For the first time in over 10 years, the global market share of Nokia (NYSE:NOK) dropped below 30 percent, even as the company beat analysts' expectations for the latest quarter.
Net profit for the quarter fell from euro5 million to euro344 million ($499 million) from the same quarter last year. Revenue grew 9 percent to euro10.40 billion.
Revenue and earnings beat estimates, giving the company shares a boost in earlier trading, although it has pulled back on weaker guidance associated with the transformation to Windows Phone 7 (NASDAQ:MSFT) and effects of the earthquake in Japan, which will impact the performance of the company in the current quarter because of parts shortages.
Nokia sold 24 million smartphones in the quarter, a 13 percent increase over 2010, but its market share for the devices fell to 24 percent from 39 percent last year, according to Strategy Analytics market research.
Nokia sold 108.5 million devices in the first quarter, above the Strategy Analytics estimate of 105 million, and the average selling price of its handsets continued its growth to euro65, from euro62 a year earlier, indicating it is selling more top, expensive models.
"Volumes were better than expected and pricing was stronger," said Neil Mawston, an analyst at Strategy Analytics . "But it's clear that competition is still tough."
This is actually better news than most realize, as the market is growing for smartphones and basic mobile phones, and even if Nokia drops in market share, it is gaining by growing along with the overall market.
So to lose market share isn't that relevant for them, it's how they're growing along with the expanding market.
Competition will continue to be tough from Google Android (NASDAQ:GOOG), Apple iPhone's (NASDAQ:AAPL) and Blackberry's (NASDAQ:RIMM). But if Nokia responds as they should, it'll make them a better company and competitor over the long haul.
If Nokia can keep up this type of performance until they release significant volumes of smartphones based on Windows Phone 7, and those phones sell well, the company will surprise a lot of people.
Nokia was trading at $8.60, gaining $0.01, or 0.06 percent, as of 1:41 PM EDT.
Showing posts with label Blackberry. Show all posts
Showing posts with label Blackberry. Show all posts
Thursday, April 21, 2011
Wednesday, April 6, 2011
Google (GOOG) Vs. Apple (AAPL) in Smartphone War
There is no doubt Google's (NASDAQ:GOOG) Android mobile platform is winning the smartphone war at this time, at least as it relates to market share, as the company gained a huge 7 percent in market share over the last three months, according to Comscore.
Google Android now has a 33 percent market share, with Research In Motion (Nasdaq:RIMM), maker of the BlackBerry, coming in second with 28.9 percent, followed by Apple (Nasdaq:AAPL) with 25.2 percent. Microsoft (Nasdaq:MSFT) is in fourth with 7.7 percent share.
"The Android gains matter because technology platform markets tend to standardize around a single dominant platform (see Windows in PCs, Facebook in social, Google in search)," noted tech analyst Henry Blodget.
"And the more dominant the platform becomes, the more valuable it becomes and the harder it becomes to dislodge. The network effect kicks in, and developers building products designed to work with the platform devote more and more of their energy to the platform. The reward for building and working with other platforms, meanwhile, drops, and gradually developers stop developing for them."
Some will probably note that are bullish on Apple that they carry the premium segment of the smartphone market, meaning they are able to compete on price and wider margins, generating more earnings.
But that could change if Android starts to carry the day in an even bigger way, and also the response to iPhone 5 when it eventually is released. That has given some opportunity to Google and other rivals, which could hurt Apple over time.
At this time the growing consensus is Google will gain market share in the mobile market, and that will put downward pressure on Apple.
Google was trading at $573.70, gaining $4.61, or 0.81 percent, as of 1:14 PM EDT. Apple was trading at $338.75, falling $0.14, or 0.04 percent.
Google Android now has a 33 percent market share, with Research In Motion (Nasdaq:RIMM), maker of the BlackBerry, coming in second with 28.9 percent, followed by Apple (Nasdaq:AAPL) with 25.2 percent. Microsoft (Nasdaq:MSFT) is in fourth with 7.7 percent share.
"The Android gains matter because technology platform markets tend to standardize around a single dominant platform (see Windows in PCs, Facebook in social, Google in search)," noted tech analyst Henry Blodget.
"And the more dominant the platform becomes, the more valuable it becomes and the harder it becomes to dislodge. The network effect kicks in, and developers building products designed to work with the platform devote more and more of their energy to the platform. The reward for building and working with other platforms, meanwhile, drops, and gradually developers stop developing for them."
Some will probably note that are bullish on Apple that they carry the premium segment of the smartphone market, meaning they are able to compete on price and wider margins, generating more earnings.
But that could change if Android starts to carry the day in an even bigger way, and also the response to iPhone 5 when it eventually is released. That has given some opportunity to Google and other rivals, which could hurt Apple over time.
At this time the growing consensus is Google will gain market share in the mobile market, and that will put downward pressure on Apple.
Google was trading at $573.70, gaining $4.61, or 0.81 percent, as of 1:14 PM EDT. Apple was trading at $338.75, falling $0.14, or 0.04 percent.
Friday, April 1, 2011
Microsoft (MSFT) Targets Quality for Windows Phone 7
Microsoft (NASDAQ:MSFT) is talking the progress it has made on its Windows Phone 7 platform, saying it's focusing on quality rather than quantity at this time, as far as the number of apps it's serving up.
Even so, they're still steadily growing in that regard as well, with about 36,000 registered developers for the platform, with tools for developers being downloaded approximately 1.5 million times.
Also noted is the 11,500 applications being offered, with about 7,500 of them being paid applications.
Of course those are far behind Apple (Nasdaq:AAPL) and Google (Nasdaq:GOOG), although it's questionable as to value when you start getting into the number of app offerings and if they are profitable beyond a certain point for any of these companies.
Brandon Watson, Microsoft's senior director for Windows Phone, wrote in a company blog post, "For us, from the beginning, we have always been focused on quality over quantity. We recognize the importance of getting great apps on our platform and not artificially inflating the number of actual apps available to customers by listing 'wallpapers' as a category, or perhaps allowing competitor's apps to run on the platform to increase 'tonnage.'"
The comment on tonnage was a reference to Research In Motion's (Nasdaq: RIMM) decision to allow Android apps to run on its soon-to-be-released BlackBerry PlayBook tablet. RIM co-CEO Jim Balsillie mentioned that the strategy would boost the "tonnage" of apps available for the PlayBook on launch.
As for Microsoft apps, they claim they're adding about 1,200 developers a wee and users are downloading a dozen apps a month.
IDC recently said they see Microsoft becoming the second-largest smartphone platform in the world by 2015, based on their partnership with Nokia (NYSE:NOK).
Even so, they're still steadily growing in that regard as well, with about 36,000 registered developers for the platform, with tools for developers being downloaded approximately 1.5 million times.
Also noted is the 11,500 applications being offered, with about 7,500 of them being paid applications.
Of course those are far behind Apple (Nasdaq:AAPL) and Google (Nasdaq:GOOG), although it's questionable as to value when you start getting into the number of app offerings and if they are profitable beyond a certain point for any of these companies.
Brandon Watson, Microsoft's senior director for Windows Phone, wrote in a company blog post, "For us, from the beginning, we have always been focused on quality over quantity. We recognize the importance of getting great apps on our platform and not artificially inflating the number of actual apps available to customers by listing 'wallpapers' as a category, or perhaps allowing competitor's apps to run on the platform to increase 'tonnage.'"
The comment on tonnage was a reference to Research In Motion's (Nasdaq: RIMM) decision to allow Android apps to run on its soon-to-be-released BlackBerry PlayBook tablet. RIM co-CEO Jim Balsillie mentioned that the strategy would boost the "tonnage" of apps available for the PlayBook on launch.
As for Microsoft apps, they claim they're adding about 1,200 developers a wee and users are downloading a dozen apps a month.
IDC recently said they see Microsoft becoming the second-largest smartphone platform in the world by 2015, based on their partnership with Nokia (NYSE:NOK).
Thursday, March 31, 2011
UBS (UBS) Says RIM (RIMM) May Be Losing North American Subscribers
Research in Motion (NASDAQ:RIMM) may be losing subscribers in North America, said UBS (NYSE:UBS) analyst Amitabh Passi, citing information in the annual report of the company.
Passi said that net subscribers in the North American market have “either declined quite precipitously in the quarter, or, even more surprisingly, could have turned negative.”
Particularly pointed out was the revelation that 54.6% of BlackBerry users came from outside North America in the quarter, while modeling 6 million net subscriber additions during that time.
Also noted by Passi is RIM saying it is reducing its consumer access to its network operations facilities at a lower fee to carriers. If that was lowered by 10 percent for that monthly subscriber fee, it would lower EPS of Research in Motion by about 50 cents, concluded Passi.
To reach the EPS projection of $7.50, Passi said Rim will have to have a solid response from users from its new product line like Curve Touch, Storm 3, and Torch 2, as well as the Playbook tablet now on sale.
RIM was trading at $56.23, falling $0.80, or 1.40 percent, as of 1:10 PM EDT.
Passi said that net subscribers in the North American market have “either declined quite precipitously in the quarter, or, even more surprisingly, could have turned negative.”
Particularly pointed out was the revelation that 54.6% of BlackBerry users came from outside North America in the quarter, while modeling 6 million net subscriber additions during that time.
Also noted by Passi is RIM saying it is reducing its consumer access to its network operations facilities at a lower fee to carriers. If that was lowered by 10 percent for that monthly subscriber fee, it would lower EPS of Research in Motion by about 50 cents, concluded Passi.
To reach the EPS projection of $7.50, Passi said Rim will have to have a solid response from users from its new product line like Curve Touch, Storm 3, and Torch 2, as well as the Playbook tablet now on sale.
RIM was trading at $56.23, falling $0.80, or 1.40 percent, as of 1:10 PM EDT.
Wednesday, March 30, 2011
Nokia (NOK) Driving WP7 (MSFT) to Top Apple's (AAPL) iPhone
In an interesting and possible scenario put forth by Research firm IDC, they see Microsoft Corp.'s (NASDAQ:MSFT) Windows Phone 7 beating out Apple's (NASDAQ:AAPL) by 2015, citing the partnership they have with mobile phone giant Nokia (NYSE:NOK).
"Up until the launch of Windows Phone 7 last year, Microsoft has steadily lost market share while other operating systems have brought forth new and appealing experiences," said Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team. "The new alliance brings together Nokia's hardware capabilities and Windows Phone's differentiated platform. We expect the first devices to launch in 2012. By 2015, IDC expects Windows Phone to be number 2 operating system worldwide behind Android (NASDAQ:GOOG)."
IDC also said they see Apple's share shrinking some from the projected 2011 levels over the same period of time ending in 2015.
For Google, they see Android continuing to gain market share and ultimately dominating the sector, rising to a 45.40 share by 2015, up from the 39.5 percent share expected by the end of 2011.
"Android is poised to take over as the leading smartphone operating system in 2011 after racing into the number 2 position in 2010," Llamas added. "For the vendors who made Android the cornerstone of their smartphone strategies, 2010 was the coming-out party."
For 2011 IDC estimates Research in Motion (NASDAQ:RIMM) will have a market share of 14.9 percent, dropping to about 13.70 percent by 2015.
The bottom line for the Nokia, Microsoft projection is to deliver the goods. If they do, it could be a big player in the market, if not, they'll gradually shrink together in the mobile sector, with Nokia being hit the hardest.
Nokia closed Tuesday at $8.68, falling $0.06, or 0.69 percent. Microsoft closed at $25.49, gaining $0.08, or 0.31 percent.
"Up until the launch of Windows Phone 7 last year, Microsoft has steadily lost market share while other operating systems have brought forth new and appealing experiences," said Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team. "The new alliance brings together Nokia's hardware capabilities and Windows Phone's differentiated platform. We expect the first devices to launch in 2012. By 2015, IDC expects Windows Phone to be number 2 operating system worldwide behind Android (NASDAQ:GOOG)."
IDC also said they see Apple's share shrinking some from the projected 2011 levels over the same period of time ending in 2015.
For Google, they see Android continuing to gain market share and ultimately dominating the sector, rising to a 45.40 share by 2015, up from the 39.5 percent share expected by the end of 2011.
"Android is poised to take over as the leading smartphone operating system in 2011 after racing into the number 2 position in 2010," Llamas added. "For the vendors who made Android the cornerstone of their smartphone strategies, 2010 was the coming-out party."
For 2011 IDC estimates Research in Motion (NASDAQ:RIMM) will have a market share of 14.9 percent, dropping to about 13.70 percent by 2015.
The bottom line for the Nokia, Microsoft projection is to deliver the goods. If they do, it could be a big player in the market, if not, they'll gradually shrink together in the mobile sector, with Nokia being hit the hardest.
Nokia closed Tuesday at $8.68, falling $0.06, or 0.69 percent. Microsoft closed at $25.49, gaining $0.08, or 0.31 percent.
Monday, March 28, 2011
RIM (RIMM) Says PlayBook Will Support Google (GOOG) Apps
Research In Motion (Nasdaq:RIMM), as expected by some, has officially announced its PlayBook tablet will support Google (NASDAQ:GOOG) Android apps.
As Motley Fool noted, "The bad news for BlackBerry fans is that the PlayBook will run app-player software that runs Android. This "non-native" approach typically creates a noticeable performance drag. What's more, Android apps for the PlayBook will be available only through RIM's BlackBerry App World, which is reputedly not user-friendly. RIM management probably understands the limited appeal of this approach, because it also announced tools to make it quick and inexpensive to adapt apps to run natively on the PlayBook."
They concluded, "RIM's decision underscores the challenge that Hewlett-Packard's (NYSE:HPQ) and Microsoft's (Nasdaq:MSFT) mobile devices - which also have differentiated operating systems - face in competing with Android and Apple's iOS. To be sure, HP has also touted quick, easy porting of apps to its webOS. But that strategy is more likely to keep it in the running than to propel it to a leading position."
Research in Motion closed Friday at $56.89, falling $7.20, or 11.23 percent.
As Motley Fool noted, "The bad news for BlackBerry fans is that the PlayBook will run app-player software that runs Android. This "non-native" approach typically creates a noticeable performance drag. What's more, Android apps for the PlayBook will be available only through RIM's BlackBerry App World, which is reputedly not user-friendly. RIM management probably understands the limited appeal of this approach, because it also announced tools to make it quick and inexpensive to adapt apps to run natively on the PlayBook."
They concluded, "RIM's decision underscores the challenge that Hewlett-Packard's (NYSE:HPQ) and Microsoft's (Nasdaq:MSFT) mobile devices - which also have differentiated operating systems - face in competing with Android and Apple's iOS. To be sure, HP has also touted quick, easy porting of apps to its webOS. But that strategy is more likely to keep it in the running than to propel it to a leading position."
Research in Motion closed Friday at $56.89, falling $7.20, or 11.23 percent.
Friday, March 25, 2011
RIM (RIMM) Sucks Says Wall Street
Shares of Research In Motion Limited (Nasdaq: RIMM) are getting crunched Friday after mixed fourth-quarter results and disappointing first-quarter guidance.
The BlackBerry maker reported fourth quarter EPS of $1.78, $0.03 above the analyst estimate of $1.75. Revenue for the company jumped 36 percent to $5.6 billion for the quarter, compared to consensus of $5.63 billion.
While the fourth quarter was essentially in-line with what investors had expected, the important first-quarter forecast, which will see the launch of RIM's PlayBook tablet, was disappointing. RIM said it sees earnings of $1.47-$1.55 a share, missing the Street's view of $1.65 a share.
For the full year 2012, guidance was stronger. The company sees earnings over $7.50 a share, compared to the Street's outlook of $6.81. Although the company firmly gave this internal guidance, Wall Street is not convinced that it will achieve this number and believes it will have to come down. Even some of the most bullish RIM analysts see 2012 below this "aggressive" figure.
"With no QNX on handsets until CY12, we think RIM will likely continue to lose share to Android smartphones whose prices are rapidly falling," Detusche Bank analyst Brian Modoff said. "We believe fully-powered Android phones will be available for $100 by early 2012, and this will threaten RIM’s growth in all markets,"
RIM was trading at $57.01, falling $7.08, or 11.04 percent, as of 12:01 PM EDT.
Source
The BlackBerry maker reported fourth quarter EPS of $1.78, $0.03 above the analyst estimate of $1.75. Revenue for the company jumped 36 percent to $5.6 billion for the quarter, compared to consensus of $5.63 billion.
While the fourth quarter was essentially in-line with what investors had expected, the important first-quarter forecast, which will see the launch of RIM's PlayBook tablet, was disappointing. RIM said it sees earnings of $1.47-$1.55 a share, missing the Street's view of $1.65 a share.
For the full year 2012, guidance was stronger. The company sees earnings over $7.50 a share, compared to the Street's outlook of $6.81. Although the company firmly gave this internal guidance, Wall Street is not convinced that it will achieve this number and believes it will have to come down. Even some of the most bullish RIM analysts see 2012 below this "aggressive" figure.
"With no QNX on handsets until CY12, we think RIM will likely continue to lose share to Android smartphones whose prices are rapidly falling," Detusche Bank analyst Brian Modoff said. "We believe fully-powered Android phones will be available for $100 by early 2012, and this will threaten RIM’s growth in all markets,"
RIM was trading at $57.01, falling $7.08, or 11.04 percent, as of 12:01 PM EDT.
Source
Eastman Kodak (EK) Up on Apple, RIM (AAPL) (RIMM) Patent Talk
The probability Eastman Kodak (NYSE:EK) may get a windfall settlement with Apple (NASDAQ:AAPL) and Research in Motion (NASDAQ:RIMM) for patent infringement has shares of the stock jumping today.
According to CEO Antonio Perez, Eastman "deserves to win" in their patent suit with the two mobile media and communications giants.
Speculation is with Kodak winning recent patent suits against LG and Samsung, there is a good chance they'll win this one as well, with an announcement from the U.S. International Trade Commission coming later today.
At stake today is whether or not the Commission will review a judge's prior findings that Apple's iPhone and Research In Motion's BlackBerry don't violate Kodak's patent on an image- preview feature in camera phones.
The major source of revenue for Kodak in the future appears to be from licensing, which at this time drives from $250 to $350 million for them, and that doesn't include what they may get from Apple and Research In Motion.
Eastman was trading at $3.42, up $0.29, or 9.27 percent, as of 11:38 AM EDT.
According to CEO Antonio Perez, Eastman "deserves to win" in their patent suit with the two mobile media and communications giants.
Speculation is with Kodak winning recent patent suits against LG and Samsung, there is a good chance they'll win this one as well, with an announcement from the U.S. International Trade Commission coming later today.
At stake today is whether or not the Commission will review a judge's prior findings that Apple's iPhone and Research In Motion's BlackBerry don't violate Kodak's patent on an image- preview feature in camera phones.
The major source of revenue for Kodak in the future appears to be from licensing, which at this time drives from $250 to $350 million for them, and that doesn't include what they may get from Apple and Research In Motion.
Eastman was trading at $3.42, up $0.29, or 9.27 percent, as of 11:38 AM EDT.
Research in Motion (RIMM) Sales 14.9 Million Smartphones in Q4
Research in Motion (NASDAQ: RIMM) had a decent quarter but was punished in after-hours trading on disappointing guidance.
Revenue in the fourth quarter came in at $5.56 billion, or $1.78 a share. Analysts had been looking for $5.64 billion in revenue and $1.76 a share.
The good news was the company sold 14.9 million BlackBerry smartphones, toward the top of its projected range. Gross profit beat at 44.2 percent of sales, surpassing the 43.6 percent reported in the fiscal third quarter.
Going forward, guidance was weak, with RIM projecting $5.2 billion to $5.6 billion in revenue and EPS of $1.47 to $1.55. Analysts have been looking for $5.64 billion and EPS of $1.65.
Investors didn't seem to be impressed with full year guidance ending February of 2012, where RIM sees EPS “in excess of” $7.50, well above the average of $6.81, after the guidance offered for the first quarter.
Research in Motion closed at $64.09, gaining $1.97, or 3.17 percent. In after-hours trading, as of 5 PM EDT, the company was getting punished, losing $6.72, or 10.48 percent.
Revenue in the fourth quarter came in at $5.56 billion, or $1.78 a share. Analysts had been looking for $5.64 billion in revenue and $1.76 a share.
The good news was the company sold 14.9 million BlackBerry smartphones, toward the top of its projected range. Gross profit beat at 44.2 percent of sales, surpassing the 43.6 percent reported in the fiscal third quarter.
Going forward, guidance was weak, with RIM projecting $5.2 billion to $5.6 billion in revenue and EPS of $1.47 to $1.55. Analysts have been looking for $5.64 billion and EPS of $1.65.
Investors didn't seem to be impressed with full year guidance ending February of 2012, where RIM sees EPS “in excess of” $7.50, well above the average of $6.81, after the guidance offered for the first quarter.
Research in Motion closed at $64.09, gaining $1.97, or 3.17 percent. In after-hours trading, as of 5 PM EDT, the company was getting punished, losing $6.72, or 10.48 percent.
Tuesday, March 22, 2011
HTC, Not (AAPL) (RIMM) (MMI) Top Smartphone Vendor in U.S.
In the fourth quarter there was a new company ruling the smartphone roost in the U.S., as Taiwan-based HTC surpassed major vendors like Apple (NASDAQ:AAPL), RIM (NASDAQ:RIMM) and Motorola (NYSE:MMI) with a 20 percent share of the market.
Apple and Blackberry fell to a market share of 19 percent each, while Motorola was fourth with a 16 percent market share, according to a report by NPD Group.
The remaining 26 percent U.S. smartphone share was spread among Samsung, LG, Nokia (NYSE:NOK) and HP/Palm (NYSE:HPQ), among others.
While HTC generated the majority of its sales in the fourth quarter from phones equipped with Google's (NASDAQ:GOOG) Android platform, the thought is it was actually the debut of devices running Microsoft's (NASDAQ:MSFT) Windows Phone 7 that brought them to the No. 1 spot.
As for specific device sales, Apple is still No. 1, for 2010 with the iPhone 4 (16 and 32GB varieties combined) taking the top spot and its prior iPhone 3GS taking #2.
Apple and Blackberry fell to a market share of 19 percent each, while Motorola was fourth with a 16 percent market share, according to a report by NPD Group.
The remaining 26 percent U.S. smartphone share was spread among Samsung, LG, Nokia (NYSE:NOK) and HP/Palm (NYSE:HPQ), among others.
While HTC generated the majority of its sales in the fourth quarter from phones equipped with Google's (NASDAQ:GOOG) Android platform, the thought is it was actually the debut of devices running Microsoft's (NASDAQ:MSFT) Windows Phone 7 that brought them to the No. 1 spot.
As for specific device sales, Apple is still No. 1, for 2010 with the iPhone 4 (16 and 32GB varieties combined) taking the top spot and its prior iPhone 3GS taking #2.
Blackberry (RIMM) Broken Says Sanford Bernstein
Citing the current strength in overseas sales shrinking, Sanford Bernstein analyst Pierre Ferragu said “BlackBerry (NASDAQ:RIMM) is a broken brand,” and maintains an "Underperform" on the company.
While he's looking for the company's next quarter to be good, as well as the 1st quarter afterwards, he sees full year revenue for RIM dropping to about $23.4 billion, under the consensus of $23.8 billion.
Revenue for the fourth quarter, expected to be reported on Thursday, is projected by Ferragu to reach the high end of RIM’s forecast for $5.5 billion to $5.7 billion.
Noting surveys from 2010 by Bernstein, Ferragu says only about 43 percent of Blackberry owners will continue on with the platform, in contrast to 92% of Apple (NASDAQ:AAPL) iPhone owners and 87% of owners of Google‘s (NASDAQ:GOOG) “Android“-based phones.
Research in Motion closed at $62.17 on Monday, gaining $1.26, or 2.07 percent.
While he's looking for the company's next quarter to be good, as well as the 1st quarter afterwards, he sees full year revenue for RIM dropping to about $23.4 billion, under the consensus of $23.8 billion.
Revenue for the fourth quarter, expected to be reported on Thursday, is projected by Ferragu to reach the high end of RIM’s forecast for $5.5 billion to $5.7 billion.
Noting surveys from 2010 by Bernstein, Ferragu says only about 43 percent of Blackberry owners will continue on with the platform, in contrast to 92% of Apple (NASDAQ:AAPL) iPhone owners and 87% of owners of Google‘s (NASDAQ:GOOG) “Android“-based phones.
Research in Motion closed at $62.17 on Monday, gaining $1.26, or 2.07 percent.
Friday, March 18, 2011
Rim (RIMM) Working with BofA (BAC), Mastercard (MA) in Transaction Deal
A potential war is brewing between Research in Motion (NASDAQ:RIMM) and carriers like AT&T (NYSE:T) over who has control of data in store transactions or transportation purchases.
RIM, in an attempt to be a first mover, is working with Mastercard (NYSE:MA) to work up a system to use with Bank of America (NYSE:BAC) customers in New York.
At the end of 2010, Bank of America sent some of its BlackBerry-using customers in New York a memory card with an NFC chip capable of making a wireless payment when waved in front of special terminals found in subway stations, drug stores and taxi cabs.
As the mobile industry looks to turn cellphones into digital wallets, Research In Motion and wireless carriers are at odds over who should control the customer data.
The carriers say they want to encrypt and store the credentials in the phone's SIM card, the small chips placed in the back of phones to activate access to mobile networks. SIM cards can be easily swapped from phone to phone. Such a system provides a single payment hub that doesn't depend on what kind of phone you have, the carriers argue.
RIM wants the credentials built into a secure area of the BlackBerry itself, which would bind users to its devices and potentially cut carriers out of the loop, according to officials representing some of the carriers. RIM is already reaching out to banks on its own, these people say.
RIM closed Thursday at $60.85, gaining $1.01, or 1.69 percent.
Source
RIM, in an attempt to be a first mover, is working with Mastercard (NYSE:MA) to work up a system to use with Bank of America (NYSE:BAC) customers in New York.
At the end of 2010, Bank of America sent some of its BlackBerry-using customers in New York a memory card with an NFC chip capable of making a wireless payment when waved in front of special terminals found in subway stations, drug stores and taxi cabs.
As the mobile industry looks to turn cellphones into digital wallets, Research In Motion and wireless carriers are at odds over who should control the customer data.
The carriers say they want to encrypt and store the credentials in the phone's SIM card, the small chips placed in the back of phones to activate access to mobile networks. SIM cards can be easily swapped from phone to phone. Such a system provides a single payment hub that doesn't depend on what kind of phone you have, the carriers argue.
RIM wants the credentials built into a secure area of the BlackBerry itself, which would bind users to its devices and potentially cut carriers out of the loop, according to officials representing some of the carriers. RIM is already reaching out to banks on its own, these people say.
RIM closed Thursday at $60.85, gaining $1.01, or 1.69 percent.
Source
Thursday, March 17, 2011
RIM (RIMM) offers Corporate Clients Data-Management Service
BlackBerry maker Research In Motion Ltd. (NASDAQ:RIMM) said it is offering its business customers a choice to shift back-office management of email traffic and other BlackBerry services off-site, in a strategy that it says will save customers money, speed the rollout of BlackBerry services and enhance security at a time when more and more employees use smart phones for corporate and personal use.
The initiative comes as RIM readies the launch of its PlayBook tablet, a major product launch that will vault RIM into the tablet-computer market to compete against Apple Inc.'s iPad.
It also comes as RIM's corporate subscriber base faces an unprecedented attack from Apple's iPhone and iPad juggernauts, as well as a phalanx of smart phones that run on Google Inc.'s Android-operating system.
The move will be carried out in close conjunction with Microsoft Corp. (NASDAQ:MSFT), which in October announced a major, so-called cloud-service initiative of its own, called Microsoft Office 365. As part of that initiative, companies that use Microsoft Exchange Server, which stores email, contact and calendar information, among other things, can move their Exchange servers to off-site data centers. The initiative is still in the testing phase but is expected to go live in a matter of months.
"We're embracing it in a big way, and we're going out jointly with Microsoft to all of our customers," said Jim Tobin, senior vice president of RIM's software and business services unit.
Source
The initiative comes as RIM readies the launch of its PlayBook tablet, a major product launch that will vault RIM into the tablet-computer market to compete against Apple Inc.'s iPad.
It also comes as RIM's corporate subscriber base faces an unprecedented attack from Apple's iPhone and iPad juggernauts, as well as a phalanx of smart phones that run on Google Inc.'s Android-operating system.
The move will be carried out in close conjunction with Microsoft Corp. (NASDAQ:MSFT), which in October announced a major, so-called cloud-service initiative of its own, called Microsoft Office 365. As part of that initiative, companies that use Microsoft Exchange Server, which stores email, contact and calendar information, among other things, can move their Exchange servers to off-site data centers. The initiative is still in the testing phase but is expected to go live in a matter of months.
"We're embracing it in a big way, and we're going out jointly with Microsoft to all of our customers," said Jim Tobin, senior vice president of RIM's software and business services unit.
Source
Friday, March 11, 2011
Motorola (MMI), RIM (RIMM) Concerns Overblown Says Morgan Keegan
According to Morgan Keegan analyst Travis McCourt, concerns over the performances of Motorola (NYSE:MMI) and RIM (NASDAQ:RIMM) are overblown.
He noted that sales of BlackBerry's and Xoom tablets aren't as weak as reported by the media, saying concerning Xoom, his checks are in line with his estimates of 300,000 being sold this quarter.
BlackBerry continues to perform in a stable manner, said McCourt, even after releases at Verizon (NYSE:Vz) and AT&T (NYSE:T) which compete with it. BlackBerry at Sprint (NYSE:S) is doing surprisingly well, he added.
“There appears to have been no dramatic change in BlackBerry sell-through at AT&T or Verizon, although we suspect sell-through is down modestly with the recent competitive launches," concluded the analyst.
Morgan Keegan maintains an "Outperform" rating on RIM and a "Market Perform" rating on Motorola. RIM was trading at $63.30, up $0.70, or 1.12 percent, as of 11:52 AM EST. Motorola Mobility was trading at $24.50, down $0.71, or 2.84 percent.
He noted that sales of BlackBerry's and Xoom tablets aren't as weak as reported by the media, saying concerning Xoom, his checks are in line with his estimates of 300,000 being sold this quarter.
BlackBerry continues to perform in a stable manner, said McCourt, even after releases at Verizon (NYSE:Vz) and AT&T (NYSE:T) which compete with it. BlackBerry at Sprint (NYSE:S) is doing surprisingly well, he added.
“There appears to have been no dramatic change in BlackBerry sell-through at AT&T or Verizon, although we suspect sell-through is down modestly with the recent competitive launches," concluded the analyst.
Morgan Keegan maintains an "Outperform" rating on RIM and a "Market Perform" rating on Motorola. RIM was trading at $63.30, up $0.70, or 1.12 percent, as of 11:52 AM EST. Motorola Mobility was trading at $24.50, down $0.71, or 2.84 percent.
Tuesday, March 8, 2011
Android (GOOG) U.S. Market Share Continues to Grow
The market share of Google's (NASDAQ:GOOG) Android in the U.S. continues to grow, according to comScore, now passing Blackberry (NASDAQ:RIMM) for the No. 1 spot in America.
RIM had a 3 point lead over Android in December, but they have overcome that and added a one percentage point lead in just a short month.
Android leads the smartphone category now with a 31.2 percent market share. RIM fell to second with a 30. 4 percent share, with Apple (NASDAQ:AAPL) next at 24.7 percent. In fourth was Microsoft (NASDAQ:MSFT) with a 8 percent share.
As for the devices themselves, Samsung remained in the lead for total subscribers with 24.9 percent, a gain of 0.7 percent. LG was in second with 20.8 percent share, although they lost 0.2 percent share. Apple was the only other major company which grew in the quarter, reaching 7.0 percent, a 0.6 percent gain.
RIM had a 3 point lead over Android in December, but they have overcome that and added a one percentage point lead in just a short month.
Android leads the smartphone category now with a 31.2 percent market share. RIM fell to second with a 30. 4 percent share, with Apple (NASDAQ:AAPL) next at 24.7 percent. In fourth was Microsoft (NASDAQ:MSFT) with a 8 percent share.
As for the devices themselves, Samsung remained in the lead for total subscribers with 24.9 percent, a gain of 0.7 percent. LG was in second with 20.8 percent share, although they lost 0.2 percent share. Apple was the only other major company which grew in the quarter, reaching 7.0 percent, a 0.6 percent gain.
Monday, March 7, 2011
BlackBerry (RIMM) Says Goodbye to Marvell (MRVL), Hello Entry-Level
Research In Motion (NASDAQ:RIMM) is shifted a lot of its resources away from high-end smartphones, evidently putting the hurt on Marvell (NASDAQ:MRVL) and possibly attempting to take advantage of the vacuum in the low-end market Nokia (NYSE:NOK) may have left opened.
Chip maker Marvell struggled in the last quarter, with revenue down 6% (to $901 million) and net income falling 13% (to $223 million) from the previous quarter - that's even with the Christmas season, which is normally the best time for smartphone sales.
CEO Sehat Sutardja blamed the results on a switch by one of Marvell's customers toward building low-cost, low-margin smartphones - a market that Marvell does not compete in. That customer is RIM, although that hasn't been officially stated.
RIM is facing increasing pressure from lower priced smartphones that run Google's (NASDAQ:GOOG) Android operating system. Android pretty much came out of nowhere in 2010 and surpassed RIM's global market share. RIM grew in absolute numbers, but dropped to third place behind Android and leader Symbian (Nokia), according to Gartner.
Research in Motion closed Friday at $66.47, down $1.98, or 2.89 percent.
Chip maker Marvell struggled in the last quarter, with revenue down 6% (to $901 million) and net income falling 13% (to $223 million) from the previous quarter - that's even with the Christmas season, which is normally the best time for smartphone sales.
CEO Sehat Sutardja blamed the results on a switch by one of Marvell's customers toward building low-cost, low-margin smartphones - a market that Marvell does not compete in. That customer is RIM, although that hasn't been officially stated.
RIM is facing increasing pressure from lower priced smartphones that run Google's (NASDAQ:GOOG) Android operating system. Android pretty much came out of nowhere in 2010 and surpassed RIM's global market share. RIM grew in absolute numbers, but dropped to third place behind Android and leader Symbian (Nokia), according to Gartner.
Research in Motion closed Friday at $66.47, down $1.98, or 2.89 percent.
Android (GOOG) Grabs Future of Smartphones
The expectations that grabbing the younger demographic in smartphones is a guarantee of long-term future success in the segment, it bodes well for Google's Android (NASDAQ:GOOG), as they lead smartphone users with a 14 percent share in the 18 to 34 age group.
According to survey results from Nielsen, 14% of all smartphone users between the ages of 18 and 34 are using an Android phone, while this age group posted a 12% share for the iPhone, 11% for BlackBerrys, 3% for Palm OS, and 2% for Windows Mobile. The three leading platforms -- Android, iOS, and BlackBerry -- now claim 37% of the user group that largely defines the trends in the smartphone arena.
The fight for smartphone market share isn't just a battle for market share. It's a battle of demographics and the opportunity to build a loyal customer base for the future. Android looks to be pulling ahead in this contest in the U.S., while Apple (Nasdaq:AAPL) is following closely behind and competitors like Hewlett-Packard (NYSE:HPQ), with WebOS, and Microsoft (Nasdaq:MSFT), have a decidedly older mix of users.
Android also seems to be growing in this space and seems to have found the key to attract a substantial share in this demographic segment. Compared with iOS, Android has greater market share in younger demographics while falling behind in the age groups above 55. iOS has a similar advantage over BlackBerry devices. HP/WebOS and Windows lack enough market share to be directly comparable, but it seems as if both platforms have an even number of users across all age groups. In a relative comparison, WebOS posted the highest average age.
Android is now also pulling ahead in overall U.S. market share. It is now at 29%, followed by Apple with 27% and BlackBerry with 27%. Windows Mobile/WP7 is at an estimated 10% and WebOS at 4%. Apple and Research In Motion (Nasdaq: RIMM) are the dominant device manufacturers, with a share of 27% each. HTC is at 19%, Motorola at 11%, and Samsung at 7%.
Source
According to survey results from Nielsen, 14% of all smartphone users between the ages of 18 and 34 are using an Android phone, while this age group posted a 12% share for the iPhone, 11% for BlackBerrys, 3% for Palm OS, and 2% for Windows Mobile. The three leading platforms -- Android, iOS, and BlackBerry -- now claim 37% of the user group that largely defines the trends in the smartphone arena.
The fight for smartphone market share isn't just a battle for market share. It's a battle of demographics and the opportunity to build a loyal customer base for the future. Android looks to be pulling ahead in this contest in the U.S., while Apple (Nasdaq:AAPL) is following closely behind and competitors like Hewlett-Packard (NYSE:HPQ), with WebOS, and Microsoft (Nasdaq:MSFT), have a decidedly older mix of users.
Android also seems to be growing in this space and seems to have found the key to attract a substantial share in this demographic segment. Compared with iOS, Android has greater market share in younger demographics while falling behind in the age groups above 55. iOS has a similar advantage over BlackBerry devices. HP/WebOS and Windows lack enough market share to be directly comparable, but it seems as if both platforms have an even number of users across all age groups. In a relative comparison, WebOS posted the highest average age.
Android is now also pulling ahead in overall U.S. market share. It is now at 29%, followed by Apple with 27% and BlackBerry with 27%. Windows Mobile/WP7 is at an estimated 10% and WebOS at 4%. Apple and Research In Motion (Nasdaq: RIMM) are the dominant device manufacturers, with a share of 27% each. HTC is at 19%, Motorola at 11%, and Samsung at 7%.
Source
Friday, March 4, 2011
Marvell (MRVL) Guides Lower on Mobile, Storage Revenue
Shares of Marvell (NASDAQ:MRVL) were being hit hard after the company guided much lower for its mobile and storage revenue for the quarter.
Marvell said revenue for the two segments will will drop sharply in the current quarter, while also expecting PC sales to continue to be soft.
The mobile and wireless revenue of the company will be under the most pressure, expected to fall by over 20 percent. For storage, Marvell said shares will drop somewhere in the mid-single digit range as measured against the prior quarter.
Competition from Nvidia (NASDAQ:NVDA) and Qualcomm (NASDAQ:QCOM) in the smartphone market will also ramp up going forward.
Research In Motion's (NASDAQ:RIMM) Blackberry is one of the companies Marvell supplies chips to. Other major smartphone companies aren't using Marvell chips at this time.
Marvell reported net profit, excluding items, in the fourth quarter of $273 million or 40 cents a share, compared with $266 million or 40 cents a share in the same quarter last year. Analysts were looking for 42 cents a share.
Revenue in the quarter increased 7 percent to $901 million year over year, but dropped 6 percent from the previous quarter. Analysts on average had expected Marvell to report revenue of $924 million.
Marvell was trading at $17.15 after hours, dropping $1.07, or 5.87 percent.
Marvell said revenue for the two segments will will drop sharply in the current quarter, while also expecting PC sales to continue to be soft.
The mobile and wireless revenue of the company will be under the most pressure, expected to fall by over 20 percent. For storage, Marvell said shares will drop somewhere in the mid-single digit range as measured against the prior quarter.
Competition from Nvidia (NASDAQ:NVDA) and Qualcomm (NASDAQ:QCOM) in the smartphone market will also ramp up going forward.
Research In Motion's (NASDAQ:RIMM) Blackberry is one of the companies Marvell supplies chips to. Other major smartphone companies aren't using Marvell chips at this time.
Marvell reported net profit, excluding items, in the fourth quarter of $273 million or 40 cents a share, compared with $266 million or 40 cents a share in the same quarter last year. Analysts were looking for 42 cents a share.
Revenue in the quarter increased 7 percent to $901 million year over year, but dropped 6 percent from the previous quarter. Analysts on average had expected Marvell to report revenue of $924 million.
Marvell was trading at $17.15 after hours, dropping $1.07, or 5.87 percent.
Tuesday, February 15, 2011
Apple (NASDAQ:AAPL) Loses App Share, Still on Top
In 2009 Apple (NASDAQ:AAPL) completely dominated the app market, with a 92.8 percent market share, which generated $769 million in revenue for the tech giant, according to IHS research firm iSuppli.
While Apple continues dominate the segment, they predictably lost share, as now they have a market share of 82.7 percent for apps. I say predictably because no company could continue to own that type of market share in a competitive market. That's going to be the same with tablets as well.
Even so, Apple generated more revenue from apps with less share, bringing in $1.2 billion. That's because the overall app market is growing, and its 82.7 percent share represents more users than the 92 percent just a couple of years ago.
Revenue from mobile applications rose to $2.2 billion in 2010, a 160.2 percent gain.
Jack Kent, analyst, mobile media, for IHS noted, “In 2010, competitors managed to close the gap with Apple’s iPhone in terms of providing smart phone products with compelling user interfaces. However, in terms of mobile application stores, Apple remains far ahead of the competition, with the other stores so far unable to replicate Apple’s success in generating revenue from users. Apple, in contrast, has been able to maintain advantage by leveraging its tightly controlled ecosystem."
The second place finisher behind Apple was RIM's (NASDAQ:RIMM) Blackberry App World, which had 7.7 percent of app share in 2010. Nokia (NYSE:NOK) was third with its Ovi Store, which gave them 4.9 percent market share. Google (NASDAQ:GOOG) was next with a 4.7 percent share.
While Apple continues dominate the segment, they predictably lost share, as now they have a market share of 82.7 percent for apps. I say predictably because no company could continue to own that type of market share in a competitive market. That's going to be the same with tablets as well.
Even so, Apple generated more revenue from apps with less share, bringing in $1.2 billion. That's because the overall app market is growing, and its 82.7 percent share represents more users than the 92 percent just a couple of years ago.
Revenue from mobile applications rose to $2.2 billion in 2010, a 160.2 percent gain.
Jack Kent, analyst, mobile media, for IHS noted, “In 2010, competitors managed to close the gap with Apple’s iPhone in terms of providing smart phone products with compelling user interfaces. However, in terms of mobile application stores, Apple remains far ahead of the competition, with the other stores so far unable to replicate Apple’s success in generating revenue from users. Apple, in contrast, has been able to maintain advantage by leveraging its tightly controlled ecosystem."
The second place finisher behind Apple was RIM's (NASDAQ:RIMM) Blackberry App World, which had 7.7 percent of app share in 2010. Nokia (NYSE:NOK) was third with its Ovi Store, which gave them 4.9 percent market share. Google (NASDAQ:GOOG) was next with a 4.7 percent share.
Thursday, January 27, 2011
Verizon Communications (NYSE:VZ) Says Apple's iPhone (NASDAQ:AAPL) Accretive to Earnings This Year
Verizon Communications (NYSE:VZ) shocked the market when they said Apple's iPhone (NASDAQ:AAPL) will be accretive to earnings this year.
Canaccord says, "Verizon added just shy of a million subscribers in the latest quarter, affirming its position as the nation’s biggest carrier. The company said that a record number of subscribers were purchasing smartphones, with more than 75% of post-paid additions choosing devices running on the Google (Nasdaq:GOOG) Android or RIM (Nasdaq:RIMM) BlackBerry platforms. Strong growth in smartphones and the wireless business fuelled sales of $16.1 billion and net income of $4.6 billion. Notably, data sales stood at $5.3 billion as many of the new subscribers opted for expensive plans. 'The fourth quarter capped a strong second half of the year, resulting in improved earnings, solid momentum and an even stronger balance sheet,' summed Chairman and CEO Ivan Seidenberg. 'Verizon Wireless produced another quarter of impressive growth, with record-high profitability, as we continue to drive higher smartphone adoption and data use.' The results missed expectations on a few metrics, but investors seemed content, instead focusing on prospects surrounding the Apple (AAPL) iPhone 4, which will be offered by Verizon starting February 10. The company surprised the Street by predicting that the iPhone will be accretive to earnings this year – most had expected the device to pressure margins given the large subsidies Verizon will have to pay out. Some of the help may come from the carrier’s steps to limit its upgrade program and shorten its return window as part of the launch. The carrier may also be counting on luring customers from AT&T (NYSE:T) with the promise of cheap data plans, as management affirmed they would continue offering a $30-per-month unlimited plan to those who buy the iPhone at launch."
Verizon closed Wednesday at $36.40, gaining $0.61, or 1.70 percent. Apple closed at $343.85, gaining $2.45, or 0.72 percent.
Canaccord says, "Verizon added just shy of a million subscribers in the latest quarter, affirming its position as the nation’s biggest carrier. The company said that a record number of subscribers were purchasing smartphones, with more than 75% of post-paid additions choosing devices running on the Google (Nasdaq:GOOG) Android or RIM (Nasdaq:RIMM) BlackBerry platforms. Strong growth in smartphones and the wireless business fuelled sales of $16.1 billion and net income of $4.6 billion. Notably, data sales stood at $5.3 billion as many of the new subscribers opted for expensive plans. 'The fourth quarter capped a strong second half of the year, resulting in improved earnings, solid momentum and an even stronger balance sheet,' summed Chairman and CEO Ivan Seidenberg. 'Verizon Wireless produced another quarter of impressive growth, with record-high profitability, as we continue to drive higher smartphone adoption and data use.' The results missed expectations on a few metrics, but investors seemed content, instead focusing on prospects surrounding the Apple (AAPL) iPhone 4, which will be offered by Verizon starting February 10. The company surprised the Street by predicting that the iPhone will be accretive to earnings this year – most had expected the device to pressure margins given the large subsidies Verizon will have to pay out. Some of the help may come from the carrier’s steps to limit its upgrade program and shorten its return window as part of the launch. The carrier may also be counting on luring customers from AT&T (NYSE:T) with the promise of cheap data plans, as management affirmed they would continue offering a $30-per-month unlimited plan to those who buy the iPhone at launch."
Verizon closed Wednesday at $36.40, gaining $0.61, or 1.70 percent. Apple closed at $343.85, gaining $2.45, or 0.72 percent.
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