I missed the last AGM because I was in overseas. Pls help to highlight some of the important issues that were discussed in the AGM. Many thanks in advance for your kind effort.
Belteshazzar ( Date: 02-Aug-2011 08:38) Posted:
6 any time ta look good, chart also good a hockey stick as modi mentioned in agm
In the 15 months since the introduction of the iPad, competitor tablet
manufacturers still can't match the design efficiency of Apple's
groundbreaking product, according to an IHS iSuppli Teardown Analysis of eight
tablet models.
" Since Apple controls both the operating system and hardware design of the
iPad, it is able to attain design efficiencies that other tablet manufacturers
cannot," said Wayne Lam, senior analyst, competitive analysis, at IHS. " These
efficiencies become obvious in areas like the memory and the battery, where
Apple maintains advantages in cost, space savings and performance compared with
every competitor in the business."
Other tablet makers employ operating systems from third-party firms -- such as
Google, which provides the Android software used in most competitive products on
the market today. Many of these tablet makers also outsource the blueprints of
their products to third parties, employing reference designs and design services
from contract manufacturers.
This contrasts with the model employed by Apple, which uses its own operating
system and maintains tight control of its design, components and contract
manufacturers.
" Apple takes a vertically integrated approach to its products, from the
operating system to the user interface, to the hardware design, down to the
selection of individual parts used in the device," Lam noted. " For example,
Apple even uses its own applications processor design in both the iPad and iPad
2. In contrast, Android tablet makers buy those capabilities from the likes of
Nvidia, Texas Instruments and Qualcomm. This gives Apple greater control in
multiple areas of product development."
The table below presents an overview of the results of the dissection of
eight tablet models. Note that the BOM figures accounts only for hardware and
manufacturing costs and do not take into consideration other expenses such as
software, licensing, royalties or other costs.
iPad's memory and battery stay slim
Apple's control over the operating system allows it to reduce costs by
limiting the quantity of memory in the iPad. In the current-generation iPad 2,
the density of synchronous dynamic random access memory (SDRAM) is 512 megabytes -- half
that of the 1 gigabtye used in competitive designs. This memory density
reduction results in a nearly $14 reduction in the BOM of the iPad 2 compared to
other tablets. Likewise, the original iPad contained half as much SDRAM as
comparable competitive devices with single-core applications processors.
" The iPad's efficient memory usage stems from the fundamental difference
in the architecture of the operating system," Lam said. " Apple's iOS
handles multitasking differently than other tablet operating systems, allowing
it to reduce the amount of memory required to support the microprocessor."
Also, Apple's tight management of its product design, software integration
and component selection also allow the iPad's battery to be the thinnest of
all competing tablet designs while still having the largest capacity.
Tablet trends
Extensive teardown research also reveals how Apple is setting the pace in the
tablet market in the areas of pricing and screen size.
Apple established the sweet spot for tablet pricing, pegged at $500 for the
Wi-Fi version of the Apple iPad that included 16 gigabytes of NAND flash memory.
Samsung reinforced this pricing standard with the 16-gigabyte version of the new
Galaxy Tab 10.1 model.
Other tablets such as the BlackBerry Playbook from Research in Motion
and the TouchPad from Hewlett-Packard have gravitated toward that price
point as well.
Apple also is setting the standard for display sizes, with the iPad's
9.7-inch screen becoming the default standard in the market. Although some
tablets have been introduced with screens in the 7-inch range, notably RIM's
BlackBerry PlayBook and the upcoming HTC Flyer, the number of designs in the
market with 10.1- and 9.7-inch displays have been more plentiful.
" Dual-ing" tablets
The IHS iSuppli Teardown Analysis Service also illustrates the trend toward
multi-core processors in tablet designs. Following the introduction of the
Motorola Xoom in February and the iPad 2 in March, all new tablet designs within
2011 have included dual-core processors that deliver higher computing and
graphical performance.
In 2012 IHS expects to see this trend to continue with the introduction of
tablets featuring quad-core processors for even more enhanced performance.
The Cupertino, Calif.-based company sold 20.3 million iPhones
in the April-June period, accounting for nearly one-in-five smartphones
sold, according to research firms IDC and Strategy Analytics.
Meanwhile, Nokia plummeted to 15 percent from 38 percent -- third place
behind Samsung.
The findings suggest Apple's momentum is growing, which may continue with the launch of the iPhone 5 in September.
As more consumers interact with iOS products, Apple's battle with
Android will heat up. Android, which powers the smartphones of a
consortium of handset makers, led iOS and BlackBerry with 36 percent of
U.S. market share in April, according to ComScore.
Rather than
Google's open-based approach, Apple regulates its products and
platform, offering a tightly-integrated software-hardware package. The
drawbacks come at the expense of volume and distribution.
Apple
and Google will continue to clash, in handsets, operating systems and
even mobile payments. As the race to sell smartphones and tablets to
consumers intensifies, the company that can sell the most products
gains the largest advantage in pushing software and value-added
services to customers.
Apple's sales were boosted by AT& T's
lower iPhone 3GS price to $50, and Verizon's release of the iPhone 4.
The iPhone and iPad now account for 70 percent of Apple's revenue.
HTC
performed above industry expectations in the second quarter, but legal
and leadership issues still leave the company with questions about the
future.
The Taiwanese company made more than
$600 million in profits on just over $4 billion worth of revenue from
April to June. The numbers were more than double those from the same
period a year earlier.
HTC
currently pays the Redmond, Washington-based company $5 for every
Android device its ships, paying out $150 million to Microsoft to date.
The number is more than Microsoft has made from its Windows Phone
operating system since its launch.
HTC's payments to Microsoft
may not be affecting its bottom line so far, but an ongoing patent case
with Apple may end up cutting further into the company's profits.
Earlier this month the International Trade Commission ruled HTC had violated two of Apple's patents with its Android phones. HTC plans to appeal the decision, but if the ITC upholds it, the company may be left paying even more royalties.
Despite
HTC's patent issues, the company may still remain successful if it
continues to put out popular phones with distinctive designs on
Android. HTC said the design of its phones is the reason for the
success against strong competition from Samsung and Apple, but the
company now faces questions in the area as well.
Last week HTC announced its chief innovation officer Horace Clark had left the company
for undisclosed reasons. Clark led a group that produced the HTC
Desire, Thunderbolt and EVO 3D, which are some of the company's
best-selling devices. His departure may affect the company's strong
design side, which has so far helped it propel itself to strong numbers.
HTC
has emerged as a serious competitor in the smartphone market, but the
resolution of its current legal issues, as well as the continuance of
its strong Android handset designs, will determine whether or not it
has staying power.
The worldwide mobile phone market grew 11.3% year over year in the second
quarter of 2011 (2Q11), despite a weaker feature phone market, which declined
for the first time since 3Q09. According to the International Data Corporation (IDC)
Worldwide Mobile Phone Tracker, vendors shipped 365.4 million units in 2Q11
compared to 328.4 million units in the second quarter of 2010. The 11.3% growth
was lower than IDC's forecast of 13.3% for the quarter and was also below the
16.8% growth in 1Q11.
The feature phone market shrank 4% in 2Q11 when compared to 2Q10. The decline
in shipments was most prominent in economically mature regions, such as the
United States, Japan, and Western Europe, as users rapidly transition to
smartphones. This was the first decline since Q3 2009 and reflected a
combination of conservative spending and continued shift to smartphones.
" The shrinking feature phone market is having the greatest impact on
some of the world's largest suppliers of mobile phones," said Kevin
Restivo, senior research analyst with IDC's Worldwide Mobile Phone Tracker.
" Stalwarts such as Nokia are losing share in the feature phone category to
low-cost suppliers such as Micromax, TCL-Alcatel, and Huawei."
" For the overall market to grow by double digits year over year, despite
the decline in feature phones, is testament to the strength of the global
smartphone market," noted Ramon Llamas, senior research analyst with IDC's
Mobile Phone Technology and Trends team. " While this is not a new trend -
smartphones have been the primary engine of growth for the last several quarters
- it does mark something of a transition point, as demonstrated by the growing
number and variety of smartphones featured in the vendors' portfolios."
Market Outlook
The feature phone forecast isn't expected to be any rosier in the quarters
and years to come. Shipment growth of the device type won't exceed 1.1% in any
year forecasted by IDC.
Regional Analysis
The traditionally slow second quarter in Asia/Pacific was
exacerbated by Nokia's channel inventory corrections in China. Apple thrived
in China thanks to strong iPhone 4 demand. As well, a number of domestic
brands in Southeast Asia like CSL, Nexian, Q-Mobile, and Wellcom grew sales
of Android-powered smartphones. China-based vendors gained share in India
and Southeast Asia at the low end. In Japan, the impact of
the earthquake continued into April and May as component shortages forced
manufacturers to release new models in June while customer demand was harder
to fulfill.
In Western Europe, the market declined sequentially
compared to the first quarter. The feature phone market declined while
smartphone shipment growth slowed as phone makers and carriers reduced
inventories in advance of expected third-quarter product launches. Feature
phone dependent suppliers were not able to offset feature phone weakness
completely with higher smartphone sales. The CEMA markets
performed well on a year-over-year basis despite civil unrest in Egypt and
other Arab countries, where sales were negatively impacted as a result.
Samsung gained share while Chinese brands continued to make inroads in the
region.
In North America, smartphones once again took center
stage, propelled by lower prices, key device launches, and enhanced channel
marketing. In particular, Android-based devices extended their lead in the
United States and took leadership in Canada thanks to Samsung, Motorola, HTC,
and LG. Meanwhile, demand for feature phones continued to slide, but there
still existed pockets of interest for voice-centric and quick-messaging
devices. Still, as the region heads towards a smartphone-centric future, IDC
expects feature phones to represent an increasingly smaller portion of the
market.
The Latin America market growth was driven by low-cost
smartphones, specifically those with social networking features. Lower
smartphone prices, including those of the Android variety, are driving
smartphone penetration in several Latin American countries. Price is
expected to be a point of differentiation - as well as applications and
device features - between Android players in future.
Top Five Mobile Phone Vendors
Nokia's hold on the top global mobile phone spot weakened
last quarter as inventory buildups in traditional strongholds, namely China and
Europe, led to sharp year-over-year shipment declines. Nokia's global feature
phone and smartphone businesses suffered a similar fate. One positive sign for
Nokia last quarter were dual-SIM devices the company shipped over 2.6 million
of these in the second quarter. Over the long term, Nokia's smartphone
fortunes will be dictated by its ability to sell Windows Phone 7 smartphone
devices, which are expected to hit the market this year. It is Nokia's primary
smartphone platform of the future. In the meantime, Nokia is trying to sustain
shipment volume with low-cost mobile phones and devices powered by the aging
Symbian smartphone platform.
Samsung posted double-digit growth from the same quarter a
year ago, and just slightly slower growth than the overall pace of the market.
Like other vendors it realized a decrease in demand for its feature phones, but
made up the difference with continued success for its Android-based Galaxy
smartphones. The difference between Samsung and market leader Nokia continued to
shrink, with less than 20 million units separating the two vendors, mostly
resulting from Nokia's struggles in the market. Still, Samsung expects continued
growth into the second half, which could put it in closer contention with Nokia.
LG Electronics held on to its number three position during
the quarter, thanks in part to its Optimus smartphone sales worldwide. However,
a combination of factors - including soft demand for its feature phones, slow
pace of smartphone releases, and competitive pressures, led the company to
downgrade its outlook for the year by 24%. Originally, LG had anticipated flat
growth in 2011 from 2010 levels, even as it expected the overall market to
increase by 8%. Should LG's volumes decrease as much as it anticipates, other
vendors may jockey for position ahead of LG.
Apple maintained its number four position overall but closed
the gap on Top 5 competitors thanks to another record unit shipment quarter. The
company easily posted the highest growth rate of the worldwide leaders despite
the fact that its flagship iPhone 4 is now more than a year old. The
triple-digit shipment volume growth allowed Apple to more than double its share
when compared to the same quarter last year. Apple's ability to bring its
smartphone momentum to developing economies, where it's less successful, will
help dictate the company's smartphone fortunes in future.
ZTE likewise improved volumes and picked up market share
during the quarter, enough to maintain the number five position. Long known as a
purveyor of simple, voice-centric mobile phones, ZTE has stepped up its
smartphone game with the continued success of its Android-powered Blade and
Racer smartphones while announcing Libra, Skate, and Amigo smartphones for
release in the second half of this year. Feature phones continued to be popular
for ZTE, with the release of its 547i, a social networking-centric device in
Europe.
Top Five Mobile Phone Vendors, Shipments, and Market Share,
Q2 2011 (Units in Millions)
Samsung’s Q2 Smartphone Growth Shows that the Race Is Its to Lose: ABI Research Posted: 29-Jul-2011 [Source: ABI Research]
[Apple
becomes top smartphone OEM Q2 shipping 20.3 million units, Samsung came
in second with approximately 19 million smartphones shipped, and Nokia
droped to third place with 16.7 million devices shipped.]New York -- The
103 million smartphones shipped in Q2 represent a YoY growth of 62% and
a QoQ growth of 2.2%. While the annual growth rates and 2H 11 outlooks
appear healthy for the industry, Q2 did experience some ‘softness’ in
the market, driven by macro-economic conditions, seasonality and a
sharper than expected decline in Nokia’s smartphone business.
The
perennial leader in smartphone shipments tumbled to 3rd place this
quarter with 16.7 million devices shipped. Nokia’s smartphone market
share has plummeted from 38% last year and 24% last quarter to only 16%
in Q2. Driven by the added distribution muscle of Verizon Wireless and
China’s growing appetite for premium smartphones, Apple posted record
shipments in Q2 of 20.3 million to become the top smartphone OEM after
only four years in the business. Right on the heels of Apple, Samsung
had an amazing Q2 with approximately 19 million smartphone shipments
and over five million Galaxy S II shipments in its first 85 days.
ABI
Research Senior Analyst Michael Morgan comments: “Although Apple’s 142%
YoY growth placed it as number one this quarter, Samsung’s 500% YoY
growth shows that going forward, the top smartphone OEM position is
Samsung’s to lose.”
RIM’s growth in international markets was not
enough to offset its decline in North America. RIM shipped 13.2 million
smartphones representing an 11% QoQ drop. Motorola shipped 4.4 million
smartphones in Q2 as sales into APAC were enough to offset Motorola’s
iPhone-induced decline at Verizon Wireless. HTC continued its rise to
the middle with 11.5 million shipments in Q2 and 113% growth YoY.
ABI
Research believes that 47 million Android smartphones were shipped in
Q2 giving it 46.4% share of Q2 shipments. Samsung captured 34% of Q2’s
Android shipments, HTC shipped 23%, and Sony Ericsson earned itself 11%
Android market share with little help from North American shipments.
HTC reports strong earnings for 2Q11 shipments to top 13.5 million units in 3Q11
Press release, July 29 Steve Shen, DIGITIMES [Friday 29 July 2011]
HTC
has announced net profits of NT$17.52 billion (US$607.38 million) for
the second quarter of 2011, up 18% sequentially and 103% on year.
Second quarter revenues were NT$124.4 billion, up 104% on year which
beat its guidance.
Second-quarter earnings translated
into an EPS of NT$21.69, a significant improvement from NT$18.36 of the
previous quarter and NT$10.56 of a year earlier period.
Total
shipments grew 25% on quarter and 124% on year to 12.1 million units in
the second quarter, and gross margin for the quarter stood at 28.8%
compared to 29.3% in the first quarter due to changes in product mix,
the company said.
ASP stood at US$349 in the second
quarter, up 2.6% from a year earlier but down 2.8% on quarter due to a
ramp-up of entry-level models in the second quarter as compared to the
first.
The company projected its revenues to top
NT$137 billion in the third quarter, up 10% on quarter and 80% on year,
with total smartphone shipments to grow 98% on year to 13.5 million
units. Gross margin for the third quarter will hover around 27.5%-28.5%.
Apple Dislodges Nokia as World’s Biggest Smartphone Maker
David Paul Morris/Getty Images
A
customer looks at the new white iPhone 4 at the Apple store in Palo
Alto, California. Apple accounted for 18.5 percent of global smartphone
shipments in the second-quarter.
A
customer looks at the new white iPhone 4 at the Apple store in Palo
Alto, California. Apple accounted for 18.5 percent of global smartphone
shipments in the second-quarter. Photographer: David Paul Morris/Getty
Images
Apple Dislodges Nokia as World’s Biggest Smartphone Maker
Park Ji-Hwan/AFP/Getty Images
Apple's iPhone 3G and Samsung Electronics' Galaxy S mobile phone.
Apple's iPhone 3G and Samsung Electronics' Galaxy S mobile phone. Photographer: Park Ji-Hwan/AFP/Getty Images
Apple Inc. (AAPL) and Samsung Electronics
Co. both surpassed Nokia Oyj (NOK1V) in smartphone shipments for the
first time in the second quarter as the Finnish company sold
fewer units from its aging Symbian product lines.
Apple accounted for 18.5 percent of global smartphone
shipments in the second-quarter, compared with 13.5 percent a
year earlier, Strategy Analytics said in an e-mailed statement
today. Nokia dropped to third place, falling behind Samsung
after the Finnish company’s market share declined to 15.2
percent from 38.1 percent, the analysts said.
Nokia, which still remains the world’s biggest overall
handset producer, has lost 47 percent in Helsinki stock trading
this year, reflecting its difficulties in competing with the
iPhone and handsets using Google Inc.’s software. In contrast,
Apple’s shares have jumped 21 percent after sales of the iPhone
helped the company post a record profit.
“Apple’s growth remained strong as it expanded
distribution worldwide, particularly in China and Asia,” Alex Spektor, an analyst at Strategy Analytics, said in the report.
Global handset shipments grew 13 percent to 361 million
units in the last quarter, led by a 76 percent growth in
smartphones, Strategy Analytics said in a separate report. Sales
of smartphones, which are more advanced handsets with computer-
like capabilities for running applications and playing media,
totaled 110 million units.
‘Unexciting Portfolio’
Nokia’s share of the global handset market, which includes
smartphones and more basic models, fell to 24.5 percent last
quarter from 34.7 percent a year earlier, Strategy Analytics
said. This was the lowest level for the Finnish company since
1999, according to the researcher.
“Samsung is breathing down Nokia’s neck,” Neil Mawston, a
London-based analyst at Strategy Analytics said. “An unexciting
touchphone portfolio, inventory correction, wavering demand for
the Symbian platform and limited presence in the huge U.S.
market continued to weigh on Nokia’s near-term performance.”
Nokia fell as much as 2.1 percent to 3.97 euros in Helsinki
trading today. Samsung, which today reported second-quarter
profit better than analysts’ estimates because of higher mobile-
phone sales, has fallen 11 percent this year.
Cupertino, California-based Apple, the world’s most
valuable technology company, posted record sales and profit last
quarter, helped by demand for the iPhone, its biggest source of
revenue.
IPhone Sales
IPhone sales rose to 20.3 million units last quarter,
buoyed by international demand, particularly China, Apple said
while disclosing earnings earlier this month. The product
accounted for 46.6 percent of revenue at Apple, according to
data compiled by Bloomberg.
Apple is said to be planning a new iPhone with a faster
chip for September that also boasts of a more advanced camera,
two people familiar with the product said in June.
In contrast, Nokia reported its first quarterly loss since
2009 after handset sales slumped following an accord to shift to
Microsoft Corp. software.
Nokia Chief Executive Officer Stephen Elop, who joined from
Microsoft last September, is struggling to sell handsets based
on Nokia’s 10-year-old Symbian software that he is phasing out
as the company prepares new models based on Microsoft’s Windows
Phone.
The market for low-end phones known as feature phones
contracted 4 percent in the second quarter, Framingham,
Massachusetts-based International Data Corp. said in its market
share report.
The shrinkage was the first since the third quarter of 2009
and was most noticeable in richer countries where users were
shifting to smartphones, the IDC researchers said.
IDC calculated second-quarter handset shipments growing at
11.3 percent to 365.4 million units, owing partly to higher
estimates for shipments from smaller vendors. LG Electronics
Inc. (066570), Apple and ZTE Corp. (000063) rounded out the top five handset
makers according to both analyst firms.
July
29, 2011 -- MediaTek Inc., a leading fabless semiconductor company for
wireless communications and digital multimedia solutions, today
announced that it has invested into Spice Digital Limited, one of the
largest Mobile Value Added Services ( mVAS ) player in India with
presence in close to 20 countries. In connection with this agreement,
MediaTek will invest US$ 20 million.
According to a recent study of Standard Chartered, India is set to
become the fastest growing major economy in the world by 2012. It is
also estimated to have more than 700M mobile subscribers, with that
number still increasing. In addition, market research states that the
mVAS (mobile value added service) market in India will enjoy over 100%
growth over 5 years and will constitute about 10% of total telecom
revenue for Indian operators. It is no surprise then that an increasing
number of Indian operators are putting attention and resources into
mVAS, which represents a huge market potential.
Spice Digital Limited was incorporated in 2000 and has become one of
India’s top VAS companies with over 30M subscribers. It offers
innovative solutions for telecom operators, enterprises, and government
agencies using different mobile connectivity mediums of Voice, IVR,
SMS, USSD, WAP, 3G & Mobile Applications. The company is well
connected with all major operators in India including Bharti Airtel,
Vodafone, Reliance Communication and also enjoys accelerated
penetration into Africa and SE Asia.
During the signing ceremony held in MediaTek headquarters this
morning, Mr. Ming-Kai Tsai, Chairman of MediaTek said, “The mobile
Internet presents a wealth of opportunity for MediaTek and we believe
India’s IVR and mVAS market, where Spice Digital’s core business lies,
will continue to grow. Through this investment in Spice Digital, we are
hoping to capitalize on its market potential and reinforce its strong
operator relationship and leading position in India, SEA, Africa and
Middle East.”
Dr. Bhupendra Kumar Modi, Chairman of SPICE Global stated, “India is
already one of the fastest growing large economies in the world and has
the potential to become the world’s largest economy. Mobile Internet
can help India achieve double digit GDP growth rate and our businesses
continue to lead the country’s move on the digital highway with mobile
Internet. MediaTek is well known as a leading Mobile IC solutions
provider. We are very excited to have signed this definitive agreement
with MediaTek. Through this investment, we can together offer more
advanced and innovative services and enrich the digital mobile life of
the future.”
About MediaTek Inc. MediaTek Inc. is a leading fabless semiconductor company for
wireless communications and digital multimedia solutions. The company
is a market leader and pioneer in cutting-edge SOC system solutions for
wireless communications, high-definition TV, optical storage, DVD and
Blu-ray products. Founded in 1997 and listed on Taiwan Stock Exchange
under the code " 2454" , MediaTek is headquartered in Taiwan and has
sales or research subsidiaries in Mainland China, Singapore, India,
U.S., Japan, Korea, Denmark, England and Dubai. For more information,
please visit MediaTek’s website at www.mediatek.com.
Shipments of small- and medium-sized display (SMD) panels fell for the second
straight month in May as demand decreased from cellphones and all other major
product categories -- with the major exception of tablets -- according to a new
IHS iSuppli Small & Medium Displays PriceTrak report.
Coming on the heels of a 6.9 percent decline in April, shipments of SMD
displays from the two major groups of suppliers in South Korea and Taiwan in May
fell further to 187.1 million units, down 4.2 percent from 195.3 million units
during the earlier month.
SMD panels, which range in size from 1.0 inches to 9 inches, are used in a
variety of popular consumer items, including smartphones, tablets, digital still
cameras and personal navigation devices. Nearly all of these displays employ
liquid crystal display (LCD) technology.
" SMD demand in May was impacted by declining sales to the cellphone market -- the
leading application for such displays -- along with other key areas, including
digital still cameras and portable navigation devices," said Vinita Jakhanwal,
director for small and medium displays at IHS. " The only exception was the
tablet market, where demand continued to exceed supply."
Cellphone market suffers in the short term
Suppliers of SMDs for cellphones in May trimmed their forecasts in light of
weaker-than-anticipated handset shipments from Nokia and Research In
Motion. Both companies have been under intense pressure because of strong
competition from Apple Inc.'s iPhone as well as from handsets based on the
Android operating system.
Handset panel shipments to China during the period were also disappointing,
with officials in the country cracking down hard on an illegal gray market
estimated at 255 million units this year, according to an IHS iSuppli China
Research Service report. No relief appears in sight, with the gray market in
China projected to decline starting next year
The market for SMDs in digital cameras continues to be impacted as panel
supplies are shifted to the more lucrative smartphone and tablet spaces.
Meanwhile, the portable navigation device segment continued to shrink steadily.
This is expected to be a short-term slowdown, with shipments set to rise for
the entire year and during the following years.
Happy tablets for SMDs
The one positive aspect in the SMD market is the fast-growing demand from the
tablet segment. Along with their high shipment growth, tablet displays command a
relatively high price compared to SMDs in other applications. This is because of
their high specifications required for advanced performance.
Taiwanese vendors will start mass-producing for Apple iPad panels starting in
the third quarter, while Korean vendors have aggressive plans for capacity
expansion to meet demand for PC-type tablets, such as Hewlett-Packard's
TouchPad.
Earthquake aftereffects
Fearing possible component shortages after the Japan quake disaster in early
March, branded vendors and channels pulled in SMD shipments ahead of time to
bolster stocks. However, with inventory in the channel building up and in light
of endemic weak demand, panel shipments could not recover and declined in April
and May. The uncertain picture in Europe, with rising inflation and sovereign
debt issues, was also a contributing factor to the SMD panel decline in general
during the period.
Global Smartphones Sales Will Top 420 Million Devices in 2011 Posted: 28-Jul-2011 [Source: IMSresearch]
[IMSresearch reports smartphone sales will account for nearly 28 percent of the entire global handset market this year.]Austin, TX -- Sales
of smartphones will exceed 420 million devices in 2011, accounting for
nearly 28 percent of the entire global handset market, according to IMS
Research, the leading independent provider of market research and
consultancy to the global electronics industry. With the introduction
of more affordable “entry-level” smartphones, IMS Research predicts
that annual sales will surpass one billion devices by the end of 2016,
accounting for one of every two mobile handsets sold.
“But despite
the higher margins for smartphones, and the seemingly insatiable
consumer appetite for converged devices, it is clear that not all OEMS
are equally positioned to capitalize on this market trend,” says Josh
Builta, analyst in IMS’ Mobile Technologies Group. “For instance, LG,
despite being the third largest OEM in the world, has offered a fairly
limited smartphone portfolio in recent years, a factor that resulted in
the company reaching less than a three percent share of the total
smartphone market in 2010.”
At the same time Nokia saw its
portion of smartphone market decline so dramatically that in early 2011
the company dropped the Symbian platform in favor of Microsoft’s
Windows Phone OS. In 2Q 2011, Nokia reported smartphone sales fell to
16.7 million, down 34 percent from the same period in 2010.
“Clearly
one of the key dynamics of the mobile handset competitive environment
in recent years has been the inability of many traditional market
leaders to recognize and adjust to the growing smartphone tier,” adds
Builta, “The reasons for these failures vary and include everything
from poorly designed and manufactured devices, unsatisfactory user
interfaces, and portfolios that don’t offer products with a
differentiating feature. These lapses have created opportunities for
newer entrants to the market, which they have aggressively pursued.”
In
recent years, no company has flourished in this environment as much as
Apple. Apple’s 2Q 2011 results in which it reported record sales of
more than 20 million iPhones indicates it can be expected to remain an
influential presence in the market despite the increased competition.
However,
Apple is not alone in its success. Of the traditional handset
manufacturers, Samsung has demonstrated the best results in recent
years. Capitalizing on its diverse portfolio – which includes devices
using the company’s own bada operating system along with Android and
Windows Mobile – as well as its highly popular Galaxy series, Samsung
smartphone market share increased from about three percent in 1Q 2010
to over 13 percent in 1Q 2011. At the same time smaller, dedicated
smartphone vendors such as HTC have seen their position rise
dramatically.
According to Builta, “These companies are well
positioned to benefit from the projected growth of the smartphone
market in the future. Though the other OEMs are stepping up their
efforts in the space, companies such as Apple, HTC and Samsung have a
considerable amount of momentum. Catching them will not be an easy
task.”
A
Linux-based mobile OS is set to launch in China, presenting a possible
threat to competitors as they vie for smartphone and tablet customers
in the Asian market.
Chinese ecommerce company Alibaba says
it will launch its Aliyn OS at the end of the month, after working on
it for three years. Phone manufacturer Tianyu intends to sell the
Aliyn-based K-Touch Cloud-Smart Phone W700 for $416 in several days,
with plans to market a tablet soon.
Aliyn's
main features include the ability to run Android apps in the cloud, as
well as those created with JavaScript and HTML5. It offers users
cloud-based email, data, text message and photo storage too, besides
regular web search and GPS.
" Introducing cloud apps to mobile
devices not only brings a whole new user experience, but also greater
ease for third-party mobile software developers who will be able to use
Internet technology such as HTML5 and JavaScript to reduce the
complexity in the app development process," said Wang Jian, president
of Alibaba Cloud Computing.
In most regions of the world, Aliyn
would face fierce and nearly devastating competition from Google's
Android and Apple's iOS. But in China where Tianyu's new phone is set
to launch, the OS may have a chance. The country's mobile broadband
infrastructure is still underdeveloped and essentially up for grabs to
whoever can create the biggest presence there first.
China is
still behind in the smartphone market, though 3G subscriber numbers
jumped nearly 50 percent to almost 70 million last April. But given the
country's enormous population, 70 million is a small number compared to
the U.S. market, in which nearly half of phone owners have smartphones.
If
Aliyn can create a foothold in time, then, it may stand a chance
against planned marketing onslaughts from rivals Apple, Google and
Nokia, which are also angling for the Chinese market.
Other
Android phone manufacturers too have their eyes on the populous
country, as analysts predict over one billion people there will own
smartphones in the next five years.
The
competition is fierce, but this unexplored market is up for grabs, and
upstarts like Aliyn may see success if it can grapple with rivals for
the upper hand.
LG's
profits grew by half compared to a year ago, underscoring how its
strategy to shift away from feature phones may help the struggling
electronics company turn around its fortunes.
The South Korean company's wireless
division lost over $50 million in the April-June period, less than a
$76 million experts had projected. Although LG faired better than
expected, the company will likely remain in the red until it can
develop a smartphone to compete against Apple's iPhone and devices
running Google's Android OS.
Still,
LG is focusing on smartphones, CFO David Jung said Wednesday. The
company, in the midst of a transition to more robust smartphones, from
simplier feature phones, is attempting to jumpstart its waning market
share, even if the changeover leads to a decline in overall handset
sales.
The policy seems to be working. In the second quarter, LG
reported better sales compared to the January-March period, resulting
in a narrower operating loss margin.
However, LG will need to
step up efforts to regain its place. It has thus far been slow to offer
app-centric, touch screen smartphones, focusing instead on feature
phones, which result in higher sales but also less revenues for
companies.
LG, such as Nokia
and Sony Ericsson, was caught off-guard by shifting consumer demand in
the burgeoning smartphone market and continues to struggle.
LG
did win back some customers last November when it released its Optimus
smartphone. More than one million units were sold within 40 days, and
led to development of additional models. Last week, LG announced the Optimus Pro and Net, two new mid-range Android devices, and may be banking on further Android-based smartphones to help turn around its fortunes.
LG, which is pinning its hopes on 3D technology, released its Optimus 3D smartphone earlier this year. The Optimus records 3D photos and video, which iPhone can't do.
However,
rival HTC released the Evo 3D this summer. As other handset makers add
3D and tablets, LG may still have a tough time making money from 3D.
The
company has a long way to go before it can compete with Apple and
Android devices in the smartphone market. With its delays in smartphone
development, LG is already far behind in the game. But LG expects to
sell nearly 2 million of its 3D handsets by the end of this year and if
customers embrace the new technology, the company could see its profits
climb back into the black.
The Redmond, Wash.-based company
yesterday announced it has sent the Mango update to manufacturers to
begin testing on handsets. Microsoft is now turning its attention to
update the existing Windows Phone customers with the Mango software.
Microsoft
hopes the update will solidify its operating system as a legitimate
contender against Google's Android and Apple's iOS, though it has a
steep hill to climb. Microsoft currently holds under 10 percent of the
market compared to Google's 38 percent and Apple's 26 percent. But
strong reviews of Mango may bode well for the company, as it tries to
restore consumers' faith in its smartphone offering.
Along with
re-focusing its efforts on its mobile operating system, the software
giant is making other moves to better compete against Apple and Google,
especially in the realm of patent litigation and acquisition.
Microsoft was also part of the group that won the bidding for the more than 6,000 Nortel patents.
The group outbid Google, giving the companies another advantage over
one of its main competitors in the mobile market. Microsoft can use its
ownership share to strengthen its position in future litigation cases.
The
initial release of Windows Phone 7 was met with mixed reviews. Most
analysts said Microsoft had a strong foundation, but added the OS had
too many holes to be a true competitor. The lack of presence on a
strong device in the market also hurt the Windows Phone adoption rate.
The
Mango update is Microsoft's answer to these criticisms. The company has
also brought several manufacturers on board to develop for the new
Windows Phone OS. The largest of these is Nokia, which inked a deal
with Microsoft to make all its smartphones with Microsoft's OS. Nokia's
worldwide presence may go a long way in spreading the Windows Phone OS
and growing market share.
After months of development, the final
release of Mango is around the corner, and Microsoft will finally get
to see if it has done enough to put a dent in the smartphone market.
The South Korean company reports high sales even after staggering the
device's release across several months and continents. A fairly recent
handset, Samsung aims to sell at least 10 million units of the Galaxy
S2 in 120 countries by the end of the year.
" Since
being launched into the retail market in late April, the Galaxy S II
has seen tremendous growth," said J.K. Shin, Samsung's head of mobile
communications business.
The
Galaxy S2 hit stores in China this week and is set to debut in the U.S.
next month, which may ramp up sales even more. The addition of two more
major markets may give it a boost, but it may still fall behind Apple's
figures after the iPhone 5's release this fall. With both products
arriving in the U.S. around the same time, and the much-anticipated
next generation Apple phone predicted to double sales, Samsung's
competition is sure to be fierce.
Samsung also must contend with
other issues before it can claim equal footing with Apple. TechCrunch
yesterday reported that people return Android devices at a rate of 30 to 40 percent
because of interface difficulties. Samsung's sales may not necessarily
reflect consumer satisfaction, unlike Apple's, since 98 percent of
iPhone owners hang onto their devices.
If
the ITC rules in Apple's favor, Samsung may not be able to sell the
Galaxy S2 in the states, which would put a large dent in its sales and
profits. And even if the ITC decides not to ban either company's
devices, the two may end up settling outside of court, which may find
Samsung paying Apple royalties.
The Galaxy S2 has momentum now, but legal issues and increased competition may clip its momentum in the long term. But,
even if it has trouble breaking into U.S. markets, the Korean company's
worldwide sales may be a sign that Apple is right to fear it as a
competitor.
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