‘Inferior products’ to blame for weak HTC sales in Q4, Citigroup says

By on November 25, 2011 at 1:55 PM.

‘Inferior products’ to blame for weak HTC sales in Q4, Citigroup says

HTC cut its fourth-quarter guidance for the second time earlier this week, sending shares of the company’s stock to their lowest point in more than a year. The Taiwan-based smartphone vendor cut revenue estimates by roughly 23% for the fourth quarter as steep competition from Samsung, Apple and other companies will seemingly make HTC’s run at the top short-lived. But pent up demand for a new iPhone and Samsung’s ongoing charge are only half of the equation according to two Citigroup analysts. HTC’s weak fourth quarter is “driven more by inferior product than by macro reasons,” analysts Kevin Chang and Jonathan Gu wrote in a research note earlier this week according to Bloomberg. “We are most surprised by the lack of visibility and by how fast things deteriorate in the smartphone business.” Chang and Gu cut their price target on HTC stock to NT$463, dropping their earlier Buy rating to Neutral. More →

No Comments

HTC cuts forecast on competition from Apple and Samsung, reevaluates S3 acquisition

By on November 23, 2011 at 11:00 AM.

HTC cuts forecast on competition from Apple and Samsung, reevaluates S3 acquisition

Leading smartphone vendor HTC on Wednesday trimmed its fourth-quarter revenue forecast by roughly 23% as stiff competition from Samsung and Apple has seeming slowed sales. The Taiwan-based company became the No.1 smartphone vendor in the U.S. by shipment volume last quarter, but a six-month string of record revenue came to an end in October following the release of Apple’s highly anticipated iPhone 4S. In light of the new iPhone and Samsung’s recent success in the smartphone space, HTC lowered its fourth-quarter revenue forecast to NT$104 billion from its earlier guidance of between NT$125 billion and NT$135 billion. Unless things pick up, HTC’s sales will decline sequentially for the first time in two years, Bloomberg reports. HTC said it will also reevaluate its $300 million acquisition of S3 Graphics following news that it lost a patent-infringement case against Apple earlier this week. More →

No Comments

ABI: Global LTE connections to approach 80 million in 2013

By on October 25, 2011 at 7:25 AM.

ABI: Global LTE connections to approach 80 million in 2013

LTE networks in the United States are expanding at a remarkable pace — after less than a year, the U.S. is already the global 4G LTE leader by subscription volume — and global LTE growth is expected to remain strong in the coming years. Market research and intelligence firm ABI Research last week said that it estimates worldwide LTE connections will reach nearly 80 million by the end of 2013. “We are expecting to see more LTE networks lighting up in the next year or two, but operators are now taking a quieter approach when it comes to deployment,” said ABI analyst Fei Feng Seet in a statement. Read on for more. More →

3 Comments

Windows Phone will be No. 2 smartphone OS by 2015 according to Gartner, IDC

By on September 2, 2011 at 10:30 PM.

Windows Phone will be No. 2 smartphone OS by 2015 according to Gartner, IDC

According to research reports from Gartner and IDC, Microsoft’s Windows Phone operating system will grab about 20% of the smartphone market by 2015, enough to propel the OS past Apple’s iOS platform to take the No. 2 spot globally. Research firm Gartner believes Android will have a 49% market share in 2015, followed by Windows Phone at 19.5%, and Apple’s iOS growth will slow so much that it will only maintain a 17% share. IDC believes Windows Phone will have a 20.3 percent share in 2015. During the IFA trade show in Berlin on Friday, Windows Phone marketing head Achim Berg told Bloomberg those Windows Phone growth estimates are conservative. “This is a completely new platform, it takes time,” Berg said. “It took time with Android, it took time with Apple. We have to show that we’re very capable and that we have the fastest and easiest phone.” Gartner suggests Windows Phone’s growth is expected to surge thanks to help from big-name manufacturers such as HTC. Read on for more, including a statement from HTC’s president of Europe, the Middle East and Africa. More →

134 Comments

RBC raises Nokia outlook for Q3: 'Not as dire as feared'

By on August 26, 2011 at 3:31 PM.

RBC raises Nokia outlook for Q3: 'Not as dire as feared'

Nokia’s situation may not be quite as “dire” as initially anticipated according to RBC Capital Markets analyst Mark Sue. Despite Nokia’s rough second-quarter earnings, which were called “clearly disappointing” by Nokia CEO Stephen Elop, Sue sees Nokia in a better position than most. In a note to investors on Friday, the analyst reiterated his Outperform rating on Nokia stock and set a price target of $9. Sue increased his third-quarter unit shipment estimate to 100 million devices from his earlier estimate of 89 million, noting that sales of Nokia’s Symbian devices will likely not drop off as rapidly as had been expected. “Nokia may be seeing better trends for its dual-SIM devices and less of a decline in its traditional Symbian devices than originally expected,” Sue wrote. “Feedback on Nokia’s new Windows device may be encouraging and we expect Nokia to launch on schedule before the holiday season.” The analyst expects Nokia to announce its first Windows Phone handset, which he says will be based on the N9, at its annual Nokia World show in late October.

6 Comments

IHS ups tablet forecast, still sees Apple's iPad share sinking through 2015

By on August 24, 2011 at 5:30 PM.

IHS ups tablet forecast, still sees Apple's iPad share sinking through 2015

Market research firm IHS iSuppli has revised its global five-year tablet shipment forecast, which now estimates that 60 million tablets will be shipped this year and 275.3 units will ship in 2015. IHS had previously estimated that 262.1 tablets would ship in 2015. Most of the firm’s changes revolve around increased market share estimates for Apple’s iPad, though IHS still sees Apple’s share of the market sinking fairly quickly through 2015. The iPad is now expected to account for 44.2 million of the 60 million tablets that will ship this year, up from IHS’s previous estimate of 43.7 million units. Apple’s market share will drop to 74% in 2011 from approximately 85% in 2010, and it will fall to 43.6% in 2015. IHS’s earlier estimates places Apple’s share of global tablet shipments at 64% in 2011 and just 32% in 2015. “All the momentum in the media tablet market is with Apple right now,” noted Rhoda Alexander, senior manager covering tablet and monitor research at IHS. “The competition can’t seem to field a product with the right combination of hardware, marketing, applications and content to match up with the iPad. Furthermore, Apple’s patent litigation is serving to slow or complicate competitors’ entry into some key regional markets. With Apple lapping its competitors, many of whom are still struggling to get out of the starting gate, this remains a one-horse race.” IHS’s full press release follows below. More →

17 Comments

Qualcomm chip shipment forecast lower than expected, Europe to blame

By on July 22, 2011 at 6:30 AM.

Qualcomm chip shipment forecast lower than expected, Europe to blame

Qualcomm said it expects to ship between 120 million and 125 million chips during the quarter ending in September, a figure that is lower than the 130 million units MLM Partners LLC analyst Tero Kuittinen expected the company to move. The lower projection hit Qualcomm in late trading on Tuesday when its stock price fell 3.8%. Qualcomm blamed the lower than expected forecast on a weak European economy and said that consumers there aren’t buying new phones as quickly. “Chip units for autumn are light,” Qualcomm chief financial officer Bill Keitel said during a conference call. “The blame likely lies in Europe. European inventory correction now seems to be a fact instead of a theory. We reduced a bit our forecast for how many new CDMA-based units would sell into Europe. The situation demands that we still be cautious.” The company also noted that it hopes to begin working with manufacturers to build its Snapdragon processor into tablets. That chip is mostly used in smartphones now and manufacturers such as Samsung and Motorola have instead used NVIDIA’s dual-core Tegra 2 chip to power Android tablets. More →

1 Comment

Tablet shipments fell by 28% in Q1, full-year forecast still up on iPad demand, IDC says

By on July 12, 2011 at 6:30 AM.

Tablet shipments fell by 28% in Q1, full-year forecast still up on iPad demand, IDC says

Tablet shipments following the 2010 holiday season dropped by more than a quarter according to market watcher IDC, but the firm still raised its full-year forecast in its latest Worldwide Quarterly Media Tablet and eReader Tracker report. First-quarter 2011 tablet shipments were down by 28% sequentially according to IDC, due to iPad shipments that were “well below expectations.” Yet the firm has high hopes for Apple’s iPad 2 tablet in 2011, and it raised its full-year shipment estimates to 53.5 million units from 50.4 million units as a result. Apple isn’t the only company finding success with tablets, however, as Android tablets were up 8.2 points sequentially to 34% of total shipments in the first quarter according to IDC. “Like the PC market, Media Tablets had a bit of a challenging quarter in Q1, as concerns about general macroeconomic issues and the post-holiday letdown took a toll on demand,” said IDC’s VP of Clients and Displays Bob O’Donnell in a statement. “We expect the rest of the year to be much stronger, but we believe vendors who continue to focus on the telco channel for distribution will face serious challenges.” O’Donnell’s colleague Jennifer Song, IDC Research Analyst, added, “Although media tablet sales were not as high as expected in 1Q11 due to slower consumer demand, overall economic conditions, and supply-chain constraints, we believe with the entrance of competitive new devices in second half of 2011, the market will sell close to 53 million units for the year and continue to grow long-term.” IDC’s full press release follows below. More →

32 Comments

Android users buy the iPad over Google-powered tablets

By on July 11, 2011 at 10:21 AM.

Android users buy the iPad over Google-powered tablets

Apple’s market-leading iOS tablet isn’t just the slate of choice for iPhone users according to a recent report. According to checks performed by Canaccord Genuity analysts T. Michael Walkley, Charles John and Matthew D. Ramsay, Android smartphone users are purchasing the iPad over Android alternatives like the Samsung Galaxy Tab 10.1 and Motorola XOOM. Canaccord notes that Samsung, Asus and Amazon likely pose the biggest threat to Apple’s strong global tablet position, but early iPad adoption among Android users could pose a problem for these competitors. The firm speculates that the high price points for tablet apps will likely lock these users into Apple’s iOS ecosystem, making it less likely that they will switch to an Android-based tablet in the near future. “Our smartphone and handset checks indicate iPads are selling better to Android smartphone users than the current Android tablets,” Canaccord’s report states. “As a result, we argue consumers purchasing a tablet are more likely to remain in that ecosystem given higher price points for tablet applications. With our checks indicating Android smartphone consumers are choosing the iPad versus Android tablets, we believe this is a powerful trend for Apple’s growing iOS base. Therefore, we anticipate Apple should maintain dominant share of the tablet market in C2011 and C2012.” Canaccord also notes that Microsoft’s Windows 8 tablets could do well when they become available next year, though the firm notes that Microsoft’s success could come mainly from the enterprise market. While Walkley and his team expect Apple’s share of the tablet market to slide significantly over the next two years — from an estimated 82% in 2010 to 56% in 2011 and 51% in 2012 — Canaccord sees Apple selling 35.8 million iPads this year and 55.1 million units in 2012, well ahead of its closest competitor Samsung, which is expected to sell 7.5 million tablets this year and 12 million tablets in 2012. Canaccord’s tablet unit and market share estimates follow below. More →

119 Comments

LG cuts full-year smartphone sales forecast by 20%

By on July 8, 2011 at 7:01 AM.

LG cuts full-year smartphone sales forecast by 20%


On Thursday LG’s Park Jong Seok, head of the mobile phone business, announced that his company is cutting its full-year smartphone sales forecast by 20% and now expects to sell 24 million smartphones in 2011, down from its earlier forecast of 30 million units. According to Bloomberg, Park noted that the mobile phone business is “slowly” improving but couldn’t provide a firm time on when investors would see improvement on the company’s balance sheet. “It’s hard to give an exact timing, because there are so many market variables, and the situation changes quickly,” he said. Park expects LG to sell 1.7 million units of its new Optimus 3D smartphone by the end of the year and said “we want to differentiate ourselves with good hardware such as the 3D model by taking advantage of what we are strong at, like displays.” On June 4th, LG’s CEO, Koo Bon Joon, said that his company would have a difficult time turning around its troubled handset business during the second quarter. The company’s phone shipments were down 10% year-over-year during the first quarter of 2011, while phone sales were down 14.3% quarter-over-quarter and 9.2% year-over-year. More →

19 Comments

HTC to displace RIM as No. 4 smartphone vendor

By on July 1, 2011 at 2:30 PM.

HTC to displace RIM as No. 4 smartphone vendor

HTC is set to slide into the No. 4 spot on the list of the world’s top smartphone vendors next year according to Taiwan-based research firm Market Intelligence Center. The slot is currently held by BlackBerry maker Research In Motion. Headquartered outside Taiwan’s capital, HTC has quietly built a smartphone empire as well as one of the highest market caps of any tech company on the Taiwan exchange. HTC builds some of the most popular Android smartphones in the world, and the company reported profits of NT$14.83 billion in the first quarter of 2011 — triple the profit it recorded in the same quarter one year prior. HTC also shipped 9.7 million smartphones in the first quarter, which represents a 192% improvement over the first quarter of 2010. Market Intelligence Center estimates that global smartphone shipments will reach 452 million units this year, and 1.084 billion units in 2015. More →

48 Comments

Acer cuts 2011 tablet sales forecast in half to 2.5M units, blames poor sell-through, competition

By on June 24, 2011 at 3:50 PM.

Acer cuts 2011 tablet sales forecast in half to 2.5M units, blames poor sell-through, competition

Acer on Friday drastically lowered its 2011 shipment forecast for tablet PCs, Taiwan Economic News reported. The company now anticipates shipping approximately 2.5 million consumer tablets in 2011, down 50% or more from earlier projections of between 5 and 7 million units. Acer chairman J. T. Wang said at a shareholder meeting that Acer would likely meet its second-quarter shipment goals, which are down 10% sequentially, and that third-quarter shipments could be marginally better. Wang said performance will likely not improve until the company’s planned restructuring is completed in the fourth quarter, however. Company president Jim Wong said the company lowered its tablet shipment forecast due mainly to excessive inventory that has built up at distributor locations. Wong believes end user sales have been lower than expected because of strong competition from competing tablet models. More →

32 Comments

Samsung Galaxy S II set to outsell Motorola DROID BIONIC, study finds [infographic]

By on June 24, 2011 at 12:15 PM.

Samsung Galaxy S II set to outsell Motorola DROID BIONIC, study finds [infographic]

There are countless methods research firms use in an attempt to amass useful data for their analyses, and perhaps one of the most underutilized sources of sentiment at this point in time is social chatter. Several progressive firms have emerged recently, however, and they see the value in scouring the social web for freely-available data, and that data can be extremely valuable to researchers and businesses alike. Case in point: using online social mentions and opinion between April 1st and June 21st as a gauge, social media listening firm Mashwork has determined that the Samsung Galaxy S II is the more highly anticipated upcoming Android superphone compared to the Motorola DROID BIONIC. Data from 14,838 users across Facebook, Twitter and other social networking services shows that 68% of prospective buyers are interested in purchasing the Galaxy S II while 32% are interested in the DROID BIONIC. More specifically, 39% of of the unsolicited opinions gathered stated that they will purchase the Galaxy S II and 29% expressed interest in buying the phone. Meanwhile, 19% said they would be purchasing the DROID BIONIC and 13% simply expressed interest. In terms of trends, interest in the Galaxy S II is on the rise leading up to the smartphone’s launch while interest in the DROID BIONIC has decreased over the past two months. Mashwork’s infographic detailing social opinions on the two phones follows below. More →

100 Comments