Smartphones have steadily been gaining popularity as the consumers’ preferred choice for a mobile device. According to reports, Andy Rubin, Senior Vice President (Mobile), Google, has reportedly revealed that over 3.7 million Android devices were activated during the Christmas weekend. Further, sources claim that the combined activation of Apple and Android devices have doubled as compared to the last year.

Industry analysts believe that a major reason for the success is the availability of affordable smartphones in the market. Also with Apple offering its earlier versions of the iPhone at discounted prices, the number of people using these devices has gone up considerably. Further, a large amount of mobile operators across the globe have introduced special data tariff plans keeping such devices in mind which have helped in the adoption of these handsets.

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Finalnd based handset maker, Nokia is hopeful of re-establishing itself in the U.S. by collaborating with mobile operator T-Mobile for the sale of its Lumia 710 smartphone. According to company reports, the smartphone powered by Microsoft’s Windows software is expected to be sold for US$ 50.

With the smartphone market being largely dominated by Apple’s iPhones and Google Android powered smatphones, Nokia hopes to capture some of the market share through its low-priced smartphone. The company reportedly aims to position the Lumia 710 as the affordable smartphone for all consumers. Further, the company has hinted that users will also be provided with unlimited calls to a special concierge line which would help them set up as well as adapt the handset to suit their needs.

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BlackBerry maker, Research In Motion (RIM) has reportedly come out with a new software solution for its business customers which will enable them to manage different devices running on Apple’s iOS and Google’s Android along with BlackBerry devices.

According to reports, Alan Panezic, vice president (platform product management), RIM, has said that the BlackBerry Mobile Fusion, as the device-management software is known, will be available in the first quarter and can run alongside or replace the BlackBerry Enterprise Server networks, RIM now operates for companies and government agencies. He added that this is a really, really important strategic move and that RIM is conducting trials with financial- services, manufacturing and pharmaceutical companies.

However, as per sources, industry analysts believe that while this is a very good solution for the corporate houses, where the BlackBerry is rapidly being replaced by iPhones and Android powered smartphones, to manage their services from a single web console; the solution may still not address RIM’s primary concern of declining sale volumes.

 

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Canada based BlackBerry manufacturer, Research In Motion (RIM), received yet another blow as industry analysts have reportedly cut their profit estimates for the company on the basis of increase in competition and problems regarding the BlackBerry Bold device.

According to reports, analysts have lowered their price targets on the stock citing lesser sales and reduced earnings projections. The news has caused RIM’s stock to fall 6.1 percent to $17.09. As per sources, the BlackBerry Bold introduced in September, is RIM’s main competitor against Apple’s iPhone and Android smartphones.

Further, while there have been reports suggesting that users have been facing problems with the BlackBerry Bold device wherein some of the users haven’t been able to turn on their device, analysts have also said that low priced and affordable smartphones, powered by Google’s Android software, have been causing a steady decline in RIM’s revenues.

 

Vodafone Group PLC, a global telecom leader, has reportedly raised its full year profit forecast from US$ 18.3 billion to $18.9 billion, on account of increased sales in India and new internet based tariff plans. According to reports, England based Vodafone aims to improve data sales from smartphones including Apple’s iPhone and Google’s Android based smartphones in an attempt to counter its declining revenues in Europe.

As per sources, Vittori Colao, CEO, Vodafone has said that they have been gaining market share in most of their major markets and are achieving sustained growth in the key areas of data, emerging markets and enterprise. Further, reports suggest that Vodafone has shifted its focus towards tiered pricing for data billing with a larger emphasis on consumption-based tariffs.

According to industry reports, Vodafone’s sales for the first half rose by 4.1 percent to US$ 37.7 billion as compared to the estimated $ 37.5 billion. Further, it has been reported that while service revenue has been high in Turkey and India, at 28 percent and 18 percent respectively, Spain and Italy saw a decline in the same amounting to 9.3 percent and 3 percent respectively.  Consequently, it has been reported that Vodafone plans to reduce its tariffs in Spain in order to counter the competition.

 

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According to industry reports, Apple iPhone is leading the smartphone industry, accounting for more than half (52 percent) of the industry’s total profits in the third quarter. Samsung had raced ahead of Apple during the second quarter but found itself in second place with the launch of Apple’s new iPhone 4S. Further, as per reports, during the third quarter of 2011, Apple and Samsung were responsible for as much as 81 percent of the revenues in the smartphone market. The remaining major manufacturers such as RIM, Sony, Motorola, Nokia, LG, HTC and Ericsson, all fell under 10 percent of the profits.

When compared to a few years ago, sources reveal that Nokia was dominating the smartphone industry with over 67 percent of the profits four years ago as compared to Apple’s profits of only 4 percent. Industry analysts believe that Apple’s position is only going to get stronger in the fourth quarter and may take as much as 60 percent of the industry profits. According to sources, Apple is expected to sell 29 million iPhones by December 2011 and over 100 million iPhones by the end of next year.

 

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C Spire, earlier known as Cellular South, will become the fourth operator in the United States to offer the Apple iPhone. The regional operator with a subscriber base of approximately one million customers across four states has reportedly said that the iPhone will be offered largely to postpaid subscribers as compared to prepaid customers.

Till last year, the iPhone was only available on AT&T and Verizon networks in the United States, giving the two operators a major competitive edge over the other carriers, as many users shifted changed networks when they bought an iPhone. This year, Apple added Sprint, the third largest carrier in the U.S., to the list of operators offering the iPhone. As per reports, T-Mobile, a unit of Deutshe Telekom, had spoken to Apple in September, expressing interest in selling the iPhone.

 

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Sprint, the third largest wireless carrier in the US, has reportedly said that it may have to raise additional finance so as to be able to meet the US$ 10 billion capital expenditure required for a network upgrade and launch of 4G services.  Industry analysts believe that Sprint will be required to raise as much $ 5 billion over the next couple of years and may have to issue new equity thereby diluting the existing shareholders.

This news caused discontent amongst many investors resulting in Sprint’s shares falling down 7.9 percent to close at $2.22, falling almost two-thirds from its year-high in June. As per reports, Joseph Euteneuer, Chief Financial Officer, Sprint, said that the company could continue to finance itself through the debt market. Sprint’s debt portfolio includes a $2.25 billion debt maturing in March 2012, $1.8 billion maturing in 2013 and $1.35 billion maturing in 2014.

As per sources, industry analysts feel that either option of raising finance can cause problems for Sprint. While financing through debt could raise questions about their solvency, an additional issuance of shares could worsen the dilution causing share price to fall further.

Apart from the capital expenditure, Sprint will also be required to pay Apple short term subsidies as it will be offering its customers the iPhone for the first time. Sprint is the only operator that will offer the iPhone 4S along with an unlimited data package.

 

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A new analytical report has unearthed that the Asia-Pacific smartphone market is expected to double to 200 million by 2016, with Google’s Android operating system the leading platform.

According to the report, the growing popularity of the hand held devices, which allows users to surf the Internet and access emails, will mean they will account for almost a third of all mobiles in the region in that time. Despite the continuing success of Apple’s iPhone, the Android platform will be by far the most used system because it is used in so many devices.

The report further adds that smartphones, which numbered 100 million in the region last year, are expected to grow at a compound annual rate of 12.5% between 2010 and 2016 and make up about 32% of all mobiles in Asia-Pacific.

It said that simultaneously, global sales are expected to hit 653 million, with Asia-Pacific accounting for 30.7% of the total. More than 288 million smartphone were sold worldwide in 2010.

It is also expected that the smartphone market will see significant growth over the next five years, once again outperforming the wider mobile phone market.

Imperium Holdings has filed a lawsuit against Apple, LG, RIM, Nokia, Motorola, Sony Ericsson and Kyocera, claiming that they all have infringed five patents related to the cameras and imaging equipment found in phones and other mobile devices.

The patents in question are US Patent Numbers 6271884, 6838651, 6838715, 7,109,535 and 7064768, all of which relate to pixel and imager technology for smartphones and other devices. Apple’s iPhone is named as one of the infringing products.

The five patents deal in:

Patent 6,271,884: Image flicker reduction with fluorescent lighting.

Patent 6,838,651: High sensitivity snap shot CMOS image sensor.

Patent 6,838,715: CMOS image sensor arrangement with reduced pixel light shadowing.
Patent 7,064,768: Bad pixel correction while preserving features.
Patent 7,109,535: Semiconductor device for isolating a photodiode to reduce junction leakage.

As per reports, the mix of patents are actually owned by two different companies: 6,271,884 deals with image flicker reduction, owned by Conexant System of Newport Beach while the other four have the assignee listed as ESS Technology, based in Fremont, California.

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