Thursday, July 31, 2008
MediaTek Projects to Pump 3G Chips Into Samsung`s Supply Chain
Taipei, July 31, 2008 (CENS)--MediaTek Inc. plans to begin supplying Samsung with chips for third-generation (3G) mobile phones in first quarter next year. It is now having the chips verified at the South Korean electronics manufacturer. MediaTek plans to make foray into 3G-chip market by the end of this year after completing the acquisition of Analog Devices Inc.`s (ADI`s) handset-chip unit early this year. It will contract Taiwan Semiconductor Manufacturing Co. (TSMC) by the end of this year to make its wideband code division multiple access (WCDMA) chips using 65-nanometer process for Samsung`s handsets. Industry watchers estimated that the verification of MediaTek`s 3G chips at TSMC would go as smoothly as expected since ADI has set up partnership ties with TSMC before selling its handset-chip asset to MediaTek. ADI began using TSMC`s 90-nanometer process after rolling out 3G chips in late 2006 and planned to use TSMC`s 65-nm process in late 2007. The plan will soon be resumed by MediaTek. According to chip-making equipment suppliers, MediaTek`s 3G-chip business has been mainly centered on mainland China`s TD-SCDMA and Europe`s WCDMA markets. Its products for TD-SCDMA phones include its SoftFone-LCR+ chipset, which enables a cell phone to switch between GPRS and TD-SCDMA mode. Phone makers in the greater China region, including ZTE Corp., Inventec Corp., Datang Telecom Technology Co., Wah Lee Industrial Corp., and Longcheer Holdings Ltd., have adopted the chipset. For WCDMA phone, MediaTek will introduce 65-nm SoftFone-W chipset by the end of this year to support WCDMA/EDGE dual mode. Industry watchers pointed out the chipset has been verified by Samsung. Some industry insiders felt that MediaTek`s US$350 million acquisition of ADI`s handset-chip business unit was an expensive deal for MediaTek when it announced the acquisition. But today, many of them have changed the idea in light of the bullish prospect for the company`s business. In addition to expected orders from Samsung, MediaTek is already a supplier of LG. Industry watchers estimated the Taiwanese chip design house to make an overwhelming feat in mainland`s 3G-phone market as it has done in its 2G market, where eight of the mainland`s top 10 phone makers are buying its chips. The company scored after-tax net income of NT$5 billion (US$169 million at US$1:NT$30), or NT$4.93 per share, in the second quarter, and had net income of NT$9.1 billion (US$304 million), or NT$8.83 per share, for the first half of this year. The company projected its revenue for the third quarter to rise 8-10% from the second quarter, but it expected gross margin to remain unchanged at around 53.8% as registered in the second quarter. The company raked in revenue of NT$22.3 billion (US$743 million) in the second quarter, soaring 15.2% from a quarter earlier and 21.2% year on year. In the first half this year the company had revenue totaling NT$41.6 billion (US$1.3 billion), gaining 25.1% from the same period of last year.
Taiwan handset shipments to grow 9-10% on quarter in 2H08
31 July 2008
With Nokia, LG Electronics and Sony Ericsson continuing to increase their handset outsourcing, and expanding shipment volumes of High Tech Computer's (HTC's) Touch Diamond, Taiwan's handset shipments are expected to grow 9-10% on quarter during the final two quarters of 2008, bringing total shipments for the year to 120 million units, up 10.7% from a year earlier.
Taiwan's handset sector saw shipments continue to drop 4.4% sequentially to 27.37 million units in the second quarter of 2008 following a 14.3% sequential decline in the first quarter as orders from Motorola remained weak, and those from clients in emerging markets were rather limited due to the transition to new models. However, second-quarter shipments represented an increase of 30.7% from a year earlier due to new orders from India's Reliance Communications and China's Hwawei Technologies.
The proportion of various categories of handsets shipped by Taiwan makers in the second quarter was similar to that seen in the first quarter, although a decrease in orders for entry-level models from Motorola, an increase in orders from LG, and more orders for smartphones were recorded.
As a result, shipments of handsets with a built-in 3-megapixel camera increased by nearly four percentage points to account for 6.5% of total handset shipments in the second quarter, whereas shipments of handsets without a built-in camera or with a only a 300,000-pixel camera declined by 6.5 percentage points sequentially.
While increasing orders from LG and Sony Ericsson are expected to stop Taiwan's handset shipments from declining further in the third quarter, shipments of CDMA models to Nokia and the Touch Diamond handsets from HTC will be the main growth drivers for Taiwan's handset industry in the second half of the year.
The ratio of Taiwan's shipments of CDMA handsets is likely to increase by four percentage points sequentially to account for 28.3% of total shipments in the third quarter, while shipments of WCDMA models will also continue to grow to account for 10% by the fourth quarter, buoyed by shipments of HTC's own-brand models and those shipped to Motorola by Qisda.
Orders for entry-level handsets from Motorola, Reliance and Hwawei in the second half of 2008 are expected to be lower than those seen in the first half, and therefore the ratios of handsets with a monochrome display and without a built-in camera will drop to below 10% and 40%, respectively, in the fourth quarter.
For individual Taiwan handset makers, Compal Communications is expected to rely more on its two new clients, Nokia and LG, to sustain future growth, with shipments of CDMA handsets to Nokia to begin in the second half of 2008 and shipments to LG to contribute a greater proportion of its revenues in 2009.
Chi Mei Communication Systems (CMCS), an affiliate of Hong Kong-listed Foxconn International Holdings (FIH), will also rely on CDMA shipments to Nokia to keep its production scale from declining as its shipments were affected by slow sales at Motorola and Sony Ericsson recently.
Thanks to orders from Sony Ericsson and LG, Arima Communications saw its handset shipments increase 58% on year to 5.46 million units in the first half of 2008 with prospects to see quarterly shipments surpass four million units in the second half of the year.
Due to a change in outsourcing strategy, LG is expected to move up to rank third in the global handset market in the first half of 2008, making it a crucial sales driver for either Compal and Arima (the two ODMs competing for orders from LG) in 2009 and beyond.
In addition, Arima is also expected to tie up with Finland-based EMS provider Elcoteq in order to strengthen its ability to compete with CMCS to win more orders from Sony Ericsson.
Led by HTC, shipments of smartphones by Taiwan makers are expected to grow quarter-by-quarter, with accumulated shipments to account for 16.1% of Taiwan's overall handset shipments in 2008.
With Nokia, LG Electronics and Sony Ericsson continuing to increase their handset outsourcing, and expanding shipment volumes of High Tech Computer's (HTC's) Touch Diamond, Taiwan's handset shipments are expected to grow 9-10% on quarter during the final two quarters of 2008, bringing total shipments for the year to 120 million units, up 10.7% from a year earlier.
Taiwan's handset sector saw shipments continue to drop 4.4% sequentially to 27.37 million units in the second quarter of 2008 following a 14.3% sequential decline in the first quarter as orders from Motorola remained weak, and those from clients in emerging markets were rather limited due to the transition to new models. However, second-quarter shipments represented an increase of 30.7% from a year earlier due to new orders from India's Reliance Communications and China's Hwawei Technologies.
The proportion of various categories of handsets shipped by Taiwan makers in the second quarter was similar to that seen in the first quarter, although a decrease in orders for entry-level models from Motorola, an increase in orders from LG, and more orders for smartphones were recorded.
As a result, shipments of handsets with a built-in 3-megapixel camera increased by nearly four percentage points to account for 6.5% of total handset shipments in the second quarter, whereas shipments of handsets without a built-in camera or with a only a 300,000-pixel camera declined by 6.5 percentage points sequentially.
While increasing orders from LG and Sony Ericsson are expected to stop Taiwan's handset shipments from declining further in the third quarter, shipments of CDMA models to Nokia and the Touch Diamond handsets from HTC will be the main growth drivers for Taiwan's handset industry in the second half of the year.
The ratio of Taiwan's shipments of CDMA handsets is likely to increase by four percentage points sequentially to account for 28.3% of total shipments in the third quarter, while shipments of WCDMA models will also continue to grow to account for 10% by the fourth quarter, buoyed by shipments of HTC's own-brand models and those shipped to Motorola by Qisda.
Orders for entry-level handsets from Motorola, Reliance and Hwawei in the second half of 2008 are expected to be lower than those seen in the first half, and therefore the ratios of handsets with a monochrome display and without a built-in camera will drop to below 10% and 40%, respectively, in the fourth quarter.
For individual Taiwan handset makers, Compal Communications is expected to rely more on its two new clients, Nokia and LG, to sustain future growth, with shipments of CDMA handsets to Nokia to begin in the second half of 2008 and shipments to LG to contribute a greater proportion of its revenues in 2009.
Chi Mei Communication Systems (CMCS), an affiliate of Hong Kong-listed Foxconn International Holdings (FIH), will also rely on CDMA shipments to Nokia to keep its production scale from declining as its shipments were affected by slow sales at Motorola and Sony Ericsson recently.
Thanks to orders from Sony Ericsson and LG, Arima Communications saw its handset shipments increase 58% on year to 5.46 million units in the first half of 2008 with prospects to see quarterly shipments surpass four million units in the second half of the year.
Due to a change in outsourcing strategy, LG is expected to move up to rank third in the global handset market in the first half of 2008, making it a crucial sales driver for either Compal and Arima (the two ODMs competing for orders from LG) in 2009 and beyond.
In addition, Arima is also expected to tie up with Finland-based EMS provider Elcoteq in order to strengthen its ability to compete with CMCS to win more orders from Sony Ericsson.
Led by HTC, shipments of smartphones by Taiwan makers are expected to grow quarter-by-quarter, with accumulated shipments to account for 16.1% of Taiwan's overall handset shipments in 2008.
Judge Pushed Qualcomm-Nokia Deal
July 31, 2008
SAN DIEGO—The surprise deal between Qualcomm and Nokia to settle lawsuits over patents and royalties may auger a new era of competitive congeniality in the wireless industry, Qualcomm CEO Paul Jacobs said in an interview.
Jacobs said the two companies have been talking continuously, trying to reach an accord, but the ultimate settlement was pushed along because of a pending trial in Delaware. The settlement was reached July 23 even as the judge in the Delaware case urged the lawyers on both sides not to let the company executives leave until a deal was sealed.
The agreement covers various technology licenses and royalties for a host of wireless technologies, including 2G, 3G and 4G. Nokia also agreed to withdraw as a complainant in an antitrust case before the European Commission. Five other companies are still involved in that complaint—Broadcom, Ericsson, Matsushita Electric Industrial, NEC and Texas Instruments.
Jacobs said he hopes Qualcomm can “build off the positive momentum” of the Nokia agreement and resolve that case, as well as a separate suit involving just Broadcom.
“It’s better to license than to litigate,” Jacobs said on the sidelines Wednesday at the Qualcomm Smart Services Leadership Summit. “We’re not going to back down when we’re right, but the history of this company has been licensing. We’ve not been a litigious company.”
Jacobs also said some Qualcomm executives, including President Steve Altman, worked 40 hours without sleep putting the final Nokia deal together. Jacobs himself spent time on the phone with Nokia President and CEO Olli-Pekka Kallasvuo. The pressure was on because of the pending Delaware trial, he said, and not because of a coincidental court decision in Germany that went against Qualcomm in a Nokia suit over a GSM patent.
Jacobs didn’t go into detail on the new royalty structure to which Nokia agreed, but analysts have speculated Nokia will pay Qualcomm about $1 billion in past royalties and that royalties the Finnish company will pay in 2009 will add about 30-cents per share to Qualcomm’s earnings.
The CEO also said he thinks the agreement could spell smoother sailing ahead for the wireless industry because companies will ask themselves, “Should we spend time on conflict or should we spend our time on realizing the vision of what a mobile device can be?”
Jacobs added that the next few years will show whether or not that willingness to work together will be realized. “The time ahead will be very interesting and we’re in good position to work with all these companies to achieve their business models,” he said.
Portions of the summit discussed wireless data and the health-care industry. Qualcomm has been working on a health-care MVNO for some time, named LifeComm. Jacobs said in the interview he was confident LifeComm would become a reality. He said LifeComm had been delayed mostly because Qualcomm did not want to be the main investor in the MVNO and thereby a competitor with the carriers. But he said the ownership structure has been settled and “I’m confident it’s going to happen.”
SAN DIEGO—The surprise deal between Qualcomm and Nokia to settle lawsuits over patents and royalties may auger a new era of competitive congeniality in the wireless industry, Qualcomm CEO Paul Jacobs said in an interview.
Jacobs said the two companies have been talking continuously, trying to reach an accord, but the ultimate settlement was pushed along because of a pending trial in Delaware. The settlement was reached July 23 even as the judge in the Delaware case urged the lawyers on both sides not to let the company executives leave until a deal was sealed.
The agreement covers various technology licenses and royalties for a host of wireless technologies, including 2G, 3G and 4G. Nokia also agreed to withdraw as a complainant in an antitrust case before the European Commission. Five other companies are still involved in that complaint—Broadcom, Ericsson, Matsushita Electric Industrial, NEC and Texas Instruments.
Jacobs said he hopes Qualcomm can “build off the positive momentum” of the Nokia agreement and resolve that case, as well as a separate suit involving just Broadcom.
“It’s better to license than to litigate,” Jacobs said on the sidelines Wednesday at the Qualcomm Smart Services Leadership Summit. “We’re not going to back down when we’re right, but the history of this company has been licensing. We’ve not been a litigious company.”
Jacobs also said some Qualcomm executives, including President Steve Altman, worked 40 hours without sleep putting the final Nokia deal together. Jacobs himself spent time on the phone with Nokia President and CEO Olli-Pekka Kallasvuo. The pressure was on because of the pending Delaware trial, he said, and not because of a coincidental court decision in Germany that went against Qualcomm in a Nokia suit over a GSM patent.
Jacobs didn’t go into detail on the new royalty structure to which Nokia agreed, but analysts have speculated Nokia will pay Qualcomm about $1 billion in past royalties and that royalties the Finnish company will pay in 2009 will add about 30-cents per share to Qualcomm’s earnings.
The CEO also said he thinks the agreement could spell smoother sailing ahead for the wireless industry because companies will ask themselves, “Should we spend time on conflict or should we spend our time on realizing the vision of what a mobile device can be?”
Jacobs added that the next few years will show whether or not that willingness to work together will be realized. “The time ahead will be very interesting and we’re in good position to work with all these companies to achieve their business models,” he said.
Portions of the summit discussed wireless data and the health-care industry. Qualcomm has been working on a health-care MVNO for some time, named LifeComm. Jacobs said in the interview he was confident LifeComm would become a reality. He said LifeComm had been delayed mostly because Qualcomm did not want to be the main investor in the MVNO and thereby a competitor with the carriers. But he said the ownership structure has been settled and “I’m confident it’s going to happen.”
Tuesday, July 29, 2008
Foxconn to invest additional US$200 million in China for capacity ramp
Newswatch - Jul 29, 14:13
The board of Foxconn Electronics (Hon Hai Precision Industry) has decided to invest an additional US$200 million in China to ramp up its output of connectors, PC chassis and pressing parts, handset components and calculators, the Chinese-language Commercial Times quoted sources at the company as saying.
The board of Foxconn Electronics (Hon Hai Precision Industry) has decided to invest an additional US$200 million in China to ramp up its output of connectors, PC chassis and pressing parts, handset components and calculators, the Chinese-language Commercial Times quoted sources at the company as saying.
China mobile handset user base grows to 600.76 million in June
Jul 29, 11:42
There were 600.76 million subscribers for mobile communication services in China as of the end of June 2008, representing growth of 1.46% on month and 19.76% on year, according to statistics published by China's Ministry of Industry and Information Technology (MIIT, renamed from Ministry of Information Industry).
There were 600.76 million subscribers for mobile communication services in China as of the end of June 2008, representing growth of 1.46% on month and 19.76% on year, according to statistics published by China's Ministry of Industry and Information Technology (MIIT, renamed from Ministry of Information Industry).
Thursday, July 24, 2008
China handset-design houses finding it hard to survive
A number of handset-design companies in China have been forced to either suspend or trim down their operations due to slack business resulting from keen competition, according to industry sources.
TechFaith Wireless Communication Technology has reportedly reduced its workforce from 1,300 to 300, and Shanghai Simcom, a subsidiary of SIM Technology, has trimmed down the size of its TD-SCDMA unit, the sources indicated.
TechFaith has actually cut off its GSM unit following the massive layoffs and has switched its focus mainly to the development of 3G handsets, the sources noted.
Gilbert Lee, CEO of TechFaith, while confirming that the company has laid off a part of its workforce, said that the extent of layoffs is not as large as has reported, and also insisted that the action was part of cost-down measures.
In addition to 3G models, TechFaith has also entered the development of Windows Mobile-based smartphones, MID (Mobile Internet Device) products and 3.5G data cards, according to market sources.
The availability of low-cost handset platforms from Taiwan-based MediaTek has caused a proliferation of small-scale handset-design companies in China, which have little differentiation in product designs, pointed out the market sources.
Source:DIGITIMES
TechFaith Wireless Communication Technology has reportedly reduced its workforce from 1,300 to 300, and Shanghai Simcom, a subsidiary of SIM Technology, has trimmed down the size of its TD-SCDMA unit, the sources indicated.
TechFaith has actually cut off its GSM unit following the massive layoffs and has switched its focus mainly to the development of 3G handsets, the sources noted.
Gilbert Lee, CEO of TechFaith, while confirming that the company has laid off a part of its workforce, said that the extent of layoffs is not as large as has reported, and also insisted that the action was part of cost-down measures.
In addition to 3G models, TechFaith has also entered the development of Windows Mobile-based smartphones, MID (Mobile Internet Device) products and 3.5G data cards, according to market sources.
The availability of low-cost handset platforms from Taiwan-based MediaTek has caused a proliferation of small-scale handset-design companies in China, which have little differentiation in product designs, pointed out the market sources.
Source:DIGITIMES
Tuesday, July 22, 2008
China handset-design houses finding it hard to survive
Jul 22, 14:35
A number of handset-design companies in China have been forced to either suspend or trim down their operations due to slack business resulting from keen competition, according to industry sources.
A number of handset-design companies in China have been forced to either suspend or trim down their operations due to slack business resulting from keen competition, according to industry sources.
Apple hit by concern over margins
July 22 2008
Strong Macintosh sales continued to drive profits at Apple as the computer maker reported its third-quarter results yesterday, but a tepid forecast sent shares in the computer maker lower.
While Apple executives hailed the strong quarterly results, Wall Street analysts quizzed the group about its unusually weak guidance.
The shares fell 10 per cent to $149.70 after it said it expected profit margins to slip, due in part to a forthcoming "product transition" that it declined to discuss.
Peter Oppenheimer, chief financial officer, hinted that aggressive pricing of new products could eat into profits.
"We are going to be delivering state-of-the-art new products [at price points] that our competitors aren't going to match," he said.
Apple brushed off concerns raised in recent weeks about the health of Steve Jobs, whose gaunt appearance at the company's annual software developer conference last month alarmed some observers.
Apple later said the Apple chief executive had been suffering from a "common bug".
When asked about Mr Jobs' health yesterday, Mr Oppenheimer said the Apple co-founder, who has previously battled cancer, had no plans to leave the company and his health was a "private matter".
Apple said it had made a net profit of $1.1bn in the third quarter, up from $818m in the year-ago quarter. Sales were $7.46bn, up from $5.41bn last time.
Revenues from Mac sales rose 61 per cent in the quarter as the company shipped almost 2.5m computers.
IPod music player shipments jumped 12 per cent while shipments of the iPhone nearly trebled, with 717,000 mobile handsets sold in the period compared with 270,000 last time.
That figure did not include Apple's new 3G iPhone, which went on sale in 21 countries around the world earlier this month.
Apple predicted earnings of $1 per share on sales of $7.8bn in the coming quarter - lower than most Wall Street analysts had expected.
The group expected its gross margin to fall to 31.5 per cent in the fourth quarter, from 34.8 per cent in the third quarter. It expected a 2009 gross margin of 30 per cent.
While it did not report any numbers, Apple said the reaction to its faster iPhone had been "overwhelmingly positive". It said iPhone customers had downloaded more than 25m software applications from the group's applications store.
Apple last week reported that it had sold more than 1m 3G iPhones during the handset's opening weekend.
Strong Macintosh sales continued to drive profits at Apple as the computer maker reported its third-quarter results yesterday, but a tepid forecast sent shares in the computer maker lower.
While Apple executives hailed the strong quarterly results, Wall Street analysts quizzed the group about its unusually weak guidance.
The shares fell 10 per cent to $149.70 after it said it expected profit margins to slip, due in part to a forthcoming "product transition" that it declined to discuss.
Peter Oppenheimer, chief financial officer, hinted that aggressive pricing of new products could eat into profits.
"We are going to be delivering state-of-the-art new products [at price points] that our competitors aren't going to match," he said.
Apple brushed off concerns raised in recent weeks about the health of Steve Jobs, whose gaunt appearance at the company's annual software developer conference last month alarmed some observers.
Apple later said the Apple chief executive had been suffering from a "common bug".
When asked about Mr Jobs' health yesterday, Mr Oppenheimer said the Apple co-founder, who has previously battled cancer, had no plans to leave the company and his health was a "private matter".
Apple said it had made a net profit of $1.1bn in the third quarter, up from $818m in the year-ago quarter. Sales were $7.46bn, up from $5.41bn last time.
Revenues from Mac sales rose 61 per cent in the quarter as the company shipped almost 2.5m computers.
IPod music player shipments jumped 12 per cent while shipments of the iPhone nearly trebled, with 717,000 mobile handsets sold in the period compared with 270,000 last time.
That figure did not include Apple's new 3G iPhone, which went on sale in 21 countries around the world earlier this month.
Apple predicted earnings of $1 per share on sales of $7.8bn in the coming quarter - lower than most Wall Street analysts had expected.
The group expected its gross margin to fall to 31.5 per cent in the fourth quarter, from 34.8 per cent in the third quarter. It expected a 2009 gross margin of 30 per cent.
While it did not report any numbers, Apple said the reaction to its faster iPhone had been "overwhelmingly positive". It said iPhone customers had downloaded more than 25m software applications from the group's applications store.
Apple last week reported that it had sold more than 1m 3G iPhones during the handset's opening weekend.
Saturday, July 19, 2008
Sony Ericsson head looks to sharpen its portfolio
July 19 2008 Sony Ericsson is slashing up to 17 per cent of its workforce, as the handset manufacturer announced disappointing second-quarter results.
The company - a joint venture between Ericsson of Sweden and Japan's Sony - reported a slide in second-quarter pre-tax profits to €8m ($12.7m), down from €327m in the same quarter last year and €193m in the first quarter of 2008.
Dick Komiyama, president, said the company had too many similar products and needed to "sharpen its portfolio".
But with falling sales in Asia - the one area of global growth in handset sales - and a gloomy economic picture in Europe, he admitted that the third quarter would "not drastically improve. But there's always Christmas".
Mr Komiyama emphasised the company would not be copying Nokia's approach. "We will define our own strategy," he said. But he admitted that "there is a lot of work to be done".
A new product launch is planned for Tuesday. According to a spokesperson, it "will have something to do with music", probably as part of the Walkman range. Further details were not available.
Carolina Milanesi, a Gartner analyst, thought that there was "a tone of defeat" coming from the company about the rest of 2008.
"Talk of taking it day by day is not enough. [Sony] Ericsson need to refresh their products, but they must make sure that they don't damage their brand."
The results were in line with a profit warning
on June 27, when the company said it would only break even because of disappointing European handset sales.
Sony Ericsson sold 24.4m units in the second quarter of 2008, down 500,000 from the same quarter last year. The average selling price dropped 7 per cent to €116.
However, the company forecast growth in the global handset market of about 10 per cent, with demand coming from emerging markets.
Sony Ericsson's focus on high-end phones has left its handset sales exposed to a global slowdown, in contrast to Nokia, whose diversification into emerging markets and lower-end phones has helped it increase market share and lift sales.
Shares in Ericsson closed up 3.6 per cent at SKr72.30.
The company - a joint venture between Ericsson of Sweden and Japan's Sony - reported a slide in second-quarter pre-tax profits to €8m ($12.7m), down from €327m in the same quarter last year and €193m in the first quarter of 2008.
Dick Komiyama, president, said the company had too many similar products and needed to "sharpen its portfolio".
But with falling sales in Asia - the one area of global growth in handset sales - and a gloomy economic picture in Europe, he admitted that the third quarter would "not drastically improve. But there's always Christmas".
Mr Komiyama emphasised the company would not be copying Nokia's approach. "We will define our own strategy," he said. But he admitted that "there is a lot of work to be done".
A new product launch is planned for Tuesday. According to a spokesperson, it "will have something to do with music", probably as part of the Walkman range. Further details were not available.
Carolina Milanesi, a Gartner analyst, thought that there was "a tone of defeat" coming from the company about the rest of 2008.
"Talk of taking it day by day is not enough. [Sony] Ericsson need to refresh their products, but they must make sure that they don't damage their brand."
The results were in line with a profit warning
on June 27, when the company said it would only break even because of disappointing European handset sales.
Sony Ericsson sold 24.4m units in the second quarter of 2008, down 500,000 from the same quarter last year. The average selling price dropped 7 per cent to €116.
However, the company forecast growth in the global handset market of about 10 per cent, with demand coming from emerging markets.
Sony Ericsson's focus on high-end phones has left its handset sales exposed to a global slowdown, in contrast to Nokia, whose diversification into emerging markets and lower-end phones has helped it increase market share and lift sales.
Shares in Ericsson closed up 3.6 per cent at SKr72.30.
Wednesday, July 2, 2008
ST-NXP joint venture eyes white-box handset market in China
Jul 2, 15:33
ST-NXP Wireless, a joint venture established by STMicroelectronics and NXP offering communications solutions, is said to be targeting white-box handset vendors in China. A low-cost solution for the company is already in sampling, according to industry sources.
ST-NXP Wireless, a joint venture established by STMicroelectronics and NXP offering communications solutions, is said to be targeting white-box handset vendors in China. A low-cost solution for the company is already in sampling, according to industry sources.
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