The fourth-quarter numbers for the global handset market are in, and it’s time to start parsing the information. Research firms Strategy Analytics and IDC released separate, detailed looks at market share, shipment and growth information for the world’s Tier 1 cell phone makers.
Global market share numbers:
Source: Strategy Analytics
Global shipment numbers (in millions):
| 2008 | Q1’09 | Q2 ’09 | Q3 ’09 | Q4 ’09 | 2009 | |
| Nokia | 468.4 | 93.2 | 103.2 | 108.5 | 126.9 | 431.8 |
| Samsung | 196.6 | 45.8 | 52.3 | 60.2 | 69.0 | 227.3 |
| LG Electronics | 100.8 | 22.6 | 29.8 | 31.6 | 33.9 | 117.9 |
| Sony Ericsson | 96.6 | 14.5 | 13.8 | 14.1 | 14.6 | 57.0 |
| Motorola | 100.1 | 14.7 | 14.8 | 13.6 | 12.0 | 55.1 |
| Others | 214.8 | 53.7 | 58.9 | 62.2 | 68.0 | 242.8 |
| Total | 1177.3 | 244.5 | 272.8 | 290.2 | 324.4 | 1131.9 |
Source: Strategy Analytics
Global shipment growth by vendor in the fourth quarter of 2009:
Source: Strategy Analytics
Handset market analysis:
Strategy Analytics said global handset shipments reached 324 million units worldwide in the fourth quarter of 2009, which the firm said represented a 10 percent increase from 294 million units a year earlier. The firm said the fourth quarter “was the handset market’s first quarter of positive growth since the third quarter of 2008, signaling an end to the industry’s year-long recession.”
“One area of the market that has consistently shown growth all year is the converged mobile device market,” said Ramon Llamas, senior research analyst with IDC’s Mobile Devices Technology and Trends team. “Consumer tastes for mobile phones have increasingly shifted from simple voice telephony to greater data usage, and both handset vendors and carriers have been eager to meet demand despite ongoing economic challenges. IDC believes that the converged mobile device market grew nearly 30 percent year over year, and that the market will continue to gain momentum as device selection increases and price decreases continue into 2010 and beyond.”
Vendor analysis:
Nokia
–Strategy Analytics: It was a solid performance and Nokia’s best set of handset results since the first half of 2008. Shipments, turnover, average selling price and operating margin all exceeded expectations for the quarter. Nokia’s handset volumes remained weak in North and South America, and Europe was a little soft, but this was offset by a strong performance in China, Asia and Africa. Nokia has outperformed in smartphones, but longer-term challenges still remain, including below-average share of the high-growth touchscreen market and a tiny presence in the influential U.S. market.
–IDC: Shipments of 126.9 million in the fourth quarter of 2009 represented the company’s highest quarterly total in two years. The higher handset figures were boosted by improved smartphone sales. When its handset shipment performance is measured on an annual basis, however, Nokia shipped fewer devices in 2009 than in each of the last two years.
Read the FierceWireless article on Nokia’s fourth-quarter performance.
Samsung
–Strategy Analytics: Touchphone models were the key to Samsung’s high-end growth in 2009, but we expect the vendor to switch some of its focus to Bada/Android smartphones and the Samsung Apps initiative in 2010.
–IDC: Samsung capitalized on growing interest in converged mobile devices with its Omnia2 while addressing end-user demand for touchscreen and quick-messaging devices within developed markets. In emerging markets, Samsung’s attention to local market tastes and extended distribution channels helped build its presence. Despite its heady growth, the company fell further behind market leader Nokia while distancing itself ahead of LG Electronics.
Read the FierceWireless article on Samsung’s fourth-quarter performance.
LG
–Strategy Analytics: LG’s handset operating margin slid to 2 percent in the quarter, down sharply from 9 percent in the previous quarter, as a result of lower ASPs and higher marketing expenses. LG’s cost-control mechanisms still have room for improvement. Shipments to North America, South America, Europe, Africa and Asia were healthy, while sales in its home market of South Korea were a little soft.
–IDC: LG continues to reap success from its popular enV and Cookie products while building its converged mobile device portfolio with the Android-powered GW620 and GW880 and Windows Mobile-powered GW820.
Read the FierceWireless article on LG’s fourth-quarter performance.
Sony Ericsson
Strategy Analytics: Sony Ericsson’s market share dipped to well under 5 percent, the lowest level for seven years. The company continues to refocus on value as much as volume. Operating margin, excluding restructuring charges, was minus 2 percent in the quarter, a tangible improvement over the past year’s average of minus 12 percent. After slashing thousands of jobs and trimming production capacity across the globe, Sony Ericsson has rightly become a leaner organization and its chances of finally returning to profitability in the next one to two quarters have increased.
–IDC: Sony Ericsson’s sales of 14.6 million handsets represented its highest shipment figure of the year thanks to the introduction of new models such as the Satio and Aino. It also announced the Xperia X10 and Vivaz models that the company says will be released later this year.
Read the FierceWireless article on Sony Ericsson’s fourth-quarter performance.
Motorola
–Strategy Analytics: Motorola and Sony Ericsson have been the highest-profile casualties of the handset recession, each shedding four to five points of global market share over the past 18 months. Both firms developed inadequate 3G handset portfolios, enabling rivals like LG and Apple to seduce operators with more attractive offerings. Motorola is repositioning itself as a smartphone player, centered around the Android OS, and with its global smartphone market share almost doubling quarter-on-quarter to 4 percent in the quarter the initiative has gotten off to a positive start.
–IDC: In its first quarter, Motorola demonstrated how Android has become a key component of its product portfolio, shipping 2 million units worldwide. Its Droid and Cliq/Dext devices were shipped to more than 20 countries.
Read the FierceWireless article on Motorola’s fourth-quarter performance.
For more:
- see this Strategy Analytics release
- see this IDC release
- see these numbers from the third quarter
- see these numbers from the second quarter
- see the wireless industry’s performance so far in the fourth quarter
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AT&T nears record with 2.7M net adds in Q4
Verizon Wireless’ aggressive holiday ad campaign slamming the quality of AT&T Mobility’s 3G network didn’t stop customers from signing up for AT&T wireless service. The carrier rounded up 2.7 million net new wireless subscribers during the fourth quarter–the second highest quarterly gain in the company’s history.
However, issues surrounding AT&T’s wireless network continue to be a sore spot for the carrier, and executives spent much of their quarterly conference call discussing what AT&T is doing to improve it. Specifically, AT&T will spend $18 billion to $19 billion on its network this year, notably above the $17.3 billion it spent in 2009. More than $2 billion of that is earmarked for increasing backhaul capacity.
On the revenue side, AT&T posted fourth-quarter wireless service revenues of $12.6 billion, up 9.2 percent from the same quarter in 2008. The carrier’s operating income clocked in at $3.4 billion, up 27.4 percent over the year prior. Here’s a breakdown of the rest of AT&T’s key metrics:
Subscribers: AT&T added 2.7 million net new subscribers in fourth quarter, for a total of 7.3 million net new subscribers in 2009. The company’s total subscriber base reached 85.1 million (still behind No. 1 carrier Verizon’s 91.2 million). AT&T’s net new postpaid subscribers totaled 930,000 in the fourth quarter and 4.3 million for the full year.
iPhone and iPad: Apple’s iPhone continued to drive consumers to AT&T. The company activated 3.1 million iPhone users in fourth quarter, and more than a third were new to AT&T. During the conference call with analysts, AT&T executives said the new Apple iPad is a different model for AT&T because the company is not subsidizing the device and because customers will activate it online–thus, AT&T won’t have the typical activation and billing costs. However, executives also said they believe iPad users will rely predominantly on WiFi, and therefore it won’t drain AT&T’s 3G network. “We will monitor the usage as the device gets out there,” said Rick Lindner, senior executive vice president and CFO at AT&T. “If it turns out substantially different, we will adapt.”
Emerging devices: AT&T’s new emerging devices division also posted a strong quarter, adding more than 1 million new devices onto the network. AT&T executives said that, despite smaller ARPU than standard phones, such devices typically carry low churn numbers and high margins.
Data: AT&T’s wireless data revenues hit $3.9 billion in fourth quarter, an increase of 26.3 percent over the year prior. Text messages increased 70 percent to 135 billion and multimedia messages doubled to more than 2 billion in the period.
ARPU: Average revenue per user was $61.13, an increase of 2.6 percent over the year-earlier quarter. Postpaid data ARPU was $19.16.
Churn: Postpaid churn was 1.19 percent, down from 1.2 percent a year ago. Total churn was 1.44 percent, lower than the 1.64 percent AT&T recorded in the fourth quarter of 2008.
AT&T’s stock remained relatively unchanged on the news, hovering at $25.74 in mid-afternoon trading.
For more:
- see this release
- see these metrics on AT&T’s quarter
- see how AT&T compares with other wireless companies in Q4 earnings
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AT&T activates 3.2M iPhones in Q3, hints at end to exclusivity
AT&T hasn’t decided yet on tiered data pricing
AT&T chief addresses network problems in NYC, San Fran
AT&T CTO defends mobile broadband network
AT&T reveals more femtocell details
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Investors anxious on Qualcomm’s revenue slowdown
from FierceWireless – Wireless Industry, Wireless Technology News … by Mike Dano
Qualcomm’s stock tumbled more than 9 percent, to $43.81 per share, in after-hours trading after the company reduced its fiscal year revenue expectations due to what it said was tightened competition and economic struggles in Europe and Japan.
“As anticipated, we have seen a competitive pricing environment in the chipset market and are proactively managing within this dynamic to grow our market share,” said Qualcomm CEO Paul Jacobs in the company’s earnings release. “A subdued economic recovery in developed regions, including Europe and Japan, combined with relative strength at the lower end of the market, is changing our estimated 3G device average selling price and chipset mix for this fiscal year. Accordingly, we are modestly reducing our fiscal year revenue estimates to reflect this near-term market situation, but are maintaining our earnings per share guidance.”
Specifically, the company said it now expects fiscal 2010 revenues of between $10.4 billion and $11 billion, lower than its initial expectations of between $10.5 billion and $11.3 billion. However, the company maintained its diluted earnings-per-share growth expectations of between 64 and 85 percent, year-over-year.
As for the company’s first fiscal quarter 2010 results, Qualcomm posted revenues of $2.67 billion, up 6 percent year-over-year and down 1 percent sequentially. The chipmaker’s net income for the quarter clocked in at $841 million, up 147 percent year-over-year and 5 percent sequentially. The pop in Qualcomm’s net income year-over-year was primarily due to “a significant improvement in net investment income as our marketable securities recovered value and financial markets stabilized,” the company said.
Qualcomm pointed to a number of recent business initiatives in an effort to highlight its forward movement (and possibly pacify worried investors). The company trumpeted the success of its Snapdragon chipset (recently featured in a number of high-profile smartphones such Google’s Nexus One), its BREW Mobile Platform operating system (recently incorporated into HTC’s latest feature phone play) and its FLO TV mobile video operation (set to launch a major advertising effort during the upcoming Super Bowl).
“We are pleased with our performance this quarter, driven by healthy demand for our chipsets, strong shipments of 3G devices by our licensees and lower operating expenses,” purred Jacobs. “We’re executing on our strategic objectives and reaffirming our 2010 3G device forecast, an increase of 21 percent year-over-year.”
For more:
- see this release
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Verizon Posts 4Q Loss on $3B in Layoff Costs
Verizon Communications Inc. on Tuesday posted an unusual loss for the fourth quarter, as a charge for layoffs in its shrinking landline business overshadowed the growing, and profitable, wireless business.And even the wireless business ran into trouble, as tough competition cut into Verizon’s profit margins.
Verizon CEO Ivan Seidenberg told analysts on a conference call that the company continues to feel the effect of the economic downturn, particularly in selling service to businesses.
“We’re facing some more significant headwinds than we thought we would face from the economy,” he said. He is now expecting a more robust recovery in 2011.
Verizon shares fell 58 cents, or 1.9 percent, to $30.10 in morning trading.
The nation’s second-biggest phone company lost $653 million, or 23 cents per share, in the last quarter. In the same period a year earlier it had a profit of $1.24 billion, or 43 cents per share.
Excluding one-time items, mainly consisting of a $3 billion charge for severance and other costs associated with layoffs, Verizon says it earned 54 cents per share. That was a penny below the average analyst estimate, as polled by Thomson Reuters.
Those estimates were already reduced, after Verizon warned early this month that it paid higher-than-expected subsidies to put phones in the hands of customers. Verizon Wireless is fighting to attract high-paying subscribers away from AT&T Inc. and its exclusive iPhone. AT&T reports earnings Thursday.
Verizon’s revenue rose 10 percent to $27.1 billion, largely due to the acquisition last January of Alltel Corp. Analysts were expecting $27.3 billion.
New York-based Verizon ended the quarter with 222,927 employees, 7,413 fewer than it had in September. The layoffs have come on the traditional phone-company side, as many customers give up their lines in favor of using only cell phones or phone service from cable companies. Chief Financial Officer John Killian said the…
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Novatel Wireless Announces Successful HSPA+ Dual-Carrier Data Transmission with Qualcomm’s MDM8220 Chipset
January 26, 2010 (04:41 PM)
PRNewswire
SAN DIEGO, Jan. 26 /PRNewswire-FirstCall/ — Novatel Wireless , a leading provider of wireless broadband solutions, today announced that it has successfully completed the first data transmission over dual-carrier HSPA+ using Qualcomm’s industry-leading MDM8220(TM) chipset. Dual-carrier HSPA+ is a network innovation that will deliver more advanced data capabilities and support more compelling applications with richer user experiences. Novatel Wireless is working with operators and plans to launch commercial data devices based on the MDM8220(TM) in the second half of 2010.
“Novatel Wireless is continuously investing in research and development to ensure that we lead the market with cutting edge wireless data solutions,” said Dr. Slim Souissi, CTO, Novatel Wireless. “We are very pleased to be working closely with industry technology leader Qualcomm to achieve these technical milestones, and we look forward to continuing to evolve our product line to deliver innovative solutions to meet the needs of our customers.”
Novatel Wireless, Inc. is a leader in the design and development of innovative wireless broadband access solutions based on 3G and 4G technologies. Novatel Wireless’ Intelligent Mobile Hotspot products, software, USB modems and embedded modules enable high-speed wireless Internet access on leading wireless data networks. The Company delivers specialized wireless solutions to carriers, distributors, OEMs and vertical markets worldwide. Headquartered in San Diego, California, Novatel Wireless is listed on NASDAQ: NVTL. For more information please visit www.novatelwireless.com. (NVTLG)
This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, as amended to date. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements contained herein. These factors include risks relating to technological changes, new product introductions, continued acceptance of Novatel Wireless’ products and dependence on intellectual property rights. These factors, as well as other factors that could cause actual results to differ materially, are discussed in more detail in Novatel Wireless’ filings with the United States Securities and Exchange Commission (available at www.sec.gov) and other regulatory agencies.
(C) 2010 Novatel Wireless. All rights reserved. The Novatel Wireless name and logo and MiFi are trademarks of Novatel Wireless, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.
CONTACT: Julie Cunningham of Novatel Wireless, +1-858-431-3711, pr@nvtl.com; or Cara Sloman of Nadel Phelan, +1-831-440-2411,, for Novatel Wireless
Web site: http://www.novatelwireless.com/
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GoingWiMax.com was granted an interview with Berkeley Varitronics Systems CEO of 10 years, Scott Schober. BVS has provided design and consulting services for the wireless telecommunications industry for over 37 years. Most recently, BVS has introduced a line of WiMax and LTE testing tools and analysis software to meet the demand for network build out and optimization. In this interview, Mr. Schober offers his valuable knowledge and insight on a variety of current trends and topics in the wireless world today.
1) In light of WiMax trends in the past 3 years, in what way has your company been influenced and affected?
Berkeley Varitronics Systems (BVS) has seen significant WiMAX growth over the past three years greatly because of our diverse capability and smaller size. The initial business we appreciated was greenfield testing with our stimulus transmitter “Gator” and the “Coyote”, a modular receiver system. This combination allowed carriers such as Sprint and their respective partners to drive a particular area and plot out what type of coverage and signal propagation they would achieve in the 2.5 GHz 4G band planned for future deployment. This was done in all the major markets throughout the US with this system of test equipment. After the initial studies in 2007/2008 the carriers immediately could begin buildout of the actual network. BVS also provides the growing industry with the YellowFin 802.16e mobile WiMAX analyzer. The YellowFin allows 4G buildout to accurately reflect how WiMAX signals will propagate in real world conditions as opposed to using the traditional 3G propagation equipment and models of the past. Advanced measurements such as (Carrier to Interference Noise Ratio) CINR is measured along with Multipath information that could be problematic to the desired thru-put the carriers are looking to achieve. The fact that our portable test solution is used for in-building and out-door drive studies, coupled with our intuitive (Graphic Users Interface) GUI allows RF engineers around the globe to build out their 4G WiMAX networks rapidly with solid coverage.
2) To what degree do you think the introduction and increasing momentum of LTE will effect WiMax technology?
There are clear opportunities for BVS to grow as both WiMAX and LTE are embraced on a global scale. I continually hear of speculation as to whether WiMAX will survive and be replaced by LTE, but I believe the two competing standards will more likely migrate into an accepted standard that will provide high speed internet access to a wide platform of mobile devices used through different market segments. I feel widespread acceptance will be inevitable as companies such as Intel provide WiMAX imbedded chipsets in their microprocessors. Spending will continue to increase for both WiMAX and LTE networks as more mobile devices become mainstream.
Keys to a successful launch once the technology is mature, is time to market and rapid buildout. We have aligned our design and production efforts to meet these demands in order to capitalize on this business. Many markets are slated to turn-on, in region after region, creating a need for a much larger quantity of comprehensive test equipment. BVS has been working with the carriers and their tier 2 vendors early on that have pioneered 4G deployment. LTE has increased its momentum so it will enjoy a ‘time to market’ advantage that WiMAX currently has. BVS has developed an LTE YellowFin test platform that will provide the measurements that companies such as Verizon Wireless and AT&T require as the buildout for 4G LTE gets underway.
3) What are your 2010 predictions for the future of WiMax technology – in what way(s) will it benefit the wireless world the most?
The recent aggressive cost cutting measures the carriers have implemented was to gain market share, retain customers, and enable them to lure new customers with “need for speed” available in 4G mobile phones. The WiMAX 4G mobile phones will change the users experience streaming a movie in real time on their phone or watch their favorite show. When the technology is as easy to use such as Apples’ iTunes, iPhone or Apple TV, the consumer is willing to shell out a few dollars to get the latest content. WiMAX promises significant data rates that will allow 4G to gain the widespread global acceptance.
4) I am aware that BVS designs, tests, manufactures, and sells all of its own equipment. To what degree do you believe that being in charge of your own engineering is a benefit in technology marketing and sales today?
At the end of the day, for BVS to continue to thrive we must listen carefully to what our customer base is asking for in test equipment and follow the developing standards in anticipation of technical needs. We take great pride in giving our customers much credit for some of our best products. When we listen to them at the onset, we build a relationship where they themselves feel they contributed to a products’ design. When a unique measurement is required and we see the customer has a vested interest in that product, they become our greatest advocate. Marketing and brand awareness are certainly important to maintain and grow business, but often word of mouth from a satisfied customer is all you need to generate the best PR. Many times when a product is well defined up front and we kick off with the first design meeting we discover throughout the process of actively selling the idea that customers will often comment on what would love to see. BVS is vertically integrated so we can control the power of all aspects of the product which is important. We have often ’stopped the presses’ or redirected the design to consider a significant feature that needs to be added that will greatly aid the RF field engineer.
5) I’m sure you have heard rumors regarding Sprint and Clearwire’s plan to deploy WiMax base stations in Wal-Mart stores across the U.S. Do you think that this is an effective option/possibility fordeploying nation-wide WiMax in the U.S.?
This is a somewhat different and novel approach. Walmart is a business that offers some great deals. For Walmart to offer 4G towers at their retail locations will offer additional revenue and further their image as a cutting edge company. In the past, BVS was awarded a large contract for RFID spectrum analyzers that was used to deploy a large number of RFID systems throughout Walmart. At the time, Walmart greatly aided in proving to the world of retail that RFID can provide significant cost savings and ROI when properly used. Many questioned this approach of utilizing RFID throughout the supply chain and criticized Walmart that this would in turn reduce jobs. The converse is true in that Walmart has consistently added job growth, new stores and increased their efficiency to the point where they can often provide the best prices to you and I when we shop. This same forethought to 4G tower sites at Walmart retail locations coupled with Walmarts tremendously large and loyal customer base will inevitably allow the WiMAX footprint to expand rapidly.
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Capital Markets Roundup: Mobixell buys 724 Solutions
January 27 2010 – 10:39 am ET | Kristen Beckman | RCR Wireless News
Mobixell Networks, which provides mobile multimedia and advertising solutions, acquired mobile Internet company 724 Solutions. The combined company will focus on rich media mobile Internet and messaging solutions for mobile operators.
EMS Technologies Inc.Sky Connect divisions. The new business unit will provide a variety of offerings, including high-speed Inmarsat-based data systems, Iridium-based satellite transceiver systems and services, in-cabin connection devices and worldwide Ku-band two-way broadband antennas.
Intel Corp.’s board of directors declared a quarterly dividend of 15.75 cents per share on the company’s common stock. The dividend will be paid March 1 to shareholders of record on Feb. 7.
Japanese wireless carrier KDDI Corp. has agreed to buy Liberty Global Inc.’s stake in Jupiter Telecommunications Co. Ltd., a Japanese broadband communications company. The deal is valued at $4 billion.
Millicom International Cellular S.A.’s subsidiary in Ghana, Tigo Ghana, has agreed to sell about 750 towers to Helios Towers Ghana. The companies also entered a long-term leasing agreement that provides Tigo Ghana with towers and build-to-suit services.
NextWave Wireless Inc. said it received notification from Nasdaq that the company’s common stock is at risk of being delisted from The Nasdaq Global Market because of non-compliance with the$1 minimum bid price requirement. The company said it plans to request a hearing and submit a plan outlining its strategy for regaining compliance with Nasdaq’s listing rules.
Texas Instruments’ board of directors declared a quarterly dividend of 12 cents per share of common stock, payable Feb. 22 to shareholders of record on Feb. 1.
ZTE completed a private placement of 58.3 million shares, consisting of new H series stock. The shares were sold for about $5.79 each. The placement raised approximately $334 million in net proceeds for the company.
Upcoming earnings reports:
Crown Castle Jan. 27
AT&T Jan. 28
Motorola Jan. 28
Telular Jan. 28
Alvarion Feb. 3
Brightpoint Feb. 3
Openwave Feb. 4
Powerwave Feb. 4
TeleComm. Systems Feb. 4
ADC Telecom Feb. 8
Sprint Nextel Feb. 10
Syniverse Tech. Feb. 11
Veraz Networks Feb. 18
American Tower Feb. 24
Clearwire Feb. 24
MetroPCS Feb. 25
Novatel Wireless Feb. 25
SBA Communications Feb. 25
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