When HandMark bought up AstraWare about three years ago, industry pundits left and right wondered where the relatively unknown company had the cash from to buy the well-known publisher.
Questions about the deal were always haughtily rebuffed at tradeshows – fortunately, the 3GSMA’s Mobile Apps Briefing sheds some light onto the company in a recent editorial.
They describe their activities as following:
“The key for Handmark is to continue to find the right content and partners in order to build a large mobile audience. We have great capabilities in developing, distributing, monetising and supporting ongoing innovation. When combined with a great partner, this is a great recipe for success.”
…
“We chose to spin off Astraware to allow them to creatively focus on delivering to their core business of delivering entertaining mobile games. While it continues to be an attractive business, Handmark is focused on being the leader in the mobile application marketplace. It was a strategic move to provide more focus to both companies,” Conway says.
In Austria and Germany, independant retailers have long bundled all kinds of crap to (overpriced) phone contracts.
My special friends at T-Mobile Austria have now taken this one step further. They teamed up with Microsoft and offer a free license of Office 2010 with a mobile internet contract.
The contract in question will run for 24 months, gives you 15GB of traffic and an USB modem for 15 Euros a month. The Home and Student license remains your property afterwards.
IMHO, Microsoft does this mainly to fight piracy – as almost all Austrian carriers charge an Euro for the GB, the margin for Redmond cant be too large…
If you have app stores, you have astroturfing – this age-old rule has been valid ever since the first ESD opened its store and added a rating system.
Unfortunately, the recent FCC rules for online news services also affect astroturfers. The New York Times (a questionable source for mobile, but usually OK on legal matters) now reports that the FCC has settled a case against a PR firm which openly admitted to writing reviews for its clients:
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The Federal Trade Commission said on Thursday that a California marketing company had settled charges that it engaged in deceptive advertising by having its employees write and post positive reviews of clients’ games in the Apple iTunes Store, without disclosing that they were being paid to do so.
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Even though small-scale cases of astroturfing are unlikely to be noticed, better move your server to Panama if you plan larger campaigns…
We have covered RIM’s issues in India in the past – according to governmental sources, the deadline for the service cutoff was today.
Mobile Business Briefing now reports the following:
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BlackBerry-maker Research In Motion (RIM) has averted an immediate ban on its services in India after agreeing to provide “technical solutions” that will allow local security agencies to monitor its encrypted email and messaging services. The deal between the two parties was reached ahead of a deadline set for today. The Indian government has confirmed it will delay a ban for at least 60 days while it tests the new monitoring solution to see if it meets its requirements. The exact nature of the access offered by RIM is unknown.
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As of this writing, it is not known if / when a final settlement will be reached. However, the immediate ban threat is gone – let’s see how it all plays out…
E-Paper is not a new technology – devices using it (think Kindle) have sold hundreds of thousands of times in the last years.
So far, these screens were immovable and monochrome. According to PCWorld, the mass production of (transformable) color e-paper devices will start very soon:
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The company expects to begin mass producing 9.7-inch color and 19-inch flexible e-paper, according to an SEC filing it made on Friday. E-paper, or electronic paper, is a display used in e-readers on which text appears as it would on printed paper.
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So far, the slow response time has made the display technology useful onbly for e-readers (see a sample device in action here) – let’s see what hardware designers will cook up next…
Even though RIM and China Mobile have worked together on selling BlackBerry devices for some time, the companies have so far focused their attention on the enterprise market.
According to Mobile Business Briefing, this has now changed:
China Mobile and Research In Motion (RIM) are preparing to launch consumer BlackBerry services in the country, according to reports originating in the Chinese press. Currently, the operator – the world’s largest by subscriber numbers – offers BlackBerry Enterprise Server-based services to corporate customers, although plans to target the consumer segment were announced late in 2009.
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As of this writing, not much more is known. Stay tuned for further info as we get it…
We have heard rumors of an upcoming “BlackBerry Storm 3″ for some time – given that the Storm 2 was said to have too little RAM for OS6, the decision makes sense.
… it looks as if the BlackBerry Curve 8530 (both colors) is headed to greener pastures on September 16th. The Storm2 is scheduled for end-of-life on October 10th, followed by the Palm Pre Plus on October 21st. …
As for the 8530: we probably already know the replacement for that one
The manufacturer of the popular Blackberry series of handsets has been given until 31st August to comply with demands from the Indian government to allow their security agencies access to Blackberry Messenger and the ability to read emails sent using Blackberries. Reuters are reporting that a source close to the negotiations between the two is saying that the Indian government will make its final decision on 30th August, one day before the deadline.
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Given past history, I am pretty sure that RIM will comply with the demands of the Indian government. Either way, stay tuned for further info as we get it…
Even though the BlackBerry Bold 9000 is all but on its way out, AT&T has not managed to release an official firmware update to bring their version of the device to RIM OS 5.
This has just changed – AT&T heads can now get an official OS 5 update from their carrier:
PocketGear definitely isn’t too popular among developers – especially as the folks have shown a few very stupid stunts in the past.
Nevertheless, venture capitalists seem to be more convinced of their ideas. Mobile Business Briefing currently reports the following:
… mobile apps store PocketGear has secured US$15 million in ‘series B’ funding, with investors including Trident Capital, BlackBerry Partners Fund and TomorrowVentures, the personal fund of Google’s Eric Schmidt.
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This should be especially interesting for all developers planning legal action over their recent bork-ups – if you plan to get cash, go for it now!
Before RIM’s initial announcement, many users expected upgrades for a variety of devices.
When the actual announcement came, many were disappointed as very few updates were offered. However, the Bold 9700 will get OS 6 – the Boy Genius now shares the video below:
His overall impression was very good – stay tuned for further info as we get it!
When it comes to cell phone metrics, culling the important from the unimportant is difficult at best.
ABI Research is a long-standing market research company, which gives their numbers a nice bit of credibility. Their stats on Q2 2010 are below – keep in mind that the data looks at devices sold to retailers and does not count carrier-branded boxen:
Vendor
Shipments (in millions)
Growth
2Q 2009
1Q 2010
2Q 2010
QoQ (1Q10-2Q10)
YoY (2Q09-2Q10)
Nokia
103.2
107.8
111.0
3.0%
7.6%
Analysis from ABI’s Michael Morgan: While Nokia’s handset shipments increased QoQ, Nokia’s market share slipped to 34.6 percent in the second quarter. The world’s largest handset OEM has been juggling some serious re-organizations and R&D has been aligned closer to business priorities. Currently Nokia is trying to update Symbian, launch MeeGo and drive adoption of its Ovi services in the hopes gaining new service revenue streams to compensate for decreasing handset margins. While the Nokia handset platforms are selling well at lower price points, its position as top dog becomes increasingly tenuous as the Android OS and Samsung continue to etch away Nokia and Symbian’s market share.
Samsung
52.3
64.3
63.8
-0.8%
22.0%
Analysis from ABI’s Michael Morgan: Samsung ended a seven quarter winning streak of increasing QoQ market share dropping to 19.9 percent in Q2. This decrease is attributed to weakened economic conditions in Europe. Samsung has consistently delivered feature packed handsets that are the hallmark of South Korean handset OEMs and has championed the use of touchscreens in the feature phone segment. In the last month of Q2 Samsung’s newest smartphone the Galaxy S sold 500,000 in its home market of South Korea. In Q3 Samsung will release this device on all four major U.S. carriers, a market with six times the potential of South Korea. This could be the push Samsung needs to achieve 10 percent of the smartphone market.
LG
29.8
27.1
30.6
12.9%
2.7%
Analysis from ABI’s Michael Morgan: Although LG’s handset shipments increased 13 percent QoQ, revenues only increased 6 percent due to lowering ASPs in the feature phone market. With 52 percent of LG’s volume going to North America and Europe, it has become imperative that LG develops a solid foothold in the smartphone market to ride the higher margins and shipment growth. Historically, LG’s range of mid- to high-end feature phones has delivered consistent market share growth; however when looking into the future, this segment is being squeezed by smartphones on the top and low cost handsets at the bottom. ABI Research believes it is imperative that LG makes its move in 2010 or it may experience the same troubles as Sony Ericsson and Motorola.
RIM
8.0
10.5
11.2
6.7%
40.5%
Analysis from ABI’s Michael Morgan: RIMs position in this vendor ranking is unique as RIM does not offer lower-priced feature phones and has risen to the No. 4 spot solely through the sale of smartphones which only account for 20 percent of the overall market. In this space RIM has delivered a portfolio of smartphones, supported by the famed Blackberry Enterprise Server (BES) and the BlackBerry Messenger Service (BBM). The combination of BBM and Qwerty Keypads have become a real hit in the youth and emerging markets where the free (between other BB users) and secure texting service offers the cost conscious all the ‘CrackBerry’ they can handle. RIM has released its latest OS (6) with the hopes of delivering improved browsing, media and touchscreen capabilities that will drive future growth.
Sony Ericsson
13.8
10.5
11.0
4.8%
-20.3%
Analysis from ABI’s Michael Morgan: Q2 represents the 7th quarter in a row that Sony Ericsson has lost market share. Sony Ericsson handsets have historically focused on the feature phone segment and specialized in music or camera phones. Consumers have become more demanding, wanting a phone that does it all, making strength in one feature less desirable than mediocrity in all features. Sony Ericsson has decided to answer this call through the development of a smartphone portfolio with its flagship device the X10 landing at AT&T with SE’s custom UI platform over an Android OS (1.6). While this may not be the highest end of smartphones, it does fit nicely in the middle of the road…much like the rest of Sony Ericsson’s strategy.
Apple
5.2
8.8
8.4
-4.0%
61.5%
Analysis from ABI’s Michael Morgan: Apple rang in its best quarter ever in Q4 with 8.7 million iPhones. The iPhone continues its role as a global smartphone ambassador with successful arrivals in South Korea, China, new carriers in Western Europe and a growing cult following in Japan. Speculation as to how Apple will top the 3GS with the next iPhone iteration has already begun with Steve Jobs promising consumers a home run. ABI believes some pro-sumers may have trouble deciding whether to spend their money on the iPad or the new iPhone, but either way Apple will continue to own much of the mobile devices market mindshare.
Motorola
14.8
8.5
8.3
-2.4%
-43.9%
Analysis from ABI’s Michael Morgan: Beginning in Q4 and carrying through Q1 and Q2 Motorola has delivered top of mind smartphones such as the Droid, and most recently the Droid X. While Verizon Wireless’s Droid ‘sub-brand’ and marketing dollars didn’t hurt the situation, Motorola did deliver quality Android smartphones and prove that it can move away from its dwindling feature phone sales. It is imperative that Motorola make their smartphone strategy stick as Motorola has consecutively lost market share every single quarter since 3Q 2006!
ZTE
–
–
–
3.7%
13.5%
Analysis from ABI’s Michael Morgan: ZTE is one of China’s largest telecommunications manufacturers who produce a variety of hardware products including base stations, handsets, switching systems, optical transport etc. ZTE’s global strategy has developed relationships with major telecoms in every region. ZTE has made a name for itself with low cost handsets in emerging/developing markets and has built relationships with tier I carriers in the U.S. through their cellular modems and tier II carriers with low cost handsets. Leveraging manufacturing locations in 50 countries, ZTE is able to deliver low cost handsets either under the ZTE brand or white-label devices for carrier-branded handsets to large operators such as Vodafone. ZTE has recently announced an Android 2.1 smartphone for China Unicom priced at $179, which should allow ZTE to ride the rapidly growing smartphone market in China and migrate its brand image from low cost to affordable value.
HTC
–
–
–
66.7%
83.3%
Analysis from ABI’s Michael Morgan: The counter point to Motorola’s Android success is HTC and its Droid Incredible and Evo 4G smartphones. HTC and Motorola together accounted for over 50 percent of all Android smartphones sold in Q2. A year ago, HTC stated it would focus on improving its brand recognition in the U.S., and today it has delivered a 400 percent increase in brand recognition with plans to replicate the process in China. With ownership of its own production facilities, custom ‘Sense’ UI and a solid range of high- and mid-range smartphones it can be expected that HTC will become a regular in the top ten handset vendors list.
Huawei
–
–
–
41.5%
48.0%
Analysis from ABI’s Michael Morgan: Much like ZTE, Huawei is one of China’s leading telecom infrastructure companies, with a strong global reach in all regions. Huawei is also in the business of making low cost and white label devices along side their branded devices. Huawei has extended its low cost capabilities into the smartphone space with the T-Mobile Pulse, an Android based entry level smartphone for prepaid consumers. Huawei also carries aspirations of penetrating the U.S. market and is actively developing its portfolio to meet the tastes of U.S. carriers. However there are concerns around whether the U.S. will welcome Huawei’s advances amid security concerns.
As mobile applications get cheaper and cheaper, developers start to turn to mobile advertising to refinance their development efforts. Apple, Google and Samsung already bought an ad network of their own, whereas Microsoft tries to keep prices high in its store.
RIM apparently wants to go the way of the ad – the Wall Street Journal reports the following:
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In recent months, the Canadian device maker has held talks with Baltimore-based mobile ad network Millennial Media about a potential acquisition, these people said. But the talks have stalled over disagreements regarding the value of Millennial, which serves advertisements on its own network of mobile websites. It also brokers ad sales to a group of other mobile ad networks.
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One can think of their strategy whatever one likes to think – their execution seems to be pretty consequent. Keep in mind that RIM has lowered the lowest price tier in App World just a few days ago….
E-Paper is not a new technology – devices using it (think Kindle) have sold hundreds of thousands of times in the last years.
