Reports

Mobile phone sales will reach 1.28B in 2008

Sue Marek — Tue, 05 Aug 2008 11:07:08 -0400

Research firm Gartner says that worldwide mobile phone sales will top 1.28 billion units in 2008, an 11 percent increase over last year. Handset sales reached 294.3 million in first quarter 2008 and the analyst firm expects sales in the second quarter to be between 300 million and 305 million. For the third quarter, Gartner expects a slight increase in sales over second quarter but only slight because both Motorola and LG issued warnings about a sequential drop in sales.

Gartner predicts handset makers will rely more on emerging markets to reach their growth projections. The firm expects Asia-Pacific to have a 17.9 percent increase in mobile phone sales in 2008 reaching 472.5 million. Meanwhile, Western Europe will experience a 1.5 percent decline from last year to reach 188 million in sales. North America will have a decline of 5.3 percent to reach 185.7 million in sales.

Avian Securities analyst Matt Thornton concurs with Gartner. He believes that mobile phone sales will reach nearly 1.3 billion units in 2008 and average selling prices (ASP) for phones will decline 8 percent year-over-year as sales shift to higher growth emerging markets.

For more:
- see this press release

Related articles:
Handset sales slowing in U.S. amid worsening economy
Handset sales sluggish thanks to weak economy

Gartner: 3G laptops future must-have for business

Lynnette Luna — Fri, 30 May 2008 12:10:29 -0400

Laptops embedded with 3G are likely to become a must-have for the business world starting next year because new technologies and better pricing plans are making them more attractive, says research group Gartner. The firm said the high cost of hardware and expensive monthly charges have so far kept the enterprise from investing in 3G-enabled laptops, but that should begin changing at the end of this year, said Ken Dulaney, vice president with Gartner.

"Our standing recommendation against embedding wireless WAN (WWAN) cards in notebooks--except for applications with a clear return-on-investment justification--has been based on lack of global coverage, high costs and poor asset protection," Dulaney said. "However, new technologies and pricing due by the end of 2008 have the potential to eliminate the problems of embedded, wireless 3G notebook purchases."

Gartner says the advent of new chipsets that combine multiple technologies and frequency bands to offer better coverage would make 3G laptops a good proposition for the moderate to extensive traveler in 2009. In addition, 3G operators are beginning to see the value in moving beyond the standard two-year contracts to include daily and monthly rates, much like WiFi providers offer today. Operators are also considering plans for allowing international travelers to use local rates on a pay-per-day basis, Gartner said.

For more about the Gartner's views on 3G-enabled laptops:
- check out this TechWorld article

Related stories:
Qualcomm aims to replicate dominance in laptop market. See this 3G laptop story
Laptop makers look to Gobi to bridge 3G. Read this Gobi story

Handset sales slowing in U.S. amid worsening economy

Lynnette Luna — Tue, 20 May 2008 11:13:50 -0400

Good and bad news for the U.S. mobile wireless industry when it comes to the worsening economy. The bad news: Consumers' purchases of new mobile devices declined in the first quarter for the first time in many years. The good news: The decline tended to concentrate around customers using prepaid and among the middle class. The higher end market that features higher ARPU customers that heavily use the more sophisticated devices continued to grow.

The Wall Street Journal cites two new studies that indicate falling handset sales in the first quarter. Strategy Analytics reported a 5 percent decline in the quarter compared with the previous year, while NPD Group reported a 22-percent drop in the purchase of new devices in the first quarter. Also, Bernstein Research estimates that U.S. mobile operators added 23 percent fewer subscribers in the first quarter compared with the first quarter in 2007. The firm is anticipating that growth will continue to slow and said that the segment experiencing the most slowdown is new subscriptions for children under 12 and for "deeply sub prime users, and it's reasonable to think that in a weak economy, that both of these populations would be strapped," said analyst Craig Moffett. Prepaid MVNO Virgin Mobile is being squeezed by the economy.

However, NPD estimates that high-end devices made up 17 percent of all mobile-phone sales in the first quarter, in increase of 10 percentage points since the first quarter 2007.

To read more about the economy's impact on the U.S. mobile-phone market:
- check out this article from The Wall Street Journal (sub. req.)

Related articles:
- Virgin Mobile's growing troubles Editorial on Virgin Mobile's slowing net additions
- Virgin Mobile USA: Poor earnings economy's fault

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

Verizon Wireless to launch 3G PTT

Wed, 16 Apr 2008 06:59:58 -0400

Verizon Wireless is planning to launch a new, faster version of their push-to-talk service over its 3G network this summer, according to a report in the Wall Street Journal that cites the carrier's director of business marketing, Michael Willsey. The carrier has offered PTT for almost five years.

The news follows MetroPCS' launch of a PTT service that allows users to connect to subscribers on any network if they use a specific MetroPCS PTT phone. The service turns the phone of the user on the receiving end into a temporary walkie-talkie.

According to Gartner, there are 26 million subscribers to the most popular version of PTT, iDEN. Sprint Nextel counts 19 million of those subs as its own.

For more on the PTT trend:
- read this article about Verizon Wireless' 3G PTT

Report: Phone makers need to target diversity

Thu, 10 Apr 2008 06:59:55 -0400

According to a report from Gartner, the majority of mobile devices are designed by men for men in the West and aged between 20- and 64-years-old, however, that demographic makes up a mere 32 percent of the global population. The research firm also predicted that by 2015, people will customize 90 percent of the information, tools, and other resources they use so device makers should start targeting a diverse base of users from cultural, ethnic and gender perspectives.

For more on Gartner's advice:
- read this press release

India set to overtake U.S. as number 2

Mon, 24 Mar 2008 07:59:56 -0400

According to a report from India's regulatory body the Telecom Regulatory Authority announced that India will become the second largest mobile phone market after China. The U.S. currently holds the position as the market with the second largest number of subscribers. India counted 250.9 million wireless users at the end of February, while the U.S. counted 260.5 million users at that time. China counted 540.5 million users. Despite China's monstrous figure, India has it beat in terms of growth: India added about 8.53 million new subscribers during February, while the U.S. added 2 million new users.

For more on India's growth:
- read this article from Telecom Tiger

Related Articles:
India's Reliance looks overseas for WiMAX play Article
Vodafone on the slide in India Article

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

SPOTLIGHT: Report: Mobile phone sales hit 1.15B in 2007

Thu, 28 Feb 2008 06:59:52 -0500

According to a report from Gartner, sales of mobile phones totaled 1.15 billion in 2007. Article

Luxury MVNO Voce closes down

Wed, 06 Feb 2008 06:59:58 -0500

Late last week luxury MVNO Voce abruptly closed up shop without giving any warning to its subscribers. The Beverly Hills, Calif.-based Voce launched in 2006 and required subscribers to pay a $500 sign-up fee and $200 a month for unlimited minutes. Perks included a new high-end phone each year, unlimited use of a concierge service and an in-person visit from an assistant who walked new subscribers through new handset features. Last year, however, Voce eliminated its sign-up fee and lowered its monthly rate to $118 for 2,000 voice minutes and 5 megabytes of data, while users had to pay for handsets.

According to a report in the LA Times, Voce's subscribers noticed that the MVNO had charged them double their usual monthly fees.

For more on the MVNO:
- read this article from the LA Times

Report: Kuwaiti firm eyes Sprint, Clearwire

Wed, 06 Feb 2008 06:59:57 -0500

Newswires are reporting that Kuwaiti investment firm Investment Dar is mulling an $800 million stake in a U.S. telecom operator. A business development manager at the firm said it is "studying two telecom operator opportunities" and one of them is in the U.S. Analysts believe the company is eyeing either Sprint or Clearwire, but Sprint is the most likely target. An investment like this would require the approval of the U.S. Committee on Foreign Investment.

For more on the speculated deal:
- read this post from Barron's

SPOTLIGHT: Report: 1.1B phones sold in 2007

Fri, 25 Jan 2008 06:59:52 -0500

According to a recent report from Strategy Analytics, there were 1.1 billion mobile phones sold in 2007. Article

U.S. consumers want one m-payment account

Thu, 10 Jan 2008 06:59:54 -0500

According to a recent report from ABI Research, U.S. consumers are becoming more interested in using their mobile handsets for in-store payments using near-field communications (NFC), but most users prefer to have only one credit or debit account that is separate from others not used for NFC purchases. In a separate report, ABI also lowered its forecast for the value of the NFC market to $200 million, but noted it should reach an $820 million valuation over the next five years.

For more on the report:
- read this press release
- read this one on the forecast

Leap's impressive Q4: adds 152K net subs

Wed, 09 Jan 2008 06:59:56 -0500

Leap Wireless added an impressive 152,000 net new customers during the fourth quarter of last year. The carrier finished out the year with some 2.86 million customers and a quarterly churn rate of 4.2 percent. The metrics beat out expectations for Leap, which said it expected additions between 70,000 and 130,000 subscribers in December and a churn rate of between 4.5 percent and 4.7 percent.

"We are pleased with the company's end-of-year performance in adding new customers and reducing churn," said CEO Doug Hutcheson. "Strong customer uptake during the conclusion of the holiday buying season helped deliver results ahead of our expectations on these two metrics, demonstrating the strength of our business as we head into the new year."

For more on Leap's better than expected Q4:
- read this press release

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Leap sues T-Mobile USA Article
Leap maps out partnership with Google Article
Leap changes board of directors Article
Leap rejects unsolicited proposal from MetroPCS Article

Report: Mobile phones to dominate nav market

Fri, 04 Jan 2008 06:59:56 -0500

Mobile phone-based navigation is poised to dominate the GPS market, according to a new study issued by analysis firm Telematics Research Group. TRG reports that while portable navigation device makers like Garmin and TomTom remain worldwide market leaders, selling 30 million dedicated PNDs in 2007, handset makers like Nokia, Motorola, LG and Samsung are quickly gaining ground, moving about 20 million navigation-enabled phones last year. TRG forecasts that annual navigation-enabled phone sales will outstrip dedicated PND sales sometime in the next year, with the combined market reaching sales in excess of 220 million units by the end of 2012 and passing the 500 million-unit threshold by the end of 2015. "Dedicated PNDs are mobile devices optimized for navigation while mobile phones with navigation are optimized for communications, which gives them an advantage in the emerging new world order for navigation," said TRG principal analyst Dr. Egil Juliussen in a prepared statement. -Jason

For more on the TRG forecast:
- read this release

ALSO NOTED: Meraki funding; Human-powered mobile search; and much more...

Fri, 04 Jan 2008 06:59:50 -0500

> Mountain View-based free WiFi service start-up Meraki raised $20 million in a second round of VC funding. Article

> Trend: Human guides coming to mobile search services, like ChaCha. Article

> Gartner: Asian users most prolific texters. APAC region sent 1.5 trillion SMS last year. Article

And Finally... Time to revisit the possibility of an Echostar-AT&T merger? Article (WSJ sub. req.)

Palm to lay off hundreds?

Thu, 13 Dec 2007 06:59:57 -0500

According to a report from PalmInfoCenter, Palm is beginning to inform employees of job cuts, which could total in the "hundreds." A Palm representative confirmed that the company was planning layoffs, but would not disclose how many employees would lose their jobs. The company had a workforce of 1,247 at the end of May. Palm recently announced that its quarterly revenue would be below expectations because it could not get a new product qualified for release. Rumor had it that the new device was a Treo for Verizon Wireless.

For more on Palm's woes:
- read this article from CNET

Analyst: Sprint and Clearwire to reunite?

Wed, 28 Nov 2007 06:59:54 -0500

ABI analyst Phil Solis says Sprint is under increasing financial pressure because its subscribers are leaving the carrier for rivals AT&T, T-Mobile USA and Verizon Wireless, but that doesn't mean Sprint should abandon its WiMAX plans.

"Many say Sprint should focus on its core business rather than push forward with WiMAX, but this idea is nonsensical," Solis wrote in a research note. "It's ironic," continued Solis, "because Sprint's investors seem to be pressuring the company to slow down if not halt completely its WiMAX deployments; meanwhile this could be the best avenue to turn the company around."

One of the key turning points for Sprint's investors' interest in WiMAX was when Clearwire and Sprint called off their plans to pool their WiMAX networks. However, ABI points out that while many believed that the contract was severed, the two companies actually never formed an official contract. A break-up never occurred and a partnership is still possible. Perhaps one just like the original.

For more on Sprint's WiMAX plans:
- check out this press release

Report: Top selling phones in US: RAZR, iPhone

Wed, 21 Nov 2007 06:59:54 -0500

Strategy Analytics posted its list of the top selling handsets in the U.S. market, which was dominated by Motorola and LG. The two handset makers had seven of the top ten selling phones:

Motorola RAZR V3

Motorola RAZR V3m

LG VX8300

Apple iPhone

LG Chocolate VX8550/8500

Motorola MOTOKRZR K1m

Samsung SGH-A707

LG VX5300

Sanyo Katana II

Motorola V323i/V325i

"Overall the average retail price paid for these top ten handsets was 19 percent higher than the market average; and we continue to see strong upgrade dynamics continue to supplement U.S. market growth," stated Barry Gilbert, Vice President of the ProductTRAX services at Strategy Analytics. "Motorola, however, despite selling four of the top ten models in Q3, realized an ASP of only $80, nearly 40 percent lower than the group average."

For more on the report:
- check out this article from Cellular News

U.N. to open up television spectrum worldwide

Fri, 16 Nov 2007 06:59:57 -0500

The U.N. decided to give carriers access to bandwidth reserved for terrestrial television broadcasts, which could pave the way for a truly converging 4G platform in the world in 2015. The U.S. was one of the lead supporters of the plan as it claimed that a global agreement on spectrum use was better than letting each country and region decide which frequency to use. While the U.S. subscriber population will gain access to some of this spectrum in 2009, the rest of world will have to wait an additional 6 years in some cases.

Industry analysts estimate that these networks can be rolled out for half of the cost of using higher frequencies, such as the 2,300 to 2,400 megahertz range that is also available for such services in some regions.

For more on the U.N. spectrum plans:
- read this article

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ABI entertains Google as operator Article
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AT&T buys $2.5B worth of spectrum Article
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