The Taiwan-based smartphone manufacturer, HTC Corp., has plans on halting the manufacture of full-sized tabs running on Mircrosoft’s Windows RT OS for the concern that the demand is very weak, the people knowledgeable about the matter said.
The smartphone manufacturer has decided to stop making the tab due to the reason that the cost is high and the demand is weak compared to tabs running on Android OS and iOS. The report came from the people who declined to be identified because the company’s plans are not publicized.
But HTC Corp. is still planing to make and release a 7-inch tab with the Windows RT OS based on the new ARM chips / ARM’s Technology within this year.
With the tight competition going on with smartphones, HTC is one of the companies who are suffering but coping with the slide of sales. Due to the decline of profit, this forced the company to select products that will edge out to the market and lead a single spot in the competition.
According to researcher IDC, the sales of Windows RT has been lagging since its introduction. There are only 200,000 units of tablets handling Microsoft’s OS sold in the first quarter of 2013.
Samsung had reportedly increased their share in the market in the first quarter of 2013. Now, they are facing a problem – a good problem. Just like Apple, the South, Korea-based company has a pile of hard-earned accumulated cash. The problem? how to spend those cash.
After the revenue reports in the first quarter this year, Samsung has a 42% increase in their profit. The company said that their cash equivalent and cash increase about $40 billion at the end of the quarter.
The South, Korea-based company then paid their debts leaving a cash position of $28.5 billion or 31.2 trillion won. Their profit increase was very surprising and eye-popping. It almost tripled their net cash last year.
With this, analysts are now making their conclusion and predictions. Some say that Samsung will use their accumulated cash to acquire companies to furthermore expand their business and cover more areas like medical equipments and software business. Stockholders are now seeking increase in returns, they are considering an increase in dividend which is currently %1 of the share.
According to director Willis Tsai of TIAA-CREF, they will be asking Samsung “if they plan to keep all that cash,”. TIAA-CREF manages more than $400 million shares of the South, Korea-based company.
Samsung said they will prioritize “investments sustainable for areas like facilities, R&D, and marketing that will help the company solidify or boost competitiveness”.
Nokia’s venture capital arm, Nokia Growth Partners, is planning to invest more in the California-based startup company Pelican Imaging as an attempt to get back customers from top competitors such as Android devices and Apple devices that offers high-end cameras with features and technology that changes picture-taking experience of the users in to a higher level.
This move from the Nokia’s venture capital arm is to encourage the demand of Nokia’s flagship phone line, the Lumia – which handles Microsoft Corporation’s Windows OS – to recover the loss in market share and increase the sales.
The Lumia phone line of the Finland-based company increased its sales in the first quarter of the year to 5.6 million from 4.4 million in the last quarter of 2012. According to Strategy Analytics, Android-based platforms and Apple’s iOS devices owns the majority of the total market share while Nokia only owns 3 percent. The research group also said that on of the reasons why customers switch to new devices is the camera or the imaging quality. With Lumia’s current camera, this became the reason why they see an increase of sales.
Cameras that uses multiple optics is getting close to being commercialized, Pelican is the company that makes the software of such cameras. According to Bo Ilsoe from the Nokia venture capital arm, “It’s very complicated to do this algorithmically and Pelican is one of the companies that has mastered this technology.”
The Finland-based smartphone manufacturer acquired Scalado, an imaging software maker based in Sweden, last year. They rolled out the amazing 41mp 808 PureView camera and added it in Nokia’s Lumia 920. The venture arm also invested in InVisage Technologies Inc., an image-sensing company, and Heptagon, a micro-optics manufacturer.
Nokia seems going all out in this move with so many imaging companies that they are working with. We are looking forward for the result and to what kind of camera phone will they have in the future.
Android reportedly caused the drop of shares of Apple Inc. According to analysts and income reports of both companies, though Apple sold many iPads in the first quarter, their share in the tablet PC market decreased slightly and might continue this year. While Android platform together with Samsung, Apple’s greatest rival, is enjoying a huge leap of profit and increased market share.
But one analysts, Carl Howe, concluded that Apple might also cause a drop of profit and share of Android smartphones in the coming years.
In a poll conducted by the Yankee Group, they have gathered data from 16,000 which are smartphone users and fans. Half of the group owns an Android smartphone regardless of the brand, 30% owns an iPhone and only 7% owns a Windows Phone.
For those people who are planning to buy a new smartphone in the coming months, 42% are planning to get Apple’s iPhone and also 42% are opting for Android-based smartphones. The remaining are either getting a BlackBerry or Windows Phone.
With Howe’s conclusion with the results, he said “This high buying intention compared to ownership indicates that Apple will likely gain share against market leader Android within the period,”
According to Yankee, there are twice as many smartphone buyer are eyeing on iPhone in the next 6 months. Other Android-based smartphone manufacturers are showing low buying figure which means Apple will regain strength and will be victorious in the competition of smartphones.
The wireless carrier, Verizon Communications, reported a healthy profit on Thursday. The revenue is mainly from the wireless business that made millions from the smartphone sales, services, and subscription that keeps growing steadily.
The company’s investors were reportedly very satisfied and happy with the results in spite of the communication company’s increase of smartphone plan prices and cutting down the unlimited data service these past few years. Customers just keep coming and subscribing and seems like they are more willing to spend now in their monthly bills.
According to analyst Tero Kuittinen of Alekstra, “It’s just amazing that the average revenue per account keeps growing.” Verizon’s marketing strategy is very impressive, it continues to bring in money from the existing customers. He also called the new customers as “low-quality” subscribers, people who are always on the budget who holds for a very long time before buying new smartphones.
The net income of Verizon Communications increased $1.95 billion or 15.8 percent. That also means an increase of share by 68 cents. Revenue rose by $29.4 billion or 4.2 percent.
With this year’s total revenue, it is $19.5 billion and from last year’s report, it increased 6.8 in the first quarter of 2013.
Verizon activated more than seven million smartphones in just the first quarter and most of these smartphones were iPhones from Apple that accounts for 4 million units. The shared-data plans backed up the revenue and help it increase by $150.27 per account.
Taiwan’s largest smartphone manufacturer, HTC, has reported their lowest quarterly revenue. According to analyst, this is due to the delayed release of their latest flagship smartphone, the HTC One, that caused the company not to reach their profit target.
In the first quarter of 2013, HTC’s net income decreased 2.8 million USD or 85 million NTD. This is the sixth plunged of revenue said HTC Corp. yesterday in their income report.
HTC’s preparations and getting people excited for the release of HTC One suddenly lost momentum when the company stumbled in some issues in February. They had a shortage of camera components that pushed them to postpone the shipments of the smartphones in the market. The possible leads to make up revenue could rebound in the next quarter as new smartphones are emerging such as the new Galaxy S4 of Samsung Electronics Co. and rumors of the next Apple’s iPhone, the iPhone 5s.
Analyst Dennis Chan of Yuanta Securities Co. said “These numbers show the production shortage really is that bad, and my sense is that it won’t get much better in the second quarter because many of those issues continue,” he also recommended selling the stock and said that timing for smartphones is a key and any delays could mean losing everything.
According to Bloomberg, revenue in the first quarter of 2013 dropped by 37% from last years’ 14.2 million USD or 42.8 billion NTD.
T-Mobile, one of the biggest wireless network provider in the US, is now marketing the popular iPhone 5 not in a common contract way but in something new that might appeal a lot of users.
The wireless network provider is now promoting the latest iPhone 5 without having to tie up or have a contract with them but to pay $579.33 upfront. This is something new to wireless providers and T-Mobile opened a new strategy that might attract or get back the costumers that they have lost over the year.
Costumers who passed the credit checks, a $99 down and 24 months of installments without interest for the 16GB iPhone 5, 32gb at $199.99 and 64gb at $299.99.
In the event that T-Mobile held on March 26 in New York, the company announced that they will start the iPhone deliveries on April 12. Also in the event, the company introduced some of their new programs including the their 7 LTE systems. This strategies of John Legere which became the CEO of T-Mobile in September, seems to appealing. This is a kind of service that guarantees a whole new kind and straightforward support.
The outcomes of this strategy is the first effective development and showing beneficial strength in the last four years of their effort, according to Legere.
“We have made content progress in backing our labeled business in the first quarter of the year, which provides a firm base to develop on. I believe the best is yet to come!” he said in the event.