Tag: apple

Intel ultrabooks face Apple threat

Intel-logoSamsung and Apple both have plans to release tablets with screen as large as 12 or 13 inches, putting further pressure on ultrabooks powered by Intel X86 processors.

Digitimes claims that the Apple unit will be made by Quanta with the likelihood that it will have a 12.9 inch screen, come out in October next year and will target the educational market.

Samsung, which is giving Apple a run for its money, is also rumoured to be releasing 12 or 13-inch tablets next year.

The same wire reports that Apple will introduce a large iPhone in May next year using a 20 nanometre microprocessor, with TSMC the foundry that has the win.

Big tab sales close to 300 million

ipad3A report from ABI Research said that something like 285 million big tablet brands will have shipped by the time Hogmanay happens.

The US market has shipped 70 million tablets from the likes of Apple and Samsung – representing a tablet for every four people.

But Apple’s big chunk of the market is showing some signs of erosion. In 2013, 51 percent of the installed base is represented by Apple’s OS and 40 percent Android.

Samsung had 20 percent growth in the third quarter of 2013, said ABI Research.

Apple upped its ASPs by one percent but shipments fell by four percent compared to the previous quarter and revenues fell about three percent.

Argos takes on Tesco with tablet

Argos MyTabletRetail outlet and online firm Argos has launched the MyTablet for less than £100 – in a bid to challenge Tesco’s recent tablet introduction, the Hudl.

The seven inch unit comes with pre-loaded games and apps and also includes an Argos app so you can shop for items including, er, tablets.

The unit has a 1024×600 LCD, and 8GB of memory – but you can expand the memory to 32GB using a Micro SD card. The processor is a 1.6GHz dual core chip, while the OS is Google’s Android Jelly Bean 4.2.2.

Argos said the unit is aimed at teenagers and has built in parental controls. It comes in pink or silver colours. The unit has two megapix camera and a front facing camera. It supports wi fi and Bluetooth and apps pre-loaded include the BBC iPlayer, Angry Birds, an e-book reader, Facebook and Twitter.

The unit goes for sale tomorrow from argos.co.uk and argos.ie, as well as the 700 shops it has in the UK and Ireland.

Nermin Hadjarbegovic, our Bosnian reported:: “This is just a publicity stunt.”

Smart watches are a surreal notion

Salvador DaliThere’s not that many youngsters I know who wear wrist watches these days, apart from as a fashion accessory, maybe sometimes.

After all, the majority of kids have a smart phone on them, which is really a supercomputer that tells you everything you need to know, including the time.

So a report from Digitimes Research has me wondering whether the right hand knows what the left hand is doing.

The report suggests the entry of the Apple iWatch will boost the smartphone market, which, in the developed countries at least, has reached saturation.

Average selling prices of smartphones are falling but Digitimes Research seems to believe that if Apple releases its iWatch in the second half of next year, the brand power alone will boost the ASPs.

The research reckons that smart watch shipments will amount to 5.92 million units next year, 22.79 million in 2015 and 75.66 million in 2016, but that’s only if Apple gets its watch out.

Older people tend to wear watches and our eyesight isn’t as keen as youngsters’ – so the development of larger display smartphones has been something of a boon.

You can read more, if you can see the screen on your smart watch, here.

Wearable tech shipments to reach 64 million in 2017

wearable-techIn spite of what can only be described as copious amounts of hype, the wearable tech boom won’t materialise anytime soon, at least if Berg Insight is to be believed.

The research firm estimates sales of wearable technology devices will reach just 64 million in 2017. Worldwide shipments in 2012 reached 8.3 million, so the compound annual growth rate through 2017 should be rather impressive, over 50 percent. However, all that glitters is not gold.

Smart watches are already on sale and they are failing to gain much traction. Even Samsung’s Gear doesn’t appear to be getting a lot of attention. Google’s Glass is still not on the market, but with a very high price tag and numerous questions about privacy and good taste, it doesn’t look too promising.

Smart glasses, watches and fitness trackers still face huge technical challenges that will persist for years to come.

“A perfect storm of innovation within low power wireless connectivity, sensor technology, big data, cloud services, voice user interfaces and mobile computing power is coming together and paves the way for connected wearable technology,” said Johan Svanberg, Senior Analyst, Berg Insight. “However, today’s devices need to evolve into something more than single purpose fitness trackers or external smartphone notification centres in order to be truly successful” continues Mr. Svanberg.

That’s the second challenge. Wearable gear needs to be, well, useful – otherwise it will never gain mass market appeal. The ultimate problem with smart watches isn’t battery life or price, it’s the fact that they don’t offer much functionality. At this point they are basically a second screen for smartphones and due to limited battery life they aren’t very practical, either.

Apple and Samsung lose ground on tablets

cheap-tabletsApple is losing ground on the tablet market, due to a drought of new products and more competition from the Android camp. However, Samsung is not capitalising on Apple’s woes and its sales are dropping as well.

According to Strategy Analytics, Apple sold just 14.6 million iPads last quarter, down 4.9 million from Q1. Its market share tumbled from 40.4 percent to 29.2 percent. Meanwhile its arch nemesis Samsung also suffered a hit. Its sales dropped by 700,000 units to 8.4 million units and its market share now stands at 8.4 percent.

Another report from Analysys claims that tablet sales in China aren’t growing nearly as rapidly as they did just a few months ago. Last quarter China gobbled up 3.58 million tablets, growing just 5.2 percent over the first quarter of 2013. Sales of Apple’s iPads were particularly hard hit, the research outfit reported.

Relative newcomers to the market like Acer, Lenovo, Sony and Dell are gaining ground. LG is gearing up to give tablets another go, following a dismal effort a couple of years ago. Then there are Chinese white-box tablets, heaps and heaps of them.

However, Cupertino’s troubles might be a thing of the past come Q4. The Church of Apple is widely expected to introduce new iPads as soon as next month and the hot iPad mini should get a Retina makeover. Apple’s current tablet offerings are showing signs of age and an update is overdue.

On the other hand, there’s really not that much hype this time around, iPads aren’t as fresh and cool as they used to be and getting people to upgrade from an iPad 3 or 4 won’t be as easy. They both have relatively speedy chips and a crisp high-resolution screen, so Apple will have to get creative, and it’s been faltering on that front for the last two or so years.

The iPad mini though desperately needs a sharper screen and a faster processor and a new high-res model should do very well indeed.

Foxconn starts selling TVs

foxconn-tvFoxconn may be about to diversify and try its luck in the smartphone and tablet business, under its own brand. The company has been building iPhones, iPads and a range of other products for years and now it’s selling smart TVs, with a bit of help from 7-Eleven Taiwan.

Foxconn launched its TV assembly business in 2008 and it has expanded it in recent years with the acquisition of manufacturing facilities from Sony. It also bought a 50 percent stake in Sharp’s panel making plant in Japan, reports the Wall Street Journal.

Shoppers in Taiwan can already buy a range of Foxconn tellies and with gaudy ads like this one for a 40-inch smart TV, who could resist? However, the big news is that Foxconn may be about to launch smartphones and tablets of its own, or through some sort of deal with 7-Eleven.

This is not good news for Chinese white-box outfits. They have been performing quite well recently and demand for white-box smartphones and tablets is quite strong, often outstripping growth reported by big brands. If Foxconn enters the fray, the white-box crowd will face a lot more competition.

Foxconn has a lot of experience and capacity second to none, but it doesn’t actually make any crucial components used in smartphone or tablets. This is true of most smartphone outfits except Samsung.

There is no shortage of high resolution panels, cheap application processors, cameras or batteries. Depending on volume Foxconn could get much better prices than small white-box companies. However, it is still unclear whether Foxconn’s push will be limited to the 7 Eleven deal, or whether it will spread to other markets.

The company certainly has the muscle to pull off a global rollout, but this might not be necessary, at least not for now. Foxconn could instead choose to target a handful of emerging markets like China, markets that are not very saturated and that tend to scoop up white-box phones. The exact same markets Lenovo is gunning for. Such an approach could give Foxconn a foothold in the mobile industry through a back door, as it wouldn’t have to go head to head with Samsung or Apple.

Android tablets still lack tons of iPad apps

NexusSales of Android smartphones and cheap tablets are skyrocketing, but the same isn’t true of high-end Android tablets. While many models feature impressive hardware that could easily go toe to toe with the iPad, the app ecosystem just isn’t there yet. 

According to Canalys, out of the top 50 paid and free iPad apps in Apple’s US App Store, 30 percent are nowhere to be found on Google’s Play Store. Another 18 percent were available, but they were not optimized for tablets, which means they look and feel like oversized phone apps. Just 52 percent were available through the Play Store, optimized and ready for tablets.

“Quite simply, building high-quality app experiences for Android tablets has not been among many developers’ top priorities to date,” said Canalys senior analyst Tim Shepherd. “That there are over 375,000 apps in the Apple App Store that are designed with iPad users in mind, versus just a fraction of this – in the low tens of thousands – available through Google Play, underscores this point.”

Canalys expects all this to change, as the user base grows and Google introduces improvements to the Play Store. However, Google simply has to do more to support developers to invest time and money in high-quality Android apps for tablets. Since pricey Android tablets don’t sell well, the user base will remain limited. Most people who buy Android tablets go for cheap and small models, hence it is safe to assume that they are not willing to invest in premium apps and services, either.

The other problem facing Android developers is fragmentation. Apple developers need to design tablet apps for just two screen resolutions and form factors, both of which use the same aspect ratio. They don’t face nearly as many as many challenges as Android developers, who have to deal with dozens of different resolutions, form factors, Android versions, APIs and application processors.

Worse, at the end of the day Android developers have a very limited market for bespoke tablet apps, as the user base is still small and it’s growing from the ground up, i.e. growth is coming from low-end tablets that weren’t designed with anything serious in mind.

Smartphones overtake feature phones

smartphones-genericSmartphone sales are up again, but growth is slowing. The worldwide market gobbled up 435 million phones in the second quarter, up 3.6 percent over the same period last year. However, worldwide smartphone sales have now reached 225 million units, up 46.5 percent from a year ago.

It was only a matter of time before smartphone shipments outpaced feature phone shipments and according to Gartner, this happened last quarter. Feature phone, or dumb phone shipments totalled just 210 million units, down 21 percent year-on-year.

“Smartphones accounted for 51.8 percent of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time,” said Anshul Gupta, principal research analyst at Gartner. Asia/Pacific, Latin America and Eastern Europe exhibited the highest smartphone growth rates of 74.1 percent, 55.7 percent and 31.6 percent respectively, as smartphone sales grew in all regions.

Samsung still reigns supreme, with 71.4 million units shipped last quarter and a 31.7 percent market share. Apple ranks second with 31.9 million units, but it is losing market share fast. LG and Lenovo had a very good quarter, shipping 11.5 and 10.6 million smartphones respectively. ZTE ranked fifth with 9.7 million units. Nokia, HTC, Blackberry and Sony are no longer in the top five. However, the top five vendors accounted for just 60 percent of the market, while 40 percent went to smaller outfits, including an ever increasing number of Chinese white-box manufacturers.

gartner-smartphones-august2013

Gartner found that much of Samsung’s demand is now coming from mid-tier products and high-end devices with ASPs up to $400. It concluded that Samsung needs to do more to make its mid-range offering more appealing.  Oddly enough Apple also saw a dip in ASP, which is currently at the lowest level since 2007. This is the result of surprising strong sales of the iPhone 4 in some markets. Apple has recognized the trend and it plans to introduce a new, cheaper iPhone next month.

But Lenovo is the name to look out for. It’s making a killing in the dreary PC market and it’s doing even better in smartphones, although much of its effort goes unnoticed in the west. Lenovo almost doubled its share over the last 12 months and the company plans to bring its smartphones to western markets soon, possibly even next year.

Android remains the dominant operating system, with a 79 percent share, up from 64.2 percent a year ago. Apple’s iOS ranks second with a 14.2 percent share, down from 18.8 percent in Q2 2012. Microsoft gained some ground, but Windows Phone 8 still has a tiny share, 3.3 percent, up from 2.6 percent last year. Blackberry’s share halved to 2.7 percent and the Canadian company is now looking for a buyer. As with all things Blackberry, the decision comes three years too late.

There’s gold in the used smartphone market

threeiphonesWith millions of smartphones sold each week, the market is quickly becoming saturated and upgrade cycles are likely to slow down, but while this might be bad news for phone makers and carriers, some outfits will cash in on second-hand phones.

According to research firm Sanford C. Bernstein, the global trade in used smartphones might be the next big thing.

“Our analysis suggests that the used smartphone market is poised to explode – we estimate that the market will grow from 53 million to 257 million units over the next 5 years,” said Toni Sacconaghi of Sanford C. Bernstein. “By 2018, we estimate that used phones will cannibalise eight percent of total new smartphone sales, up from three percent in 2012.”

The percentages don’t sound very impressive, but the unit volume does. At the moment, most used phones are collected in the US and sold in emerging markets. Apple’s iPhones are particularly hot and there is plenty of demand in emerging markets, as many customers simply can’t afford new iPhones – and even older models are status symbols in less affluent markets.

Sacconaghi found that iPhones see a lot less depreciation than Samsung’s Galaxy S series phones. Even broken iPhones are selling, which isn’t the case with other brands. Carriers are also joining the fun and they are offering trade-in programmes that actually pay more for phones locked to a competitor’s network. In some cases, US carriers are willing to pay twice as much to get their hands on a phone locked to a competitor’s network.

Piper Jaffray analyst and Apple guru Gene Munster also concluded that iPhones have better resale values that Galaxy phones.

Apple’s build quality is second to none, so most iPhones stand up to punishment better than plasticky Samsungs. Brand snobbery is another factor, but Samsung has some trump cards as well. Galaxies have an easily replacable back cover and a user-replacable battery, which is not the case with iPhones.

Apple is reportedly mulling a trade-in programme of its own, through its stores, reports Forbes.

Lenovo gains on Apple – report

pc-sales-slumpMore good news for Lenovo. According to a company called Canalys, Apple has lost ground to Lenovo on the back of lacklustre iPad sales in Q2.

It is worth noting that Canalys includes tablets in its quarterly PC market reports. Therefore it found that Android now has a 17 percent share in the PC market.

Although tablet sales appear to be slowing down while some people wait for new fruity toys “Designed in California”, Canalys reckons tablets will outsell notebooks by the fourth quarter of 2013. This is in line with previous reports from other research firms.

PC shipments in EMEA fell  year-on-year in Q2, the first decline after two successive quarters of double-digit growth. Western Europe was down 10 percent, while Central and Eastern Europe took a three  percent plunge.

canalys-PCreport-Q213

Demand for smartphones and tablets is increasing around the world. However, faced by a changing industry, channel partners are exercising caution when planning and placing orders. Apple kept the lead in Q2, with 18.6 million units shipped and a 17.1 percent market share. However, it lost two percent from Q2 2012. Lenovo upped its share to 12.9 percent and shipped 14.1 million units. HP lost share and volume and it’s in third spot with 12.7 million units and an 11.6 percent share.

It should be noted that desktop and notebook shipments accounted for about 20 percent of Apple’s total shipments. Samsung also made its way into the top five, with 10.8 million units and a 9.9 percent share, but, like Apple, most of its shipments were tablets, not proper PCs.

Canalys found that most vendors are seeing increased tablet volumes, but that won’t help traditional PC outfits. Volumes are one thing, but most tablets coming out of Lenovo, HP and the rest of the PC gang are on the cheap side, with relatively low ASPs.

Tablet shipments slow right down

cheap-tabletsThe tablet market appears to be overheating and according to IDC’s latest report global shipments slowed down in the second quarter. It appears that many consumers are waiting for new iPads and cheap Androids are not filling the gap.

IDC said unit sales dropped 9.7 percent to 45.1 million last quarter thanks to soft demand for iPads. Shipments of Apple’s tablets dropped to just 14.6 million units, down from 19.5 million in the first quarter. IDC’s original forecast was 17 million, but it appears consumers had other things in mind.

Despite the dip, Apple is still the daddy of the tablet market, with a 32.4 percent market share. For some reason Samsung managed to grab an 18-percent share, despite the fact that its tablets are overpriced and underspecced.

Thanks to its massive market share, Apple’s woes tend to have an immediate effect on overall unit sales. The trouble for Apple is that it simply does not have any fresh products to offer. The iPad and iPad mini are getting old and a refresh is expected over the next few of months. Consumers are simply putting off their purchases until Cupertino rolls out something new, i.e. a Retina iPad mini.

“A new iPad launch always piques consumer interest in the tablet category and traditionally that has helped both Apple and its competitors,” said Tom Mainelli, Research Director, Tablets at IDC. “With no new iPads, the market slowed for many vendors, and that’s likely to continue into the third quarter. However, by the fourth quarter we expect new products from Apple, Amazon, and others to drive impressive growth in the market.”

A long Apple drought seems to be just what the doctor ordered for makers of Android tablets, but they don’t appear to be capitalizing on iPad fatigue.

Asus shipped just 2 million units for a 4.5 percent share. Lenovo was in a close second with 1.5 million units and Acer is in hot pursuit with 1.4 million.

To be fair, Android peddlers also had their share of problems. New high-end designs based on Qualcomm’s Snapdragon 800 have yet to materialize, Nvidia’s Tegra 4 was delayed and the first products have started shipping just a few days ago, at the very end of the second quarter. The new Nexus 7 is out, but it also launched too late to make a mark in Q2.

However, IDC believes new tablets from both camps should have a massive effect on shipments toward the end of the year. As for Windows RT and Windows 8.x tablets, we’re not sure they’ll make much headway this year.

iPad market share at an all-time low

cheap-tabletsApple’s share of the tablet market appears to be at an all-time low, thanks to strong competition from cheap and cheerful Android tablets.

Despite the slump, Apple still remains the biggest player in the tablet market, but it is no longer the only outfit in town.

According to Trend Force, iPad sales dipped from 17 million to 14.6 million units last quarter. It ended the quarter with a 35.5 percent market share. Samsung ranked second with 8.8 million units and a 21.4 percent share. This is rather surprising, since Samsung’s tablets tend to be overpriced and overhyped.

Asus wound up in a distant third spot, with shipments of 1.6 million and a 3.9 percent market share. Acer wasn’t far behind, with 1.5 million units and a 3.6 percent share. Amazon ranked fifth with 1.1 million units and a 2.7 percent share.

Microsoft and Google in next, at 0.9 million and 0.7 million respectively and the figures are surprising to say the least. Google’s Nexus 7 was supposed to be a cheap, high volume device, but it seems it was outpaced even by Microsoft’s Surface tablets.

It should be noted that Apple is gearing up to introduce the fifth generation iPad and the second generation iPad mini. It current line-up is rather dated and the new iPads could turn things around. Google introduced the new Nexus 7 last week and it is getting some very positive reviews as we speak.

However, we believe the most interesting number in the report has nothing to do with Apple, Samsung or Google. Makers of white-box tablets sipped 9.7 million units last quarter, for a combined market share of 23.5% percent. In other words for every Surface RT or Nexus 7 tablet sold last quarter, nameless Chinese manufacturers sold ten of their equally nameless tablets.

Apple and Samsung lose smartphone market share

smartphones-genericApple’s iPhone juggernaut appears to be running out of steam. Although the company beat Wall Street expectations last quarter, with 31.2 million iPhones shipped, it also managed to lose market share.

Apple’s smartphone share now stands at 13.1 percent, down from 16.6 percent in the second quarter of 2012. Although Apple’s shipments were up from 26 million a year ago, the market grew at a somewhat faster pace. The same goes for Samsung, which shipped 72.4 million smartphones last quarter, up from 50.3 million last year. It share dropped from 32.2 percent to 30.4 percent.

Total smartphone shipments were up 52 percent, 237.9 million compared to 156.2 million units in Q2 2012. The market seems to be accelerating, maybe even overheating. However, although smartphone saturation in western markets is becoming an issue, particularly in the high-end, Asia appears to be doing quite well.

IDC-smartphone-chart-Q213

Chinese smartphone churners had a very good quarter. Lenovo upped its market share from 3.1 percent a year ago to 4.7 percent last quarter. Lenovo shipped 11.3 million smartphones last quarter, roughly a third of what Apple managed to ship – but most Lenovo phones were sold in China, hence the tech press didn’t really cover its success. ZTE also did well, with shipments hitting 10.1 million last quarter, up from 6.4 million a year ago. LG did surprisingly well, with 12.1 million units shipped, up from just 5.8 million a year ago.

However, saturation is becoming a big source of concern for smartphone makers. Most future growth  is expected to come from emerging markets, which tend to prefer low cost devices. This will result in lower ASPs, more competition and lower margins. It will also open the room for smaller brands and dozens of Chinese no-name smartphone makers.

IDC’s figures also reveal that the combined share commanded by smaller brands is up and that smartphone shipments have finally outpaced feature phone shipments. Few consumers who haven’t transitioned to smartphones over the last few years will pick up a high-end device, leaving even more room for cheap smartphones.

The trend has not gone unnoticed by smartphone makers. Apple is reportedly working on a cheaper, plastic version of the iPhone. Since Apple doesn’t have much to offer outside the high-end market, it is particularly vulnerable. Samsung and HTC are talking up their new minis as if they were flagship products, Google Motorola’s new Moto X is a mid-range device, not a pricey superphone.

In recent years the focus was on pricey high-end phones, with most sales coming from affluent markets, backed by carrier sweetheart deals. This created a rather absurd situation, as unit sales of high-end phones were often much higher than those of their mid-range and low-end siblings. As emerging markets enter the fray, this odd trend appears to be over.