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Does Qualcomm Need Apple?

June 30, 2016 by  
Filed under Computing, Smartphones

The fanboys aka the Apple Press has been running down Qualcomm since its favourite company announced it was buying chips from Intel, but there are good reasons why the American chipmaker should not care that much.

As we have been saying for ages, Jobs’ Mob is no longer exclusively going with Qualcomm to provide modem chips for the upcoming iPhone 7. The deal, while large, is tailored for some of Apple’s partnerships. Intel gets AT&T phones and Qualcomm remains the supplier for Verizon network phones and for China.

The press has been claiming that it is terrible news for Qualcomm. But it appears Qualcomm knew it was coming and had already factored in the loss of the business into its results. The reason Qualcomm is not losing any sleep over the deal is because the most Intel is going to get is a third of the iPhone modems. This is what in financial terms is considered a “pisser” but hardly a reason to jump off any buildings over.

Other good things are happening to Qualcomm which more than balance out what has been lost to Intel. Firstly its latest Snapdragons are selling extremely well and secondly the shine is starting to go off its number one rival MediaTek.

For a while, naysayers have been predicting that MediaTek was going to sink Qualcomm. In fact there was even a suggestion that Qualcomm should get out of chipmaking and become a patent troll.

MediaTek had been luring away Qualcomm customers with cheaper chips, which combined with Apple, Samsung and Huawei making their own chips was creating a perfect storm of doom.

Now there is a suggestion that MediaTek’s growth wagon might have stalled. MediaTek’s sales fell 9.4 per cent annually last quarter to $1.7 billion. Its operating margin halved from 16 per cent last year to eight per cent. The reason was due to higher expenses across the board. This meant that its net income fell to $136 million. MediaTek is still more profitable than Qualcomm’s chipmaking division has a wafer thin 5 per cent last quarter.

Analysts expect MediaTek to post double-digit sales growth fuelled by rising demand for 4G smartphone chips in China. But its margins are also expected to keep contracting due to tough competition from Qualcomm and Spreadtrum.

Another risk for MediaTek is its dependence on China. Taiwan just got rid of the pro-unification KMT party, which controlled the presidency for the past eight years, in favour of the pro-independence DPP party.

MediaTek needs direct investments from mainland China to fight off Qualcomm, but it is finding that the Taiwanese government is blocking that sort of investment cash.

All this is giving Qualcomm a fighting chance in the area where it makes a lot of its cash. Sure its margins might be lower, but it still making more money. Enough so that it does not have to worry about losing a small about of dosh to Intel.

Courtesy-Fud

June 22, 2016 by  
Filed under Smartphones

After sliding its slide-rules, flicking its abacus, and counting its toes, the bean counters at Gartner have decided that the smartphone business bubble has burst splattering in the face of those who depend on it.

Big G says the market will shrink from 14.4 per cent growth in 2015 to just 7 per cent in 2016 — with only 1.5 billion smartphone units being shipped globally this year. Compair this with 2010, when Gartner notes the market grew 73 per cent.

However the signs have been obvious for about a year. Mature Western markets saturated, China’s growth engine slowing as demand has topped out and other markets unable to afford the higher margin gear. The smartphone has come to the end of its ability to provide new technology too with companies only able to offer incremental upgrades. Carriers are moving away from subsidizing upgrades which means that them wasting their own profits to prop up the likes of Apple are over.

In emerging markets it says the average lifetime of premium phone is between 2.2 and 2.5 years, while basic mobiles have an average lifetime of three years and up.

Gartner sees the biggest remaining opportunity for smartphone growth in India, noting that sales of feature phones — aka dumbphones — accounted for a majority (61 per cent) of total mobile device sales last year, leaving plenty of scope for upgrades as smartphones continue to become more affordable.

It is estimating 139 million smartphones will be sold in India this year, growing 29.5 per cent year-over-year. It notes the average selling price of mobiles in the country remains below $70, and it expects smartphones priced under $120 to continue to contribute around half of overall smartphones sales there this year.  Apple’s hope that it can save its flailing business numbers by selling into India show the complete lack of understanding of how that market is working. It is tending to favor small local smartphone makers like Intex.

China is going to offer Apple no help either Gartner is expecting “little growth” in the region in the next five years. IT says it is “saturated yet highly competitive” market. Smartphones represented 95 per cent of total mobile phones sales last year.

Gartner analyst Annette Zimmerman said that “non-traditional” vendors in China could do well and thinks that by 2018 at least one such phone maker will be among the top five smartphone brands in the country.

“Chinese internet companies are increasingly investing in mobile device hardware development, platforms and distribution as they aim to grow their user bases and increase user loyalty and engagement,” she said.

The Sub-Saharan African region is also couched as an attractive region for smartphone vendors, with smartphone sales only overtaking mobile phones sales there for the first time last year. Nokia brand licensee and newly formed smartphone OEM HMD will want to take note, given it has paid for the right to build feature phones (and smartphones) bearing the previously iconic Nokia brand name.

Courtesy-Fud

May 26, 2016 by  
Filed under Smartphones

Apple shares are continuing to fall as more investors realise that the share price is not going to go up any more.

For a while now people have been buying Apple shares with the expectation that they will always go up. This always was largely based on a fantasy created by the Tame Apple Press that assumed the company would keep coming up with new technology ideas which would always be successful.

However lately Apple has not come up with any new ideas and has taken to re-issuing its old phone designs. It has also been floundering in its key Chinese market. The company’s only new idea has been for content creation through its Apple Music streaming brand. The only problem with that is that the software has been killing off user’s iTune libraries.  It has also been banned in China which means that hopes that Apple would make money there are still thwarted.

Shares of Apple dropped below $90 on Thursday for the first time since 2014 as Wall Street worried about slow demand ahead of the anticipated launch of a new iPhone later this year. Some more reasonable analysts even think that the iPhone 7 is going to be a disaster because it lacks any new tech and has the same design as the poor performing iPhone 6S

Component suppliers in Taiwan have confirmed that they have received fewer orders from Apple in the second half of 2016 than in the same period last year.

Rosenblatt Securities analyst Jun Zhang saidt that investors were getting negative data points about component orders and production forecasts, and the features on the new iPhone do not seem to be a big change from the 6S.

Apple briefly relinquished its position as the world’s largest company by market capitalisation to Alphabet – oh the horror.

At the close, Apple and Google each had market values of about $495 billion, according to Thomson Reuters data. In the past year, Apple’s market capitalization has fallen by more than $200 billion. Which just goes to show this whole value thing was an illusion.

Suppliers of iPhone components also fell, with Skyworks Solutions off 4.54 percent, Broadcom down 1.95 percent and Qorvo declining 1.76 percent.

Revenue from China slumped 26 percent during the March quarter. Apple faces increasing competition from Chinese manufacturers like Xiaomi and Huawei selling phones priced below $200, Rosenblatt’s Zhang said.

Last week, Dialog Semiconductor, which sells chips used in iPhones and other smartphones, cut its revenue outlook due to ongoing softness in the smartphone market.

The Tame Apple press is trying to do its best to find analysts who recommend buying the stock claiming it is too cheap.However how much should you pay for an outfit which has milked its cash cow and has nothing new on the horizon.

Courtesy-Fud

May 6, 2016 by  
Filed under Smartphones

T-Mobile US Inc reported a better-than-expected 10.6 percent rise in quarterly revenue and raised its forecast for customer additions in 2016 as popular discounts aided the No.3 U.S. wireless carrier by subscribers attract more business.

T-Mobile has been offering cheaper leasing plans and free music and video streaming to lure customers away from larger rivals Verizon Communications Inc and AT&T Inc.

T-Mobile, controlled by Deutsche Telekom, said it added 2.2 million customers on a net basis in the first quarter ended March 31.

That easily topped the average analyst estimate of 1.72 million, according to research firm FactSet StreetAccount.

The company said it expected to add 3.2 million to 3.6 million postpaid customers on a net basis in 2016, compared with its previous forecast of 2.4 million to 3.4 million.

T-Mobile’s 10.6 percent jump in quarterly revenue to $8.6 billion suggested its strategy to boost revenue was working. Analysts on average had expected revenue of $8.43 billion, according to Thomson Reuters I/B/E/S.

In comparison, market leader Verizon’s operating revenue rose just 0.6 percent to $32.17 billion.

AT&T is scheduled to report results later on Tuesday.

T-Mobile reported net income of $479 million, or 56 cents per share, for the first quarter, compared with a loss of $63 million, or 9 cents per share, a year earlier.

Source-http://www.thegurureview.net/mobile-category/t-mobile-revenue-up-continues-attracting-new-customers.html

February 1, 2016 by  
Filed under Smartphones

AT&T has announced aggressive discounts on new smartphones and devices, including a 2-for-1 smartphone offer for business customers.

A big focus of the AT&T discounts is special deals on Samsung’s Galaxy smartphones and Gear S2 smartwatches. Analysts interpreted that focus on Samsung devices as a way to clear out inventory prior to expected upgrade announcements coming in late February at Mobile World Congress in Barcelona.

AT&T is also facing pressure to add more subscribers, as analysts — including Evercore ISI this week– have predicted AT&T’s fourth-quarter postpaid subscriber loss will be more than 300,000. That comes amid reports that T-Mobile added 4.5 million net subscribers for the fourth quarter and Verizon Wireless added 525,000.

All the major carriers, including AT&T, hit the December holidays with special device deals, but AT&T apparently didn’t feel enough impact on its inventory from those offers, analysts said.

AT&T and Samsung are motivated to get rid of all the old inventory before new models arrive, said Patrick Moorhead, an analyst at Moor Insights & Strategy. “Retailers won’t run such an aggressive promotion unless they have a lot of stock.”

An AT&T spokeswoman provided a different explanation: “Due to popular demand, AT&T is bringing back some of its holiday promos.”

Those promos — available to both consumers and business customers at AT&T retail stores — include a free Samsung Gear S2 smartwatch for a limited time to any customer buying a Samsung Galaxy smartphone, or a free Samsung Galaxy Tab 4 for buying a Galaxy smartphone on an AT&T Next wireless plan. AT&T is also offering an iPad mini 2 for $99 when a customer buys a new iPhone on the Next plan.

For business customers, the 2-for-1 smartphone deal is new. It allows business customers to buy a new smartphone and then get another smartphone, valued at up to $650, for free.

Source-http://www.thegurureview.net/mobile-category/att-facing-pressure-offers-aggressive-smartphone-discounts.html

January 18, 2016 by  
Filed under Smartphones

Intel has created a new smartphone with a 3D RealSense camera that can recognize objects and detect motion and gestures, much like a Kinect camera.

The smartphone is being made available as a reference device for anyone interested in discovering new uses for 3D cameras in handsets. The 3D camera is a smaller and more advanced version of the RealSense cameras in PCs and tablets.

For $399, users will get an Android smartphone with a 6-inch screen that can display images at a 2560 x 1440-pixel resolution. The RealSense ZR300 depth camera, which is placed at the edge of the phone, can capture 10 million points per second. The phone also has a 2-megapixel front camera and 8-megapixel rear camera.

The phone isn’t for daily use, but more for capturing 3D images, taking cool selfies and experimenting with the RealSense camera. It has only 3G connectivity, so aside from the camera features it isn’t very useful beyond making basic phone calls. It has an Intel Atom x7-Z8700 processor, which is in Microsoft’s Surface 3, so don’t expect long battery life. It has 64GB of storage, Bluetooth, Wi-Fi and an HDMI port.

Users can reserve the smartphone; Intel did not provide a shipping date. It will only ship to U.S. customers.

Source- http://www.thegurureview.net/mobile-category/intels-3d-smartphone-to-go-on-sale-for-399.html

January 12, 2016 by  
Filed under Smartphones

Apple and Samsung dominate global smartphone markets with several new flagship handsets unveiled each year.

But after years of fantastic growth in smartphone sales, the pace of growth is slowing overall, including for the two smartphone giants. Market research firm IDC recently said that 2016 will be the first year that overall smartphone growth will slow to below 10%.

There is even talk among analysts that the latest models don’t have enough compelling new features to lure customers to a competitor’s device. Others say smartphone buyer’s fatigue has set in.

Buyer’s fatigue is a concern in the U.S. and other developed countries where the smartphone market is viewed as a “replacement” market because the market is already saturated: Nearly everyone already owns a smartphone. A focus on emerging countries by Apple and Samsung still requires them to find low-cost alternatives to compete with the likes of Huawei and others.

“Consumers are fatigued about new phone features that they can’t easily relate to any improvement in their personal use cases,” said Patrick Moorhead, an analyst at Moore Insights & Strategy. “Samsung has been one of the worst offenders of this in the last few years. If consumers can’t relate, then they need to be educated.”

Most recently, reports that Samsung would add a pressure-sensitive displayand high-speed charging port to its Galaxy S7 phone drew a few yawns. That’s because Apple added the pressure-sensitive display to the iPhone 6S last summer, and a new USB Type-C fast charging port is already available in LG and Huawei smartphones.

While it is to Samsung’s advantage to keep up with Apple and others rivals, analysts disagree over whether these latest improvements will provoke an iPhone user to switch to a Galaxy.

Source-http://www.thegurureview.net/mobile-category/smartphone-buyer-fatigue-seen-hampering-growth.html

December 7, 2015 by  
Filed under Smartphones

Microsoft surprised the world when its new phone range failed to contain anything to interest business users – now it seems it is prepared to remedy that.

Microsoft promised that its Lumia range would cover the low end, business and enthusiast segments but while the Lumia 950 and Lumia 950 XL and Lumia 650 should cover the low-end segment as well nothing has turned up for business users.

This was odd, given that business users want phones that play nice with their networks, something that Redmond should do much better than Google or Apple.

Microsoft’s CFO Amy Hood told the UBS Global Technology Conference that business versions of the Lumia were coming. She said:

“We launched a Lumia 950 and a 950 XL. They’re premium products, at the premium end of the market, made for Windows fans. And we’ll have a business phone, as well.”

There were no details, but we have been hearing rumours of a Surface phone being sighted on benchmarks. It was thought that his would be a Microsoft flagship, but with the launch of the Lumia 950/950 XL, it is possible that this Surface phone could be aimed at the business user. The word Surface matches nicely with Microsoft’s Surface Pro branding.

Source-http://www.thegurureview.net/mobile-category/will-microsoft-debut-a-lumia-business-phone-next-year.html

August 21, 2015 by  
Filed under Smartphones

Apple’s vice like grip in the US smartphone market is falling off as sales of the overpriced gadgets slump.

Research outfit Kantar Worldpanel ComTech said the 2.3 per cent drop in US sales had been covered by rises in China, Japan and Australia.

But the fact that Apple’s home ground is the US and that it has become increasingly dependent on its iPhone, this statistic does not bode well, particularly as the company depends on continual growth to maintain its share price the whole lot is starting become unstuck.

For the second quarter of 2015, iPhone sales grew by 2.1 percent from the same quarter last year across Europe’s five biggest markets, namely the UK, Germany, France, Italy and Spain. Growth was strongest in the UK at 5.5 percent and weakest in Italy at only 0.1 percent. Beyond Europe, iPhone sales surged by 9.1 per cent  in Australia, 7.3 percent in China and 2.7 percent in Japan.

It is worthwhile pointing that the European growth outside the UK, Australia and China is more indicative of a flat market rather than actual growth.

A possible reason for the fall in the US is better competition from Android where Apple’s Android rivals provided a tougher fight.

Carolina Milanesi, chief of research at Kantar Worldpanel ComTech, said in a press release. “In the U.S., as we forecasted last month, Android’s growth continued in the quarter ending June 30, with both Samsung and LG increasing their share sequentially. Forty-three percent of all Android buyers mentioned a ‘good deal on the price of the phone’ as the main purchase driver for their new device.”

“Android in the U.S. is undergoing its strongest consolidation yet, with Samsung and LG now accounting for 78 percent of all Android sales,” Milanesi added. “LG is the real success story of the quarter. Not only did it double its share of the US smartphone market once again, but it was also able, for the first time, to acquire more first-time smartphone buyers than Samsung.”

Screen size was the main driver for Android buyers across Europe, according to Dominic Sunnebo, business unit director at Kantar. Samsung and LG both sell big-screen “phablet” phones. Samsung’s Galaxy Note 4 sports a 5.7-inch screen, while LG’s G4 packs in a 5.5-inch screen.

Though the iPhone 6 Plus also uses a 5.5-inch display, iOS buyers are driven by a wider range of factors, Sunnebo said, including “phone reliability and durability, as well as the quality of the materials.”

Of course if you are member of Tame Apple Press you will forget to report the news and say the opposite and claim that the iPhone’s wonderful sales are a problem.

Source

August 18, 2015 by  
Filed under Smartphones

Taiwanese smartphone maker HTC Corp said it will eliminate some jobs and discontinue models as part of its strategy to focus on high-end devices to better compete with the likes of AppleInc and Samsung Electronics.

“The cuts will be across the board,” Chief Financial Officer Chialin Chang told reporters after HTC reported a second-quarter loss and forecast another for the third-quarter. “They will be significant.”

Chang said the cost reductions would extend to the first quarter of next year, but declined to give further details.

A pioneer in early smartphones, HTC has been dismissed by industry watchers as confused, unoriginal and uncompetitive.

The company has been losing market share over the past few years, hit by intense competition at the high-end of the market from the likes of Apple and Samsung Electronics while budget Chinese rivals have also eclipsed its low-cost offerings.

HTC shares have fallen 51 percent so far this year. The stock closed 1.69 percent lower before the results were announced.

Chang said HTC was banking on selling high-end models in emerging smartphone markets such as India, where he said the company has a 20 percent market share of phones priced between $250-$400.

Analysts, however, are less optimistic, saying HTC is likely to continue to struggle for the next four quarters at least.

“We believe HTC will keep losing share in the smartphone market and will keep losing money,” analyst Calvin Huang with Taiwan’s SinoPac Securities wrote in a recent research note.

Source

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