Apple bags first place as top smartphone vendor (USA)
Apple Inc. has proved once again that it is still the world’s best vendor in terms of smartphones. Despite of the fact that Android phones are the new flavor of the season, Apple managed to take a decent lead with its iOS platform. It was the fourth quarter sales which changed the whole market scenario for Apple.
Apple Inc. overtook Samsung Electronics Co. and LG Electronics Co. to become the top vendor of smartphones’ worldwide. Latter one managed to get a fifth position in the list behind ZTE Corp. As per market estimates, Apple sold 35.5 million smartphones to consumers in comparison to Samsung’s 34 million.
As per sources, the key reason behind the success of Apple was the increased sale of iPhone 4S and fragmentation of Android phones. Some of the credit for increase in the sale of Apple devices can be credited to its holiday sales as well.
The Android market diminished for vendors like Sony Ericsson, LG Electronics and HTC, however, new players in the market like ZTE got a place in the last few names. According to sources, Nokia trailed behind in its competition with Apple because of lack of innovation competitive with Apple’s devices. Third and fourth position in the vendor list was acquired by Nokia’s Symbian and Research in Motion (RIM) respectively.
ZTE may invest US$ 314 million in support of China Unicom’s e-book service (China)
China based mobile phone maker, ZTE Corp., is reportedly planning to invest around US$ 314 million in an attempt to support China Unicom Ltd.’s e-book service. According to reports, Yu Yifang, Vice President, ZTE has said that the internet center in Changsha will be expanded over the next three years to include over 1,000 workers from the current strength of 300. He added the center will support the WoReading service that was started by China Unicom in April.
As per sources, Yu said that the WoReading service offered by China Unicom currently accounts for about 21.5 million users, and allows users to download books, magazines as well as audio books on their mobile phones. Yu further added that China Unicom was among ZTE’s first computing services customers, asking the company in November 2010 to set up an online store for mobile applications called the WoStore, which has registered about 60 million downloads in its first year.
ZTE Corp identifies revenue potential in offering computing services to carriers (China)
According to reports, Shi Lirong, President, ZTE Corp, has said that there is big potential in offering customer services to mobile-phone companies. He said that the company has tie-ups with telecom operators China Mobile Ltd and China Unicom Ltd for a virtual office, with as many as 8 million users for its unified communication systems.
As per sources, Shi added that selling computer services will give ZTE a new source of revenue from existing network-equipment customers who seek ways to generate more sales from the pipes that carry phone calls and data. Further, he believes that cloud computing could account for one-third of the Shenzhen- based company’s sales within three to five years.
Industry analysts claim that ZTE has its work cut out for itself in order for it to be considered globally competitive with other players such as Huawei Technologies Co. and Cisco Systems Inc.
USA expected to become ZTE Corp’s biggest market by 2015 (China, USA)
Chinese mobile-phone equipment maker, ZTE Corp., has reportedly said that the U.S. market will overtake domestic sales, to become its biggest market for handsets and tablet computers by 2015 on account of the increasing demand for cheaper devices. According to reports, ZTE Executive Vice President, He Shiyou said that as at September 2011, China accounted for 35 percent of ZTE’s sales whereas USA accounted for only 10 percent of the same. Further, Mr. Shiyou has reportedly said that the company projects the US mobile device revenue growth to go up to more than 50 percent in the next three years.
According to sources Mr. Shiyou has reportedly said that ZTE is relying on mobile devices to expand in the U.S., where selling network infrastructure has become increasingly complicated because of politics. He added that the mobile-phone market is easier to enter, and their growth in the U.S. is important for them to improve their brand awareness and position globally.
However, industry analysts claim that most of ZTE’s products largely include low or middle end devices which are better sold in developing countries like China and Africa, and need to update their products to succeed in the US market.
NSN appoints Marco Schroter as new CFO
Nokia Siemens Networks has named Marco Schroter as its new financial chief, succeeding Luca Maestri, who will join Xerox Corp. The appointment will be effective from March 14.
Schroter, a 47-year-old German, was previously chief financial officer at logistics company Schenker AG and at German semiconductor maker Infineon Technologies AG.
Nokia Siemens Networks, a joint venture between German conglomerate Siemens and Finnish mobile phone maker Nokia Corp. is restructuring amid ongoing price pressure from rivals, including Chinese vendors such as Huawei Technologies Co. and ZTE Corp.
According to the company’s CEO Rajeev Suri, Marco has a strong track record of disciplined financial management and helping deliver growth and shareholder value. As the company continues their turnaround, he is confident that he has the right skills and experience to help take Nokia Siemens Networks to the next level of performance.
Apple and Google to bid for Nortel LTE patents
Apple and Google are reported to be bidding for Nortel’s LTE patents.
According to reports, Nortel expects to select an initial bidder (from at least five interested parties) within three weeks. The deal is expected to be worth around US$1 billion. Apple and Google are also in the mix of buyers, as are Huawei Technologies Co. and ZTE Corp., two Chinese telecom-equipment makers.
EU expects major Chinese govt support for Huawei, ZTE
If reports are to be believed, the European Commission believes Huawei Technologies Co. and ZTE Corp., China’s largest telecommunications equipment makers, benefit from massive credit lines from Chinese state-owned banks and other significant government support.
The findings are likely to fuel further debate regarding the treatment of the large subsidies that–according to western governments and companies–Chinese businesses receive from the Chinese government. Western trade experts state that Huawei, which has rapidly grown to become the world’s No.2 telecommunications equipment maker, is a compelling example of a Chinese company that has been nurtured to global dominance using such subsidies.
The commission document, circulated to European Union national governments this week, explains that the preliminary results of commission investigations into unfair Chinese trade practises alleged by Option NV, a small Belgian maker of wireless modems. The commission in the document proposes to close the investigations without finishing them, because Option withdrew its complaints in October.
The document concludes that nevertheless, several important issues have come to light which remain unanswered by the major exporting producers of this product.
The major European Union producers of telecommunications equipment–Telefon AB L.M. Ericsson, Nokia Siemens Networks and Alcatel-Lucent–have seen their margins squeezed by stiff competition from Huawei and ZTE. Their rapid growth has prompted discussion among western firms that they are probably benefiting from extensive Chinese government support.
Over the last five years Option saw its share of the EU wireless modem market nearly disappear due to competition from Huawei and ZTE, which now control almost the entire European market.
Wireless modems, which connect computers to wireless Internet networks, are a relatively small business for Huawei and ZTE. The more important market is large network equipment such as Internet base stations for mobile networks–where the two Chinese firms compete with Ericsson, Nokia Siemens Networks and Alcatel Lucent.
The subsidies in question appear to be helping all parts of the Chinese firms’ business.
As per the document, the commission had the opportunity to investigate ZTE more thoroughly than Huawei before stopping the investigations. ZTE states it has access to credit lines of an enormous magnitude relative to its annual sales.
FTTH in plans for Kenya’s Jamii Telecom
Jamii Telecom of Kenya has reportedly signed a $14.8 million deal with ZTE Corp. to connect 100,000 homes with a fiber to the home (FTTH) network. Jamii asserts it will be the first Internet service provider (ISP) in Kenya to deploy an FTTH network.
According to reports, the firm will target households in Karen, Lavington, Parklands, Kilimani, Kileleshwa, Lang’ata, South B, Nyayo Estate Embakasi, Gigiri, and Runda in Nairobi in the first phase. Jamii Telecom subsequently will connect Kisumu, Nakuru, Mombasa, Eldoret, and Nyeri in the second and the third phases, which are to be carried out in the next two years.
