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Finally ate all those 22.20s :)
Form 8-K
InterDigital, Inc. - N/A
Filed: May 07, 2008 (period: May 07, 2008)
Report of unscheduled material events or corporate changes.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): May 7, 2008
______________
InterDigital, Inc.
(Exact name of registrant as specified in its charter)
Pennsylvania
1-11152
23-1882087
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No)
781 Third Avenue, King of Prussia, Pennsylvania
19406-1409
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code: 610-878-7800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
(a) On May 7, 2008, InterDigital, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended March 31, 2008. A copy of the press release is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(c)
Exhibits
99.1
Press release dated May 7, 2008.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
INTERDIGITAL, INC.
By:
/s/ Steven W. Sprecher
Steven W. Sprecher
General Counsel and Governmentt Affairs Officer
Dated:
May 7, 2008
EXHIBIT INDEX
Exhibit No.
Description
99.1
Press release dated May 7, 2008
Exhibit 99.1
InterDigital® Announces First Quarter 2008 Financial Results
Solid Profitability and Free Cash Flow in the Quarter
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--InterDigital, Inc. (NASDAQ:IDCC) today announced results for first quarter ended March 31, 2008. Highlights for first quarter 2008 include:
Revenue of $56.0 million, including $55.5 million of recurring revenue
Net income of $7.3 million, or $0.15 per diluted share
Free cash flow1 of $77.7 million
Repurchase of nearly 1 million shares of the company’s common stock for $17.5 million
Ending cash and short-term investments totaling $240.1 million.
William J. Merritt, InterDigital’s President and Chief Executive Officer, commented, “The first quarter 2008 was another good quarter for InterDigital and a solid start to 2008. Recurring royalties from our core base of existing licensees grew nicely, both sequentially and on a comparable quarter basis. We also continued our dialogue with unlicensed manufacturers, and earlier this week, announced the signing of two additional 3G patent licenses with manufacturers in Taiwan, bringing our total number of 3G patent licensees to over 25.”
“Our product programs also progressed very well,” continued Mr. Merritt. “In its annual independent review of 3G modem offerings, Signals Research Group determined our SlimChip™ modem to be among the leading solutions in the market. The high performance of the baseband IC combined with its unique “slim” design targeted at the data card space has generated significant customer interest and we are on track to secure a design win in the first half of this year.”
First Quarter Summary
The company’s net income in first quarter 2008 totaled $7.3 million, or $0.15 per diluted share, compared to $17.7 million, or $0.34 per diluted share, in first quarter 2007. Net income in the first quarter of 2007 benefited from $13.8 million of royalty audit findings from one of the company’s licensees.
Recurring revenue from core customers in first quarter 2008 totaled $55.5 million, a $5.7 million increase over comparable first quarter 2007 revenue, and a $4.1 million increase over fourth quarter 2007 recurring revenue. Total revenue in first quarter 2008 was $56.0 million compared to $67.8 million in first quarter 2007, the latter of which included $18.0 million of revenue related to royalty audit findings and other 2G royalties from Sony Ericsson. Recurring patent licensing royalties in first quarter 2008 totaled $53.3 million, reflecting a $4.5 million increase in recurring revenue from all other new and existing licensees offset by the expected decline of 2G revenues from Sony Ericsson. Technology solution revenue increased to $2.2 million in first quarter 2008 from $1.0 million in first quarter 2007. This increase was due primarily to engineering services associated with a first quarter 2008 license of the company’s SlimChip 3G broadband modem IP to a leading Asian semiconductor company. Licensees that accounted for 10 percent or more of the $55.5 million of recurring patent license royalties and technology solution revenue were LG (25%), Sharp (19%) and NEC (10%).
First quarter 2008 operating expenses of $45.1 million increased 3 percent over first quarter 2007 operating expenses of $43.6 million. Excluding arbitration and litigation expenses, operating expenses increased 3 percent to $39.3 million in first quarter 2008 from $38.2 million in first quarter 2007. Patent litigation and arbitration expenses totaled $5.7 million in first quarter 2008 compared to $5.5 million in first quarter 2007. Excluding the effect of insurance recoveries and an adjustment to an accrual for legal expenses, first quarter 2008 patent litigations and arbitration expenses totaled $13.8 million compared to $7.2 million in first quarter 2007.
Net interest and investment income of $0.4 million in first quarter 2008 decreased $2.2 million over first quarter 2007 due mainly to lower rates of return and a $0.7 million investment writedown related to an equity investment in Kineto Wireless.
The company’s first quarter 2008 effective tax rate was approximately 35%. This effective rate could change in future quarters based on changes in expected taxable income, tax credits, and other tax items for 2008, including the renewal of the U.S. federal research and experimental credit. The company’s income tax provision in first quarter 2007 reflected a 34% effective tax rate.
Near-Term Outlook
Scott McQuilkin, Chief Financial Officer commented, “Consistent with the company's practice, revenue guidance for second quarter 2008 will be provided following the receipt and review of applicable royalty reports. Notwithstanding, royalty reports received to date reflect a sequential increase in recurring patent license royalties and we do expect to see a sequential increase in revenues for second quarter 2008.
“We currently anticipate second quarter 2008 operating expenses excluding patent arbitration and litigation costs will grow approximately 4% to 8% above first quarter levels due to activities associated with the continued development of our SlimChip product family,” added Mr. McQuilkin. “Arbitration and litigation expenses tend to be highly volatile and the actual level of expense will depend on the level of activity we experience during the quarter. Lastly, we estimate that our effective book tax rate will be approximately 35%.”
About InterDigital
InterDigital designs, develops and provides advanced wireless technologies and products that drive voice and data communications. InterDigital is a leading contributor to the global wireless standards and holds a strong portfolio of patented technologies which it licenses to manufacturers of 2G, 2.5G, 3G, and 802 products worldwide. Additionally, the company offers a family of SlimChip™ high performance mobile broadband modem solutions, consisting of Baseband ICs, Modem IP and Reference Platforms. InterDigital's differentiated technology and product solutions deliver time-to-market, performance and cost benefits.
For more information, visit: www.interdigital.com
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include the information under the heading “Near-Term Outlook” and other information regarding our current beliefs, plans, and expectations, including without limitation: (i) continuing license negotiations; (ii) increases in recurring patent license royalties; (iii) the continued development of the company’s SlimChip ™ product family; (iv) second quarter 2008 operating expenses excluding patent arbitration and litigation expense; (v) second quarter 2008 patent arbitration and litigation expense; and (vi) our estimated 2008 effective book tax rate. Words such as “will,” “expect,” “anticipate” “continue to,” “forecast,” “likely,” “estimate,” “on target” or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors including, but not limited to, those identified in this press release as well as the following: (i) unanticipated delays, difficulties or acceleration in the execution of patent license agreements; (ii) our ability to leverage our strategic relationships and secure new license agreements on acceptable terms; (iii) changes in the market share and sales performance of our primary licensees, delays in product shipments of our licensees, and any delay in receipt of quarterly royalty reports from our licensees; (iv) unanticipated product development expenses and the timing of such expenses; (v) unanticipated difficulties or delays in the production or delivery of our integrated circuit engineering samples; (vi) changes in the technology preferences, needs, availability and pricing of competitive technologies and product offerings; (vii) timely receipt and final reviews of licensee royalty reports and related matters; (viii) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, additional legal proceedings, changes in the schedules or costs associated with legal proceedings, or adverse rulings in such legal proceedings; and, (ix) changes in our expectations of the amount and composition of full-year taxable income, Congressional approval of 2008 U.S. federal research and experimental credit, changes in foreign and domestic tax laws or treatises, or changes in our tax planning strategies. We undertake no duty to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
1 InterDigital defines “free cash flow” as operating cash flow less purchases of property and equipment, technology licenses, investments in patents and unrealized (loss) gain on short term investments. A detailed reconciliation of free cash flow to GAAP results is provided at the end of this news release.
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS
For the Period Ended March 31
(Dollars in thousands except per share data)
(unaudited)
For the Three Months Ended
March 31,
2008
2007
REVENUES
$
56,027
$
67,818
OPERATING EXPENSES:
Sales and marketing
2,388
2,096
General and administrative
5,675
6,544
Patents administration and licensing
15,051
13,205
Development
23,202
21,784
Arbitration and litigation contingencies
(1,200
)
-
45,116
43,629
Income from operations
10,911
24,189
NET INTEREST & OTHER INVESTMENT INCOME
438
2,633
Income before income taxes
11,349
26,822
INCOME TAX (PROVISION)
(4,032
)
(9,153
)
NET INCOME APPLICABLE TO COMMON SHAREHOLDERS
$
7,317
$
17,669
NET INCOME PER COMMON SHARE – BASIC
$
0.16
$
0.35
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC
46,426
49,782
NET INCOME PER COMMON SHARE – DILUTED
$
0.15
$
0.34
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – DILUTED
47,323
51,880
SUMMARY CASH FLOW
For the Periods Ended March 31
(Dollars in thousands)
(unaudited)
For the Three Months Ended
March 31,
2008
2007
Income before income taxes
$
11,349
$
26,822
Taxes paid
(15,675
)
(15,675
)
Depreciation, amortization and share based compensation
8,367
7,177
Increase in deferred revenue
30,465
104,088
Deferred revenue recognized
(30,284
)
(31,107
)
Increase in operating working capital, deferred charges and other
82,122
14,289
Capital spending, technology licensing & patent additions
(8,644
)
(12,278
)
FREE CASH FLOW
77,700
93,316
Long-term investment
-
(5,000
)
Tax benefit from share-based compensation
370
2,425
Debt decrease
(365
)
(92
)
Repurchase of common stock
(16,105
)
(143,926
)
Proceeds from exercise of stock options
748
2,099
Unrealized gain on short term investments
330
31
NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS
$
62,678
$
(51,147
)
CONDENSED BALANCE SHEET
(Dollars in thousands)
(unaudited)
March 31, 2008
December 31, 2007
Assets
Cash & short-term investments
$
240,145
$
177,467
Accounts receivable
37,966
130,880
Current deferred tax assets
43,942
43,734
Other current assets
23,331
19,332
Property & equipment and Patents (net)
114,370
111,686
Long-term deferred tax assets and non-current assets
50,232
51,786
TOTAL ASSETS
$
509,986
$
534,885
Liabilities and Shareholders’ Equity
Current portion of long-term debt
$
1,018
$
1,311
Accounts payable & accrued liabilities
70,246
76,974
Current deferred revenue
74,735
78,899
Long-term deferred revenue
228,890
224,545
Long-term debt & long-term liabilities
7,955
16,089
TOTAL LIABILITIES
382,844
397,818
SHAREHOLDERS' EQUITY
127,142
137,067
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY
$
509,986
$
534,885
The company’s short-term investments are comprised of high quality credit instruments including U.S. Government agency instruments and corporate bonds. Management views these instruments to be near equivalents to cash and believes that investors may share this viewpoint.
This release includes a summary cash flow statement that results in the change in both the company’s cash and short-term investment balances. One of the subtotals in the summary cash flow statement is free cash flow. The table below presents a reconciliation of this non-GAAP line item to net cash provided by operating activities.
For the Three Months Ended
March 31,
2008
2007
Net cash provided by operating activities
$
86,344
$
105,594
Purchases of property, equipment, & technology licenses
(1,229
)
(7,112
)
Patent additions
(7,415
)
(5,166
)
Free cash flow
$
77,700
$
93,316
InterDigital and SlimChip are trademarks of InterDigital, Inc.
CONTACT:
InterDigital, Inc.
Media Contact:
Jack Indekeu, +1 610-878-7800
jack.indekeu@interdigital.com
or
Investor Contact:
Janet Point, +1 610-878-7800
janet.point@interdigital.com
T-Mobile says 3G iPhone coming to Austria
During a press conference in Vienna on Monday, T-Mobile Austria is reported to have confirmed that a 3G version of the iPhone is on its way to the region.
Specifically, a German-laguage report in derStandard.at states that officials from the carrier said a "UMTS version" of the iPhone would be made available in Austria "shortly," and that the country would be one of just a handful to serve as a "testing" ground for the next-generation device.
In recent weeks, reports have suggested that Italy's TIM and Belgium's Mobistar would also see similar treatment.
Readers interested in tracking and referencing the plethora of 3G iPhone reports can turn to AppleInsider's 3G iPhone page for a continually updated list, or subscribe to the page's RSS feed.
http://www.appleinsider.com/articles/08/05/05/phone_sdk_goes_international_t_mobile_on_3g_iphone_in_austria.html
Video speed test: 2.5G EDGE iPhone vs. mock 3G HSDPA iPhone
see link below.
By AppleInsider Staff
Published: 11:00 AM EST
One Apple iPhone owner has posted to YouTube a video shootout that pits an iPhone running on a 2.5G EDGE network against one rigged with 3G HSDPA access in a simulated speed test.
The mock 3G iPhone was connected via WiFi to an iMac whose internet connection was supplied with a HSDPA modem and then shared, while the traditional 2.5G iPhone was run on a standard overseas EDGE wireless network.
Based on the test results, which are largely theoretical given fluctuations in mobile wireless speeds from region to region and provider to provider, the 3G iPhone loaded the same web page as the 2.5G iPhone in nearly half the time.
http://www.appleinsider.com/articles/08/05/02/video_speed_test_2_5g_edge_iphone_vs_mock_3g_hsdpa_iphone.html
Last,
I was told(not by Jim) not to delete his posts.
U.S.-contracted ship fires toward Iranian boat
At least one shot fired, defense official says; details not immediately known
updated 13 minutes ago
WASHINGTON - A ship contracted by the U.S Military Sealift Command has fired at least one shot toward an Iranian boat, a U.S. defense official said Friday.
"It was an MSC vessel," the official said, confirming the ship fired on an Iranian boat.
Other details were not immediately available.
Story continues below ↓
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Editor's note: This is a breaking news story. Please check back for updates.
you're right.
Apple orders aluminum 13-inch MacBook shells, 3G iPhone chips
By Aidan Malley
Published: 08:00 AM EST
Separate reports have revealed that Apple's next wave of products for 2008 is soon to enter various stages of production, with orders placed for aluminum shells for the company's next-generation 13-inch MacBooks and a manufacturer chosen for the iPhone's 3G chipset.
Related AppleInsider articles:
Report: Apple prepping Australia for June...
Latest iPhone 2.0 beta reveals 3G chipset
3G iPhone to launch mid-year with Infineon...
Analyst sees 3G iPhone from Apple by Christmas
Quanta lands orders for future iPhone - report
A worker at a Taiwanese case manufacturer posting to one of the Taiwan's largest technology forums claims (link withheld to protect identity) that his unnamed employer has just this week received orders to produce enclosures for new MacBook systems.
Having signed a non-disclosure agreement with Apple, the worker was hesitant to respond to questions on the matter from fellow members of the discussion forum, but did initially let slip that the order was for traditional aluminum-colored casings only.
The report appears to corroborate AppleInsider's source information on the subject, echoing assertions that white cases will disappear from the MacBook lineup, replaced instead by a silver, anodized aluminum enclosures reminiscent of those used in the MacBook Air and latest iMacs.
Few other details escaped along with the leak, though people familiar with Apple's plans have previously mentioned preserving the 13-inch screen and performing "trimming" around the borders of the next-gen notebooks, which should receive their makeover with their next update sometime in the second half of the year.
Meanwhile, DigiTimes cites Taiwan's Economic Daily News in reporting that United Microelectronics Corporation has been tapped as the manufacturer for the Infineon baseband processor for the 3G-capable iPhone.
The newspaper maintains that UMC will use a 65 nanometer plant to produce the chip, which (though mistakenly written as PMB878) is known to be the PMB8878 -- an integrated circuit which provides cellular data on HSDPA networks up to 7.2Mbps and is the source of the hidden SGOLD3 reference in the latest beta of Apple's iPhone 2.0 firmware.
Infineon's 2G, EDGE-only chipset for current iPhones is made by Taiwan Semiconductor Manufacturing Company (TSMC), according to the paper.
Neither EDN nor the factory worker have disclosed when the respective products are due to ship. Still, analysts tracking Infineon and other involved component makers have heard of spring production windows for iPhones, while numerous indicators have also suggest that MacBooks and MacBook Pros must wait until at least June, when Intel unveils Centrino 2 and vendors can begin using the next-generation mobile platform.
http://www.appleinsider.com/articles/08/04/17/apple_orders_aluminum_13_inch_macbook_shells_3g_iphone_chips.html
Gio,
I found it on their website.
IDCC website
http://ir.interdigital.com/phoenix.zhtml?c=116582&p=irol-sec
NOK down almost 10% eom
Form 8-K
InterDigital, Inc. - N/A
Filed: April 17, 2008 (period: April 14, 2008)
Report of unscheduled material events or corporate changes.
================================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): April 14, 2008
--------------
InterDigital, Inc.
(Exact name of registrant as specified in its charter)
Pennsylvania 1-11152 23-1882087
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
781 Third Avenue, King of Prussia, Pennsylvania 19406-1409
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 610-878-7800
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
================================================================================
Item 8.01. Other Events.
------------
Nokia and Samsung Litigation Update.
-----------------------------------
On April 8, 2008, InterDigital, Inc., InterDigital Technology Corporation and
InterDigital Communications, LLC (collectively, "InterDigital") filed a request
for a stay and an expedited appeal with the U.S. Court of Appeals for the Second
Circuit ("Second Circuit") of a ruling from the U.S. District Court for the
Southern District of New York (the "District Court"), which preliminarily
enjoined InterDigital from proceeding against Nokia Inc. and Nokia Corporation
(collectively, "Nokia") in the United States International Trade Commission
("USITC") investigation captioned In re Certain 3G Mobile Handsets and
Components Thereof, Investigation No. 337-TA-613 (the "Investigation"). In
response to InterDigital's request to expedite the appeal and for a stay of the
District Court's ruling, the Second Circuit placed the matter for its
consideration on its calendar for April 15, 2008. No decision has been received.
The District Court's ruling does not preclude InterDigital from proceeding
against Samsung Electronics Co. Ltd and certain of its affiliates ("Samsung") in
the Investigation.
On April 14, 2008, the Honorable Paul J. Luckern, the Administrative Law Judge
overseeing the Investigation, issued an order temporarily suspending the
commencement of the evidentiary hearing against Nokia and Samsung in the
Investigation pending a ruling on InterDigital's stay request by the Second
Circuit. The evidentiary hearing was previously scheduled to commence April 21,
2008. Judge Luckern did not change the scheduled date of July 11, 2008 for his
initial determination in the Investigation or the scheduled Target Date of
November 12, 2008 for a decision by the USITC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INTERDIGITAL, INC.
By: /s/ Steven W. Sprecher
---------------------------------
Steven W. Sprecher
General Counsel and Government Affairs Officer
Date: April 16, 2008
_______________________________________________
Created by 10KWizard www.10KWizard.comSource: InterDigital, Inc., 8-K, April 17, 2008
UK iPhone price cut boosts confidence in June 3G launch
By Katie Marsal
Published: 09:00 AM EST
A 100 pound price cut on Apple's 8GB iPhone in the UK, confirmed by wireless carrier O2 on Wednesday, is the latest bit of anecdotal evidence to hint towards near-term release of a redesigned 3G model, according to one Wall Street analyst.
Related AppleInsider articles:
Apple, O2 to slash 8GB iPhone price in the UK...
Piper: German iPhone cut clearing inventory...
Sub-$300 iPhone, 3G model seen driving 45M...
Growth potential seen in steadily maturing...
Analyst weighs in on Apple's rev-share...
The 37 percent cut arrives on the heels of a 75 percent reduction of the same model in Germany, suggesting that Apple's European wireless partners are draining inventory of the 2.5G mobile handsets, which have been met with lackluster demand in the region, Piper Jaffray analyst Gene Munster told clients in a research note.
The price cuts, both of which end in June, "set the stage for the release of a new iPhone" that same month, he said.
In recent weeks, the analyst has polled over 60 stateside Apple retail stores on their supply of both the 8GB and 16GB iPhone models to compare inventories with those in Europe. Initially, his first two rounds of 20-store checks (1, 2) found close to no iPhones within the company's retail channel. However, a most recent 22-store check found that over 80 percent maintained limited supply of 8GB models and 50 percent had 16GB models on hand.
"We conclude that Apple is likely pacing its remaining supply of phones by trickling units into its retail channel until the new model is released," Munster said. "While limited availability of iPhones would put downward pressure on iPhone units in the June quarter, we believe it would be more than offset by the price cuts in Europe and the launch of a new model in [the month of] June."
Come June, the analyst sees a 3G model with a "redesigned exterior" fetching between $349 and $399. He believes the widely anticipate update will be the first and only significant change to Apple's handset offerings before the company begins a model expansion coupled with aggressive price reductions early next year.
"We believe Apple will follow the release of the 3G iPhone in June with the addition of one or two more models by early 2009. The most likely timing of these lower priced, third-generation iPhones is Macworld 09," Munster wrote.
"While Apple may try to debut a cheaper iPhone ahead of the 2008 holiday shopping season, we do not believe this scenario is likely. It is more likely that Apple will simply increase the capacities of the 3G models to 16GB and 32GB ahead of the holidays, simultaneous with new iPods and release the third-gen iPhones after the holidays in early 2009."
The end result, according to the analyst and his supply chain contacts in the Far East, is that come January, the Cupertino-based company will showcase "an entire family" of handsets. The move would mirror the slow diversification of the iPod family, which over its years entered new price points with each new model that was brought to the table.
As such, Munster continues to believe the inflection point in iPhone sales won't come until 2009 when cheaper iPhones are widely available.
"Specifically, we believe Apple will also introduce an iPhone between $200 and $300 in early 2009," he told clients. "We are modeling for iPhone average selling price to drop from $489 in 2007 to $365 in 2008 to $314 in 2009. This price drop, along with the continued international expansion of the iPhone, is critical to our iPhone unit estimate of 45 million [unit sales] in 2009."
Munster maintained his Buy rating and $250 price target on shares of Apple.
http://www.appleinsider.com/articles/08/04/16/uk_iphone_price_cut_boosts_confidence_in_june_3g_launch.html
Mike,
Good to see you.
and away we go...:)
Volume is taking off.
Filing: Apple conceptualized smart MVNO system ahead of iPhone
By AppleInsider Staff
Published: 09:00 AM EST
In the years and months leading up to the release of its iPhone handset, Apple Inc. considered forming its own mobile virtual network operator (MVNO) system which would interface with multiple primary wireless carriers to always provide users with the lowest possible rates depending on their location, a company filing has revealed.
The October 10, 2006 patent filing published for the first time this week suggests that although the Cupertino-based firm ultimately formed exclusive relationships with individual carriers for specific regions, it had prepared an alternative model that would have seen the iPhone sold contract free on its own roaming network.
Unlike traditional MVNOs that serve up wireless minutes purchased in bulk from one established carrier (such as AT&T) at a fixed cost to the user, Apple's backup plan called for a system that would allow all primary wireless carriers within a specific region to serve iPhone users by bidding prices for there service in a dynamic, real-time model.
Under the proposed model, each iPhone with a stored network address would be in constant communication with an iTunes-like mobile virtual network operator server, feeding the server real-time information about its geographic location. In return, the server would query its database of participating wireless networks within that region, and then select a carrier for the iPhone based upon predetermined rates from those carriers for that region.
Alternatively, Apple's MVNO could also insert the user in the network selection process by allowing them to select their own carrier based upon the best available rates for the particular region at a particular time of the day or week.
"Bids can be received from multiple network operators for rates at which communication services using each network operator can be obtained. Preferences among the network operators can be determined using the received bids, and the preferences are used to select the network operator," Apple's iPod chief Anthony Fadell wrote in the filing.
"Preferences may be further based on a location of the mobile device, the quality of service offered by the network operator, and/or type of communication. Bids from multiple network operators for rate information relating to rates at which communication services using each network operator can be obtained and the rate information can be sent to the mobile device for use in selecting the network operator."
Fadell added that rate information would be displayed on a user interface of the iPhone so that user selection of the network operator can be performed by the user. The iPhone would be registered with a network operator for a limited purpose of sending the request and receiving the network operator data in response to the request, and would separately be registered with the selected network operator for conducting communications after receiving the network operator data.
"The network operator preference data can be updated to identify a second set of preferences among the multiple network operators, and the updated network operator preference data can be sent to the mobile device," Fadell wrote.
"In addition, updating the network operator preference data can be performed dynamically based on parameters associated with the multiple network operators. The parameters include bids relating to rates at which communication services are available from each network operator, data relating to the network operators in an area corresponding to the current location of the mobile device, and/or rate information for different communication services available from each network operator."
As such, the updated network operator preference data would enable an iPhone to automatically select among multiple network operators as the user alters his or her location, always providing that users with the strongest possible signal and lowest possible rates.
Under such a model, Apple would presumably handle the accounting end, tabulating the users monthly bill and handling payments between the various participating carriers on its network.
http://www.appleinsider.com/articles/08/04/10/filing_apple_conceptualized_smart_mvno_system_ahead_of_iphone.html
Loop, A voice of reason, thank you.
Report: Apple prepping Australia for June (3G?) iPhone arrival
By Slash Lane
Published: 09:00 AM EST
A debatable report out of one of Australia's largest Apple communities this week claims the wheels are in motion to launch the iPhone in the region this June, and that a 3G model is likely to take center stage.
Citing unnamed sources within the country's tightly-knit circle of Apple resellers, an administrator for the MacTalk forums reports that many of those resellers have started to receive guidance from the Cupertino-based company regarding a local iPhone launch during the final week of June.
The timeframe would coincide with the widely anticipated arrival of a second-generation iPhone with 3G wireless capabilities, iPhone software v2.0, and the first Australian Apple retail stores in Sydney and Melbourne, both of which are believed to be nearing completion.
Though somewhat suspect, the report adds that the touch-screen handset will arrive unlocked for use on many of the nation's wireless carriers and that Australian Apple resellers, unlike those in the US and Europe, will be privy to market the device to their customers.
MacTalk notes that all the major Australian carriers already operate a 3G HSDPA network, while only one -- Telstra -- maintains a network suitable for the current 2.5G EDGE-based iPhone. As such, the publication believes a 3G model would stand as the only logical choice for the region, a notion believed to also support the rumored multi-carrier model.
On Tuesday evening it was discovered that the latest private beta of iPhone software v2.0 includes references to Infineon's SGOLD3H chipset. A successor to the SGOLD2 chipset used in the current iPhone, the new version is distinguished from the earlier hardware by its 3G cellular data capabilities.
Unlike the EDGE-only chipset in the current iPhone, the new Infineon hardware not only adds 3G over HSDPA but runs up to the international standard's newer 7.2 megabit per second spec -- twice the speed of the 3.6-megabit access seen on most HSDPA networks.
It also enables new options for video that aren't present in the SGOLD2, such as live recording and two-way video calls.
http://www.appleinsider.com/articles/08/04/09/report_apple_prepping_australia_for_june_3g_iphone_arrival.html
WSJ's Mossberg says 3G iPhone due in 60 days
By Aidan Malley
Published: 04:50 PM EST
Speaking at a Beet.tv executive summit, well-known Wall Street Journal writer Walt Mossberg has stirred the pot by stating that an iPhone with 3G access will be available within 60 days.
The journalist makes his off-hand but apparently certain statement while discussing the relatively poor state of Internet access in the US, whose cellular and landline connections are often outrun by foreign providers.
Mossberg doesn't cite any sources in his talk with executives, in which he also comments that the Apple TV is limited by the speed of American Internet access.
However, the technology critic is also known for gaining privileged access to information and products from Apple. Mossberg received his review iPhone on June 11th last year -- more than two weeks before the touchscreen cellphone was available to the general public and ahead of most other journalists.
The comments echo the increasingly repeated June timetable for a launch of an iPhone with faster wireless access. In recent days, multiple analysts have predicted that Apple will unveil its 3G iPhone no later than June, with Piper Jaffray claiming that the ongoing iPhone shortage is a sign of inventory control measures meant to phase out older models.
T-Mobile Germany has further sparked interest by subsidizing the price of 8GB iPhones in a promotional campaign that ends June 30th.
Mossberg's statement can be seen in the video below at the 6 minute, 53 second mark.
http://www.appleinsider.com/articles/08/04/05/wsjs_mossberg_says_3g_iphone_due_in_60_days.html
Piper: German iPhone cut clearing inventory ahead of 3G launch
By Slash Lane
Published: 01:00 PM EST
Investment bank Piper Jaffray said Friday it has confirmed a T-Mobile Germany price cut on the 8GB iPhone from €399 to €99, adding that it's a sign Apple is looking to drain existing inventories ahead of 3G iPhone launch no later than June.
The official promotion runs through June 30, and requires a two-year contract and the high end data plan.
"In the U.S., Apple's supply of iPhones continues to be limited, but European carriers appear to be overstocked," analyst Gene Munster wrote in a note to clients. "These data points lead us to believe Apple will launch a new iPhone in the U.S. in June at the latest, with a European launch shortly thereafter."
The analyst said he's spoken with representatives from 18 more US-based Apple retail stores since his report on checks with 20 locations early in the week. This time he found "small amounts of iPhones, usually 8GB" that were selling out quickly. One store even imposed a two per-person limit, which is more restrictive than the company's broadly adopted five phone limit.
"This type of channel control is typical of Apple ahead of new products," Munster wrote. "In Europe, the opposite story seems to point to the same conclusion. Apple's carrier partners are a completely separate channel from its own retail stores, and the carrier partners appear to be overstocked with iPhones."
Although Apple is dealing with its mobile channel partners in the same way that it has been interacting with iPod resellers, the analyst believes there are some early wrinkles that need smoothing.
He points to the ongoing iPhone availability saga as one example of how Apple is still learning from the launch of its first mobile handset: although the company maintains tight control of its direct sales channels, which include its retail and online stores, wireless partners like AT&T and T-Mobile have struggled with that same kind of discipline, particularly in the area of inventory management.
"This has been compounded by weaker than expected iPhone sales in Europe," Munster told clients. "Therefore, it seems as if this has led to Apple trickling iPhones into its U.S. retails stores, while T-Mobile and other carrier partners seek to drain their stock of iPhones ahead of a new model."
The Piper Jaffray analyst, who maintains a Buy rating and $250 price target on shares of Apple, is forecasting for the iPhone to have a breakout year in 2009, in which he believes 45 million units will be shipped and sold.
http://www.appleinsider.com/articles/08/04/04/piper_german_iphone_cut_clearing_inventory_ahead_of_3g_launch.html
OldNews: Apple" s deal with InterDigital all but guarantees 3G iPhone
By Justin Berka | Published: September 11, 2007 - 09:53AM CT
Although we still don't know for sure if it exists or when it might be coming, the probability of a 3G iPhone has been pegged as quite high for some time now. Apple has been silent as usual, but once in a while, a detail or two slips out that provides insight into the future. Usually the tidbits are in patent applications, but news of a licensing agreement between Apple and a company called InterDigital also offers us some information, particularly about the number and direction of future iPhones.
InterDigital markets a wide variety of mobile phone technologies, most of which are reportedly covered by the licensing agreement. Specifically mentioned are "technologies encompassing bandwidth allocation, roaming, and power efficiency controls," analyst Michael Ciarmoli told Reuters, all of which should be useful to Apple. InterDigital is also a fairly big name when it comes to 3G technologies, which provides further evidence of the iPhone's eventual migration in that direction. And hey, if the battery life is a bit better in the future, maybe this licensing agreement will mean a few less lawsuits for Apple.
In many ways, the length of the licensing agreement is more notable than the technologies it covers. The deal is apparently for seven years, and has InterDigital receiving $2 million per quarter for the length of the agreement. The new technology means that iPhone improvements are certain to be coming soon, and the seven-year deal means that we might see quite a few revisions of the iPhone in the future. Actually, at that point the product will probably have moved on t
o a whole different moniker, but at least we'll have 3G...
http://arstechnica.com/journals/apple.ars/2007/09/11/apples-deal-with-interdigital-all-but-guarantees-3g-iphone
HTC XV6900 aka the HTC Touch (In White)
HTC recently rebranded the Touch for Verizon Wireless. Among the recently announced new handsets for Verizon including Samsung Alias, BlackBerry Curve 8330, and LG enV2 is the HTC XV6900. It has all the features of the classic HTC Touch, except that this one's in white which is similar to the prior one released by Bell Canada, except with a pearl-ish tint of white this time. The HTC XV6900 features a large 2.8-inch TFT LCD display with LED backlighting, 2 megapixel camera, TouchFLO user interface, 3G internet access, expandable microSD card slot of up 8GB capacity, Bluetooth 2.0 connectivity, and Windows Mobile 6 OS. The HTC XV6900 will ship by late April for $349.99, after a $50 mail-in rebate.
http://www.mobilewhack.com/htc-xv6900-aka-the-htc-touch-in-white/
Samsung Instinct 3G Response To IPhone
Posted in: Technology Cell Phones IPhones Mobile Phones Samsung Samsung Instinct Smartphones
The touchscreen Samsung 3G is the latest, and appears to be the most fromidable, oppent to Apple’s iPhone, according to Yahoo.com
The Samsung 3G Instinct phone has a sleek design, flash menus, haptic feedback and full-on 3G access for its Sprint customers.
The 3G capability allows access to quick downloading and browsing and the phone has a replaceable battery -one of the major flaws of the iPhone.
Although the Samsung 3G looks sweet, I must admit that I have been delighted with my newly acquried Blackberry Pearl. I feel that the Blackberry is more of a PDA device for businees oriented folks, while the iPhone and now the Samsung 3G aim for everyday consumers interested in a phone that will give them entertainment options.
Source: Sbrouwer
http://www.huliq.com/55660/samsung-instinct-3g-response-iphone
There *Really* Is A Coast To Coast iPhone Shortage
Om Malik, Tuesday, April 1, 2008 at 5:04 PM PT Comments (1)
Is the 3G iPhone On Its Way?
Piper Jaffray analyst Gene Munster told his investment banking clients today that there were 20 stores across the nation were out of iPhones. So we at GigaOM offices decided to call as many Apple stores fro Hawaii to Chestnut Hill to San Francisco (all randomly selected) and answer was the same: sorry we are out of iPhones.
Does this mean that there is a legitimate shortage or is a new iPhone in the offering? Piper’s Munster says a 3G version of the device for $400 is possible candidate. I wouldn’t be surprised by a new device, possibly a 3G version, being announced tomorrow.
It surely will draw attention away from the CTIA Show and all that handsets that are being launched in Las Vegas this week. . It would be a Machiavellian move by Steve Jobs & Apple to shift attention away from the competitors. Stacey, who is at CTIA tells us that touch screens are the new black when it comes to mobile handsets
http://gigaom.com/2008/04/01/there-really-is-a-coast-to-coast-iphone-shortage/
3G iPhone launch around the corner
Wednesday, 2 April 2008
Marko Barosevic
Speculation over the release of Apple’s next generation iPhone is building.
Apple and US Telco partner AT&T signaled in late 2007 an expected rollout of a third generation (3G) wireless iPhone for some time this year. That time now appears closer than first thought.
Bank of America analyst Scott Craig has set tech tongues wagging with a prediction that the 3G iPhone will already be on the US market as early as June 2008.
The rumors are beginning to compound with fresh reports emerging that Apple has signed an exclusive manufacturing contract with a Taiwanese company. An anonymous source told Dow Jones that Hon Hai Precision Industry Co (Foxconn) has won a contract to manufacture the 3G iPhone.
Many see Apple’s World Wide Developer Conference scheduled for June 9 to 13 in San Francisco as a potential launch date for the faster 3G iPhone.
The release of the 3G iPhone will also increase talk of the iPhones’ Australian debut. Rumours in the past months have linked all of Australia’s major carriers with the iPhone – Telstra, Optus, Vodafone and also now Hutchison.
Whilst Apple has been muted, speculation has Telstra as the favored network, with the 3G iPhone to be carried on the advanced Next G network. Tech lifestyle website SmartHouse has added to the scuttlebutt this week:
“Currently running at 7.2Mb per second it is tipped that Telstra will time the release of their Next G network upgrade with the release of the Apple iPhone… Already divisions of Telstra are starting to develop applications to run on the new 3G phone. Among those divisions are Sensis which operate the Telstra White and Yellow pages divisions.”
With US sales of the existing iPhone range surging and with this new rollout, it is now expected that production of the entire iPhone range will hit 8 million in the summer quarter alone. Apple’s plan to shift 10 million units this year now appears far too conservative.
One Wall Street analyst Gene Munster from Piper Jaffray believes that iPhone sales could hit 45 million units in 2009 on the back of booming Asian markets and cut price offerings.
The new 3G iPhone is expected to include;
GPS tracking
Dual camera video calls
Upgraded stylish look
Tech watchers have guessed that upon release the 3G iPhone will cost around US$600 with a mass rollout later leading to reduced prices.
For the latest info on iPhone development see AppleInsider.
http://www.smartcompany.com.au/Free-Articles/Trends/20080402-3G-iPhone-luanch-around-the-corner.html
habu, My bad. sorry about that.
Gab,
I'm doing this on the iphone and yes, I will upgrade to a (IDCC) 3G model.
Lets stay on topic guys. :)
finally broke that line.
I thought it read 8k, made my heart skip a beat, and btw, I'm doing all this from my iPhone .
or maybe the 3G version will be out soon?
Apple encountering ongoing US-wide iPhone shortage
By Aidan Malley
Published: 06:50 PM EST
Checks with stores across the US show Apple to have been virtually devoid of iPhone stock for days, even at its online store -- and with signs that the company is aware of its widespread nature.
When AppleInsider contacted stores across the country, the answer was always the same: all stock of 8GB and 16GB iPhone models was completely sold out, and clerks were unsure of when their stores were receive more.
This included flagship outlets in Chicago, New York City, and San Francisco.
Staffers at some stores also appear to have been briefed ahead of time that other stores besides their own were also completely without supplies of the Apple handset. When contacting the Fifth Avenue store, the clerk noted that "all three New York stores" were without stock. At Miami's store at The Falls, one employee stated that supplies were "constrained" throughout all of Florida as well as in New York.
The sudden shortfall has been further confirmed by reports from AppleInsider readers. In several cases, their own investigations reported all stores in a given state running out, including Michigan, New Jersey, Pennsylvania, and Texas. Many if not all AT&T stores were also said to have run out of inventory.
Apple's online store for the US, usually a bellwether of overall supply, currently shows a 5-7 day shipping delay for iPhones regardless of model.
The latest check reveals a shortage that has only been exacerbated since it began last week on a smaller scale. International stores have fared better, though Apple France continued to show only the 8GB model as available. Austrian, Irish, and German stores list both models, though none of these currently allow customers to order the iPhone online.
Despite the pervasive issue, Apple has not provided an official explanation for its rapidly depleting iPhone offerings. The shortfall comes months ahead of new models predicted by analysts and is uncharacteristic for the modern incarnation of the Cupertino, Calif.-based electronics firm, which quickly recovered its inventories even from the initial iPhone shortage that followed the weekend after the product's launch in June 2007.
When pressed, one retail clerk in Las Vegas' Fashion Show Apple store would only venture that there was likely a mismatch between supply and demand.
"They're just popular," the worker said.
http://www.appleinsider.com/articles/08/03/31/apple_encountering_ongoing_us_wide_iphone_shortage.html
Form 3
InterDigital, Inc. - N/A
Filed: March 31, 2008 (period: March 20, 2008)
Initial statement of beneficial ownership of securities
FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number:3235-0104
Expires:February 28, 2011
Estimated average burden hours per response...0.5
1. Name and Address of Reporting Person *
Isaacs Gary D
2. Date of Event Requiring Statement (Month/Day/Year)
2008-03-20
3. Issuer Name and Ticker or Trading Symbol
InterDigital, Inc. (IDCC)
(Last) (First) (Middle)
781 THIRD AVENUE
4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer _____ Other
(give title below) (specify below)
Chief Administrative Officer /
5. If Amendment, Date Original Filed (Month/Day/Year)
(Street)
KING OF PRUSSIAPA19406-1409
6. Individual or Join/Group Filing (Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City) (State) (Zip)
Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)
2. Amount of Securities Owned (Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)
4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock
9,731
D
Common Stock
2,207(1)
I
By 401(k) Plan
Table II - Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)
2. Date Exercisable and Expiration Date (Month/Day/Year)
3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)
4. Conversion or Excercise Price of Derivative Security
5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)
6. Nature of Indirect Beneficial Ownership (Instr. 5)
Date Exercisable
Expiration Date
Title
Amount or Number of SharesM
Options (Right to Buy)
(2)
09/07/2008
Common Stock
10,000
$ 3.75
D
Options (Right to Buy)
(3)
12/20/2011
Common Stock
20,000
$ 9.6
D
Options (Right to Buy)
(4)
01/29/2011
Common Stock
20,000
$ 13.19
D
Options (Right to Buy)
(5)
03/29/2010
Common Stock
8,000
$ 25.25
D
Explanation of Responses:
1. As of the most recently published account statement, the Reporting Person beneficially owned these shares of Common Stock pursuant to the InterDigital Savings and Protection Plan.
2. Remaining 10,000 options of an original grant of 25,000 options which vested as follows: 2,000 on 09/08/1998 and 4,600 each six months thereafter. These options were fully vested as of 12/31/2000.
3. A grant of 20,000 options which vested every six months, first in four installments of 3,333 and second, in installments of 3,334 beginning on 12/31/2001. These options were fully vested as of 06/30/2004.
4. A grant of 20,000 options which vested every six months, first in four installments of 3,333 and second, in installments of 3,334 beginning on 06/30/2001. These options were fully vested as of 12/31/2003.
5. A grant of 8,000 options, 4,000 of which vested on 12/31/2000 and the remaining 4,000 of which vested on 06/30/2001.
/s/ Steven W. Sprecher, Attorney-In-Fact for Gary D. Isaacs
03/31/2008
** Signature of Reporting Person
Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
_______________________________________________
Created by 10KWizard www.10KWizard.comSource: InterDigital, Inc., 3, March 31, 2008
Sub-$300 iPhone, 3G model seen driving 45M unit sales in 2009
By Katie Marsal
Published: 10:00 AM EST
Investment bank Piper Jaffray is out with a bullish research note on Apple today predicting a diversification of the iPhone line into a multi-tiered family of handsets that will combine for sales of 45 million units next year.
The 4-page report, authored by analyst Gene Munster, attempts to outline the future direction of the iPhone family for Apple shareholders, offering guidance on how to best think about unit growth, changes in revenue share, and strategic shifts that may play out as the company enters new international markets like China where local dynamics may complicate its model of working with only one exclusive carrier.
"While most investors view our estimate of 45 million iPhones in 2009 as outrageously aggressive, we are maintaining our estimate based on several factors," Munster wrote. "First, we expect Apple to introduce a 3G iPhone model with additional features in the next 3-6 months. We also expect Apple to offer an entire family of iPhones by January 2009 at the latest including lower priced models that decrease the average selling price (ASP)."
More specifically, the analyst expects a 3G model to arrive in June followed by a "perhaps more significant" introduction of a model by next year that will be priced between $200 and $300, addressing a more price sensitive market. As such, he expects iPhone ASPs to drop from $489 in 2007 to $365 in 2008 to $314 in 2009.
This pattern would mirror the path taken by Apple as it matured the iPod family, he said, where a slow by steady diversification saw the company enter lower price points with every new revision of the player. However, he noted that the iPhone's unit growth curve stands to be significantly steeper than the iPods, given that Apple sold more iPhones in the first two days of sales than it did in the first three quarters of iPod sales.
"And the company did not sell over 2 million iPods in a quarter until the iPod's third year of sales, whereas the company sold over 2m iPhones in the second full quarter of sales," Munster added. "In sum, we believe the iPhone is a full 2-3 years ahead of the iPod in terms of its historical growth pattern."
Compared to iPod units, which grew a radical 409 percent between Apple's fiscal 2004 and 2005, the analyst is modeling iPhone units to grow slightly slower at 304 percent between fiscal 2008 and 2009, given some uncertainty as to how quickly the company roll out cheaper models.
Munster's estimates also take into account the continued international rollout of the handset, which he believes will double the addressable market for the device every year for the next two years. With 3.7 million units having been sold through December via 6 carriers (who combined for a subscriber base of 153 million), he estimates the iPhone's penetration into this addressable market to be just 3 percent.
One key component of the international iPhone rollout is of course China, where market dynamics complicate Apple's business model of exclusivity, leading the analyst to believe the company will likely need to alter its terms in order to launch the device in conjunction with a carrier like China Mobile that sports over 370 million subscribers.
"We have spoken with people close to China Mobile and our conversations lead us to believe that Chinese carriers are unlikely to sign a revenue sharing agreement with Apple," he wrote. "This is due in part because of the 70 percent market share enjoyed by China Mobile. The bottom line is that the mobile phone market is less competitive in China than it is in the US and Europe."
As a result, China Mobile appears unwilling to pay the monthly revenue sharing of approximately $15 per month which Munster estimates other exclusive iPhone carriers are currently paying Apple. In time, that may force the company to alter its strategy of signing exclusive revenue sharing agreements with its partners in Asia, which he believes will enable it to sell the iPhone in China by the middle of next year.
In support of this theory, the analyst pointed to recent comments from chief operating officer Tim Cook, who revealed at an investor conference last month that Apple is "not married to any business model" and is instead "married to ... shipping the best phones in the world."
In the event that Apple does forgo its present revenue share model and exclusive carrier relationships, it would likely seek a one-time subsidy from each carrier per iPhone sold.
"We believe the early hype surrounding the launch of the iPhone enabled Apple to garner steep revenue sharing agreements for the 'must have' device from the initial carriers like AT&T, O2, and T-Mobile," Munster said. "However, as the iPhone becomes an established player in the mobile phone market and competitive offerings become available, Apple may not be able to command the exclusive agreements with high revenue sharing plans as it did initially."
The Piper Jaffray analyst maintains a Buy rating and $250 price target on shares of the Cupertino-based Apple.
http://www.appleinsider.com/articles/08/03/31/sub_300_iphone_3g_model_seen_driving_45m_unit_sales_in_2009.html
Apple (AAPL): 3G iPhone A Month Out
One of the things that has kept some consumers from buying an Apple (NASDAQ: AAPL) iPhone is that it only runs on AT&T's (NYSE: T) 2.5G network. That makes the device's connection to the internet slow.
Now, the research arm of a major firm, Bank of America, says that the Apple iPhone 3G product will be out in a few weeks. According to AppleInsider "financial analyst Scott Craig points to channel investigations which show an iPhone capable of faster, third-generation cellular Internet access produced in small numbers in May."
The product would not only bring in consumers who want a handset with a faster connection. It could help Apple crack the business market. Most RIM (NASDAQ: RIMM) Blackberry products already have 3G capacity. Apple is targeting the Blackberry as it tries to take a piece of the enterprise market.
A 3G version of the iPhone could boost sales significantly and help Apple's numbers in the June quarter and beyond. It would be the largest single change in the handset since its release.
Douglas A. McIntyre
http://www.247wallst.com/2008/03/apple-aapl-3g-i.html
Jobs Aims to Make iPhone the Platform for Mobile TV
New 3G iPhone helps to up the ante
10:34AM Sunday Mar 30 2008 by KathrynV
Mobile TV is hot right now for a number of different reasons. Several companies have begun launching mobile TV on certain handsets. Mobile broadband is becoming more ubiquitous. And people are getting used to watching television on devices other than their TVs. Steve Jobs is making efforts to make sure that the iPhone is a leading platform in this new area of web development.
"A couple of weeks ago, Jobs announced that he was opening up his iPhone platform to third-party software developers. The venture fund of Kleiner Perkins has just announced a US$100 million fund to support software makers, with the fund's vice chairman, John Doerr, describing Apple's software plan as the "third great platform" after the PC and the Internet. Think of it as the broadband Web plus a touchscreen TV in your pocket -- powered by the latest mobile TV entertainment software. Add all this to the growing library of professionally produced video content in the iTunes store and you might well have glimpsed a sneak preview of life after television."
In addition to plans for making the iPhone a major tool in the development of mobile television, Apple is updating the iPhone to please wireless consumers. The company recently announced that it will be launching a high speed 3G iPhone in May or June of this year. It is believed that three million of the new phones will be available on the market within the next month or so with eight million more to follow later this year.
http://www.broadbandreports.com/shownews/Jobs-Aims-to-Make-iPhone-the-Platform-for-Mobile-TV-93127
3G Apple iPhone To Be Rolled Out On Telstra Next G Network
By David Richards | Sunday | 30/03/2008
Apple is believed to have cut a deal with Qualcomm and other chip vendors for the supply of a new generation of 3G processor technology for their iPhone which is expected to be launched for the first time in Australia on the Telstra Next G network which is credited as being the fastest in the world.
Currently running at 7.2Kb per second it is tipped that Telstra will time the release of their Next G network upgrade with the release of the Apple iPhone. Currently Telstra are running extensive tests in an effort to take their network to over 32Kb per second however insiders say that recent tests have failed to deliver the quality needed to roll out the network nationally.
Already divisions of Telstra are starting to develop applications to run on the new 3G phone. Among those divisions are Sensis which operate the Telstra White and Yellow pages divisions.
Apple insiders say that the Company is planning to launch a 3G version of iPhone in the second quarter and produce as many as 8 million in the third quarter, according to Bank of America analyst Scott Craig. "Our latest channel checks point to a significant production build of a 3G iPhone beginning in the month of June after an initial small build in May, "said Craig.
Craig now expects production volume to be much higher than his previous estimates. He said Apple plans to build more than 3 million high-speed iPhone in May, followed by more than 8 million in the third quarter of the year.
Craig had previously estimated 8 million iPhone units for the whole of this year.
http://www.smarthouse.com.au/Phones/Mobile/V5N4F4D3
Print this article
BofA sees 3G iPhone build in May, predictions "too conservative"
By Aidan Malley
Published: 06:15 PM EST
Further fueling talk of a 3G-capable iPhone this spring, a research note from Bank of America claims knowledge of next-generation Apple handset production beginning in May, and warns that past sales predictions have been timid.
In his message to investors, financial analyst Scott Craig points to channel investigations which show an iPhone capable of faster, third-generation cellular Internet access produced in small numbers in May, with a larger number surfacing in June as Apple prepares a formal rollout for the new device.
"This likely implies a launch announcement in [the second calendar quarter]," Craig says.
Apple is also likely to significantly increase its iPhone production compared to its most recent full quarter. While iPhone production during the holidays totaled 2.3 million, the Bank of America researcher estimates about three million 2G and 3G iPhones made during the spring quarter and a much larger eight or more million during the summer. Each additional million units sold could add about $400 million to Apple's bottom line, Craig notes.
Simultaneous reports on Friday supported the analyst's statements., with the Taiwanese Commercial Times paper alleging that bidding is underway for 3G iPhone manufacturing while Dow Jones ventured so far as to claim that Hon Hai had already won a contract for production of an advanced model.
The investigations of the supply chain have been enough to warrant a significant rethink of longer-term predictions for 2008. As Apple may now produce the same eight million iPhones in one quarter that analysts have been predicting for the entire year, previous estimates are now "starting to look too conservative," according to Craig.
The expert maintained existing forecasts for the rest of Apple's lineup. iPod shipments are estimated to drop by several percentage points year over year for the first quarter, dipping below 10 million units, while a combination of the MacBook Air and refreshes to existing portables is tagged as a likely upside for computer sales.
squingeqbob, Thanks again for all your help. You've been peoplemarked!
Form 4
InterDigital, Inc. - N/A
Filed: March 24, 2008 (period: March 20, 2008)
Statement of changes in beneficial ownership of securities
FORM 4
¨ Check this box if no longer subject to Section 16, Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person *
Point Janet Meenehan
2. Issuer Name and Ticker or Trading Symbol
InterDigital, Inc. (IDCC)
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give _____ Other (specify
title below) below)
EVP, Comms. & Investor Rels. /
(Last) (First) (Middle)
781 THIRD AVENUE
3. Date of Earliest Transaction (Month/Day/Year)
03/20/2008
(Street)
KING OF PRUSSIA PA 19406-1409
4. If Amendment, Date Original Filed (Month/Day/Year)
6. Individual or Join/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City) (State) (Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month / Day / Year)
2A. Deemed Execution Date, if any (Month / Day / Year)
3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code
V
Amount
(A) or (D)
Price
Common Stock
03/20/2008
A
3,000 (1)
A
$ 0
7,649
D
Common Stock
556 (2)
I
By 401 (k) Plan
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security
3. Transaction Date (Month / Day / Year)
3A. Deemed Execution Date, if any (Month / Day / Year)
4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month / Day / Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code
V
(A)
(D)
Date Exercisable
Expiration Date
Title
Amount or Number of Shares
Explanation of Responses:
1. Granted pursuant to the InterDigital 1999 Restricted Stock Plan.
2. As of the most recently published account statement, the Reporting Person beneficially owned these shares of Common Stock pursuant to the InterDigital Savings and Protection Plan.
/s/ Steven W. Sprecher, Attorney-in-Fact for Janet M. Point
03/24/2008
** Signature of Reporting Person
Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
_______________________________________________
Created by 10KWizard www.10KWizard.comSource: InterDigital, Inc., 4, March 24, 2008