/Q and 19 percent Y/Y in Q1’09 to 263 million units, but are forecast to increase to 306 million units in Q2’09 and 360 million units in Q3’09, respectively.
“Growth in mobile phone display shipments will be driven by demand from major mobile phone manufacturers such as Nokia, Samsung, LG, Sony Ericsson and Motorola, as well as Chinese brands including Huawei, ZTE as well as Tianyu and white box manufacturers,” noted Hiroshi Hayase, DisplaySearch’s Director of Small/Medium Display Research. “In addition, the availability of low cost mobile phones in these regions will also contribute to the anticipated growth for this segment.”
More than 20 percent of mobile phone displays were shipped to Chinese brands and white box manufacturers, who are mainly in China. White boxes are un-branded mobile phones designed to be similar to popular designs by top-tier brands such as Nokia, Samsung and Apple.
Produced in China-based manufacturing facilities, these ‘knock-offs’ are sold at significantly lower price points. The total amount of mobile phone displays shipped for the China market is expected to exceed display shipment amount for Samsung Telecom. As a result, the demand for mobile phone displays will increase.
The number of mobile phone shipments reached 276.1 million in Q1’09. Nokia retained its top position with 31.7 percent share, up slightly from 31.2 percent in Q1’09. The #2 and #3 brands were Samsung and LG. Motorola continued a long-term share decline.
Emerging China mobile phone brands including Huawei, ZTE and Tianyu increased their share of mobile phone displays purchased by 1.5-2 percent, increasing their mobile phone rankings.
Table 1: Q1’09 Mobile Phone Brand Market Share
Source: DisplaySearch Q2’09 Quarterly Mobile Phone Shipment and Forecast Report
Other key findings from DisplaySearch’s latest mobile phone display research include the following:
* MSTN LCD for mobile phones dropped to 12.9 million in Q1’09 from 22.1 million in Q4’08, primarily due to the adoption of white box commodity models and eroding TFT LCD prices in emerging markets. For example, Nokia’s entry-level 1200 model uses MSTN. Passive matrix LCDs (MSTN, CSTN and STN) are expected to drop from 448 million in 2008 to 369 million in 2009.
* Although total mobile phone display shipments are expected to drop from 2008 to 2009, the growing demand for video capabilities in mobile phones has boosted the outlook for TFT-LCD and OLED displays for this segment, and is expected to increase from 955 million units shipped in 2008, to 1.03 billion units in 2009.
* Nokia increased its purchase of nHD displays (360 × 640) to 4.0 million in Q1’09 from 1.1 million in Q4’08. nHD displays enable digital TV and video on mobile phones.
* Samsung Mobile Display (SMD), which manufactures small/medium LCDs and OLEDs, began production and led in both shipments and revenues for mobile phone FPD shipments—overtaking Sharp in revenues and Wintek in shipments.
According to the DisplaySearch Q2’09 Quarterly Mobile Phone Shipment and Forecast Report, total mobile phone display shipments fell 11 percent Q/Q and 19 percent Y/Y in Q1’09 to 263 million units, but are forecast to increase to 306 million units in Q2’09 and 360 million units in Q3’09, respectively.
“Growth in mobile phone display shipments will be driven by demand from major mobile phone manufacturers such as Nokia, Samsung, LG, Sony Ericsson and Motorola, as well as Chinese brands including Huawei, ZTE as well as Tianyu and white box manufacturers,” noted Hiroshi Hayase, DisplaySearch’s Director of Small/Medium Display Research. “In addition, the availability of low cost mobile phones in these regions will also contribute to the anticipated growth for this segment.”
More than 20 percent of mobile phone displays were shipped to Chinese brands and white box manufacturers, who are mainly in China. White boxes are un-branded mobile phones designed to be similar to popular designs by top-tier brands such as Nokia, Samsung and Apple.
Produced in China-based manufacturing facilities, these ‘knock-offs’ are sold at significantly lower price points. The total amount of mobile phone displays shipped for the China market is expected to exceed display shipment amount for Samsung Telecom. As a result, the demand for mobile phone displays will increase.
The number of mobile phone shipments reached 276.1 million in Q1’09. Nokia retained its top position with 31.7 percent share, up slightly from 31.2 percent in Q1’09. The #2 and #3 brands were Samsung and LG. Motorola continued a long-term share decline.
Emerging China mobile phone brands including Huawei, ZTE and Tianyu increased their share of mobile phone displays purchased by 1.5-2 percent, increasing their mobile phone rankings.
Table 1: Q1’09 Mobile Phone Brand Market Share
Source: DisplaySearch Q2’09 Quarterly Mobile Phone Shipment and Forecast ReportOther key findings from DisplaySearch’s latest mobile phone display research include the following:
* MSTN LCD for mobile phones dropped to 12.9 million in Q1’09 from 22.1 million in Q4’08, primarily due to the adoption of white box commodity models and eroding TFT LCD prices in emerging markets. For example, Nokia’s entry-level 1200 model uses MSTN. Passive matrix LCDs (MSTN, CSTN and STN) are expected to drop from 448 million in 2008 to 369 million in 2009.
* Although total mobile phone display shipments are expected to drop from 2008 to 2009, the growing demand for video capabilities in mobile phones has boosted the outlook for TFT-LCD and OLED displays for this segment, and is expected to increase from 955 million units shipped in 2008, to 1.03 billion units in 2009.
* Nokia increased its purchase of nHD displays (360 × 640) to 4.0 million in Q1’09 from 1.1 million in Q4’08. nHD displays enable digital TV and video on mobile phones.
* Samsung Mobile Display (SMD), which manufactures small/medium LCDs and OLEDs, began production and led in both shipments and revenues for mobile phone FPD shipments—overtaking Sharp in revenues and Wintek in shipments.
Saturday, August 1, 2009
Cell phone shipments return to growth in Q2
EL SEGUNDO, USA: Global shipments of cell phones in the second quarter climbed 4.7 percent compared to the first, marking the first sequential increase for the market since the third quarter of 2008, according to iSuppli Corp.
Worldwide shipments amounted to 265 million units in the second quarter, up from 253 million in the first.
“The moderate increase indicates the worldwide mobile handset market is bottoming out and now is returning to growth,” said Tina Teng, senior analyst, wireless communications for iSuppli. “Much of the growth was generated by two emerging regions: the Middle East and Latin America. Furthermore, several aggressive promotional campaigns boosted sales in North America, with regional shipments rising by 8 percent during the period.”
The rise in shipments is welcome news to a handset industry that has seen nine months of contraction. Shipments declined by 0.3 percent in the third quarter of 2008, by 2.6 percent in the fourth quarter of last year and by a stunning 16.4 percent in the first quarter of 2009. By the first quarter of 2009, shipments had fallen by 58.8 million units compared to before the downturn began in the second quarter of 2008.
Shipments are expected to rise by 6 percent 280.9 million in the third quarter and by 8.3 percent to 304.2 million in the fourth. Despite the quarter-to-quarter increases, annual shipments are still expected to contract by 9.9 percent in 2009, with the total for the year amounting to 1.1 billion units, down from 1.23 billion in 2008.
“The global economic downturn has had a particularly harsh impact on the worldwide mobile handset as declining disposable incomes dissuaded consumers from making non-essential purchases like upgraded wireless handsets,” Teng said. “The recession brought to an end eight consecutive years of annual shipment growth for cell phones, and will result in the first market contraction since 2001.”
Big handset makers get bigger
The world’s Top-5 handset suppliers dramatically outperformed the smaller players in the second quarter, based on a preliminary estimate from iSuppli. Combined shipments for the Top-5 brands rose by 12.1 percent in the second quarter compared to the first, while all other companies together experienced an 18.1 percent plunge.
However, among the Top-5 individual company performances vary dramatically, although the rankings for these companies did not change compared to the first quarter.
The best performance in the second quarter was posted by South Korea’s LG Electronics.
LG's mobile handset shipments rose to 29.8 million units in the second quarter, up 31.9 percent from 22.6 million units in the first quarter. Company market share rose by 2.3 points to 11.2 percent.
“LG strong performance in the second quarter was due to its success in emerging regions, including the Middle East and Africa,” Teng said. “The company also managed to orient its product mix to more profitable handsets including new touch-screen devices.”
Motorola stops the bleeding
Embattled handset brand Motorola Inc. in the second quarter managed to increase its shipments by 0.7 percent to 14.8 million units, up from 14.7 million in the first quarter. While Motorola still underperformed the market and lost share, the rise brought to an end three consecutive quarters of declines in shipments for the company.
“Motorola finally has put a stop to its shipment slide due to its improved performance in North America and Latin America,” Teng said. “With this increase in shipments, Motorola has managed to secure its No.-4 ranking in the market.”
Nokia expands its lead
“The No.-1 player, Nokia, has been defending its dominant position since the third quarter of last year due to rising competitive pressure from Samsung, which has been expanding its sales in Europe and in emerging markets,” Teng said. “The company also has faced rising competition from smart phone players including Research in Motion and Apple Inc.”
Nokia was able to gain 2.1 percentage points of market share in the second quarter, with its shipments rising to 103.2 million units.
Samsung Electronics Co. Ltd. remains on track to achieve its target of more than 200 million mobile handset unit shipments this year. The company’s refreshed product lineup allowed it to increase its shipments by 14.2 percent and its share by 1.6 points compared to the first quarter.
Sony Ericsson, however, had another disappointing quarter!
“The company is known for leveraging the brand strength from Sony and its mid- to high-end multimedia devices,” Teng said. “Sony Ericsson’s product portfolio has not been adequately aligned with the two fastest-growing segments: smart phones and ultra-low-cost handsets.”
Company shipments declined by 4.8 percent and market share dipped by 0.5 percent from the first quarter.
The figure presents iSuppli’s preliminary share estimates of the mobile handset market during the second quarter.
Source: iSuppli, July 2009
Worldwide shipments amounted to 265 million units in the second quarter, up from 253 million in the first.
“The moderate increase indicates the worldwide mobile handset market is bottoming out and now is returning to growth,” said Tina Teng, senior analyst, wireless communications for iSuppli. “Much of the growth was generated by two emerging regions: the Middle East and Latin America. Furthermore, several aggressive promotional campaigns boosted sales in North America, with regional shipments rising by 8 percent during the period.”
The rise in shipments is welcome news to a handset industry that has seen nine months of contraction. Shipments declined by 0.3 percent in the third quarter of 2008, by 2.6 percent in the fourth quarter of last year and by a stunning 16.4 percent in the first quarter of 2009. By the first quarter of 2009, shipments had fallen by 58.8 million units compared to before the downturn began in the second quarter of 2008.
Shipments are expected to rise by 6 percent 280.9 million in the third quarter and by 8.3 percent to 304.2 million in the fourth. Despite the quarter-to-quarter increases, annual shipments are still expected to contract by 9.9 percent in 2009, with the total for the year amounting to 1.1 billion units, down from 1.23 billion in 2008.
“The global economic downturn has had a particularly harsh impact on the worldwide mobile handset as declining disposable incomes dissuaded consumers from making non-essential purchases like upgraded wireless handsets,” Teng said. “The recession brought to an end eight consecutive years of annual shipment growth for cell phones, and will result in the first market contraction since 2001.”
Big handset makers get bigger
The world’s Top-5 handset suppliers dramatically outperformed the smaller players in the second quarter, based on a preliminary estimate from iSuppli. Combined shipments for the Top-5 brands rose by 12.1 percent in the second quarter compared to the first, while all other companies together experienced an 18.1 percent plunge.
However, among the Top-5 individual company performances vary dramatically, although the rankings for these companies did not change compared to the first quarter.
The best performance in the second quarter was posted by South Korea’s LG Electronics.
LG's mobile handset shipments rose to 29.8 million units in the second quarter, up 31.9 percent from 22.6 million units in the first quarter. Company market share rose by 2.3 points to 11.2 percent.
“LG strong performance in the second quarter was due to its success in emerging regions, including the Middle East and Africa,” Teng said. “The company also managed to orient its product mix to more profitable handsets including new touch-screen devices.”
Motorola stops the bleeding
Embattled handset brand Motorola Inc. in the second quarter managed to increase its shipments by 0.7 percent to 14.8 million units, up from 14.7 million in the first quarter. While Motorola still underperformed the market and lost share, the rise brought to an end three consecutive quarters of declines in shipments for the company.
“Motorola finally has put a stop to its shipment slide due to its improved performance in North America and Latin America,” Teng said. “With this increase in shipments, Motorola has managed to secure its No.-4 ranking in the market.”
Nokia expands its lead
“The No.-1 player, Nokia, has been defending its dominant position since the third quarter of last year due to rising competitive pressure from Samsung, which has been expanding its sales in Europe and in emerging markets,” Teng said. “The company also has faced rising competition from smart phone players including Research in Motion and Apple Inc.”
Nokia was able to gain 2.1 percentage points of market share in the second quarter, with its shipments rising to 103.2 million units.
Samsung Electronics Co. Ltd. remains on track to achieve its target of more than 200 million mobile handset unit shipments this year. The company’s refreshed product lineup allowed it to increase its shipments by 14.2 percent and its share by 1.6 points compared to the first quarter.
Sony Ericsson, however, had another disappointing quarter!
“The company is known for leveraging the brand strength from Sony and its mid- to high-end multimedia devices,” Teng said. “Sony Ericsson’s product portfolio has not been adequately aligned with the two fastest-growing segments: smart phones and ultra-low-cost handsets.”
Company shipments declined by 4.8 percent and market share dipped by 0.5 percent from the first quarter.
The figure presents iSuppli’s preliminary share estimates of the mobile handset market during the second quarter.
Source: iSuppli, July 2009
Friday, July 31, 2009
Global handset shipments fall 8pc in Q2-09, but showing signs of recovery
BOSTON, USA: According to the latest research from Strategy Analytics, global mobile handset shipments fell 8 percent year-over-year, to reach 273 million units in Q2 2009. The rate of decline was slower than the previous quarter, as the market showed tentative signs of stabilization.
Bonny Joy, Senior Analyst at Strategy Analytics said: "Global mobile handset shipments fell to 273 million units during Q2 2009, down 8 percent from 297 million units in Q2 2008. The eight-percent shrinkage was a noticeable improvement on the huge declines recorded of minus 14 percent in Q1 2009 and minus 11 percent during Q4 2008."
Neil Mawston, Director at Strategy Analytics, added: "We believe the relative upturn in the global handset market has been driven by improved consumer confidence in some regions, such as China, and by partial restocking of some retailers’ depleted supplies.
"Growth is certainly still available for those handset makers with compelling products and strong brands. For example, Samsung grew worldwide shipments a healthy 14% during the quarter, as consumers and carriers showed high interest in their touchphone models, such as Star and Jet."
Other findings from Strategy Analytics’ Q2 2009 Global Handset Market Share Update report include:
* LG Electronics shipped 29.8 million handsets worldwide during Q2 2009, for a record marketshare of 11 percent. An attractive portfolio of touchscreen QWERTY phones and increased distribution channels have been among the drivers of its success;
* Motorola shipped a better-than-expected 14.8 million handsets worldwide in Q2 2009, for 5 Global handset shipments fall 8pc in Q2-09, but showing signs of recovery marketshare.
The operating margin for its handset division improved sequentially and an aggressive cost-cutting program is benefiting the company;
* Apple shipped a better-than-expected 5.2 million iPhones worldwide in Q2 2009, for 1.9 percent marketshare. Apple launched its new 3GS model during the quarter and we believe Apple is developing a rolling pattern of one-year upgrade-cycles for its flagship iPhone family in an attempt to drive higher replacement rates among consumers.
Source: Strategy Analytics
Bonny Joy, Senior Analyst at Strategy Analytics said: "Global mobile handset shipments fell to 273 million units during Q2 2009, down 8 percent from 297 million units in Q2 2008. The eight-percent shrinkage was a noticeable improvement on the huge declines recorded of minus 14 percent in Q1 2009 and minus 11 percent during Q4 2008."
Neil Mawston, Director at Strategy Analytics, added: "We believe the relative upturn in the global handset market has been driven by improved consumer confidence in some regions, such as China, and by partial restocking of some retailers’ depleted supplies.
"Growth is certainly still available for those handset makers with compelling products and strong brands. For example, Samsung grew worldwide shipments a healthy 14% during the quarter, as consumers and carriers showed high interest in their touchphone models, such as Star and Jet."
Other findings from Strategy Analytics’ Q2 2009 Global Handset Market Share Update report include:
* LG Electronics shipped 29.8 million handsets worldwide during Q2 2009, for a record marketshare of 11 percent. An attractive portfolio of touchscreen QWERTY phones and increased distribution channels have been among the drivers of its success;
* Motorola shipped a better-than-expected 14.8 million handsets worldwide in Q2 2009, for 5 Global handset shipments fall 8pc in Q2-09, but showing signs of recovery marketshare.
The operating margin for its handset division improved sequentially and an aggressive cost-cutting program is benefiting the company;
* Apple shipped a better-than-expected 5.2 million iPhones worldwide in Q2 2009, for 1.9 percent marketshare. Apple launched its new 3GS model during the quarter and we believe Apple is developing a rolling pattern of one-year upgrade-cycles for its flagship iPhone family in an attempt to drive higher replacement rates among consumers.
Source: Strategy Analytics
Smartphone growth encouraging, yet global mobile phone market still likely to shrink in 2009
FRAMINGHAM, USA: The worldwide mobile phone market recorded another quarter of year-over-year decline in the second quarter of 2009 (2Q09).
According to IDC's Worldwide Quarterly Mobile Phone Tracker, handset vendors shipped a total of 269.6 million units worldwide, down 10.8 percent from 302.2 million units in 2Q08. The second quarter results are an improvement from the 17.2 percent decrease seen during 1Q09, but ongoing challenges stemming from the economic crisis remain a factor to watch.
"The challenges from the previous nine months – aggressive channel destocking, foreign exchange volatility, and uncertain demand -– continued to plague the mobile phone market in the second quarter, but were not as severe as before," says Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team.
"Those vendors who were able to adjust quickly were rewarded with greater shipment volumes. Although this tested the handset vendors' abilities to hit a moving target, customers reaped the benefits of lower-costs, even on key high-end devices."
For the full year, IDC believes that the market will decline 13 percent, with the market outlook for 2009 remaining relatively consistent among the top vendors. The small signs of improvement were centered around consumer demand for high-end handsets and the manufacturers' ability to shift portfolio to meet these needs.
"Among the big handset vendors, Nokia, Samsung, Research In Motion, and Apple, all beat expectations for smartphones within the second quarter," said Ryan Reith, senior research analyst with IDC's Worldwide Quarterly Mobile Phone Tracker.
"This demand for high-end mobile phones has created a price war among large mobile operators and handset vendors. Apple's price cut on the iPhone 3G reflects a trend we expect to continue in the upcoming quarters, and one that will effectively maintain competitive pricing within mature markets."
Regional analysis
Amidst the ongoing economic challenges in North America, the market for converged mobile devices thrived with the arrival of the Palm Pre and the iPhone 3G S towards the end of the quarter. Shipment volumes for other converged mobile device vendors also benefited from increased attention and price adjustments on the segment, pushing the market even higher.
At the same time, interest in prepaid devices remained strong for budget-conscious customers. Finally, the market for mid-tier and high-end devices began to show signs of improvement with the arrival of new devices from leading vendors.
Despite the expected decrease in volume from last year in Latin America, the second quarter of 2009 was stronger than expected, showing solid sequential growth from the doldrums that were seen in 1Q09. Local currencies in the key markets of Brazil and Mexico experienced revaluation from the precipitous drops that occurred in the prior six months, helping to alleviate some of the economic pain being felt by many businesses and consumers.
Interest in 3G services and offerings have been expanding in the region, helping carriers to increase, or at a minimum sustain, ARPUs that have been falling over time.
Results in Western Europe continue to reflect weaker demand from the previous year despite some improvement from the first quarter. The growth of the very low-end segment was not sufficient to reverse the decline in traditional mobile phones. However, the robust growth of converged mobile devices was a sign that the recession may have reached the bottom and some improvements can be expected for second half of the year.
In CEMA, the market showed more vitality after two quarters of abrupt decline, with regional shipments approximately 15% higher than in the previous three months.
With handset distribution and sale largely out of mobile operator hands, the financial crisis had squeezed inventory out of the channel as bank and trade credit dried up. The recovery of shipments in the second quarter suggests that this process has now been largely completed and that underlying demand remains robust.
High levels of private savings and aggressive national fiscal policies have helped sustain the demand for consumer products in Asia/Pacific, even as the global economy sputters along. Now, with several Asian economies showing the green shoots of recovery, mobile phone demand has also responded in a healthy fashion, with shipments for the region once again surpassing 100 million units in 2Q09.
Top five mobile phone vendors
Nokia finished 2Q09 with shipments back above the 100 million unit mark. Launches of key devices, including the E71, N97, and the 5800 converged mobile devices, mitigated further ASP decline and operational efficiency resulted in healthy gross margins overall. Nokia's shipment volumes were roughly equal to those of the next three vendors by the end of the quarter.
While still substantial, this is nevertheless down from a year ago when Nokia's shipments were nearly equal to the next four vendors' combined total shipments. While CEO Kallasvuo was pleased with the overall results and the company's traditional advantages, he also highlighted Nokia's ability to shape the evolving wireless landscape, combining mobile devices and the Internet with Nokia's strong operations, ecosystems, customer relationships, and metrics to track success.
Samsung saw its shipment volumes edge back above the 50 million unit mark on the strength of its broad product portfolio and was rewarded with the highest year-over-year gain among leading vendors. Its touch-screen and messaging devices continued to find a warm reception in Europe and North America while feature-capable devices and slim form factors attracted customer attention in emerging markets.
Meanwhile, operating margins returned to double digits despite higher marketing expenses. By the end of 1H09, Samsung was nearly halfway to its goal of shipping 200 million units in 2009.
LG Electronics maintained its momentum from 1Q09 to gain market share and improve profitability. Driving its success was a strong portfolio of mid-tier and newly-introduced high-end devices as well as overall operational efficiency.
LG also unveiled plans to improve its converged mobile device presence, with the launch of the GM730 this summer and up to five models by the end of this calendar year. Over the next two years, LG hopes to capture 10% of the converged mobile device market.
Motorola posted another quarter of operating losses as well as the largest year-over-year decline among the leading vendors. Not to be overlooked, however, is its significant improvement in reducing those losses 50% from the previous quarter. The company also made progress filling in some of the gaps in its product portfolio with the launch of several messaging devices.
These include the Clutch i465, Karma QA1 and the Rival A455. Moreover, plans to release Android-powered converged mobile devices during 2H09 appear to be on track and gained further clarity with the rollout for accelerated application development with its MOTODEV program.
Sony Ericsson's challenges in the mobile phone market continued, earning the company a fifth place finish in 2Q09 while falling further behind Motorola. Ongoing cost reductions, competitive pressures in key regions, and an aging product portfolio resulted in a gross margin of just 12 percent, but nonetheless an improvement from the 8 percent in the previous quarter.
Sony Ericsson announced plans it hopes will bear fruit later this year, including the launch of its GreenHeart and Communication Entertainment product lines, as well as enhanced content, services, and applications for consumers.
Top Five Mobile Phone Vendors, Shipments, and Market Share, Q2 2009 (Units in Millions)
Source: IDC Worldwide Quarterly Mobile Phone Tracker, July 30, 2009
Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.
Mobile Phones: These small, battery-powered, voice-centric devices utilize operator-provided cellular/PCS air interfaces for voice communication. They are designed primarily, in both form factor and feature set, for a compelling mobile telephony experience, but may also include text-messaging capability.
Mobile phones may include a headset jack for hands-free operation as well as a variety of features, such as personal information management, multimedia, games, or office applications.
Mobile phones exist at all points along the form factor, price point, and feature set continua. Mobile phones that combine voice communications capabilities with pen or keypad handheld data features are tracked within the Converged Devices category.
According to IDC's Worldwide Quarterly Mobile Phone Tracker, handset vendors shipped a total of 269.6 million units worldwide, down 10.8 percent from 302.2 million units in 2Q08. The second quarter results are an improvement from the 17.2 percent decrease seen during 1Q09, but ongoing challenges stemming from the economic crisis remain a factor to watch.
"The challenges from the previous nine months – aggressive channel destocking, foreign exchange volatility, and uncertain demand -– continued to plague the mobile phone market in the second quarter, but were not as severe as before," says Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team.
"Those vendors who were able to adjust quickly were rewarded with greater shipment volumes. Although this tested the handset vendors' abilities to hit a moving target, customers reaped the benefits of lower-costs, even on key high-end devices."
For the full year, IDC believes that the market will decline 13 percent, with the market outlook for 2009 remaining relatively consistent among the top vendors. The small signs of improvement were centered around consumer demand for high-end handsets and the manufacturers' ability to shift portfolio to meet these needs.
"Among the big handset vendors, Nokia, Samsung, Research In Motion, and Apple, all beat expectations for smartphones within the second quarter," said Ryan Reith, senior research analyst with IDC's Worldwide Quarterly Mobile Phone Tracker.
"This demand for high-end mobile phones has created a price war among large mobile operators and handset vendors. Apple's price cut on the iPhone 3G reflects a trend we expect to continue in the upcoming quarters, and one that will effectively maintain competitive pricing within mature markets."
Regional analysis
Amidst the ongoing economic challenges in North America, the market for converged mobile devices thrived with the arrival of the Palm Pre and the iPhone 3G S towards the end of the quarter. Shipment volumes for other converged mobile device vendors also benefited from increased attention and price adjustments on the segment, pushing the market even higher.
At the same time, interest in prepaid devices remained strong for budget-conscious customers. Finally, the market for mid-tier and high-end devices began to show signs of improvement with the arrival of new devices from leading vendors.
Despite the expected decrease in volume from last year in Latin America, the second quarter of 2009 was stronger than expected, showing solid sequential growth from the doldrums that were seen in 1Q09. Local currencies in the key markets of Brazil and Mexico experienced revaluation from the precipitous drops that occurred in the prior six months, helping to alleviate some of the economic pain being felt by many businesses and consumers.
Interest in 3G services and offerings have been expanding in the region, helping carriers to increase, or at a minimum sustain, ARPUs that have been falling over time.
Results in Western Europe continue to reflect weaker demand from the previous year despite some improvement from the first quarter. The growth of the very low-end segment was not sufficient to reverse the decline in traditional mobile phones. However, the robust growth of converged mobile devices was a sign that the recession may have reached the bottom and some improvements can be expected for second half of the year.
In CEMA, the market showed more vitality after two quarters of abrupt decline, with regional shipments approximately 15% higher than in the previous three months.
With handset distribution and sale largely out of mobile operator hands, the financial crisis had squeezed inventory out of the channel as bank and trade credit dried up. The recovery of shipments in the second quarter suggests that this process has now been largely completed and that underlying demand remains robust.
High levels of private savings and aggressive national fiscal policies have helped sustain the demand for consumer products in Asia/Pacific, even as the global economy sputters along. Now, with several Asian economies showing the green shoots of recovery, mobile phone demand has also responded in a healthy fashion, with shipments for the region once again surpassing 100 million units in 2Q09.
Top five mobile phone vendors
Nokia finished 2Q09 with shipments back above the 100 million unit mark. Launches of key devices, including the E71, N97, and the 5800 converged mobile devices, mitigated further ASP decline and operational efficiency resulted in healthy gross margins overall. Nokia's shipment volumes were roughly equal to those of the next three vendors by the end of the quarter.
While still substantial, this is nevertheless down from a year ago when Nokia's shipments were nearly equal to the next four vendors' combined total shipments. While CEO Kallasvuo was pleased with the overall results and the company's traditional advantages, he also highlighted Nokia's ability to shape the evolving wireless landscape, combining mobile devices and the Internet with Nokia's strong operations, ecosystems, customer relationships, and metrics to track success.
Samsung saw its shipment volumes edge back above the 50 million unit mark on the strength of its broad product portfolio and was rewarded with the highest year-over-year gain among leading vendors. Its touch-screen and messaging devices continued to find a warm reception in Europe and North America while feature-capable devices and slim form factors attracted customer attention in emerging markets.
Meanwhile, operating margins returned to double digits despite higher marketing expenses. By the end of 1H09, Samsung was nearly halfway to its goal of shipping 200 million units in 2009.
LG Electronics maintained its momentum from 1Q09 to gain market share and improve profitability. Driving its success was a strong portfolio of mid-tier and newly-introduced high-end devices as well as overall operational efficiency.
LG also unveiled plans to improve its converged mobile device presence, with the launch of the GM730 this summer and up to five models by the end of this calendar year. Over the next two years, LG hopes to capture 10% of the converged mobile device market.
Motorola posted another quarter of operating losses as well as the largest year-over-year decline among the leading vendors. Not to be overlooked, however, is its significant improvement in reducing those losses 50% from the previous quarter. The company also made progress filling in some of the gaps in its product portfolio with the launch of several messaging devices.
These include the Clutch i465, Karma QA1 and the Rival A455. Moreover, plans to release Android-powered converged mobile devices during 2H09 appear to be on track and gained further clarity with the rollout for accelerated application development with its MOTODEV program.
Sony Ericsson's challenges in the mobile phone market continued, earning the company a fifth place finish in 2Q09 while falling further behind Motorola. Ongoing cost reductions, competitive pressures in key regions, and an aging product portfolio resulted in a gross margin of just 12 percent, but nonetheless an improvement from the 8 percent in the previous quarter.
Sony Ericsson announced plans it hopes will bear fruit later this year, including the launch of its GreenHeart and Communication Entertainment product lines, as well as enhanced content, services, and applications for consumers.
Top Five Mobile Phone Vendors, Shipments, and Market Share, Q2 2009 (Units in Millions)
Source: IDC Worldwide Quarterly Mobile Phone Tracker, July 30, 2009Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.
Mobile Phones: These small, battery-powered, voice-centric devices utilize operator-provided cellular/PCS air interfaces for voice communication. They are designed primarily, in both form factor and feature set, for a compelling mobile telephony experience, but may also include text-messaging capability.
Mobile phones may include a headset jack for hands-free operation as well as a variety of features, such as personal information management, multimedia, games, or office applications.
Mobile phones exist at all points along the form factor, price point, and feature set continua. Mobile phones that combine voice communications capabilities with pen or keypad handheld data features are tracked within the Converged Devices category.
Monday, July 27, 2009
Mobile handset inventories bulk up
NEW YORK, USA: The handset vendors are still telling us it is a frosty market out there but there is a spring in their step as 2Q-2009 results start to pour in.
“269 million handsets were shipped in 2Q-2009,” says Jake Saunders, VP for Forecasting at ABI Research. “That bodes well for 2H-2009. Shipments should build sequentially in a constructive manner with 4Q-2009 potentially returning the industry to better sales form.”
North America may be struggling to shrug off its economic woes, but Asian economies have been lifted by regional stimulus packages and by an anticipation of improved retail sales conditions in the latter part of 2H-2009. ABI Research is revising downwards its forecast 2009 contraction to -7.5 percent from -8.1 percent (1.11 billion).
Samsung (19.4 percent) and LG (11.1 percent) did particularly well. LG notched up a 2.2 percent increase in percentage points, Samsung, 1.45 percent. Nokia staged a remarkable swing in fortunes to achieve a 1.67 percent percentage point increase to 38.3 percent. Nokia is doing all it can to get a number of smartphone models into the market.
It will be interesting to see how Nokia’s market share holds up in 2H-2009, as Samsung and LG have carried out major refreshes to their smartphone product lineups. Sony-Ericsson experienced a 0.56% percent point reduction in its market-share while Motorola and RIM also saw contractions.
“It is well documented that smartphones are proving to be one of the main engines of growth, but they are not just benefiting the Tier 1 players”, says practice director Kevin Burden.
“A number of Tier 3 vendors are also making headway in a competitive market, including Apple and HTC but also vendors such as Huawei and ZTE. While a consolidation is widely expected in the industry, it will not be happening in 2009.”
The pressures for consolidation may not necessarily come from tightening shipment volumes but also from greater integration of hardware, OS and applications development. ASPs for smartphones are higher than the overall average, and have supported R&D to date; but in such a competitive environment, the R&D pricetag can only go up.
“269 million handsets were shipped in 2Q-2009,” says Jake Saunders, VP for Forecasting at ABI Research. “That bodes well for 2H-2009. Shipments should build sequentially in a constructive manner with 4Q-2009 potentially returning the industry to better sales form.”
North America may be struggling to shrug off its economic woes, but Asian economies have been lifted by regional stimulus packages and by an anticipation of improved retail sales conditions in the latter part of 2H-2009. ABI Research is revising downwards its forecast 2009 contraction to -7.5 percent from -8.1 percent (1.11 billion).
Samsung (19.4 percent) and LG (11.1 percent) did particularly well. LG notched up a 2.2 percent increase in percentage points, Samsung, 1.45 percent. Nokia staged a remarkable swing in fortunes to achieve a 1.67 percent percentage point increase to 38.3 percent. Nokia is doing all it can to get a number of smartphone models into the market.
It will be interesting to see how Nokia’s market share holds up in 2H-2009, as Samsung and LG have carried out major refreshes to their smartphone product lineups. Sony-Ericsson experienced a 0.56% percent point reduction in its market-share while Motorola and RIM also saw contractions.
“It is well documented that smartphones are proving to be one of the main engines of growth, but they are not just benefiting the Tier 1 players”, says practice director Kevin Burden.
“A number of Tier 3 vendors are also making headway in a competitive market, including Apple and HTC but also vendors such as Huawei and ZTE. While a consolidation is widely expected in the industry, it will not be happening in 2009.”
The pressures for consolidation may not necessarily come from tightening shipment volumes but also from greater integration of hardware, OS and applications development. ASPs for smartphones are higher than the overall average, and have supported R&D to date; but in such a competitive environment, the R&D pricetag can only go up.
Tuesday, July 7, 2009
China's TD-SCDMA market ushers in large-scale community-based testing and test business
DUBLIN, IRELAND: Research and Markets has announced the addition of the "2008-2009 Annual Report on China's TD-SCDMA Terminal Market" report to its offering.
Vendors involved include : ZTE, Samsung, Lenovo, Spreadtrum, Leadcore, T3G Technology, Chongqing Chongyou Information Technology, etc.
From the perspective of the development of national strategies, developing TD-SCDMA industry is very important. In 2008, China's TD-SCDMA market ushers in a large-scale community-based testing and test business; meanwhile, operation reorganization is orderly carrying through, which indicates that China will formally enter 3G era.
As one of global 3G standards and China's own intellectual property rights, after experienced a series of queries, with governmental supports and the industry chain led by China Mobile, the industry is gradually mature, which includes operation, equipment, terminal, chip, testing and channels.
China Mobile has started up two round TD terminal tenders with 300,000 sets, TD-SCDMA mobile phone market development opportunities should not be underestimated.
In the face of changes and challenges of competition and market, release of 2008-2009 Annual Report on China's TD-SCDMA Terminal Market helps vendors, investors and industry insiders grasp more accurately laws governing the markets development and in combing the development track of application value.
Scientific, authoritative and objective TD-SCDMA terminal products' monitoring data: On the basis of in-depth research in leading vendors main product lines, it depicts the changes in the market from the angle of product structure, price structure, network development and channels, and clearly identifies operations' business hall's characteristics and channel strategies.
Vendors involved include : ZTE, Samsung, Lenovo, Spreadtrum, Leadcore, T3G Technology, Chongqing Chongyou Information Technology, etc.
From the perspective of the development of national strategies, developing TD-SCDMA industry is very important. In 2008, China's TD-SCDMA market ushers in a large-scale community-based testing and test business; meanwhile, operation reorganization is orderly carrying through, which indicates that China will formally enter 3G era.
As one of global 3G standards and China's own intellectual property rights, after experienced a series of queries, with governmental supports and the industry chain led by China Mobile, the industry is gradually mature, which includes operation, equipment, terminal, chip, testing and channels.
China Mobile has started up two round TD terminal tenders with 300,000 sets, TD-SCDMA mobile phone market development opportunities should not be underestimated.
In the face of changes and challenges of competition and market, release of 2008-2009 Annual Report on China's TD-SCDMA Terminal Market helps vendors, investors and industry insiders grasp more accurately laws governing the markets development and in combing the development track of application value.
Scientific, authoritative and objective TD-SCDMA terminal products' monitoring data: On the basis of in-depth research in leading vendors main product lines, it depicts the changes in the market from the angle of product structure, price structure, network development and channels, and clearly identifies operations' business hall's characteristics and channel strategies.
Saturday, June 6, 2009
Palm Pre stands to shake up smartphone status quo
EL SEGUNDO, USA: Palm’s new Pre smartphone holds strong potential for robust sales growth, and may have a major influence on other platforms as well as the technology supply chain, according to iSuppli Corp.
Palm Pre shipments could amount to 1.1 million units in 2009. However, if Palm quickly introduces a new Pre that supports the 3G GSM standard, sales could rise to 1.3 million during the year. Furthermore, if Palm opens up the licensing of its webOS operating system used in the Pre, the software could have a wider influence beyond the company’s own products.
“Palm’s webOS appears to be superior to the Mac OS X used in the iPhone in the crucial area of multitasking capabilities,” said Tina Teng, senior analyst, wireless communications, for iSuppli. “This key point of differentiation, combined with the product’s multi-touch display, could be enough for Palm to carve out a significant share of the smartphone market.”
Another key allure of webOS is its use of widgets for accessing data and applications like the iPhone, rather than the folders used in Microsoft’s Windows OS. The consensus among most users appears to be that widgets provide a more intuitive interface than folders.
Because of this, there may be strong demand for webOS from other smartphone makers.
“If Palm decides to license webOS to other companies, it could follow in the footsteps of Google’s Android operating system, which is expected to expand its share of global smartphone operating systems to grow by nearly a factor of 12 from 2008 to 2010 according to iSuppli’s Design Forecast Tool (DFT) for Mobile Handsets,” Teng added.
This could lay the foundation for webOS to challenge Apple’s Mac OS X for leadership in the highly intuitive smart-phone operating system market.
Minding the store
Palm could further boost the prospects of webOS if the company opens an application store that sells programs that work with the operating system, similar to Apple’s App Store.
“An application store would make Palm a more complete solution provider to its end customers, allowing it to provide not only a hardware platform and operating system but also the programs essential to take advantage of the capabilities of a smart phone,” Teng said.
Teng noted that industry rumors have circulated since the Consumer Electronics Show (CES) in January that Palm will offer an online applications catalog. With the arrival of software allowing developers to produce programs that can be compiled to work on multiple mobile operating systems, Palm’s store likely will grow rapidly to sport a large number of applications.
Battle of applications processors
The potential long-term success of the Pre promises to benefit Palm’s applications-processor semiconductor supplier, Texas Instruments Inc. (TI).
While TI remained the leading supplier of standalone media/application/graphic processing chips for mobile handsets in 2008, No.-2 Samsung Electronics Co Ltd. is closing in on the lead, according to iSuppli’s Wireless Competitive Landscaping Tool (CLT). Samsung’s share of global market revenue rose to 16.4 percent in 2008, up from 10 percent in 2007. In contrast, TI’s share declined to 16.8 percent in 2008, down from 23 percent in 2007.
“Owing to rising shipments of the iPhone, which uses Samsung’s media processing silicon, the company is closing the gap,” said Francis Sideco, senior analyst, wireless communications, for iSuppli. “Pre’s success could help TI regain some of that share as Pre sales will help boost TI’s revenue for its OMAP line. It also will validate TI’s OMAP approach by demonstrating the need for powerful standalone applications processors in high-end smartphone devices.”
The table presents iSuppli’s market share estimates of global standalone mobile phone media processors.
Source: iSuppli, June 2009
Display shortage?
The Pre likely makes use of a Low-Temperature Polysilicon (LTPS) LCD display, which offers superior picture quality compared to regular TFT-LCD panels used in most mobile phones.
This could put constraints on availability of LTPS LCD supplies, which is a popular display choice in the growing smart phone marker segment.
“If the Pre is successful and large volumes are shipped in the coming years, LTPS displays could go into shortage because the supply is limited to a few suppliers that operate smaller generation fabs capable of producing them,” said Vinita Jakhanwal, principal analyst, small/medium displays, for iSuppli.
In the palm of your hand
An iSuppli preliminary cost analysis of the Palm Pre released in late April revealed a total projected Bill-of-Materials (BOM) and manufacturing cost of approximately $170 for the product.
The estimated BOM consists of a hardware cost of $138, including the battery, nearly $10 for manufacturing and basic test costs, and a software and licensing cost of $23.
iSuppli produced this estimate of the Pre’s hardware and manufacturing costs based on second-quarter component pricing and assembly pricing from the company’s Mobile Handset Cost Model. An iSuppli cross-functional team also participated in developing the virtual teardown, including experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity.
A full, physical teardown of the Palm Pre will be released by iSuppli early next week.
Palm Pre shipments could amount to 1.1 million units in 2009. However, if Palm quickly introduces a new Pre that supports the 3G GSM standard, sales could rise to 1.3 million during the year. Furthermore, if Palm opens up the licensing of its webOS operating system used in the Pre, the software could have a wider influence beyond the company’s own products.“Palm’s webOS appears to be superior to the Mac OS X used in the iPhone in the crucial area of multitasking capabilities,” said Tina Teng, senior analyst, wireless communications, for iSuppli. “This key point of differentiation, combined with the product’s multi-touch display, could be enough for Palm to carve out a significant share of the smartphone market.”
Another key allure of webOS is its use of widgets for accessing data and applications like the iPhone, rather than the folders used in Microsoft’s Windows OS. The consensus among most users appears to be that widgets provide a more intuitive interface than folders.
Because of this, there may be strong demand for webOS from other smartphone makers.
“If Palm decides to license webOS to other companies, it could follow in the footsteps of Google’s Android operating system, which is expected to expand its share of global smartphone operating systems to grow by nearly a factor of 12 from 2008 to 2010 according to iSuppli’s Design Forecast Tool (DFT) for Mobile Handsets,” Teng added.
This could lay the foundation for webOS to challenge Apple’s Mac OS X for leadership in the highly intuitive smart-phone operating system market.
Minding the store
Palm could further boost the prospects of webOS if the company opens an application store that sells programs that work with the operating system, similar to Apple’s App Store.
“An application store would make Palm a more complete solution provider to its end customers, allowing it to provide not only a hardware platform and operating system but also the programs essential to take advantage of the capabilities of a smart phone,” Teng said.
Teng noted that industry rumors have circulated since the Consumer Electronics Show (CES) in January that Palm will offer an online applications catalog. With the arrival of software allowing developers to produce programs that can be compiled to work on multiple mobile operating systems, Palm’s store likely will grow rapidly to sport a large number of applications.
Battle of applications processors
The potential long-term success of the Pre promises to benefit Palm’s applications-processor semiconductor supplier, Texas Instruments Inc. (TI).
While TI remained the leading supplier of standalone media/application/graphic processing chips for mobile handsets in 2008, No.-2 Samsung Electronics Co Ltd. is closing in on the lead, according to iSuppli’s Wireless Competitive Landscaping Tool (CLT). Samsung’s share of global market revenue rose to 16.4 percent in 2008, up from 10 percent in 2007. In contrast, TI’s share declined to 16.8 percent in 2008, down from 23 percent in 2007.
“Owing to rising shipments of the iPhone, which uses Samsung’s media processing silicon, the company is closing the gap,” said Francis Sideco, senior analyst, wireless communications, for iSuppli. “Pre’s success could help TI regain some of that share as Pre sales will help boost TI’s revenue for its OMAP line. It also will validate TI’s OMAP approach by demonstrating the need for powerful standalone applications processors in high-end smartphone devices.”
The table presents iSuppli’s market share estimates of global standalone mobile phone media processors.
Source: iSuppli, June 2009 Display shortage?
The Pre likely makes use of a Low-Temperature Polysilicon (LTPS) LCD display, which offers superior picture quality compared to regular TFT-LCD panels used in most mobile phones.
This could put constraints on availability of LTPS LCD supplies, which is a popular display choice in the growing smart phone marker segment.
“If the Pre is successful and large volumes are shipped in the coming years, LTPS displays could go into shortage because the supply is limited to a few suppliers that operate smaller generation fabs capable of producing them,” said Vinita Jakhanwal, principal analyst, small/medium displays, for iSuppli.
In the palm of your hand
An iSuppli preliminary cost analysis of the Palm Pre released in late April revealed a total projected Bill-of-Materials (BOM) and manufacturing cost of approximately $170 for the product.
The estimated BOM consists of a hardware cost of $138, including the battery, nearly $10 for manufacturing and basic test costs, and a software and licensing cost of $23.
iSuppli produced this estimate of the Pre’s hardware and manufacturing costs based on second-quarter component pricing and assembly pricing from the company’s Mobile Handset Cost Model. An iSuppli cross-functional team also participated in developing the virtual teardown, including experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity.
A full, physical teardown of the Palm Pre will be released by iSuppli early next week.
Monday, June 1, 2009
Accumulated 75 million BWA/WiMAX subscribers by 2014: Maravedis
MONTREAL, CANADA: Maravedis, a leading telecom market research and analysis firm has announced the publication of its report “WiMAX and Broadband Wireless Access Equipment Market Analysis, Trends and Forecasts, 2009-2014.” Maravedis forecasts an accumulated 75 million WiMAX subscribers by the end of 2014. “Market forecasts have been revised to reflect the economic slowdown and the progress made by the LTE camp,” said Adlane Fellah, Maravedis CEO and Founder and co-author of the report.
“Facing a strong challenge from LTE, WiMAX is leveraging its existing foothold. Our research shows its healthy ecosystem is key for its survival. More than 22 vendors shipped a total of 2.2 million WiMAX CPEs in 2008,” noted Bilel Bouraoui, Senior Analyst and co-author of the report.
“Similarly, the silicon market faced increasing competition with more than 6 players enjoying market shares of more than 7 percent each. Consolidations, mergers and exists in the device and silicon vendor communities will reduce competition in 2009 if volumes don’t ramp up fast enough,” Bilel added.
The report confirms that both WiMAX and LTE are converging upon 4G service capabilities. LTE’s primary market, 3G operators, will be unlikely to deploy LTE sooner than 2012. “While LTE appears to have the decisive volume advantage, the lag between 3G evolution and the next generation mobile network will greatly benefit WiMAX in the near term,” noted Robert Syputa, Senior Analyst.
Select key findings
* Korean and Taiwanese ODMs accounted for 60 percent of CPEs shipped in 2008.
* The 802.16e-2005 share of new WiMAX subscribers will peak in 2012 and be dominated by mobile devices with embedded wireless modems.
* Alcatel-Lucent, Alvarion, Motorola and Samsung were the leaders in BWA and WiMAX combined equipment markets,
* The WiMAX equipment market, which includes active WiMAX subscribers, will reach an annual $4 billion in 2014, from over $2 billion at the end of 2008.
* Proprietary and fixed WiMAX equipment markets will continue to grow organically to meet the needs of WISPs and vertical segments.
* Service revenues generated by broadband wireless services will reach $15 billion in 2014.
“Facing a strong challenge from LTE, WiMAX is leveraging its existing foothold. Our research shows its healthy ecosystem is key for its survival. More than 22 vendors shipped a total of 2.2 million WiMAX CPEs in 2008,” noted Bilel Bouraoui, Senior Analyst and co-author of the report.
“Similarly, the silicon market faced increasing competition with more than 6 players enjoying market shares of more than 7 percent each. Consolidations, mergers and exists in the device and silicon vendor communities will reduce competition in 2009 if volumes don’t ramp up fast enough,” Bilel added.
The report confirms that both WiMAX and LTE are converging upon 4G service capabilities. LTE’s primary market, 3G operators, will be unlikely to deploy LTE sooner than 2012. “While LTE appears to have the decisive volume advantage, the lag between 3G evolution and the next generation mobile network will greatly benefit WiMAX in the near term,” noted Robert Syputa, Senior Analyst.
Select key findings
* Korean and Taiwanese ODMs accounted for 60 percent of CPEs shipped in 2008.
* The 802.16e-2005 share of new WiMAX subscribers will peak in 2012 and be dominated by mobile devices with embedded wireless modems.
* Alcatel-Lucent, Alvarion, Motorola and Samsung were the leaders in BWA and WiMAX combined equipment markets,
* The WiMAX equipment market, which includes active WiMAX subscribers, will reach an annual $4 billion in 2014, from over $2 billion at the end of 2008.
* Proprietary and fixed WiMAX equipment markets will continue to grow organically to meet the needs of WISPs and vertical segments.
* Service revenues generated by broadband wireless services will reach $15 billion in 2014.
Wednesday, May 20, 2009
Global mobile phone sales drop 9.4pc and smartphones grew 12.7pc in Q1-09
MUMBAI, INDIA: Worldwide mobile phone sales totalled 269.1 million units in the first quarter of 2009, a 9.4 percent decrease from the first quarter of 2008, according to Gartner, Inc. Smartphone sales surpassed 36.4 million units, a 12.7 percent increase from the same period last year.
"There were some signs of a recovery in markets such as North America and China, but overall sales in the first quarter of 2009 registered the biggest quarter-on-quarter contraction since Gartner began monitoring the market on a quarterly basis in 2001," said Carolina Milanesi, research director for mobile devices at Gartner, based in Egham, UK. "This was also the first time the market contracted year over year during the first quarter, a period traditionally helped by strong seasonality in the Asia/Pacific market."
The channel intensified its efforts in the first quarter of 2009 to reduce the levels of stock it holds, as Gartner predicted in the fourth quarter of 2008. Stock reduction is intended to minimize capital investment in response to low consumer confidence.
Sales into the channel were just short of 244 million units in the first quarter of 2009, while sales to users were just over 269 million units —- a difference of 25 million units, compared with 17 million units in the fourth quarter of 2008, the biggest difference ever recorded. Gartner expects channel inventory reductions to continue into the second quarter of 2009, albeit with lower volumes.
Nokia continued to lead the mobile phone market, but its share dropped to 36.2 percent from 39.1 percent in the first quarter of 2008 (see Table 1). Samsung retained second place and improved its market share as its sales totalled 51.4 million units. After dropping to the fifth position in the fourth quarter of 2008, Motorola overtook Sony Ericsson to regain fourth place.
Table 1
Worldwide Mobile Terminal Sales to End Users in 1Q09 (Thousands of Units)
Note* This table includes iDEN shipments, but excludes ODM to OEM shipments.
Note: Totals may not add to 100.0 percent due to rounding.
Source: Gartner (May 2009)
Smartphone sales represented 13.5 percent of all mobile device sales in the first quarter of 2009, compared with 11 percent in the first quarter of 2008. Gartner analysts said positive performance by Research In Motion (RIM) and Apple (see Table 2) showed that services and applications are now instrumental to smartphones’ success.
“Much of the smartphone growth during the first quarter of 2009 was driven by touchscreen products, both in midtier and high-end devices,” said Roberta Cozza, principal analyst at Gartner, based in Egham, UK. “’Touch for the sake of touch’ was enough of a driver in the midtier space, but tighter integration with applications and services around music, mobile e-mail, and Internet browsing made the difference at the high end of the market.”
Table 2
Worldwide Smartphone Sales to End Users in 1Q09 (Thousands of Units)
Note: For HTC, Gartner counts only the company's own-branded devices including the G1.
Note Totals may not add to 100.0 percent due to rounding.
Source: Gartner (May 2009)
Symbian accounted for 49.3 percent of worldwide smartphone operating systems (OS) market share in the first quarter of 2009, down from 56.9 percent share in the first quarter of 2008. RIM’s smartphone OS market share reached 19.9 percent in the first quarter of 2009, up from 13.3 percent share in the first quarter of last year. The iPhone OS accounted for 10.8 percent of the market, up from 5.3 percent market share in the first quarter of 2008.
Vendor performance
Nokia’s worldwide sales reached 97.4 million units in the first quarter of 2009, thanks to reductions in inventory in markets such as Asia/Pacific and Latin America. This was the first time Nokia’s sales dipped below 100 million units since the first quarter of 2007. The real impact of the current market recession was on the average selling price (ASP), which saw an 18 percent drop year over year. Nokia managed to grow its sales in the smartphone segment by introducing the Nokia 5800 into more regions.
Samsung had a very successful first quarter of 2009. With sales of 51.4 million units, Samsung's market share grew 4.7 percentage points to 19.1 percent. It returned to double-digit profitability due to a good product mix. Sales of its Omnia, Tocco and Pixon handsets continued to benefit from strong consumer interest in touchscreen devices. The arrival of the Tocco Ultra Edition late in the first quarter of 2009, and the announcement of its first Android-based product, the i7500, will help Samsung in a highly competitive second half of 2009.
LG sold 26.5 million units in the first quarter of 2009, growing its market share by 1.9 percentage points year over year. The company benefited from a very strong portfolio of touchscreen, messaging and imaging devices. The new LG Arena device showcases a new user interface that demonstrates a positive focus on improving usability. However, Gartner said LG’s biggest challenge is to become competitive in the smartphone segment as services and applications become more important to customers.
Motorola continued to experience significant difficulties even in its home market, but it had a solid quarter with prepaid operators Boost Mobile and Tracfone. It expects worldwide sales of iDEN handsets to be up 50 percent in 2009 compared with 2008. These factors will help sustain Motorola until it revamps its portfolio in the fourth quarter of 2009.
Motorola has committed to Android not only to revamp its position in the second half of 2009, but also to produce long-term performance improvements. Gartner analysts question how Motorola will be able to differentiate its offering when so many players in the mobile device market will be delivering Android-based products at the same time.
Sony Ericsson lost market share compared both with the fourth quarter of 2008 and the first quarter of 2008, with sales of 14.5 million units. While the recession contributed to this decline, a weak product portfolio was also a factor. The product features that helped Sony Ericsson become one of the world's top vendors — imaging and music — are now too common to serve as a differentiator.
Sony Ericsson is late to catch on to the popularity of touchscreen devices and has a limited smartphone portfolio. While its focus on services through Play Now Arena is important, Sony Ericsson needs to ensure its devices include the most desirable applications and features for consumers.
“With inventory-reduction efforts expected to continue in the second quarter of 2009, although to a lesser extent than what we have seen so far, and better-than-expected figures for the first quarter of 2009, we remain confident that overall sales to users for 2009 will remain considerably higher than the sell-in that many vendors are expecting,” Ms Milanesi said. “Device vendors will focus increasingly on smartphones, improved user interfaces and services to differentiate themselves and fuel consumer demand. We maintain our view that sales to users will decrease by about 4 percent for 2009 compared with 2008, while sell-in will slow to around a 10 percent decrease.”
"There were some signs of a recovery in markets such as North America and China, but overall sales in the first quarter of 2009 registered the biggest quarter-on-quarter contraction since Gartner began monitoring the market on a quarterly basis in 2001," said Carolina Milanesi, research director for mobile devices at Gartner, based in Egham, UK. "This was also the first time the market contracted year over year during the first quarter, a period traditionally helped by strong seasonality in the Asia/Pacific market."
The channel intensified its efforts in the first quarter of 2009 to reduce the levels of stock it holds, as Gartner predicted in the fourth quarter of 2008. Stock reduction is intended to minimize capital investment in response to low consumer confidence.
Sales into the channel were just short of 244 million units in the first quarter of 2009, while sales to users were just over 269 million units —- a difference of 25 million units, compared with 17 million units in the fourth quarter of 2008, the biggest difference ever recorded. Gartner expects channel inventory reductions to continue into the second quarter of 2009, albeit with lower volumes.
Nokia continued to lead the mobile phone market, but its share dropped to 36.2 percent from 39.1 percent in the first quarter of 2008 (see Table 1). Samsung retained second place and improved its market share as its sales totalled 51.4 million units. After dropping to the fifth position in the fourth quarter of 2008, Motorola overtook Sony Ericsson to regain fourth place.
Table 1
Worldwide Mobile Terminal Sales to End Users in 1Q09 (Thousands of Units)
Note* This table includes iDEN shipments, but excludes ODM to OEM shipments.Note: Totals may not add to 100.0 percent due to rounding.
Source: Gartner (May 2009)
Smartphone sales represented 13.5 percent of all mobile device sales in the first quarter of 2009, compared with 11 percent in the first quarter of 2008. Gartner analysts said positive performance by Research In Motion (RIM) and Apple (see Table 2) showed that services and applications are now instrumental to smartphones’ success.
“Much of the smartphone growth during the first quarter of 2009 was driven by touchscreen products, both in midtier and high-end devices,” said Roberta Cozza, principal analyst at Gartner, based in Egham, UK. “’Touch for the sake of touch’ was enough of a driver in the midtier space, but tighter integration with applications and services around music, mobile e-mail, and Internet browsing made the difference at the high end of the market.”
Table 2
Worldwide Smartphone Sales to End Users in 1Q09 (Thousands of Units)
Note: For HTC, Gartner counts only the company's own-branded devices including the G1.Note Totals may not add to 100.0 percent due to rounding.
Source: Gartner (May 2009)
Symbian accounted for 49.3 percent of worldwide smartphone operating systems (OS) market share in the first quarter of 2009, down from 56.9 percent share in the first quarter of 2008. RIM’s smartphone OS market share reached 19.9 percent in the first quarter of 2009, up from 13.3 percent share in the first quarter of last year. The iPhone OS accounted for 10.8 percent of the market, up from 5.3 percent market share in the first quarter of 2008.
Vendor performance
Nokia’s worldwide sales reached 97.4 million units in the first quarter of 2009, thanks to reductions in inventory in markets such as Asia/Pacific and Latin America. This was the first time Nokia’s sales dipped below 100 million units since the first quarter of 2007. The real impact of the current market recession was on the average selling price (ASP), which saw an 18 percent drop year over year. Nokia managed to grow its sales in the smartphone segment by introducing the Nokia 5800 into more regions.
Samsung had a very successful first quarter of 2009. With sales of 51.4 million units, Samsung's market share grew 4.7 percentage points to 19.1 percent. It returned to double-digit profitability due to a good product mix. Sales of its Omnia, Tocco and Pixon handsets continued to benefit from strong consumer interest in touchscreen devices. The arrival of the Tocco Ultra Edition late in the first quarter of 2009, and the announcement of its first Android-based product, the i7500, will help Samsung in a highly competitive second half of 2009.
LG sold 26.5 million units in the first quarter of 2009, growing its market share by 1.9 percentage points year over year. The company benefited from a very strong portfolio of touchscreen, messaging and imaging devices. The new LG Arena device showcases a new user interface that demonstrates a positive focus on improving usability. However, Gartner said LG’s biggest challenge is to become competitive in the smartphone segment as services and applications become more important to customers.
Motorola continued to experience significant difficulties even in its home market, but it had a solid quarter with prepaid operators Boost Mobile and Tracfone. It expects worldwide sales of iDEN handsets to be up 50 percent in 2009 compared with 2008. These factors will help sustain Motorola until it revamps its portfolio in the fourth quarter of 2009.
Motorola has committed to Android not only to revamp its position in the second half of 2009, but also to produce long-term performance improvements. Gartner analysts question how Motorola will be able to differentiate its offering when so many players in the mobile device market will be delivering Android-based products at the same time.
Sony Ericsson lost market share compared both with the fourth quarter of 2008 and the first quarter of 2008, with sales of 14.5 million units. While the recession contributed to this decline, a weak product portfolio was also a factor. The product features that helped Sony Ericsson become one of the world's top vendors — imaging and music — are now too common to serve as a differentiator.
Sony Ericsson is late to catch on to the popularity of touchscreen devices and has a limited smartphone portfolio. While its focus on services through Play Now Arena is important, Sony Ericsson needs to ensure its devices include the most desirable applications and features for consumers.
“With inventory-reduction efforts expected to continue in the second quarter of 2009, although to a lesser extent than what we have seen so far, and better-than-expected figures for the first quarter of 2009, we remain confident that overall sales to users for 2009 will remain considerably higher than the sell-in that many vendors are expecting,” Ms Milanesi said. “Device vendors will focus increasingly on smartphones, improved user interfaces and services to differentiate themselves and fuel consumer demand. We maintain our view that sales to users will decrease by about 4 percent for 2009 compared with 2008, while sell-in will slow to around a 10 percent decrease.”
Friday, May 1, 2009
Global mobile phone shipments decline 15.8 pc in Q1
FRAMINGHAM, USA: The worldwide mobile phone market began 2009 with an expected sequential downturn, exacerbated by the challenges of the ongoing worldwide recession.
According to IDC's Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 244.8 million units in the first quarter of 2009 (1Q09), approximately 15.8 percent lower than the 290.8 million units shipped during 1Q08.
The first quarter of a new year is typically characterized by seasonally lower shipment volumes following a busy holiday quarter with channels clearing out excess inventory. However, the 1Q09 decline was especially sharp due to weak end-user demand, currency volatility, and lack of credit for merchants as consumers and the supply chain adapt to the recession.
"That the worldwide mobile phone market started off 2009 with a year-over-year decline highlights just how much the economic recession has affected all industries, including the wireless market," says Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team. "The market continues to adapt to the new economic reality with both vendors and retailers exercising caution to remain profitable. In some cases, this has meant holding less inventory, or even reducing headcount. Fortunately, new features and demand for phones will help the market resist the financial pressure. We expect to see further year-over-year declines worldwide, even as some regions show signs of improvement."
As the overall market dropped 15.8 percent in 1Q09, converged mobile devices (commonly referred to as smartphones) continue to grow year on year at 4 percent. Growth within this segment was evident in Western Europe, North America, and Asia/Pacific (excluding Japan). Mobile operators have become progressively more open to raising subsidies within this segment as dependence on data revenue has increased as a result of reduced consumer demand for new handsets.
"Creativity appears to be the key to success for large mobile operators during this tough time as changes to business practices from past years have become necessary," says Ryan Reith, senior research analyst with IDC's Mobile Phone Tracker. "Some of the big operators in mature markets have shifted product portfolios, and some have smartphones accounting for as much as 50 percent of the entire handset offering. We believe this strategy will continue, along with an increase in devices that are media and messaging centric, to help operators maintain revenues."
Regional analysis
Shipments of mobile phones into North America started the year slightly higher than the same quarter a year ago even as the economic recession bit deeper into the United States and started to impact Canada. Carriers' efforts to lure customers with unlimited plans and free device promotions helped offset a sharper decline, even in the face of slower subscriber growth.
Converged mobile devices at lower price points helped stimulate consumer interest in the midst of the economic recession, providing a needed boost to shipment volumes.
As expected, the Latin American mobile phone markets took a negative turn in 1Q09 as most of the economies in the region began to see slower economic growth. In addition, local currency devaluation drove prices higher on imported phones, reducing demand. This has not deterred future plans of enterprise customers, who have voiced interest in increasing spending on mobile devices in 2009.
Much of the Western European handset market was characterized by weaker consumer confidence and lower demand, while channels, already holding low inventory, were reluctant to re-stock. This set up challenging conditions for vendors in both the traditional mobile phone and converged mobile device spaces.
Meanwhile, the CEMA market posted some positive news, as much of the inventory was cleared at the end of 2008. Shipments into the Middle East and Africa contracted at a slower pace in 1Q09, while demand in Central and Eastern Europe and Russia decreased rapidly due to currency devaluation.
Asia/Pacific: In a difficult economic climate, China and India offered signs of encouragement in 1Q09. India reported strong subscription additions during the quarter, while China's rural subsidies have helped to prop up handset demand. Still, with growth coming increasingly from lower-end segments in the region, phone makers will find their average selling prices and profit margins challenged.
Vendor highlights
Nokia saw its shipment volumes dip below the 100 million unit mark for the first time in two years, while its ASP slid due to pricing pressure and greater emphasis on lower-priced devices.
Despite these challenges, Nokia posted a healthy 33.8 percent gross margin on its devices and services, with the success coming from the 5800 XpressMusic device as well as the launch of several services including Comes With Music, Nokia Messaging, Ovi Store, and Point and Find.
Samsung returned to double-digit profitability to start the year, resulting from improved operating efficiencies and a favorable product mix for the quarter. Samsung's strong position in feature phones sustained interest during an otherwise quiet quarter, with touch devices like the F480 and messaging devices like the A767. Samsung also recently announced its first Android-powered device, the i7500, due to hit the European market in June.
LG Electronics began the year on a positive note, posting an increase in operating margins despite a year-over-year decrease in shipment volumes. Driving its improvement was a combination of cost, supply chain, and operational efficiencies as well as warm reception for its touch screen, messaging, and digital imaging devices.
Even as the recession continues, the company is targeting double-digit sequential growth in 2Q09 with the release of high-end models to key regions as well as low-cost devices into emerging markets.
Motorola, although posting another quarter of operational loss, showed signs of improvement to start 2009. Co-CEO Sanjay Jha underscored the company's operational effectiveness and cost savings, noting the reduction in operational loss compared to the previous quarter.
In addition, Jha highlighted plans to add more smartphones to its portfolio before the end of the year. During the quarter, Motorola launched its Evoke QA4 and MOTOSURF A3100, as well as the industry's first eco-friendly device, the MOTO W233 Renew.
Sony Ericsson saw its market share decline as several key markets moved away from mid- and high-tier devices towards low-cost devices, where the company does not compete. Meanwhile, the company continued to build its content and services platform, with roll out of PlayNow Plus, Movies, and Arena across Europe. Although Sony Ericsson has been implementing a cost reduction plan since the summer of 2008, President Komiyama cited further need to reduce costs and headcount.
Top Five Mobile Phone Vendors, Shipments, and Market Share, Q1 2009
(Units in Millions)
Source: IDC Worldwide Quarterly Mobile Phone Tracker, April 30, 2009
Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.
According to IDC's Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 244.8 million units in the first quarter of 2009 (1Q09), approximately 15.8 percent lower than the 290.8 million units shipped during 1Q08.
The first quarter of a new year is typically characterized by seasonally lower shipment volumes following a busy holiday quarter with channels clearing out excess inventory. However, the 1Q09 decline was especially sharp due to weak end-user demand, currency volatility, and lack of credit for merchants as consumers and the supply chain adapt to the recession.
"That the worldwide mobile phone market started off 2009 with a year-over-year decline highlights just how much the economic recession has affected all industries, including the wireless market," says Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team. "The market continues to adapt to the new economic reality with both vendors and retailers exercising caution to remain profitable. In some cases, this has meant holding less inventory, or even reducing headcount. Fortunately, new features and demand for phones will help the market resist the financial pressure. We expect to see further year-over-year declines worldwide, even as some regions show signs of improvement."
As the overall market dropped 15.8 percent in 1Q09, converged mobile devices (commonly referred to as smartphones) continue to grow year on year at 4 percent. Growth within this segment was evident in Western Europe, North America, and Asia/Pacific (excluding Japan). Mobile operators have become progressively more open to raising subsidies within this segment as dependence on data revenue has increased as a result of reduced consumer demand for new handsets.
"Creativity appears to be the key to success for large mobile operators during this tough time as changes to business practices from past years have become necessary," says Ryan Reith, senior research analyst with IDC's Mobile Phone Tracker. "Some of the big operators in mature markets have shifted product portfolios, and some have smartphones accounting for as much as 50 percent of the entire handset offering. We believe this strategy will continue, along with an increase in devices that are media and messaging centric, to help operators maintain revenues."
Regional analysis
Shipments of mobile phones into North America started the year slightly higher than the same quarter a year ago even as the economic recession bit deeper into the United States and started to impact Canada. Carriers' efforts to lure customers with unlimited plans and free device promotions helped offset a sharper decline, even in the face of slower subscriber growth.
Converged mobile devices at lower price points helped stimulate consumer interest in the midst of the economic recession, providing a needed boost to shipment volumes.
As expected, the Latin American mobile phone markets took a negative turn in 1Q09 as most of the economies in the region began to see slower economic growth. In addition, local currency devaluation drove prices higher on imported phones, reducing demand. This has not deterred future plans of enterprise customers, who have voiced interest in increasing spending on mobile devices in 2009.
Much of the Western European handset market was characterized by weaker consumer confidence and lower demand, while channels, already holding low inventory, were reluctant to re-stock. This set up challenging conditions for vendors in both the traditional mobile phone and converged mobile device spaces.
Meanwhile, the CEMA market posted some positive news, as much of the inventory was cleared at the end of 2008. Shipments into the Middle East and Africa contracted at a slower pace in 1Q09, while demand in Central and Eastern Europe and Russia decreased rapidly due to currency devaluation.
Asia/Pacific: In a difficult economic climate, China and India offered signs of encouragement in 1Q09. India reported strong subscription additions during the quarter, while China's rural subsidies have helped to prop up handset demand. Still, with growth coming increasingly from lower-end segments in the region, phone makers will find their average selling prices and profit margins challenged.
Vendor highlights
Nokia saw its shipment volumes dip below the 100 million unit mark for the first time in two years, while its ASP slid due to pricing pressure and greater emphasis on lower-priced devices.
Despite these challenges, Nokia posted a healthy 33.8 percent gross margin on its devices and services, with the success coming from the 5800 XpressMusic device as well as the launch of several services including Comes With Music, Nokia Messaging, Ovi Store, and Point and Find.
Samsung returned to double-digit profitability to start the year, resulting from improved operating efficiencies and a favorable product mix for the quarter. Samsung's strong position in feature phones sustained interest during an otherwise quiet quarter, with touch devices like the F480 and messaging devices like the A767. Samsung also recently announced its first Android-powered device, the i7500, due to hit the European market in June.
LG Electronics began the year on a positive note, posting an increase in operating margins despite a year-over-year decrease in shipment volumes. Driving its improvement was a combination of cost, supply chain, and operational efficiencies as well as warm reception for its touch screen, messaging, and digital imaging devices.
Even as the recession continues, the company is targeting double-digit sequential growth in 2Q09 with the release of high-end models to key regions as well as low-cost devices into emerging markets.
Motorola, although posting another quarter of operational loss, showed signs of improvement to start 2009. Co-CEO Sanjay Jha underscored the company's operational effectiveness and cost savings, noting the reduction in operational loss compared to the previous quarter.
In addition, Jha highlighted plans to add more smartphones to its portfolio before the end of the year. During the quarter, Motorola launched its Evoke QA4 and MOTOSURF A3100, as well as the industry's first eco-friendly device, the MOTO W233 Renew.
Sony Ericsson saw its market share decline as several key markets moved away from mid- and high-tier devices towards low-cost devices, where the company does not compete. Meanwhile, the company continued to build its content and services platform, with roll out of PlayNow Plus, Movies, and Arena across Europe. Although Sony Ericsson has been implementing a cost reduction plan since the summer of 2008, President Komiyama cited further need to reduce costs and headcount.
Top Five Mobile Phone Vendors, Shipments, and Market Share, Q1 2009
(Units in Millions)
Source: IDC Worldwide Quarterly Mobile Phone Tracker, April 30, 2009Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.
Monday, April 27, 2009
Samsung I7500: its first Android-powered mobile phone
SEOUL, KOREA: Samsung Electronics Co., Ltd., a leading mobile phone provider, today unveiled the I7500, its first Android-powered mobile phone. With a launch of I7500, Samsung became the first company among the global top three mobile phone manufacturers to unveil an Android-powered phone.
“Samsung is among the earliest members of the Open Handset Alliance and has been actively moving forward to introduce the most innovative Android mobile phone,” said JK Shin, Executive Vice President and Head of Mobile Communication Division in Samsung Electronics. “With Samsung’s accumulated technology leadership in mobile phone industry and our consistent strategy to support every existing operating system, I believe that Samsung provides the better choices and benefits to our consumers” he added.
The Samsung I7500 is a cutting-edge smartphone, featuring a 3.2” AMOLED full touch screen and 7.2Mbps HSDPA and WiFi connectivity, giving users access to Google™ Mobile services and full web browsing at blazing speeds.
The Samsung I7500 offers users access to the full suite of Google services, including Google Search, Google Maps, Gmail, YouTube, Google Calendar, and Google Talk. The integrated GPS receiver enables the comprehensive use of Google Maps features, such as My Location, Google Latitude, Street View, local search and detailed route description. Hundreds of other applications are available in Android Market. For example, the application Wikitude, a mobile travel guide, allows consumers to access details of unknown sights via location-based Wikipedia articles.
Based on Samsung’s proven product leadership, Samsung I7500 comes with latest multimedia features. The large and vivid 3.2“AMOLED display ensures the brilliant representation of multimedia content and enjoyable full touch mobile experience. Along with supporting a 5-megapixel camera and various multimedia codec formats, the I7500 also provides a long enough battery life (1500mAh) and generous memory capacity up to 40GB (Internal memory: 8GB, External memory: Up to 32GB) to enjoy all the applications and multimedia content. The phone also boasts its slim and compact design with mere 11.9mm thickness.
The Samsung I7500 will be available in major European countries from June, 2009.
“Samsung is among the earliest members of the Open Handset Alliance and has been actively moving forward to introduce the most innovative Android mobile phone,” said JK Shin, Executive Vice President and Head of Mobile Communication Division in Samsung Electronics. “With Samsung’s accumulated technology leadership in mobile phone industry and our consistent strategy to support every existing operating system, I believe that Samsung provides the better choices and benefits to our consumers” he added.The Samsung I7500 is a cutting-edge smartphone, featuring a 3.2” AMOLED full touch screen and 7.2Mbps HSDPA and WiFi connectivity, giving users access to Google™ Mobile services and full web browsing at blazing speeds.
The Samsung I7500 offers users access to the full suite of Google services, including Google Search, Google Maps, Gmail, YouTube, Google Calendar, and Google Talk. The integrated GPS receiver enables the comprehensive use of Google Maps features, such as My Location, Google Latitude, Street View, local search and detailed route description. Hundreds of other applications are available in Android Market. For example, the application Wikitude, a mobile travel guide, allows consumers to access details of unknown sights via location-based Wikipedia articles.
Based on Samsung’s proven product leadership, Samsung I7500 comes with latest multimedia features. The large and vivid 3.2“AMOLED display ensures the brilliant representation of multimedia content and enjoyable full touch mobile experience. Along with supporting a 5-megapixel camera and various multimedia codec formats, the I7500 also provides a long enough battery life (1500mAh) and generous memory capacity up to 40GB (Internal memory: 8GB, External memory: Up to 32GB) to enjoy all the applications and multimedia content. The phone also boasts its slim and compact design with mere 11.9mm thickness.
The Samsung I7500 will be available in major European countries from June, 2009.
Tuesday, November 6, 2007
Google phone beckons as industry leaders announce open platform for mobile devices
Is the Google Phone finally going to see the light of the day? Well, the following release (below) has all the makings of a mega telecom happening. Read on!
A broad alliance of leading technology and wireless companies today joined forces to announce the development of Android, the first truly open and comprehensive platform for mobile devices. Google Inc., T-Mobile, HTC, Qualcomm, Motorola and others have collaborated on the development of Android through the Open Handset Alliance, a multinational alliance of technology and mobile industry leaders.
According to Engadget Mobile, Google will be holding a conference call at noon eastern (November 5) to unveil the details of its long-rumored Android mobile operating system. Joining CEO Eric Schmidt will be other members of the 34-member Open Handset Alliance, including the chief executives of Deutche Telekom, HTC, Qualcomm, and Motorola. So keep watching this space!
According to the release, this alliance shares a common goal of fostering innovation on mobile devices and giving consumers a far better user experience than much of what is available on today's mobile platforms. By providing developers a new level of openness that enables them to work more collaboratively, Android will accelerate the pace at which new and compelling mobile services are made available to consumers.
With nearly 3 billion users worldwide, the mobile phone has become the most personal and ubiquitous communications device. However, the lack of a collaborative effort has made it a challenge for developers, wireless operators and handset manufacturers to respond as quickly as possible to the ever-changing needs of savvy mobile consumers. Through Android, developers, wireless operators and handset manufacturers will be better positioned to bring to market innovative new products faster and at a much lower cost. The end result will be an unprecedented mobile platform that will enable wireless operators and manufacturers to give their customers better, more personal and more flexible mobile experiences.
Fully integrated Android platform
Thirty-four companies have formed the Open Handset Alliance, which aims to develop technologies that will significantly lower the cost of developing and distributing mobile devices and services. The Android platform is the first step in this direction -- a fully integrated mobile "software stack" that consists of an operating system, middleware, user-friendly interface and applications. Consumers should expect the first phones based on Android to be available in the second half of 2008.
The Android platform will be made available under one of the most progressive, developer-friendly open-source licenses, which gives mobile operators and device manufacturers significant freedom and flexibility to design products. Next week the Alliance will release an early access software development kit to provide developers with the tools necessary to create innovative and compelling applications for the platform.
Android holds the promise of unprecedented benefits for consumers, developers and manufacturers of mobile services and devices. Handset manufacturers and wireless operators will be free to customize Android in order to bring to market innovative new products faster and at a much lower cost. Developers will have complete access to handset capabilities and tools that will enable them to build more compelling and user-friendly services, bringing the Internet developer model to the mobile space. And consumers worldwide will have access to less expensive mobile devices that feature more compelling services, rich Internet applications and easier-to-use interfaces -- ultimately creating a superior mobile experience.
Open Software, Open Device, Open Ecosystem
"This partnership will help unleash the potential of mobile technology for billions of users around the world. A fresh approach to fostering innovation in the mobile industry will help shape a new computing environment that will change the way people access and share information in the future," said Google Chairman and CEO Eric Schmidt. "Today's announcement is more ambitious than any single 'Google Phone' that the press has been speculating about over the past few weeks. Our vision is that the powerful platform we're unveiling will power thousands of different phone models."
"As a founding member of the Open Handset Alliance, T-Mobile is committed to innovation and fostering an open platform for wireless services to meet the rapidly evolving and emerging needs of wireless customers," said René Obermann, Chief Executive Officer, Deutsche Telekom, parent company of T-Mobile. "Google has been an established partner for T-Mobile’s groundbreaking approach to bring the mobile open Internet to the mass market. We see the Android platform as an exciting opportunity to launch robust wireless Internet and Web 2.0 services for T-Mobile customers in the US and Europe in 2008."
"HTC's trademark on the mobile industry has been its ability to drive cutting-edge innovation into a wide variety of mobile devices to create the perfect match for individuals," said Peter Chou, Chief Executive Officer, HTC Corp. "Our participation in the Open Handset Alliance and integration of the Android platform in the second half of 2008 enables us to expand our device portfolio into a new category of connected mobile phones that will change the complexion of the mobile industry and re-create user expectations of the mobile phone experience."
"The convergence of the wireless and Internet industries is creating new partnerships, evolving business models and driving innovation," said Dr. Paul E. Jacobs, Chief Executive Officer of Qualcomm. "We are extremely pleased to be participating in the Open Handset Alliance, whose mission is to help build the leading open-source application platform for 3G networks. The proliferation of open-standards-based handsets will provide an exciting new opportunity to create compelling services and devices. As a result, we are committing research and development resources to enable the Android platform and to create the best always-connected consumer experience on our chipsets."
"Motorola has long been an advocate of open software for mobile platforms. Today, we're excited to continue this support by joining Google and others in the announcement of the Open Handset Alliance and Android platform. Motorola plans to leverage the Android platform to enable seamless, connected services and rich consumer experiences in future Motorola products," said Ed Zander, Chairman and CEO of Motorola, Inc.
Open Handset Alliance Founding Members
Here are the founding members of the Open Handset Alliance:
Aplix (www.aplixcorp.com), Ascender Corporation (www.ascendercorp.com), Audience (www.audience.com), Broadcom (www.broadcom.com), China Mobile (www.chinamobile.com), eBay (www.ebay.com), Esmertec (www.esmertec.com), Google (www.google.com), HTC (www.htc.com), Intel (www.intel.com), KDDI (www.kddi.com), LivingImage (www.livingimage.jp), LG (www.lge.com), Marvell (www.marvell.com), Motorola (www.motorola.com), NMS Communications (www.nmscommunications.com), Noser (www.noser.com), NTT DoCoMo, Inc. (www.nttdocomo.com), Nuance (www.nuance.com), Nvidia (www.nvidia.com), PacketVideo (www.packetvideo.com), Qualcomm (www.qualcomm.com), Samsung (www.samsung.com), SiRF (www.sirf.com), SkyPop (www.skypop.com), SONiVOX (www.sonivoxrocks.com), Sprint Nextel (www.sprint.com), Synaptics (www.synaptics.com), TAT - The Astonishing Tribe (www.tat.se), Telecom Italia (www.telecomitalia.com), Telefónica (www.telefonica.es), Texas Instruments (www.ti.com), T-Mobile (www.t-mobile.com), Wind River (www.windriver.com).
A broad alliance of leading technology and wireless companies today joined forces to announce the development of Android, the first truly open and comprehensive platform for mobile devices. Google Inc., T-Mobile, HTC, Qualcomm, Motorola and others have collaborated on the development of Android through the Open Handset Alliance, a multinational alliance of technology and mobile industry leaders.
According to Engadget Mobile, Google will be holding a conference call at noon eastern (November 5) to unveil the details of its long-rumored Android mobile operating system. Joining CEO Eric Schmidt will be other members of the 34-member Open Handset Alliance, including the chief executives of Deutche Telekom, HTC, Qualcomm, and Motorola. So keep watching this space!
According to the release, this alliance shares a common goal of fostering innovation on mobile devices and giving consumers a far better user experience than much of what is available on today's mobile platforms. By providing developers a new level of openness that enables them to work more collaboratively, Android will accelerate the pace at which new and compelling mobile services are made available to consumers.
With nearly 3 billion users worldwide, the mobile phone has become the most personal and ubiquitous communications device. However, the lack of a collaborative effort has made it a challenge for developers, wireless operators and handset manufacturers to respond as quickly as possible to the ever-changing needs of savvy mobile consumers. Through Android, developers, wireless operators and handset manufacturers will be better positioned to bring to market innovative new products faster and at a much lower cost. The end result will be an unprecedented mobile platform that will enable wireless operators and manufacturers to give their customers better, more personal and more flexible mobile experiences.
Fully integrated Android platform
Thirty-four companies have formed the Open Handset Alliance, which aims to develop technologies that will significantly lower the cost of developing and distributing mobile devices and services. The Android platform is the first step in this direction -- a fully integrated mobile "software stack" that consists of an operating system, middleware, user-friendly interface and applications. Consumers should expect the first phones based on Android to be available in the second half of 2008.
The Android platform will be made available under one of the most progressive, developer-friendly open-source licenses, which gives mobile operators and device manufacturers significant freedom and flexibility to design products. Next week the Alliance will release an early access software development kit to provide developers with the tools necessary to create innovative and compelling applications for the platform.
Android holds the promise of unprecedented benefits for consumers, developers and manufacturers of mobile services and devices. Handset manufacturers and wireless operators will be free to customize Android in order to bring to market innovative new products faster and at a much lower cost. Developers will have complete access to handset capabilities and tools that will enable them to build more compelling and user-friendly services, bringing the Internet developer model to the mobile space. And consumers worldwide will have access to less expensive mobile devices that feature more compelling services, rich Internet applications and easier-to-use interfaces -- ultimately creating a superior mobile experience.
Open Software, Open Device, Open Ecosystem
"This partnership will help unleash the potential of mobile technology for billions of users around the world. A fresh approach to fostering innovation in the mobile industry will help shape a new computing environment that will change the way people access and share information in the future," said Google Chairman and CEO Eric Schmidt. "Today's announcement is more ambitious than any single 'Google Phone' that the press has been speculating about over the past few weeks. Our vision is that the powerful platform we're unveiling will power thousands of different phone models."
"As a founding member of the Open Handset Alliance, T-Mobile is committed to innovation and fostering an open platform for wireless services to meet the rapidly evolving and emerging needs of wireless customers," said René Obermann, Chief Executive Officer, Deutsche Telekom, parent company of T-Mobile. "Google has been an established partner for T-Mobile’s groundbreaking approach to bring the mobile open Internet to the mass market. We see the Android platform as an exciting opportunity to launch robust wireless Internet and Web 2.0 services for T-Mobile customers in the US and Europe in 2008."
"HTC's trademark on the mobile industry has been its ability to drive cutting-edge innovation into a wide variety of mobile devices to create the perfect match for individuals," said Peter Chou, Chief Executive Officer, HTC Corp. "Our participation in the Open Handset Alliance and integration of the Android platform in the second half of 2008 enables us to expand our device portfolio into a new category of connected mobile phones that will change the complexion of the mobile industry and re-create user expectations of the mobile phone experience."
"The convergence of the wireless and Internet industries is creating new partnerships, evolving business models and driving innovation," said Dr. Paul E. Jacobs, Chief Executive Officer of Qualcomm. "We are extremely pleased to be participating in the Open Handset Alliance, whose mission is to help build the leading open-source application platform for 3G networks. The proliferation of open-standards-based handsets will provide an exciting new opportunity to create compelling services and devices. As a result, we are committing research and development resources to enable the Android platform and to create the best always-connected consumer experience on our chipsets."
"Motorola has long been an advocate of open software for mobile platforms. Today, we're excited to continue this support by joining Google and others in the announcement of the Open Handset Alliance and Android platform. Motorola plans to leverage the Android platform to enable seamless, connected services and rich consumer experiences in future Motorola products," said Ed Zander, Chairman and CEO of Motorola, Inc.
Open Handset Alliance Founding Members
Here are the founding members of the Open Handset Alliance:
Aplix (www.aplixcorp.com), Ascender Corporation (www.ascendercorp.com), Audience (www.audience.com), Broadcom (www.broadcom.com), China Mobile (www.chinamobile.com), eBay (www.ebay.com), Esmertec (www.esmertec.com), Google (www.google.com), HTC (www.htc.com), Intel (www.intel.com), KDDI (www.kddi.com), LivingImage (www.livingimage.jp), LG (www.lge.com), Marvell (www.marvell.com), Motorola (www.motorola.com), NMS Communications (www.nmscommunications.com), Noser (www.noser.com), NTT DoCoMo, Inc. (www.nttdocomo.com), Nuance (www.nuance.com), Nvidia (www.nvidia.com), PacketVideo (www.packetvideo.com), Qualcomm (www.qualcomm.com), Samsung (www.samsung.com), SiRF (www.sirf.com), SkyPop (www.skypop.com), SONiVOX (www.sonivoxrocks.com), Sprint Nextel (www.sprint.com), Synaptics (www.synaptics.com), TAT - The Astonishing Tribe (www.tat.se), Telecom Italia (www.telecomitalia.com), Telefónica (www.telefonica.es), Texas Instruments (www.ti.com), T-Mobile (www.t-mobile.com), Wind River (www.windriver.com).
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