market share

Nokia CTO steps down; company looks to sell unit

Phil Goldstein — Tue, 30 Sep 2008 10:25:01 -0400

Nokia's Chief Technology Officer Bob Iannucci announced he would be stepping down from the company for undisclosed personal reasons. The company also said it was looking to sell off its computer-security hardware business and focus more on consumers.

Iannucci had been at Nokia since 2004, and will remain as a consultant for the company until a new CTO is found. The move comes as the world's largest cell phone maker announced it was in advanced talks to sell its security hardware business and will stop making software for enterprise solutions, so that it could focus more on consumers and devices.

Though still the dominant player in terms of market share, Nokia has seen companies like Research In Motion, HTC and Apple cut it into its consumer market base.

For more:
- see this article on Iannucci
- and this article on Nokia's potential business change (sub. req.)

Related Articles:
Nokia's 2Q market share up, content business growing
Nokia to open mobile advertising labs

Google's Android phone to capture 4 percent of market

Phil Goldstein — Fri, 19 Sep 2008 10:56:11 -0400

The hype keeps getting hotter.

Just days ahead of T-Mobile USA's launch of the HTC Dream--the first phone that will run on Google's Android mobile software--a new study has predicted the phone will capture 4 percent of the smartphone market in the United States during the fourth quarter of 2008.

The study, by Strategy Analytics, said it expected T-Mobile to sell 400,000 Android-based units in the fourth quarter, and said the phone was coming into a crowded marketplace, already filled with Apple's iPhone 3G and Research In Motion's BlackBerry devices.

The Sept. 23 launch of the Dream is going to be one of the most highly anticipated events in the wireless world this fall, and Google already has high expectations for its success.

For more:
- see this article

Related Articles:
First Android phone to showcase Google brand
Rumour Mill: Sept 23rd for T-Mobile Android launch

Sprint CEO looks to improve Nextel unit

Phil Goldstein — Fri, 19 Sep 2008 10:18:35 -0400

Dan Hesse, Sprint Nextel's CEO, said the company is focused on fixing the Nextel part of the partnership, and said despite the lag it has put on business, the Nextel unit is not something Sprint necessarily has to sell.

Hesse was speaking Thursday at a conference hosted by Goldman Sachs, and said the company's top priority right now is to reinvigorate Nextel, but he also spoke about paying down the company's debt. A sale of the Nextel unit would go a long way toward doing that, though Sprint is not likely to get anything near the $38 billion they forked over for it in 2005.

Since Sprint bought Nextel and its iDEN network the company has struggled to integrate it and has fallen behind AT&T Mobility and Verizon Wireless in market share.

For more:
- see this article

Related Articles:
Sprint wireline strong amid other woes
Hesse talks about why he left Embarq for Sprint

Motorola ships 28.1 million handsets in 2Q

Sue Marek — Thu, 31 Jul 2008 11:32:07 -0400

Motorola surprised analysts by posting a second-quarter net income of $4 million, up from a net loss of $28 million a year ago. Revenue fell 7.4 percent to $8.08 billion and the company expects its third-quarter earnings to be flat.

The handset maker continues to lose market share, shipping just 28.1 million handsets during second quarter, a decrease of 21 percent from the first quarter. Although some predicted Motorola would lose its stature as the third largest maker of cell phones behind Nokia and Samsung, it held onto its ranking. In second quarter Nokia shipped 122 million devices and Samsung shipped 45.7 million handsets. Meanwhile, LG shipped 27.7 million and appears to be quickly closing the gap.

Motorola is in the midst of a major restructuring. Earlier this week it announce it was dividing its Home & Networks Mobility Group into three separate businesses, a move that many believe may make the businesses easier to sell off.

For more:
- here's a round up the telecom infrastructure vendor revenues - chart
- see this article (sub. req.)
- see this MarketWatch article

Related articles:
Motorola restructures--again
Motorola slashes 150 R&D jobs

LG posts good quarter, warns about current quarter

Lynnette Luna — Tue, 22 Jul 2008 13:00:53 -0400

LG Electronics is forecasting a tough third quarter despite posting positive results for the second quarter. The handset vendor said it is facing slowing shipments to emerging markets and higher competition in developed markets.

The handset maker, which ranks fourth in the handset market in terms of global shipments, said revenues grew 39 percent from the year-ago quarter to $3.7 billion, which was more than one-third of the parent company's revenue in the second quarter. The division reported an operating profit of $531 million, up nearly 12 percent over the year-ago quarter.

LG shipped 27.7 million handsets, with North America accounting for 34 percent of its global markets, up 45 percent over the year-ago quarter and a 14 percent increase sequentially. The question is: Has LG overtaken Motorola's market share?

For more:
- see RCR Wireless News

Related story:
LG to overtake Motorola's market share soon. LG story

Is China finally moving to 3G?

Sue Marek — Tue, 27 May 2008 11:30:49 -0400

China reportedly is ready to issue 3G licenses after six years of promises and delays. While announcing it plans to restructure China's telecom service providers, China's regulators also announced that three 3G licenses will be granted once the restructuring is complete.

The Chinese government has been delaying the 3G process in a bid to get its home-grown standard, TD-SCDMA, up to par with WCDMA and CDMA 1xEV-DO. To date, the country's carriers have spent a significant amount of money on TD-SCDMA trials and may possibly offer services during the 2008 Olympic Games this summer.

The impending 3G awards should be good news for the world's vendors, which have been banking on China opening up the market to 3G and bolstering their business. There should be some aggressive fighting for contracts, especially when Huawei and ZTE have been fighting for market share outside of China.

For more about China's 3G plans:
- read this Unstrung article

Related stories:
- Analyst: China's 3G still years away. See this China 3G story
- China to begin home-grown 3G technology trial. See this TD-SCDMA story
- China continues to hedge on 3G. See this 3G in China story

Nokia: ROI from Internet initiatives won't come for two more years

Lynnette Luna — Tue, 20 May 2008 12:05:37 -0400

The world's leading handset maker Nokia said it doesn't anticipate seeing any returns on its investment in wireless Internet services until 2010. Nokia has invested a significant amount of money into services that include music and video to gain a competitive advantage over rivals and to sell services outside of the operator walled garden. But a return on investment won't come for two more years.

"We're going to continue to invest at that rate or more as we are in investment mode in 2008 and 2009. We look for 2010 to start to see where you go from investment mode... to getting more out than you're putting in," said Chief Financial Officer Rick Simonson during a telecoms conference in New York.

Nokia also addressed its sagging market share in the North American handset market, which dropped 9 percent at the end of 2007. Nokia said to look for some custom-designed phones for U.S. operators. And in line with the studies that show high-end phone sales are growing, Nokia reported that such devices are growing faster than its overall phone unit sales.

To find out more on Nokia's revelations about its handset business:
- read this article in InformationWeek

Another Motorola executive departs

Lynnette Luna — Mon, 19 May 2008 11:38:04 -0400

Another Motorola executive has departed from the company. Rich Nottenburg, chief strategy and technology officer, is the latest executive to leave amid investor Carl Icahn's activist ways to shake up the Motorola board. Nottenburg's departure follows the replacements of CEO Ed Zander in January, acting CFO Tom Meredith in February along with mobile devices head Stu Reed, Casey Keller, head of marketing, treasurer Steve Strobel and EMEA mobile-devices head Mike Fenger. Dan Moloney, who leads the company's home and networks mobility business, will replace Nottenburg.

Motorola's financial woes continue, with the operator announcing last month that first-quarter losses reached $194 million. Motorola is splitting into two publicly traded companies, one of which is the handset business and the other being the networks business. But analysts don't believe that move will solve the company's problems any time soon. Moreover, LG is closing in on Motorola's worldwide mobile phone market share. LG's market share ratcheted up to 8.6 percent in the first quarter, up from 6.4 percent in the year-ago quarter. Shipments of phones increased year-on-year a sizeable 54 percent during the first quarter.

To find out more about Motorola's latest executive departure:
- check out this CNET article

LG to overtake Motorola's market share soon

Brian Dolan — Thu, 15 May 2008 12:09:08 -0400

According to a report in BusinessWeek, LG is closing in on Motorola's worldwide mobile phone market share. LG's market share ratcheted up to 8.6 percent in Q1, up from 6.4 percent in the year-ago quarter. Shipments of phones increased year-on-year a sizeable 54 percent during Q1. Article

Nokia promises many new phones for U.S.

Mon, 05 May 2008 06:59:55 -0400

Nokia's chief designer, Alastair Curtis announced that Nokia would be offering a lot of new phones in the U.S. very soon: "In the next few months operators will carry a lot of new products from us." The announcement follows months of building anticipation for a launch of a big batch of Nokia phones in the U.S. While the handset maker dominates the global handset market with a 39 percent market share, it only has 10 percent penetration in the U.S. Curtis said U.S. consumers should expect CDMA handsets and adaptations of international models.

For more on the Nokia report:
- read this article from Electronista

Related:
Nokia previews iPhone-killer named Tube - FierceWireless

Alcatel-Lucent's forecast hurt by weak dollar

Wed, 30 Apr 2008 06:59:57 -0400

Alcatel-Lucent is prepping for a drop in full-year sales because at current exchange rates the weak U.S. dollar and potential cutbacks in customer spending look to lead to a downturn for the company. It expects sales to drop by 2 percent to 5 percent this year, but it hopes to still maintain or grow its market share. Alcatel-Lucent said it lost $282 million in its fifth straight quarterly loss. Revenues declined slightly to $6.02 billion. One analyst noted that everything in the company's report was negative except for its gross margins.

"While the long-term prospects for the industry are positive, the current macroeconomic environment remains uncertain, leading the company to continue to be prudent in its market assumptions," the company wrote in a statement.

For more on the quarter:
- check out this Alcatel-Lucent quarterly press release
- read this AP article

SPOTLIGHT: More on Nokia's U.S. strategy

Mon, 28 Apr 2008 06:59:52 -0400

Nokia's market share in North America slid from 20 percent two years ago to just 7 percent this year, according to a report from Strategy Analytics. BusinessWeek has the rundown on Nokia's plans to tackle the U.S. market with customized phones for carriers. Article

Leap: VZW, AT&T maybe shouldn't bid on D Block

Tue, 15 Apr 2008 06:59:56 -0400

Leap Wireless' SVP and general counsel Robert Irving testified today before the House Subcommittee on Telecommunications and the Internet about Leap's take on the outcome of the 700 MHz auction.

"We have been concerned in recent years with the ever-increasing consolidation of spectrum assets and market share into the hands of the nation's largest wireless carriers, and the consequences that this portends for Leap and other small and mid-sized carriers," Irving said, according to his prepared remarks.

Irving outlined a few lessons learned from the 700 MHz auction:

One disturbing trend in wireless: Two of the largest carriers increased their vast spectrum holdings thanks to the auction. Verizon Wireless and AT&T contributed $16.3 billion of the total $19.6 billion raised during the auction.
Meanwhile, Leap and Alltel won no licenses, while MetroPCS won one license.
The auction provided limited bidding opportunities for small and mid-sized carriers and little headway was made in bringing new entrants into the industry.
The creation of large geographic areas in the C Block made it difficult for smaller and mid-sized carriers to compete.
The complex public/private partnership framework for the D Block, especially the extremely stringent geographic build out requirements, made the spectrum slice highly unattractive.
The FCC should examine whether breaking the D Block into smaller segments makes better sense and whether AT&T or Verizon Wireless should be allowed to bid on it given the large swaths of 700 MHz spectrum those carriers already have.

For more on Irving's remarks:
- take a look at the entire testimony

Report: Telecom infrastructure market share

Fri, 11 Apr 2008 06:59:55 -0400

Technology Business Research released its breakdown of the telecom infrastructure market, which grew $70 billion since 2006. As the telecom equipment maker market's mergers have reached completion, competition between the big three: Ericsson, Alcatel-Lucent and Nokia Siemens has gotten tighter. Check out TBR's table for the market share of telecom infrastructure services worldwide:

For more on the report:
- read the full release

Nokia: Replacement sales to buoy earnings

Mon, 24 Mar 2008 07:59:57 -0400

Nokia went on the defensive after Sony Ericsson announced that its handset sales are slowing down and Texas Instruments said it expected 3G chipset sales to fall: The Finnish phone maker said that it expected the replacement handset market to boost its market share in 2008. Nokia said replacement sales would account for slightly over 70 percent of its volume in 2008, after accounting for just less than 70 percent in 2007. The company expected color screens, cameras, email applications and music players to help drive the market. Nokia noted that growth in China and APAC countries have boosted the falling sales in EMEA, North America and Latin America.

Also, InterDigital announced today that it was in talks with Nokia over settling a patent dispute over 3G technology. While Nokia confirmed that the parties were in talks, neither side would comment further.

For more on Nokia's expectations:
- read this article from Washington Post
- check out this AP article about InterDigital

Analyst: Dell to launch smartphone soon

Thu, 20 Mar 2008 07:59:57 -0400

Analysts are once again clamoring for Dell to launch a smartphone soon. Strategy Analytics' director of wireless device strategies Neil Mawston told MacWorld the development of smartphones would be a logical step for Dell to expand its presence in the mobile market. Mawston pointed out that Apple, HP and Toshiba are already in the business of smartphones and PDAs, so the competitive threat and market itself are just too big to ignore. While the rumor that claimed Dell would launch a Google Android-powered smartphone at Mobile World Congress last month never came to fruition, the company could still launch such a device or ink a deal with Microsoft for Windows Mobile. Mawston also noted that Dell needs to replace its Axim PDAs, which it killed off last year.

According to a recent report from ABI Research, one in three phones sold in 2013 will be a smartphone. Smartphones will increase from the 10 percent market share they have now to 31 percent market share in five years, according to the report.

For more on Dell's rumored smartphone plans:
- read this article from MacWorld

Sony Ericsson issues profit warning

Wed, 19 Mar 2008 07:59:56 -0400

Sony Ericsson, the joint venture between Japan's Sony and Sweden's Ericsson, issued a profit warning because of falling high-end phone sales thanks to certain component shortages. Consumers are spending less in developed countries because of a slowing U.S. economy. Sony Ericsson said it expects to ship 22 million devices during the first quarter with an average selling price of about $188.

"As discussed during our fourth quarter 2007 Media and Analyst Call, the market is proving to be challenging," said Sony Ericsson President Dick Komiyama. "This has been more pronounced in the mid- to high-end replacement sector of the market in Europe, where Sony Ericsson has stronger-than-average market share."

For more on Sony Ericsson's warning:
- read this report from the WSJ (sub. req.)

Related Article:
Sony Ericsson CEO admits "weak" U.S. presence Article

Mitsubishi Electric bails on mobile phone unit

Tue, 04 Mar 2008 06:59:54 -0500

Mitsubishi Electric announced plans to bail on its loss-making mobile phone unit, which supplies phones to Japanese carrier NTT DoCoMo. The company expects to book some $962 million in revenue from the unit for its current fiscal year, which ends in March. The move to pull out of the unit will result in a $164 million loss for the company, which it hopes to make up for through other reforms. According to a report from the AP, other phone makers in Japan are expected to pull out of the market, too. There are currently 17 phone makers vying for market share in the country.

For more on Mitsubishi's decision:
- read this article from the AP

Helio: Losses up, revenue up too

Fri, 29 Feb 2008 06:59:56 -0500

Mobile virtual network operator Helio continues to hemorrhage cash...but on the bright side, its 2007 revenues increased 264 percent over the previous year. In its annual report to the SEC, Internet service provider EarthLink, which launched Helio in conjunction with Korean mobile operator SK Telecom, notes Helio lost $327 million in 2007 against $171 million in revenue; a year ago, the MVNO posted losses of $192 million on $47 million of revenue, which combined with 2005 losses of $42 million means Helio has now posted total losses of $560 million in three years. Helio ended the fourth quarter with slightly more than 180,000 subscribers, a 28 percent increase over Q3 totals. But while revenue still exceeded Helio's $140-$170 million guidance, and losses fell shy of its $340 million to $360 million guidance, EarthLink admits in the SEC filing it "may not realize the benefits we sought from our investment in the Helio joint venture."

The EarthLink filing goes on to note "We have made $210 million of cash investments in Helio. The financing of Helio's operations has adversely affected our cash position. In addition, Helio will require additional funding in the future and Helio has incurred losses and we expect Helio to continue to incur losses. In addition, Helio may not be successful in implementing and marketing its wireless voice and data initiatives, and there can be no assurance that these initiatives will be commercially successful. We cannot assure you Helio will be able to achieve or maintain adequate market share or revenue or compete effectively." -Jason

For more on Helio's 2007 results:
- read this Silicon Alley Insider article

Related articles:
Helio gets Buzzd.
Sky Dayton resigns as Helio CEO.
SK Telecom pumps another $270M into Helio.

Dept. Homeland Security gets T-Mobile snoop rights

Thu, 21 Feb 2008 06:59:57 -0500

T-Mobile USA had to grant the Department of Homeland Security an electronic surveillance deal--like the ones it already has with the FBI and the Justice Department--in order to gain approval for its recent acquisition of SunCom. According to a report from BetaNews, the FCC was not concerned with T-Mobile and SunCom's market share overlapping, but the deal did concern some regulators because of T-Mobile USA's foreign ownership, which led to the surveillance deal.

When T-Mobile USA was created after VoiceStream acquired Omnipoint in 2000, former FCC chairman Harold Furchtgott-Roth wrote that he was concerned that "the FBI and Justice Department continue to use our licensing process to extract concessions from licensees in exchange for this agency's approval of the transfer."

For more on the deal:
- read this document from the FCC