19% of All Mobile Phones Shipped in 2Q Were Smartphones
Smartphones have become the first choice for the new generation people. According to a research by ABI, smartphones made up 19% of all handsets shipped in the second quarter; that represents a 12% increase over the first quarter, and a 50% jump compared to the same quarter in 2009.
According to senior analyst Michael Morgan, these remarkable growth rates are being driven by falling (often heavily subsidized) handset prices. Cost is no longer much of an obstacle: One of the key remaining barriers to smartphone adoption in subsidized markets is now the cost of the data plan rather than the cost of the handset. 10% would normally be considered very good QoQ growth, but in the smartphone segment that would now be considered lackluster. The battle for supremacy is now escalating at a feverish pitch. The market is exploding but there are so many players and so many operating systems that the question becomes, Can this market structure be sustained? Most observers say no: it needs to boil down to three or perhaps four key operating systems.
Additionally, the huge numbers of smartphones now connected in the US – especially iOS and Android models – are creating network capacity concerns that are sucking the value out of the mobile ecosystem.
Apple shipped about 8.4 million iPhones in Q2, of which about 3 million were iPhone 4 models that only launched a couple of weeks before the end of the quarter. Q3 results were even more impressive, posting a 68% quarter-over-quarter growth.
HTC also did very well, with shipments growing from 3.3 million to 5.3 million units the by the start of the third quarter, and its improvement continued through Q3.
As per Morgan, RIM recently launched its latest OS but, RIM hasn’t seen the full benefit of its OS launch yet, with QoQ growth moving only from 10.5 to 11.2 million shipments.
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Sony Ericsson records Q3 profit on smartphone sales
As per the recent reports, Sony Ericsson recorded high net profit in the third quarter, owing to the success of its smartphones as well as new product launches and cost cuts.
Lower sales volumes, however, disappointed market watchers who had hoped for a rise. The L.M. Ericsson and Sony Corp. joint venture shipped 10.4 million units in the July-September period, down 26%year-on-year and 5 % from the quarter before.
Shares in Ericsson dropped 1.6% to US$10.81 in early Stockholm trading.
Sony Ericsson recorded the profit of $70 million higher than last year, Revenues fell slightly to euro1.6 billion from euro1.62 billion, as a 34% jump in the average selling price to euro154 could not make up for the lower shipping volumes. Selling prices were down 4% compared with the second quarter.
According to CEO Bert Nordberg, company’s overall performance is stabilizing. The company’s strategy to focus on the smartphone segment is succeeding and smartphones now comprise more than 50% of the total sales. The company had launched its Android-based Xperia models in new markets, including both China and the U.S. in the quarter. It is the company’s ambition to become the global number one handset provider on the Android platform.
According to Sony Ericsson, its unit base market share remained flat compared with the second quarter — at around four percent — while the value market share is at around 6%.
The group also kept unchanged its forecast for units in the global handset market for 2010, saying it expects slight growth.
According to Helena Nordman-Knutson, an analyst with Ohman Fondkommision in Stockholm, the report was worse-than-expected, with the volumes being the main disappointment. The competition out there is extremely tough right now and you have to have new phones all the time, pointing to launches by Samsung as well as Apple Inc.’s new iPhone 4.
Vodafone, O2 to sell iPhone 4 in Germany
O2 and Vodafone have decided to offer the iPhone 4 to their customers in Germany. The announcements signal the end of exclusivity for Deutsche Telekom’s T-Mobile unit, which has been the sole German iPhone carrier since its launch in the country in 2007.
According to reports, O2 and Vodafone will begin sales of the iPhone within the next two weeks, widening the retail-distribution base for the handset ahead of the holiday shopping season.
Neither O2 nor Vodafone have yet provided details on their iPhone tariffs; however, T-Mobile said that it will soon terminate a rate plan designed for iPhone users, and will instead offer all smartphone users in Germany lower rates or more value for the money.
The new pricing structure, which will come into action on 3 November, will apply to all the customers who have ordered an iPhone and will receive it after that date. However, existing iPhone customers will have to wait for the end of their contract before they can take advantage of the new prices.
AT&T Increases Smartphone Early Upgrade fees (USA)
If you are an AT&T customer and planning to upgrade your AT&T smartphone before your two-year contract be ready to pay extra as the company has increased upgrade pricing options. The carrier has increased its early upgrade fee from US$75 to US$200.
According to reports, AT&T has raised its smartphone early upgrade fee to US$200 on top of the new two-year contract price. Before October 3, when the new policy went into effect, it was US$75 to upgrade your smartphone before the 18-month mark in a two-year contract.
According to the company, the change will not be applicable to Apple’s iPhone or basic and quick-messaging phones. When Apple released the iPhone 4, the existing users who are using their phones for less than 12 months will have to pay US$100 more to get the upgraded smartphone. But according to Apple chief Steve Jobs, AT&T would subsidize iPhone customers upgrading to the iPhone 4 up to six months earlier than their current upgrade date.
An AT&T spokeswoman confirmed that the notice posted on BGR was legitimate.
AT&T pointed to the BlackBerry Torch, which costs US$199.99 with a two-year contract, is now available at US$399.99 for customers who agree to early upgrades. The no-commitment price is US$499.99, so a customer will save US$100 providing they don’t mind adding more time onto their contract.
FCC Chairman Julius Genachowski will appear at the Center for American Progress in D.C. on Oct. 13 to discuss the steps the commission is taking to avoid bill shock and unveil the findings of a new white paper on the topic.
Vodafone launches iPhone 4 in Malta
Vodafone has launched the iPhone 4 in Malta today. Vodafone will propose customers in Malta a range of tariff plans customized specially for iPhone customers.
According to the company, the iPhone 4 features FaceTime, which makes video-calling a reality, and Apple’s new Retina display, the highest resolution display ever built into a phone, resulting in super crisp text, images and video. It also features 5 megapixel camera with LED flash, HD video recording, Apple’s A4 processor, a 3-axis gyro and up to 40% longer talk time, in a beautiful all-new design of glass and stainless steel that is the thinnest smartphone in the world.
The iPhone 4 also includes iOS 4, the newest version of the world’s most advanced mobile operating system, which covers over 100 new features.
iPhone 4 Hardware Configuration Leaked by Foxconn?
Chinese technology sites have published what seems to be the hardware configuration of Apple’s newest version of the iPhone. Some people are also calling it the iPhone HD.
According to the sites that revealed the news, the new iPhone will have a new generation of touch display, a professional IPS / FSS LCD screen with a resolution of 960 x 640 pixels (the actual iPhone models have a resolution of 320—480 pixels) that will be much thinner (about 33% thinner), allowing a much longer battery life, and a much more improved screen display that will improve the user experience.
Battery life will also be improved by the 19% larger battery that will be included in the new version of iPhone. Also, the device’s performance will be improved by the 512 megabytes of Samsung memory used in order to make the device work smoother.
Other sources say that the new iPhone 4 will have a new camera with HD recording capability and flash (not Adobe Flash), a frontal camera that will allow video conferencing and probably over 32Gb of storage space.
The source at Foxconn said that the company is going to manufacture 24 million units of the next generation iPhone. The hardware configuration is not confirmed how could it be only hours before Steve Jobs’ keynote at the WWDC 2010.
Editor’s note: Please wait for final confirmations until later this evening.
