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Smartphone market is changing

Tuesday, October 8, 2013

The smartphone business is going through rapid change, some of the companies is maintaining its share in the market, other are losing their position as once was on top of the market, let’s have a quick look on the position of each of the most popular brands in the market:


Samsung forecast it was heading for record quarterly profits, it expects to record an operating profit of £5.9bn, up 25% from 2012. Samsung's profit was helped by sales of memory chips, which were boosted after a fire at the factory of its rival SK Hynix, which is the world's second-largest chipmaker. Analytics are predicting that Samsung "could post considerable operating profits throughout this year and next year.

Analysts said the high end of Samsung's smartphone business is slowing. They estimated that sales of its top-end Galaxy S4 smartphone fell to 16m in the July-September period, compared with 20m in the two months after its April debut, and forecast a further fall to 13m in the current quarter. Even so analysts reckon Samsung sold between 86m and 88m smartphones in the last quarter.


Apple said Monday it plans to announce its fourth fiscal quarter results immediately following the close of the stock market on October 28.

Last quarter Apple reported earnings of $6.9 billion on sales of 31.2 million iPhones, 14.6 million iPads, and 3.8 million Macs. That quarter saw Apple doing $35.4 billion in total revenue.

When the company released their new iPhone 5S and 5C they sold nine million units in just their first three days of availability, The new iPhones, though, were only on sale for the last ten days of the quarter, and their true impact may not be fully felt until quarter one 2014.

The company expects its earnings to be near the high end of its previously provided range of $34 to $37 billion. It also believes its gross margin will fall at the higher end of its previous range of between 36 and 37 percent.


HTC was the biggest Android handset supplier to the US in 2010, but they reported their first quarterly loss since 2002, an operating loss of £73m after sales fell a third to £1bn, The smartphone shipments of the last quarter was just 6m handsets, That would give it a market share of around 2.3% in a world market of 260m smartphones for the quarter. Its shipments are decreasing from 6.6m units in the second quarter, and a year ago 8.6m units.

The company recently sold mobile video business Saffron Digital for $48m and didn’t win any profit from it, and will sell its remaining 25% stake in headphones company Beats for $285m, which will bring in an $85m profit two years after it spent $300m for a 51% stake in the company, and might needs to find a partnership or merger to save itself.


BlackBerry was once on top of the mobile phone world, shipping their first device in 1999.  In 2003, the more conventional smartphone was introduced and supported push email, text messaging, and web browsing, but after Apple and Android arrived to the market Blackberry suffered and they couldn’t keep up with the changing market, which result in announcing that they will exit the consumer smartphone business altogether. BlackBerry could be selling off either parts of itself or the company as a whole to another tech giant. Among the known companies discussing bids are Google, Cisco, and SAP

In addition BlackBerry is laying off about 300 head office employees this week as part of a broader cost-cutting plan that will reduce its workforce by about 40 per cent.


Sony has definitely been on the rise recently with its latest flagships doing much better than their predecessors.

When it was Sony Ericsson hard-core technological assets for example, Sony’s camera sensor was used by other handset makers, and Sony Ericsson only got it at the same time as all the other makers.

Now after purchasing Ericsson share from Sony Ericsson will help the company improve on its position drastically as the hard-core technological assets like applications, services and hardware are now being developed by the company itself and that will give it a competitive advantage.

The company currently has about 6.5% to 7% of the market by value, and is aiming to be the third smartphone manufacturer in the near future, which it is 20% of the smartphone market by value


Nokia’s market cap was once more than $149.4 billion, but as Blackberry they couldn’t keep up with the changing trends of the smartphone market, and they agreed in August to sell its handset business to Microsoft for about $7 billion after seeing its smartphone sales dwindle.

The bottom line is in this rapid changing technology world companies must keep a close eye on the technology trends and what is hot now with consumers, because it is very easy for any company who once was on top of the market to fall down and find itself losing its loyal consumer to a new technology trend.

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