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Apple’s iPhone 4 Delivery Difficulties in Might Open Up Company to RiskJune 29, 2010Apple Inc.’s difficulties in satisfying the massive demand for the iPhone 4 are raising questions about the company’s management of the supply chain and prompting frustrated customers to consider competitors’ smart phones, according to iSuppli Corp.
iSuppli estimates that Apple in 2010 will ship 21.7 million iPhone 4s, representing 51 percent of the 42.6 million iPhones Apple is expected to ship during the year.
Releasing a new phone every June since 2007, when the first iPhone launched on the market, Apple has risen very quickly from virtually zero presence to become the No. 3 smart phone player, ranking just below Nokia Corp. and Research In Motion Ltd. (RIM)—both of which have enjoyed much longer runs in the wireless field.
iPhone 4 Carries Bill of Materials of $187.51, According to iSuppliJune 28, 2010The iPhone 4’s design may be radically different—but the strategy remains the same, with the latest member of the product line carrying a Bill of Materials (BOM) that should continue to generate high profit margins for Apple Inc., according to iSuppli Corp.’s Teardown Analysis service.
The 16Gbyte version of the iPhone 4 carries a BOM of $187.51, based on a preliminary cost estimate derived from a physical teardown of the product.
“Just as it did with the iPad, Apple has thrown away the electronics playbook with the iPhone 4, reaching new heights in terms of industrial design, electronics integration and user interface,” said Kevin Keller, principal analyst, teardown services, for iSuppli.
Smart Phones Become the New Location Based Services (LBS) BattlegroundJune 21, 2010With smart phones emerging as the strategic computing platform for the next decade, the usage of smart-phone-based OEM and aftermarket on-board navigation systems is set to soar by a factor of 10 in 2010 and boom by nearly fortyfold in 2014, iSuppli Corp. predicts.
The number of smart-phone-based OEM and aftermarket on-board navigation systems is projected to rise to 81 million units in 2010, up from 8 million in 2009. By 2014, usage will increase to 297 million.
“Smart phones over the next decade will rival PCs as a market for hardware, software, communications and location based services (LBS),” said Danny Kim, analyst and global manager for automotive research at iSuppli.
Apple Takes Value-Added Approach to Cultivate iPhone DemandJune 08, 2010With its highly successful iPhone line, Apple Inc. has clearly illustrated two contrasting approaches to generating growth in sales of hardware by mobile handset OEMs.
On one hand, Apple has been very successful in maintaining the Average Selling Price (ASP) of its latest flagship handset offering by effectively implementing enhanced features. The attractiveness of these enhanced hardware and software features is key to stimulating sales of the latest handset while maintaining consistent pricing over time. Meanwhile, when a new model is introduced, the price of the previous handset in the line is reduced and thus offers a lower price point to attract more cost-conscious buyers. This is enabled by the component price erosion that allows this price reduction.
Apple Rides High-Margin Hardware to Competitive SupremacyJune 07, 2010Apple Inc. has become the world’s most valuable technology company based on sales of high-margin hardware like the iPhone, an approach that competitors are finding difficult to duplicate, according to iSuppli Corp.
“Apple’s introduction of its latest iPhone today perfectly illustrates the company’s route to corporate dominance: generating huge profit by selling high-margin, high-value-added hardware, with the iPhone’s Average Selling Price at a whopping $600,” said Steve Mather, principal analyst, wireless, for iSuppli. “The company makes the majority of its profit on sales of hardware. This approach defies the often-cited route to success used by many technology companies of selling hardware at low margins and cashing in on revenue generated by high-profit software.”
iSuppli Issues Fast Facts on Latest iPhoneJune 07, 2010To support media coverage of Apple Inc.’s announcement of its next-generation iPhone today, iSuppli Corp. is issuing the following fast facts:
Apple in the first quarter shipped 8.8 million iPhones, giving it a 3.04 percent share of the market for all kinds of cell phones. Company shipments rose by 0.2 percent from 8.7 million in the fourth quarter of 2009, giving Apple the No. 6 position in the market in the first quarter, up from ninth place in the fourth quarter of 2009. Apple achieved the second-largest sequential increase in shipments among the Top 10 cell phone brands in the first quarter.
“Smart phones represent the hottest segment of the cell phone market, with unit shipment growth of 35.5 percent expected in 2010, compared to 11.3 percent for the overall mobile handset business,” noted Tina Teng, senior analyst, wireless communications, for iSuppli.
Changing of the Guard in Cell Phones: RIM and Apple Displace MotorolaMay 17, 2010In yet another indication of the smart phone’s revolutionary impact on the wireless business, Research In Motion Ltd. (RIM) and Apple Inc. in the first quarter rose to the fifth and sixth positions in the global market for all types of cell phones, while Motorola Inc. fell to eighth place.
RIM, whose cell phone line consists entirely of Blackberry smart phone devices, achieved the best results of the Top 10 cell phone brands in the first quarter, with its shipments rising by 364,000 units or 3.6 percent compared to the fourth quarter of 2009.
New Apple iPhone Ad Platform Extends Services—and Raises QuestionsMay 13, 2010The recent unveiling by Apple Inc. of its new iAd advertising platform extends the company’s array of inventive services for the iPhone, but also continues a distinctive collaboration-versus-competition dynamic between the giant technology trendsetter and its partner companies, according to iSuppli Corp.
“Thanks to the phenomenal success of the iPhone apps store and iTunes, Apple is in a unique position to partner with best-in-class companies and offer innovative services, products and apps to the market,” said Francis Sideco, principal analyst for wireless research at iSuppli.
China Set-top Box Shipments Post Significant Increase in 2009—but Decline in 2010May 07, 2010Set-top box (STB) shipments in China increased sharply in 2009 in line with the country’s higher consumption of LCD-TVs, according to iSuppli Corp.
China’s overall STB shipments amounted to 160.5 million units in 2009, up a sizable 30 percent from 123.4 million in 2008. The strong numbers attest to the primacy of China as the world’s largest STB manufacturer as well as a leading STB design center, iSuppli figures show.
Market for Preloaded Software in Cell Phones Hits $7.7 Billion in 2014May 05, 2010Driven by soaring shipments of smart phones, the global market for preloaded applications and other software for cell phones is set to more than double from 2008 to 2014, according to iSuppli Corp.
Preloaded software represents applications that are already included in cell phones when consumers buy them—as opposed to programs later purchased by users. This market will expand to $7.7 billion in 2014, up from $3.3 billion dollars in 2008. At the same time, shipments of smart phones are set to rise to 497.4 million units in 2014, up from 161.1 million in 2008.
iSuppli Issues Fast Facts on HP’s Purchase of PalmApril 28, 2010To support media coverage of Hewlett-Packard Co.’s announced acquisition of Palm Inc., iSuppli Corp. is issuing the following fast facts and analysis:
“HP’s announced acquisition of Palm gives it an entry into the fast-growing smart phone market—but the move has implications far beyond cell phone hardware,” said Tina Teng, senior analyst, wireless communications, for iSuppli. “The battle for dominance in the high-tech world increasingly is focused on the mobile Internet. Any company that can manage to control the flow of revenue from wireless data users— coming from subscriptions, ad sales or app store revenues—stands to benefit enormously. With the Palm purchase, HP has positioned itself as a player in this great technology battle.”
Cell Phone Industry Declares End of RecessionApril 27, 2010The cell phone industry is proclaiming the end of the recession for the segment following an outstanding final quarter of 2009 and a projected substantial growth for smart phones in 2010, according to iSuppli Corp.
A resilient performer in an otherwise moribund world economy during the past year, cell phones ended 2009 with shipments of 1.15 billion units. While that number is down from the overall 2008 figure of 1.2 billion handsets, shipments in the fourth quarter of 2009 represented the culmination of an increasing growth pattern throughout all of last year. Compared to third-quarter shipments of 290 million, about 335 million mobile handsets shipped in the fourth quarter, up 15.5 percent.
iSuppli Issues Fast Facts on Nokia’s Quarterly EarningsApril 22, 2010To support media coverage of Nokia’s first-quarter results, iSuppli Corp. is issuing the following fast facts: The global cell-phone market in the first quarter is likely to be somewhat stronger than expected. Initial reports from wireless component suppliers suggest that global shipments in the first quarter of 2010 will vary only slightly compared to the fourth quarter of 2009, defying the normal seasonal slowdown that typically occurs during the first three months of the year. Global mobile handset shipments in the first quarter of 2010 soared compared to the same period in 2009 when the wireless communications market was mired in the global economic downturn...
iSuppli Issues Fast Facts on Qualcomm’s Quarterly ResultsApril 21, 2010To support media coverage of Qualcomm Inc.’s quarterly earnings announcement today, iSuppli Corp. is issuing the following fast facts: Total revenue for all kinds of semiconductors used in cell phones in the first calendar quarter of 2010 amounted to $9.4 billion, up 4.6 percent from $9.0 billion in the fourth quarter of 2009, according to a preliminary estimate from iSuppli. This sequential growth in sales runs contrary to the normal seasonal pattern wherein cell-phone-related semiconductor sales decline in the first quarter from the holiday-driven peak in the fourth quarter...
iPad Sales to Hit 7 Million in 2010 and Triple by 2012April 02, 2010The iPad’s attractive design, compelling applications and multi-touch capability, key components of Apple Inc.’s past successes, will help to offset the initial omission of Adobe Flash from the device and send demand soaring in 2010 and beyond, according to a preliminary forecast from iSuppli Corp. Worldwide iPad sales are expected to amount to 7.1 million units in 2010. Sales will double to 14.4 million in 2011 and nearly triple to 20.1 million in 2012. Sales in 2010 will be driven by early adopters and others attracted to the iPad’s unique touch-screen-based user interface. In 2011 and 2012, iPad sales will be driven up by a range of factors, including a flood of new applications, improved functionality and declining prices. iSuppli regards its iPad sales forecast as conservative. Factors that could boost sales beyond iSuppli’s preliminary expectations include swift feature enhancements and the early addition of Flash support. The Right Touch“Touch is the new standard for user in
Femtocell Base Stations Poised for Spectacular GrowthMarch 25, 2010The ecosystem surrounding femtocells, or cellular base stations that improve indoor wireless coverage, is headed toward critical mass among all major nodes of the wireless supply chain and will vault into explosive growth after reaching a decisive watershed this year, iSuppli Corp. believes.
Unit shipments of femtocells will more than triple this year, rising to 1.9 million, up from 571,000 in 2009, according to iSuppli projections. A period of phenomenal expansion then will follow, with shipments reaching 7.2 million units in 2011, up 289 percent from 2010.
China IPTV Subscribers to Double in 2010March 23, 2010Subscribers in China to Internet Protocol TV (IPTV) will double in 2010, the result of an official government push to accelerate convergence among the country’s various telecommunications, broadcast and Internet operators. Subscribers in China to IPTV delivered via the Internet and broadband networks will jump to 8.5 million in 2010, rising by a hefty 96 percent from 4.4 million in 2009, according to iSuppli Corp. And while growth rates during the next three years will not equal the 2010 peak, IPTV development will continue to acquire impressive momentum, reaching expansion rates as high as 51 percent, iSuppli estimates. By 2014, IPTV subscribers in China will exceed 31 million. “The rise in IPTV subscribers in 2010 and beyond will be driven primarily by deployments among China’s broadcasters, which hold the prized IPTV licenses,” said Loren Zhao, an analyst for iSuppli’s China Research. “Despite a policy by the State Council of China in January 2010 encouraging the country’s telecom
Navigation Application Providers Turn to Social NetworkingMarch 09, 2010Desperately seeking new revenue opportunities amid intensifying competition from free alternatives, providers of navigation applications are turning to social networking sites to make their products more appealing to consumers, according to iSuppli Corp. ”Google’s and Nokia’s decision to provide free turn-by-turn navigation applications to users is posing a major competitive challenge to navigation application providers,” said Gerrit Schneemann, analyst for portable navigation and Location Based Services (LBS) at iSuppli. “These application providers require revenue from the sales of navigation applications to the smart-phone and PND markets. Because of this, these companies now are seeking to enhance the usability of their offerings and to extend them into as many other mobile sectors as possible. Navigation application providers and PND makers believe social networking sites like Facebook and MySpace provide a way accomplish both goals.” The stakes are high, with worldwide shipments
Google Leverages Wireless Supply Chain to Reshape Mobile BusinessFebruary 16, 2010By pursuing a strategy of working with the mobile chain rather than against it, Google Inc. has a strong chance of success in its bid to transform the wireless business from its traditional voice-subscription model to one supported by broadband-based mobile advertising revenue, according to iSuppli Corp. If Google can execute this strategy, it stands to rewrite the rules in the $1 trillion wireless industry. “During the past three years, Google has continually targeted the mobile communications industry with a series of initiatives,” said Dr. Jagdish Rebello, director and principal analyst at iSuppli. “From offering free Wi-Fi services, to developing a free and powerful open operating system for smart phones—Android—to offering free maps and turn-by-turn navigation services, to introducing a Google branded phone—the Nexus One—the Internet search giant is revolutionizing the mobile value chain in an attempt to unlock new value and to expand an industry desperately searching for the nex
Nokia Weathers Smart-Phone Onslaught, Maintains Industry-Leading ProfitabilityFebruary 16, 2010Defying rising competitive pressures in the smart-phone segment, No.-1 mobile handset brand Nokia managed to achieve industry-leading profitability in 2009, according to iSuppli Corp. The Finnish cell-phone giant finished 2009 with an operating profit of 12.3 percent, compared to an average of 0.7 percent for all the Top-5 wireless handset brands. Samsung came in second with an operating profit of 10.5 percent. “Facing severe competition from slick rivals including the iPhone and Google Android-based models, Nokia’s leadership position in the global smart-phone market began to erode starting in the second quarter of 2008,” said Tina Teng, senior wireless communications analyst or iSuppli. “By the third quarter of 2009, Nokia’s share of shipments had declined to 34.5 percent, down from a recent high of 44.2 percent in the first quarter of 2008. However, by the fourth quarter of 2009, Nokia’s share of smart phone shipments recovered to nearly 40 percent, at 39.5 percent.” Nokia managed