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Coming Soon at Stuttgart ...
The Nokia N900 with Maemo 5 Linux
--> Eldar's N900 Preview:
http://www.mobile-review.com/review/nokia-rx51-n900-en.shtml
The Nokia N97 Mini with Symbian S60 5th Edition
--> Eldar's N97 Mini Preview:
http://www.mobile-review.com/review/nokia-n97mini-en.shtml
- Eric -
Nokia Money ...
... a new ecosystem for mobile payments.
>> Nokia brings mobile financial services to millions
Nokia Money, a new mobile financial service enables financial management and payments from a mobile phone
Nokia Press Release
Espoo, Finland
August 26, 2009
http://www.nokia.com/press/press-releases/showpressrelease?newsid=1337248
Nokia today introduced Nokia Money, a new mobile financial service offering consumers with mobile device access to basic financial services. For many consumers, this will be the first time they have had any access to such financial services.
Nokia Money has been designed to be as simple and convenient as making a voice call or sending an SMS. It will enable consumers to send money to another person just by using the person's mobile phone number, as well as to pay merchants for goods and services, pay their utility bills, or recharge their prepaid SIM cards (SIM top-up). The services can be accessed 24 hours a day from anywhere, meaning savings in travel costs and time. Nokia is building a wide network of Nokia Money agents, where consumers can deposit money in or withdraw cash from their accounts.
4 billion mobile phones but only 1.6 billion bank accounts
"We believe mobile financial services offer a market opportunity with long term growth potential. In many countries, mobile phone ownership significantly exceeds bank account usage, suggesting that many mobile phone users have very limited or no access to basic financial services. With more than 4 billion mobile phone users and only 1.6 billion bank accounts, global demand for access to financial services presents a strong opportunity to combine mobile devices with simple but powerful financial services such as Nokia Money", said Mary McDowell, EVP and Chief Development Officer, Nokia.
Mobile payments will be the next step for delivering financial services to hundreds of millions of people, both urban and rural, who are underserved by existing payment means, especially in emerging economies.
"Rural consumers will particularly benefit from money transfers and, for urban consumers used to online services, we are enabling services such as payment of utility bills, purchase of train and movie tickets, top-ups, all through their mobile phones. Nokia Money is simple to use, secure and available across different operator networks and on virtually any mobile phone. This means millions of new consumers will soon be able to manage all their financial needs from their mobile phone", said Teppo Paavola, VP and Head of Corporate Business Development, Nokia.
Building a new ecosystem for mobile payments
The Nokia Money service will be operated in cooperation with Obopay, a leader in developing global mobile payment solutions, which Nokia invested in earlier this year. The service is based on Obopay's mobile payment platform, with unique and newly developed mobile elements. Nokia intends the service to be open and interoperable with other payment services as well.
"Obopay shares Nokia's vision for bringing mobile financial services to millions of people worldwide. We're excited that Nokia has chosen Obopay's platform. Nokia's leading market position, strong brand recognition and global distribution channel, using the Obopay platform with uniquely developed mobile elements, means the Nokia Money service is well positioned to bring the next generation of mobile payment services to the world," said Carol Realini, Founder and CEO of Obopay.
Nokia Money is the result of a powerful collaboration Nokia is forging between different partners in different markets around the world. It is designed to work in partnership with mobile network operators and financial institutions, involving distributors and merchants in a dynamic ecosystem to seamlessly provide the new services.
"As a result of the innovative partnerships and comprehensive ecosystem we are forging with the banking and financial industry, as well as leading network operators, we believe Nokia Money will bring financial inclusion to many who currently have limited or no access to financial services. Uniting the strengths of the mobile and financial services industries will change the way people around the world can manage their money in the future", added McDowell.
"Mobile financial services present a high growth sector for Nokia. Nokia's asset strengths, including consumer brand awareness, distribution capabilities and global relationships should serve as logical and necessary extensions to drive innovation in the mobile payments and banking sector. To be successful Nokia must provide a legitimate bridge between operators, banks networks and security infrastructure in order to unlock the broad uptake of mobile financial services," said Bob Egan, Global Head of Research and Chief Analyst, Towergroup.
The Nokia Money service will be shown for the first time at Nokia World on the 2nd and 3rd of September 2009 in Stuttgart, Germany, and it is planned to be rolled out gradually to selected markets, beginning in early 2010. ###
- Eric -
Spinning Nokia 5800 XpressMusic Touch UI Smartphone Variants ...
The new Nokia 5230 Symbian/S60 smartphone strips some 5800 XM features (like WiFi) and substitutes a lower end camera but prices it at €149 ($212) before subsidies.
Nice price! They should move many.
There will be 3 versions of the Nokia 5230 Worldphone Smartphone with Touch UI
1) WCDMA/HSDPA¹ 2100/900, GSM/EDGE² 850/900/1800/1900
2) WCDMA/HSDPA¹ 1900/850, GSM/EDGE² 850/900/1800/1900
3) WCDMA/HSDPA¹ 2100/850, GSM/EDGE² 850/900/1800/1900
¹ HSDPA 3,6 Mbps
² GPRS/EDGE class B, Multi Slot Class 32 (5 Rx+3 Tx, Max Sum 6), max speed UL/DL = 177/296kbps
The 5230 Datasheet is here ...
http://tinyurl.com/nr2gkj
>> Nokia 5230 Rocks the Crowds around the World with a Touch Of Color
Nokia Pres Release
New Delhi, India and Espoo, Finland
August 25, 2009
http://www.nokia.com/press/press-releases/showpressrelease?newsid=1336925
The latest addition in the Nokia touch phone portfolio, the Nokia 5230, is designed for those who lead an active life and use their mobile phone as their primary instrument for music, photos and videos, as well as sharing their lives online. With the Nokia 5230, consumers can get new content, be it songs from the Nokia Music Store or apps, games, videos and other services from the Ovi Store, directly from their phones. The solutions offering is complemented by A-GPS navigation and the latest version of Ovi Maps with aerial images, 3D landmarks for over 200 cities and terrain map views for pedestrian and drive navigation.
"Competitively priced at 149 EUR, we believe the Nokia 5230 is an unbeatable offer for many new customers who aspire a device that stars in music, mingles with social networks from Facebook to MySpace, navigates you to where it happens, when it happens, and comes in an array of dazzling colors, " said Jo Harlow, Vice President, Nokia.
Visiting the Ovi Store from the Nokia 5230 is a breeze. Ovi Store is conveniently accessible from the home screen of the phone and customers can immediately begin downloading and personalizing their phones with popular apps and games to make their phone more fun. New apps, games, videos, and more are added regularly and Ovi Store can be enjoyed on more than 75 Nokia devices and has active users from more than 180 countries.
The Nokia 5230 features an easy to use music player with 33 hours of playback time. In select markets the Nokia 5230 will include Comes With Music service offering truly unbeatable value with all you can eat music. The recommended price of the Nokia 5230 with the Comes With Music service will be 259 EUR before subsidies and taxes. For a mighty music experience, any headphones with a 3.5mm AV connector can be used. In addition, the Nokia 5230 features a Media Bar with quick access to your favorite media and applications, such as music, photos, YouTube or Ovi Share.
The innovative Contacts bar features thumbnail images for up to 20 close friends and provides easy access to them and their communications history including emails, phone calls, photos or other social media updates.
The Nokia 5230 is expected to begin shipping in the fourth quarter of 2009. ###
- Eric -
The Market for Mini-Laptop and Other Netbook MIDS
mlkr,
<< What is the logic while labtop producers in advanced countries giving up and passing the task to periphery. >>
I'm not sure that "laptop producers in advanced countries" are giving up. All are eying the market for netbooks up to what Nokia calls the mini-laptop which is really the high end of the nerbook MID range.
<< Is it in PC realm or close to apple mac? any formidable challenge to apple? >>
Really below the Apple Mac range. Apple is looking for a piece of the Mobile Internet Device (MID) action with their RAT (the Rumored Apple internet Tablet).
It's a natural extension of the smartphone market for Nokia Samsung, Apple, others. but particularly for Nokia because network operators are the real primary target, and in many countries outside of North America, Nokia has a stronger brand and more established distribution to the target market than Dell, Apple, Lenovo, Samsung, ASUS, Toshiba, etc., and as As Simon Avery of the Globe and Mail put it ...
"PC makers such as Acer Inc., Dell Inc. and Hewlett-Packard Co. have been selling netbook computers for about 18 months. But none of the manufacturers can match Nokia's sales reach through wireless phone companies around the world, who will likely subsidize the devices the same way they discount Nokia handsets to their customers with phone plans."
Jack Gold, of Gold Associates commented thus ...
"Nokia is not trying to move into the extremely competitive market for PCs in general, even though it describes the Booklet 3G as a mini-laptop. What it is doing is moving to protect its key markets. We expect Nokia to be a force in the wireless device market across all platforms and not just smart phones."
- Eric -
Press Comments on Nokia's 3G Booklet Mini-Laptop MID
PC World Commented ...
http://tinyurl.com/lvqw5x
>> ... <snip> .... Nokia could tackle the increasingly popular netbook market by taking advantage of its history as a communications company. Whereas many manufacturers simply take the basic PC experience and make it portable, Nokia could attempt to integrate cell phone and laptop usage habits into one integrated device, thereby enhancing the user experience while on the move.
The integration of Nokia's Ovi services within the Booklet is just one interesting step that the firm has taken in order to differentiate itself from other netbook providers, while also boosting Ovi's profile. The benefits gained from having Ovi built into this new device are plentiful, from cloud storage, synched contacts, mail, media and more. Another smart move by Finnish firm is the Booklet's integrated 3G capabilities, which will allow users to be connected pretty much anywhere, anytime, without a WiFi network.
These various additions on a whole could create a harmonious united link between your cell and netbook, that no other device has been able to offer before. ... snip> ...
... What's interesting is that Nokia choose to announce the new Booklet now, only days before Apple is expected to hold a media event where it may reveal its much discussed rumored tablet. By adding in 3G connectivity it can be assumed that Nokia is racing to seriously compete in the mobile computing market which is about to get all the more interesting, as Apple and Google turn up the heat.... <snip rest> ###
Olga Kharif added in BusinessWeek ...
http://tinyurl.com/n57h7o
>> ... <snip> .... Many netbooks are sold through traditional Nokia customers, carriers, and, thus, represent a natural extension of the company’s business. In Europe, wireless service providers account for more than 25% of all netbooks sold, according to consultant IDC. The carriers typically sell the small, cheap notebooks bundled together with Web connectivity services. Carrier subsidies on netbooks are roughly similar to those for smartphones, which is why, for Nokia, entering this market makes perfect sense. Nokia is entering a market that offers fairly good margins.
That netbooks would offer good margins may seem counterintuitive. After all, traditional PC industry’s margins are razor thin. But consider: In its latest, second quarter, Nokia’s devices and services business’s margins hovered around 4.3%. [Edit: actually they were 12.2%, low by Nokia standsrds but high amongst tier 1 handset manufacturers in Q2] PC maker Hewlett-Packard’s operating margins in personal systems, which encompass PCs and notebooks, reached 4.6% in the quarter ended July 31. So, in actuality, Nokia’s and H-P’s financial metrics are not that different. Meanwhile, netbook margins should be fatter. Here’s one reason: Nokia’s Booklet comes bundled with Nokia’s Ovi services, which will, in the long run, allow Nokia to make additional revenues on mobile e-commerce and extra features. ... <snip rest> ###
ZDNet UK commented ...
http://tinyurl.com/nn59l2
>> ... <snip> .... With so many technologies at its disposal and a long history of making its own rules, Nokia could easily have produced something very different — an ARM processor running one of a variety of Linux options, or an interface mutated from a smartphone. ... <snip> ... None of the above happened. The specification of the Booklet 3G is conservative and ideal for corporate use: solid connectivity, a reasonably sized screen, exceptional battery life, metal casing and Windows make it an attractive proposition. Moreover, it is easy for wireless network operators to bundle and sell, especially on the back of the Windows 7 publicity tiger. In a market where innovation is often an excuse for lack of discipline, this buttoned-down approach is cool and correct. ... <snip> .... If Nokia can produce online services that seamlessly merge the netbook and the corporate network, including getting the carriers to offer properly managed and sensibly costed business options, it will be solving real problems for real people. And that, far more than questions of operating systems and interfaces, is the recipe for capturing, growing and owning a market. ###
Ars Technica comments on the Atom Processor ...
http://tinyurl.com/ljhd3a
>> ... <snip> .... There are no detailed tech specs available for the Booklet yet, and Nokia's official introduction won't come until Nokia World bows in Stuttgart on September 2. But the timing of the announcement and the touted 12 hours of battery life lead us to believe that the Booklet is going to be one of the first Pine Trail netbooks to ship. Pine Trail is Intel's new netbook platform, offering a more tightly integrated version of the popular Atom CPU that puts the memory controller, GPU, and CPU together on the same die. That means just two chips in the Pine Trail platform (instead of three), resulting in lower power draw and manufacturing costs. Pine Trail products aren't supposed to ship until late this year, meaning that Nokia's Booklet may not be available until sometime around the holidays. ... <snip rest> ###
More on Pine Trail here ...
http://tinyurl.com/ryts2h
- Eric -
The First Official Photo of the Maemo 5 Based Nokia N900 (RX-51)
... (supposedly) with the sliding QWERTY keyboard pushed in.
http://tinyurl.com/ml479k
- Eric -
Nokia's Wintel 'Booklet 3G' ...
... Mini-Laptop, a full size Intel Atom powered 3G enabled Netbook running Windows with Ovi connectivity, will formally be announced at Nokia World 2009 in Stutgart on September 2, ading depth to the recently announced strategic relationships with Microsoft and Intel.
>> Nokia Booklet 3G brings all day mobility to the PC world
Nokia Press Release
Espoo, Finland
August 24, 2009
http://www.nokia.com/press/press-releases/showpressrelease?newsid=1336683
After more than 25 years as a pioneer and leader in the mobile industry, Nokia will bring its rich mobility heritage and knowledge to the PC world with the new, Windows based, Nokia Booklet 3G.
Powered by the efficient Intel Atom processor, the Nokia Booklet 3G delivers impressive performance with up to 12 hours of battery life, enabling people to leave their power cable behind and still be connected and productive. Delivering the rich experience of a full-function PC inside an ultra-portable aluminum chassis, the new mini-laptop weighs 1.25 kilograms, measures slightly more than two centimeters thin, and has the features one would expect from the world's leading mobile device manufacturer. A broad range of connectivity options - including 3G/ HSPA and Wi-Fi - gives consumers high speed access to the Internet, including Nokia's broad suite of Ovi services, and allows them to make the most of every moment and every opportunity.
"A growing number of people want the computing power of a PC with the full benefits of mobility," said Kai Oistamo, Nokia's Executive Vice President for Devices. "We are in the business of connecting people and the Nokia Booklet 3G is a natural evolution for us. Nokia has a long and rich heritage in mobility and with the outstanding battery life, premium design and all day, always on connectivity, we will create something quite compelling. In doing so we will make the personal computer more social, more helpful and more personal."
The mini-laptop also comes with an HDMI port for HD video out, a front facing camera for video calling, integrated Bluetooth and an easily accessible SD card reader. Other premium features include the 10-inch glass HD ready display and integrated A-GPS which, working with the Ovi Maps gadget, can pinpoint your position in seconds and open up access for a truly personal maps experience. The Nokia Booklet 3G also brings a number of other rich Ovi experiences to life, whether its access and playback of millions of tracks through the Nokia Music Store, or using Ovi Suite to sync seamlessly from your Nokia smartphone, to your mini-laptop, to the cloud.
The Nokia Booklet 3G will widen the Nokia portfolio, satisfying a need in the operator channel, and bringing another important ingredient in the move towards becoming a mobile solutions company.
Further information, including detailed specifications, market availability and pricing, will be announced at Nokia World on September 2. For more information on Nokia World, visit: http://events.nokia.com/nokiaworld/home.htm ###
--> Photos of the Nokia 3G Booklet are here ...
http://tinyurl.com/ldvzam
--> A Nokia 3G Booklet video is here ...
http://europe.nokia.com/find-products/mini-laptop
Key Hardware Information
* Intel Atom Chipset (Z530 running at 1.6 Ghz). No fan, for near silent running.
* 120 GB hard disk
* 12 hour battery life
* 19.9 mm thick x 264 mm width x 185 mm depth
* 10.1 inch glass HD ready display
* Front facing video camera mounted, on top of the screen, for video calling
* Integrated A-GPS
* Stereo speakers mounted on the front right and left corners
* 1 HDMI port (for HD video out), 1 integarted SD card reader, 3 x USB ports, 1 audio port
* 3G/HSDPA and WiFi connectivity, plus integrated Bluetooth for local wireless communication
Key Software Information
* Tight integration with Ovi Services including Ovi Suite for syncing seamlessly to other Nokia devices and the cloud.
* Ovi Maps gadget, which can pinpoint your position within seconds, and 'opens up access for a truly personal maps experience'.
* Takes less than 60 seconds to boot up from cold.
* Runs Windows as its operating system. [Windows 7?]
AAS oomments ...
We'll hear what version of Windows next week, at Nokia World. However given the inclusion of a Ovi Maps 'gadget; it seems reasonable to assume it will be Windows Vista or above. Given the timing and premium features it is not unreasonable to assume this will be a Windows 7 device. Update: The video seems to confirm Windows 7 as the OS, although there is no official word on this. Why Windows? Windows is the 'logical choice and is the market leader'.
http://tinyurl.com/mg7fg7
- Eric -
The Nokia 5800 Navigation Edition Bundle
>> Nokia 5800 Navigation Edition - Bundle Value
Rafe Blandford
All About Symbian
August 21st 2009
http://www.allaboutsymbian.com/news/item/10348_Nokia_5800_Navigation_Edition-.php
Nokia today unveiled the 'Nokia 5800 Navigation Edition'. The device ships with lifetime voice-guided drive and walk navigation licenses for Nokia's Ovi Maps software and service. Included in the box is a Nokia self-mount car kit, consisting of a Nokia Car Charger (DC-4), Car Holder Pack (CR-103), Rotating swivel adaptor (AD-69) and Easy Mount (HH-17). The 5800 Navigation Edition will start shipping in Q3 and is expected to cost €285 before taxes and subsidies. Read on for further details.
The phone itself is a standard Nokia 5800 XpressMusic, which has been one of Nokia's best sellers since its release 9 months ago. The 5800 Navigation Edition is cosmetically different; it replaces the black plastic bevel around the upper outside of the phone with a silver plastic bevel, giving the 5800 Navigation Edition a unique look.
In our original 5800 review we noted that:
"The wide screen is similar, in size, to that used by some PND (Personal Navigation Device) units and, together with the touch i nput, effectively matches the hardware experience. The extra size (compared to most previous S60 phones) means that it is easier to see directions and touch interfaces are generally easier to use when driving. In the same vein, the 5800's loud stereo speakers make it easy to hear turn by turn directions."
Clearly others have noticed these attributes; bundles, such as the Nokia 5800 Navigation Edition, are usually driven by market demand. This offering may be popular with operators and independent phone sellers who are looking to add products which expand beyond the usual phone area. In one sense, you can see the Navigation Edition as the equivalent of the 5800 Comes with Music Edition (£299), except this version is for frequent travellers or those who get lost easily. 'Comes with Maps' anyone?
Since we wrote the original review, Ovi Maps 3 has been released, which includes a number of additions such as high-resolution aerial images, topographic map view, 3D landmarks, weather forecasts, premium travel services (traffic information and safety warnings) and an improved point of information database. The UI was also significantly updated, making touch interaction easier and improving the usage experience whilst in navigation mode.
With the 5800 Navigation Edition, the features we highlighted are combined with navigation licenses and accessories to create a compelling car navigation bundle. The emphasis here is on value; the bundle offers significant saving over purchasing a separate personal navigation device (in addition to a phone).
There's also a significant saving over the individual cost of the items in the bundle. The total cost of the bundle has, approximately, a £50 premium over the standard 5800. However the accessory bundle is worth around £45 (although, shopping around, you should be able to find it cheaper) and the navigation licenses are worth around £80 (depending on region and assuming 2 years of usage). Effectively, you are buying the accessories and getting a free lifetime (of the device) license for Nokia's Ovi Maps service. ###
There's a video at the link above.
- Eric -
Handset Installment Purchases in Rural India & Nokia's India Market View & Positioning
>> Nokia: to Make Handsets More Affordable in India
R. Jai Krishna
Dow Jones (New Delhi)
The Wall Street Journal
August 19, 2009
http://online.wsj.com/article/BT-CO-20090819-708322.html
Nokia Corp. (NOK) said Wednesday it is looking to make handsets more accessible and affordable in India, the world's fastest growing and second-largest telecommunications market.
Nokia's Indian unit plans to sell handsets in some rural areas under a scheme that allows the purchasers to pay in installments, the Finnish company's chief executive and president, Olli-Pekka Kallasvuo, told reporters.
Nokia, the world's largest maker of cellphones by volume, has gained popularity in emerging markets with its more affordable low-cost phones, but in recent years has been strengthening its high-end portfolio as profit margins have taken a hit.
In July, the company cut its forecast for profit margins and market share, raising concerns its number one position in the global handset market might be under threat.
However, the company sees growth opportunities in India - a market that is adding about 10 million users a month - particularly in the country's rural areas.
"There is a lot of opportunity here (in India) and we need to make mobility more accessible to all people, including those in rural areas, which is the next frontier to be conquered," Kallasvuo said.
The company has more than half the share of India's mobile handset market, according to analysts.
Nokia said it plans to roll out the installment scheme to sell its handsets in 12 Indian states after a pilot program covering more than 2,500 villages in the southern states of Andhra Pradesh and Karnataka.
Under the pilot program, a microfinance organization bought handsets from Nokia and sold them to women in rural areas by charging them INR100 for up to 25 weeks.
Nokia expects about 500 million mobile phone users in India by 2010, up from 427 million now, Kallasvuo said.
"We believe that much of this growth will take place in non-urban markets and rural penetration in India is still very low at 13%," Nokia India said in a statement Wednesday.
Apart from low-cost handsets, the market for smartphones is also rapidly growing around the world, including in India, Kallasvuo said.
"India is perceived to be a low-end market, but it is not the case. For instance, our new N-series phones and N97 and N86 are selling nicely in India," he said. "For the next generation of mobile communications, India will be critical for us in terms of innovation, manufacturing and development of new services."
Nokia has a manufacturing facility in the southern Indian city of Chennai where it has invested $250 million since its launch in 2006. The facility exports half its production to more than 59 countries, Kallasvuo said. ###
>> Nokia Sees Sales Growth in India Despite Drought
Devidutta Tripathy
Reuters (New Delhi)
August 19, 2009
http://tinyurl.com/lb8sgv
Nokia (NOK1V.HE), the world's top cellphone maker, does not expect a drought to hit its sales in India, its second-biggest market, and will expand a rural micro-finance offer for buying handsets.
Chief Executive Olli-Pekka Kallasvuo said sales of Nokia's high-end smartphones were also growing in India, the world's second-largest mobile market with around 430 million users and where nearly 60 percent of mobiles are Nokia phones.
Nokia is betting on markets such as India, where more than 10 million mobile connections are being added every month, at a time when global cellphone sales are falling as recession-hit consumers in emerging and developed markets rein in spending.
Poor monsoon rains have pushed India to the brink of drought, which could crimp consumer incomes and spending particularly in rural areas where much of the industry's growth is coming from.
Nokia executives however saw little impact on sales, saying people could use phones more as they cut spending on travel.
"We don't think the market will slow down for mobility in rural India," D. Sivakumar, managing director of Nokia's Indian unit said.
Nokia recently piloted a scheme in two states where it sold handsets on a weekly installment of 100 rupees ($2) over 25 weeks. On Wednesday, the company said it would rollout the microfinance offer in 12 Indian states.
Kallasvuo said India would remain one of Nokia's top growth markets, as 81 percent of the country's mobile users were in urban areas and they were driving demand for high-end phones.
"India is very often perceived to be a low-end market. That is not the case," he said, adding Nokia's high-end phone models such as N97 and N86 were selling nicely in the country.
In May, Nokia opened its online software and content store, named Ovi Store, hoping to follow the success of Apple Inc's (AAPL.O) App Store, and Kallasvuo said users India were among the top five in terms of downloads from the online store. ($1=48.7 rupees). ###
- Eric -
First look at Nokia RX-51 (Rover) also known as Nokia N900 ....
http://www.mobile-review.com/review/nokia-rx51-n900-en.shtml
Moscow's Eldar Murtazin (with Anna Rychkova translating) does his thing and publishes his initial thoughts on Nokia's Maemo 5 (Freemantle) Linux OS and the 1st Cortex A-8 device powered by it. Lots of screen shots and device photos.
Eldar starts off with this sentence ...
Please note - This article is nothing but our first impressions of the device and some musings about what's going to happen.
[I'm not sure his musings relative to Nokia's parallel OS positioning for smartphones and MIDS are totally on target ... but the next 18 months will tell that story and we mah get some initial clarity at Nokia World]
He closes with this paragraph ...
I thought it wouldn't make much sense to go through all features of the phone just yet - I'm not lazy, I just have to leave some bread for Nokia's announcement guys! So, come back after the official release for more - we'll talk more about all feats and tricks the N900 has got under its hood. But what I can say for now is that it's the true mobile powerhouse in every sense of this word, that comes wrapped in a very eye-candy and functional UI at that. It won't become a hit, but at the same time the N900 is a milestone both for Nokia and the industry that won't just go unnoticed. The phone is supposed to hit the shelves late in 2009 and will go for 550 Euro (the price, however is subject to change).
- Eric -
Risk Takers ...
Mick,
<< if you don't invest on might or coulda's then you are not a risk taker. >>
I'm 65 and retired in reasonable comfort that suits the modest life style my wife and I richly enjoy. As an investor I'm more risk averse than I was 5 years ago, and decidedly more than I was 10 years ago. To each his own.
<< How about doing us the favor of showing how many 3G phones beginning in 2006 through the present our friend Nokia has sold and how many they are projected to sell from 2010 through 2012. >>
For now, and until I have other meaningful 3rd party estimates to post, I'd suggest you use TC's relatively conservative numbers. Feel free to massage them to your hearts content, but they are a good starting point for such an exercise.
<< I think the totals will be huge, what do you think? >>
I think they'll be quite substantial. Likely as or better than what TC and HL is intelligently and conservatively estimating, and they will of course eventually license InterDigital's portfolio of 3G (and possibly 4G) patents. Rate, terms, and term, do of course, remain a question mark, and whether they will originate that license next week, next month, or next year, does as well. I have no opinion on any of those question marks.
Our good friend Clarkie seems focused on 3G smartphones, an arena dominated by Nokia, and one they are unlikely to relinquish soon. Right now, however, what I consider to be the most impressive single 3GSM HSPA mass market mobile device in their product range is an attractively priced S40 feature phone with a Carl Zeis 5 Mp snapper with glass optics and its an evolution of a conservatively styled svelte 2.5G EDGE model that sold a whopping 47 million units in its life cycle. It's ahead of the curve in terms of being capable of taking advantage of the 900 MHz GSM spectrum refarming that's about to commence taking place in Europe and elsewhere and presumably it will have an 850 MHz (1900/2100 MHz) variant shortly, but it's just the 1st of a family that already has two lower priced 2.5G variants.
Cheers,
- Eric -
"Doodley Squat" ...
Yo Clarkie,
<< Nokias smartphone market share might could go down to "doodley squat" >>
LOL! Please let me know when it does. I'd certainly hate to be caught napping.
Given the competition that now exists in the rapidly growing arena they pioneered and that all major OEMs are now crowding into, it's practically sinful that almost 1 of 2 smartphones shipping today are Nokia's and more than 1 of 2 use the Symbian OS that they are now migrating to open source. Makes many a Nokiaphobe wanna puke, I'm sure. Probably makes Steve Ballmer wanna heave and he may have already. I'm sure many an IDTologue is praying for such an unlikely "might could" outcome as they partake of their increasingly potent daily libations, joining many of my fellow Qualcommers in that endeavor.
Cheers,
- Eric -
Essentiality. Infringement, and "Doodley Squat" ...
Mick,
<< Let me ask this just because the judge seen fit to declare 27 as not essential doesn't mean a thing about infringement >>
It doesn't (in the referenced case) "mean a thing about infringement" but the judge (Lord Pumfrey) did not declare 27 as not essential. He ruled on 4 that made it to trial after the rest were withdrawn and/or IDT chose not to defend. You may wish to review the facts and circumstances of the matter.
<< Nokia could still have to utilize 20 of these 27 patents although they are not essential, but Nokia hadn't established a workaround of these 20 patents hence Nokia would owe on all the patents they used. >>
Theoretically a workaround can be engineered for a nonessential patent but they don't need to engineer a work around or use an alternative method or apparatus of their own or another's unless they feel that they could possibly be infringing a valid and enforceable patent not covered by license or cross license.
<< The fact that 1 is declared partially essential means that apparently Nokia has to be partially using it >>
It does no such thing. It involves a lower limb option which Nokia can elect to use or not use.
<< The bottom line essentiality is a formal word which may not mean doodley squat in regards to infringement, and means you might could work around this patent but if you don't then the patent must be paid for to use it, am I correct? >>
Hopefully you don't invest on too many might coulds.
Cheers,
- Eric -
Standards Compliance and the BIG IF ....
wESQ,
Standards Compliance
<< If Nokia contends that the devices are standard compliant, and the IDCC patents are essential for the standard, how can they not practice the patents in their devices? Isn't that what essentiality to a standard means? >>
Nokia not only contends that their commercially offered 2G mobile stations (MS) or their 3G user equipment (UE) are 3GPP standards compliant (at its various levels), their devices are certified by the appropriate authorized certification bodies to be so. Earlier comments on that here ...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40550449
... and most network operators apply their own rigorous conformance interoperability testing on their own network before offering a particular model of MS/UE for sale and distribution in its own direct or indirect channels. In the US conformance testing on Verizon and AT&T Mobility following the PTCRB and FCC certification and approval proceses is especially rigorous, and 3G vendor UE must conform not only to the standard but the operators unique network specific custom requirements unrelated to transmission technologies standardized in 3GPP or 3GPP2. At the end of the day the acid test of whether or not an OEMs MS/UE complies with the standards specifications and/or operator specific requirements is whether or not it works as it is supposed to work on an operators network or that of its roaming partners.
The Big IF
<< If ... the IDCC patents are essential for the standard. >>
The only entity that has declared that (the vast majority of) InterDigital's (declared) essential patents are. or potentially are essential to implementation of specifications for 3G access and connectivity within the 3GPP mobile wireless standards or options (lower limbs) is InterDigital IDT itself.
Such a selfdeclaration of potential essentiality does not make them essential. That requires a legally sanctioned independent certification panel (e.g. that which The W-CDMA Patent Licensing Programme offers to those that join and who agree to offer those patents that are certified as essential under license and under their terms and rates) or a legal authority such as the Chancery Division (Patents) of the High Court of Justice of England and Wales (EWHC), that made InterDigital the poster child for the overdeclaration of essential patents to an SSO.
As Dr. Joel West of San Jose State wrote in his SD Telecoms blog ...
InterDigital declared to ETSI that various patents were essential for implementing the W-CDMA standard, but as with all ETSI declarations this self-determined essentiality was not independently verified. ... In this case, Nokia sued to have 29 InterDigital patents declared not-essential to W-CDMA. Nokia had previously won in English courts in an earlier case involving InterDigital’s GSM patents. ... Of the 29 “essential” patents, Nokia dropped its challenge to one patent, InterDigital conceded that 21 were not essential, did not defend three more, leaving four patents contested at trial. The judge, Sir Nicholas Pumfrey, ultimately ruled that only one patent was partially essential. When the ruling by Sir Nicholas Pumfrey was released Dec. 21, 2007, InterDigital spun the ruling as a victory, but clearly InterDigital ended up telling the world (including current and potential licensees) that 27 of 28 patents patents declared essential to W-CDMA actually aren’t.
Or as Myles Jelf and Michael Stevenson, Partner and Associate, respectively, at Bristows, London wrote in the Journal of Intellectual Property Law & Practice 2008 (V3 #7) in re Lord Pumfrey's landmark decision(s) that Joel referenced in his own article ...
As many observers have suspected would be the case, it appears a lot easier to self-declare a patent as essential than it is to have that view endorsed by the Court. ... With the growing importance of internationally agreed standards in the electronics and telecom fields, the issue of whether or not patents said to cover the standardized technology actually do is of increasing commercial significance. The UK Court's willingness to grapple with the question of essentiality in a robust and pragmatic way could be of great utility to those seeking to licence or be licensed for standardized technologies. The recent Nokia v Interdigital case addresses whether the UK Court has a role to play in deciding whether patents declared to be essential to an international standard actually are essential. The decision indicates that the UK Court regards declarations of essentiality (or inessentiality) as commercially useful, and therefore a legitimate use of Court resources and powers.
Links to the 2 quoted paragraphs above (and to Sir Pumfrey's final determination) are here ...
http://sdtelecom.blogspot.com/2008/06/british-standards-for-essential-patents.html
Lots more in my archives, but this one from William Cook of London's Simmons & Simmons published before Sir Pumfrey's final determination is handy ...
http://www.ipeg.com/_UPLOAD%20BLOG/Cook_Standards_FRAND%20or%20FOE_article.pdf
Thanks for your numerous contributions to this board. You are certainly one of the reasons I tune in.
Best,
- Eric -
Ruled (nondeclared) Essentiality of Patents and Infringement Rulings at the ITC ...
Gator JD,
<< Rev: I missed the part of the ruling which stated that the patents aren't essential. >>
They didn't rule such. They haven't ever ruled on the essentiality of ETSI (3GPP) patents granted in the US and declared by an SSO's member to be essential to the 3GPP GERAN or 3G mobile wireless standards (or to other standards).
A decision that a patent has not been infringed might legitimately seem similar to a decision that a patent is not essential to an element of an individual specification within the 3GPP standard, or an optional ('if/then' lower limb) implementation within the specification, but it is NOT the same. A declaration of essentiality or inessentiality is a different form of declaratory relief than a traditional finding of infringement or noninfringement.
Forget the news media (and PR puffery) ...
... because there have been a dozen or so extremely well written articles on the subject, making or discussing aspects of that distinction and its rationale, in law journals and subscription IP mags when the appellate court upheld Sir Pumfrey's landmark April 2006 decision in Nokia v InterDigital 9 months later. The appellate courts decision overruling InterDigital's appeal challenging the High Court of England and Wales (Patents) ability to grant such non-traditional declaratory relief is an extremely interesting read itself for any practitioner or anyone interested in the general subject of IP law.
Neither validity or infringement were at issue in the matters decided by Sir Pumfrey in his original decision or the one decided shortly before his untimely death which made 27 declared essential UTRA FDD WCDMA 3G patents go poof, and in which he made clear that the decision applied in England, Ireland, and Wales (not elsewhere) although fully aware of the prestige his court had achieved in its field he was cognizant of the fact that the same formulas and logic might be applied elsewhere, and most likely expected it would be.
BTW: My admittedly fuzzy recall is that 2 of the 4 patents at issue before the ITC in InterDigital v. Nokia had been declared as essential to 3GPP via ETSI but two had not, at least at the time InterDigital initially brought the action against Nokia. Someone here might want to comment on that and refresh my recollection.
Cheers,
- Eric -
Declarations of Essentiality ...
Rev,
<< I do not believe IDCC is now obligated to offer FRAND rates for these valid "essential" patents that were judged not to be essential. >>
Until such time as InterDigital withdraws their declaration of essentiality for those patents in ETSI -- something Qualcomm did with at least a portion of about a dozen of the CDMA patents that they tardily declared to also be essential to the GSM (3GPP GERAN) standards and asserted against Broadcom and Nokia before subsequently withdrawing them -- they are obligated to offer those patents in compliance with the FRAND provisions of their SDO's IPR Policy.
Cheers,
- Eric -
Inferior Technologies ...
Loop,
<< I find it particularly hard to believe that the IDCC technology was accepted and placed into the standards by the chairman of the committee, a Nok employee, and suddenly they use an inferior technology today. >>
With all due respect and I have ample for your many contributions to this board ...
... the chairmen of any 3GPP WG do not accept technology contributions and place them into standards. That's a function of the body of the applicable working group.
Declarations of essentiality and contributions or portions of contributions that find their way into the standards are two different things. SDO's themselves do not have a mechanism for, or authority to rule on the essentiality of any patent declared as 'essential' to their development organization.
Irrespective of whether they have accompanying contributions accepted, some companies make those declarations with a rifle, and some with a shotgun. The process, unsuccessfully fought tooth and nail by a duck hunter well known to be a duck hunter, and the ultimate decision in the High Court of England and Wales exemplifies the massive overdeclaration issue that faces the industry by a company that uses a shotgun -- although every declarer overdeclares to some degree and for justifiable reasons (and not just 'he does it so I'm gonna do it'). One patent (and a 2nd under certain circumstances) survived the 30 odd that were challenged in the landmark UK case.
<< ... they use an inferior technology today. >>
It appears to me that you may possibly be misleading yourself, or that you have been misled by a "college professor."
Nokia does not use "inferior technology, -- covered by essential or non-essential patents of their own or others -- and in the mobile device arena as technology progresses they do not launch handsets until the attendant technology is fully in standard and properly matured, rigorously tested, and either certified or ready for certification.
<< They [nokia] advertise that the phones are standards compliant. >>
They certainly do and with ample justification to do so. Their mobile phones are virtually all certified by the Global Certification Forum (GCF) and regional variants by other applicable certification bodies, type approval agencies, or regulatory bodies -- the PTCRB Type Certification Review Board, Federal Communications Commission (FCC) etc..
The GCF provides a certification program that ensures compliance with the technological standards. Although GCF certification is voluntary, manufacturers who sell their products to major European network operators are required to have this certification. In addition to conformance testing, GCF certification requires testing of the mobile stations in 5 GCF qualified networks (as Field Trials). The 1st 3G WCDMA handset certified by GCF was the WRDGE Nokia 6630 Symbian smartphone which was the top selling 3G handset on the globe in 2005.
GSM and W-CDMA mobile stations supporting North American frequency bands require PTCRB (PTCRB Type Certification Review Board) Certification in order to be accepted by the North American network operators. PTCRB certification ensures a device is compliant with the appropriate technological standards, regulatory requirements (FCC and/or IC) and certain operator requirements (e.g. Over-the-Air RF performance).
<< The way the expert college professor testified, Nok purportedly uses the equivalent of an old dial up system operating on burst signals as opposed to the equivalent to a top line DSL system of ramped up signals created by IDCC. >>
Interesting analogy. "Purportedly" may be the operative word. Did you buy that puffery and take it to the bank? While it might make one feel good I certainly wouldn't necessarily, any more than I'd accept similar or conflicting testimony from a Nokia expert. I'm simply not qualified to do so. Few if any that post here are, and none of us have information as complete as what a juror would be exposed to in an IPR jury trial.
<< This may explain why the Nok phones have trouble. >>
What Nokia 3GSM UMTS (WCDMA/HSDPA/HSUPA) mobile devices have "trouble" and specifically what "trouble" do they have?
I follow the mobile wireless industry reasonably closely. and I am totally unaware of any specific or general interoperability problems with any commercially available Nokia 3GSM 3GPP GERAN and/or 3G compliant R'99/R'4/R'5/R'6 handset, or at least none that weren't immediately rectified with a firmware update which is always possible and particularly with a regional variance ... e.g., when Nokia released the FCC certified Nokia 5800 NAM Xpress Music (their 1st Touch UI HEDGE phone) without carrier support, unlocked and unsubsidized in the USA in late February -- they had an initial AT&T connectivity 3G issue in some AT&T Mobility markets, and they immediately withdrew the phone from sale. A week later they announced a firmware tweak and resumed sales by mid-March. It's a top notch performer in both RF and voice quality and has sold over 7 million copies to date on the global stage. The AT&T qualified 3G HEDGE phones they sell directly are also top performers in RF connectivity. I don't own one (and I am a Verizon subscriber using a 1xEV-DO ODM to OEM Nokia with excellent RF) but I've had hands on with several (and the 5800) in a stationary and a mobile environment.
Nokia is the largest producer of 3GSM UMTS (HEDGE/WEDGE) devices in the world, with the broadest distribution, and they offer the broadest range of those (GCF certified) devices of any OEM.
They are also the 2nd largest supplier of GSM and 3GSM network gear. As a consequence the 1st 2 logical stops in any 3G baseband and/or RF wireless IC suppliers qualification process after their own in house testing, are Ericsson's and Nokia's IOT conformance labs, before proceeding on to carriers test beds for precommercial field testing.
My condolences to all that were hoping for a different preliminary decision from Judge Luckern. Luck to all going forward.
Cheers,
- Eric -
Carpenter's Numbers ...
Hi Data,
<< Eric - can you post your spreadsheet of Nokia device sales from 2006 through current - with a breakdown of 2G and 3G (WCDMA &CDMA2000)? >>
While I'm working on several sets of abstracted spreads, I don't really have anything that would be useful other than guesstimates to breakout Nokia's 3G sales for the last few years, and I'm handicapped by the fact that my primary PC and its external backup drive is "in the shop" and I've pressed an old Dell Dimension into service.
<< Also - Carpenter has some 3G projections for Nokia going forward through 2014 - do you give a basic nod to his projections? >>
It's a set of data points. I'd say his numbers are in the general ball park through end of this year. Beyond that I'd say that his Nokia and possibly Samsung numbers are a bit conservative for upcoming years, but at this point his estimates are as valid as my estimates. In general, it's a reasonable set of numbers. Useful in a general sense.
I do have a set of numbers from Barclays with Gartner inputs (but without technology access mix) historical and out through 2013 that I hope to abstract and post shortly. What's interesting is they break out smartphones from total phones, and add netbooks (but not all MIDS) and Notebooks. For lack of a better set I'm using it as my own baseline numbers for the time being. It does relate to a discussion here a week or two back where some rather exotic numbers for devices were bandied about.
Best,
- Eric -
Grand Inventions ...
Loop,
<< Mot, Ericy (SNE) and Nok >>
In mobile wireless industry jargon that's still MEN.
MENS added Siemens. MENSA added Alcatel.
M of course is the company that originally licensed the other 4 (and Phillips) in 1991 for the 30 odd patents that they claimed to be essential to the GSM standard 3 years before ETSI incorporated an IPR policy based on FRAND, creating the telecoms patent thicket that exists till this day. Their licensees had adhered to the operators MoU and by 'gentleman's agreement' had not patented their own contributions to the standard.
No Sony. No Sony Ericsson. No Samsung. Those are InterDigital Board inventions.
Cheers,
- Eric -
MENS ...
<< Slacker last time I checked MENS includes Sony Ericsson >>
Last time I checked it included Siemens. Not Samsung, Not Sony Ericsson.
- Eric -
Gartner Reports Global Nobile Device & Smartphone Sell Thruogh for Q2 2009
[I'll abstract Sell Through v. Sell-In and spread both smartphone and all mobile devices sales and share for the last 6 quarters and historically in a future post or two]
I. Global Mobile Terminal Sell Through Sales to End Users in 2Q 2009 (Gartner)
2Q'09 2Q'09 ¦ 2Q'08 2Q'08
Company Unit Sales Share ¦ Unit Sales Share
=========== ===== ¦ =========== =====
Nokia 105,413,300 36.8% ¦ 120,353,300 39.5%
Samsung 55,430,200 19.3% ¦ 46,376,000 15.2%
LG 30,497,000 10.7% ¦ 26,698,900 8.8%
Motorola 15,947,800 5.6% ¦ 30,371,800 10.0%
SEricsson 13,574,200 4.7% ¦ 22,951,700 7.5%
Others 65,260,002 23.0% ¦ 57,970,600 19.0%
----------- ------ ¦ ----------- ------
Total 286,122,700 100.0% ¦ 304,722,300 100.0%
·
Note: This table includes iDEN shipments but excludes ODM-to-OEM shipments
Source: Gartner (August 2009)
2Q'09 2Q'09 ¦ 2Q'08 2Q'08
Company Unit Sales Share ¦ Unit Sales Share
========== ===== ¦ ========== =====
Nokia 18,441,000 45.0% ¦ 15,297,900 47.4%
RIM 7,678,900 18.7% ¦ 5,594,200 17.3%
Apple 5,434,700 13.3% ¦ 892,500 2.8%
HTC 2,471,000 6.0% ¦ 1,330,800 4.1%
Fujitsu 1,249,000 3.0% ¦ 1,071,500 3.3%
Others 5,688,200 13.9% ¦ 8,085,800 25.1%
---------- ------ ¦ ---------- ------
Total 40,962,800 100.0% ¦ 32,272,700 100.0%
·
Note: For HTC, Gartner counts only the company's own-branded devices,
including the G1. Totals may not add to 100.0 percent due to rounding
Source: Gartner (August 2009)
More Comments on Nokia and Microsoft Mobile Enterprise Collaboration
>> Microsoft Mobile Office Needed Nokia, Symbian
Larry Dignan, Sam Diaz, Andrew Nusca
ZDNet
August 12th, 2009
http://blogs.zdnet.com/BTL/?p=22623
If you’re in the U.S. you can hardly restrain the yawns about the Nokia-Microsoft pact to bring Office Mobile to Symbian phones. Zoom out globally and the Microsoft-Nokia partnership is an important beachhead for the software giant. Under an agreement, Nokia and Microsoft will begin collaborating to bring Microsoft Office Mobile and communications, collaboration and device management software to Nokia’s Symbian phones. From a U.S. perspective, the deal is meaningless—you’ll be hard pressed to find Nokia phones — especially smartphones. Internationally, however, Microsoft’s partnership with Nokia could be a big deal. If Microsoft wants global Mobile Office adoption the company has to run on more than just Windows Mobile. Gartner’s just released smartphone market share standings tell the tale:
>> Microsoft and Nokia bringing Office to Symbian Next Year
Microsoft and Nokia have agreed to bring Office Communicator Mobile, Office Mobile, SharePoint Server, System Center to Symbian.
Emil Protalinski
ARS Technica
August 12, 2009
The world's largest software maker and the world's largest smartphone manufacturer are going to join forces in an attempt to bring some desktop productivity applications to the mobile space. As expected, and despite their long-standing competition, Microsoft and Nokia have agreed to an alliance that will bring Microsoft Office and related software on the Symbian mobile operating system.
Up until today's announcement, native versions of mobile Office have been limited to Windows Mobile, making this is the first time that Microsoft is developing Office software for another company's platform for handheld devices. Microsoft Business Division President Stephen Elop and Nokia's Executive Vice President for Devices Kai Öistämö made the announcement via a teleconference call in which they emphasized that both companies are still looking into more ways to collaborate.
Nokia is already providing access to e-mail and other personal information using Microsoft Exchange ActiveSync. Today's agreement, however, means that next year, the following Microsoft solutions will start to appear on the Nokia E-series:
* Microsoft Office Communicator Mobile: Enterprise instant messaging and presence designed for conferencing and collaboration
* Microsoft Office Mobile: the ability to view, edit, create and share Office documents with mobile versions of Word, PowerPoint, Excel, and OneNote
* Microsoft SharePoint Server: Mobile access to intranet and extranet portals
* Microsoft System Center: Enterprise device management.
The two companies emphasized that these solutions will eventually be brought to other Symbian devices. Nokia intends to start by shipping Office Communicator Mobile on its smartphones first, but exact timing has not been disclosed. The two companies have agreed to market these products to pretty much everyone: businesses, carriers, and individuals.
Nokia holds about 45 percent of the mobile market, which will make this a very significant move for Microsoft in terms of pushing its Office products into the mobile space. Elop emphasized during the call that Microsoft is still deeply committed to Windows Mobile and Nokia is equally committed to Symbian. The latter is easy to believe, but the former is a bit harder: this partnership means Windows Mobile lost one of its biggest advantages: Office exclusivity. Nokia again denied that it would release a Windows Mobile device, meaning that Microsoft remains shut out by the world's top handset maker.
Nokia and Microsoft have been rivals for years in cellphone operating systems, and it appears they will continue to be, despite today's agreement. When asked if Nokia is making this move so as better to compete with Apple in North America, Öistämö replied that it's much bigger than that. He ended by saying, "if any company should be worried about this, it should be RIM."
When asked about whether Nokia devices had the muscle to run Office Mobile, Öistämö said he wasn't worried.
By the time this deal comes to fruition, it's possible that any mobile device with a web browser will be able to handle some Office functionality. With Office 2010, Microsoft is also planning to release Office Web Applications (browser versions of Word, PowerPoint, Excel, and OneNote) but that release is completely separate from today's deal for Office Mobile. The Office Web Applications will support Internet Explorer 7, Internet Explorer 8, Firefox 3.5 on Windows, Mac, and Linux, as well as Safari 4 on Mac. Testers will get access to the Office Web Apps in August and the final versions will arrive in the first half of 2010, when the whole Office 2010 suite is expected to arrive.
Microsoft has not specified whether mobile browsers will be able to run the Office Web Applications, but even if they could, native mobile software will undoubtedly be more powerful (just like the client version of Microsoft Office should be superior to the Office Web Applications).
It's quite possible that mobile browsers simply can't yet deliver what Office requires. For example, we already know that Silverlight will be used to improve the experience of at least two Office web apps, and a mobile version of Silverlight hasn't even arrived in beta form.
This isn't the first time the two companies have made agreements in regards to Microsoft technologies. In August 2007, Nokia agreed to offer Windows Live on a handful of its mobile phones. In March 2008, Microsoft and Nokia agreed to port Silverlight to mobile phones running the Symbian operating system, though nothing has come of this to date. This high level announcement, however, suggests that an actual product will emerge from this deal. ###
>> Microsoft and Nokia Form Enterprise Alliance
Steve Litchfield
All Anout Symbian
August 12th 2009
http://tinyurl.com/layfxe
Microsoft and Nokia have entered into an alliance that is "set to deliver a groundbreaking, enterprise-grade solution for mobile productivity". They will begin collaborating immediately on the design, development and marketing of productivity solutions, bringing Microsoft Office Mobile and Microsoft business communications software to Nokia’s Symbian OS smartphones, starting with the business-focussed Eseries. The two companies will jointly market these solutions to businesses, carriers and individuals.
The high profile part of the announcement sees an agreement for Microsoft to bring 'Microsoft Office Mobile and Microsoft business communications' to Nokia phones. The Microsoft Office portion will include read and edit versions of Word, Excel, Powerpoint and OneNote. Microsoft's Stephen Olop noted that was a very significant announcement, 'it is the first time Microsoft will develop Office solution for another smartphone platform'. Currently the Office solution on Nokia phone is provided by Quickoffice, it is currently unclear how the new alliance will affect Nokia's licensing agreements with Quickoffice.
The alliance also includes collaboration on back-end software. For example, the ability to work collaboratively via Microsoft's Sharepoint solution was discussed. Nokia phones will also be integrated into Microsoft System Center, which helps companies manage their IT infrastructure. This includes the ability to deploy and remotely manage Nokia devices as part of an end to end enterprise solution. Both companies expect the collaboration to extend and broaden into other areas over time.
However, long term, the most significant part of the alliance may be the level of future co-operation and collaboration between the two companies. Both Nokia and Microsoft emphasised that this is a long term partnership and that they are most excited about the products that are yet to be created. The two companies intend to work together to create the next generation of communication and productivity tools. A key focus area will be unified communications. The alliance is 'way beyond documents and email... it is about creating new user experiences and new ground breaking soutions' according to Microsoft's Stephen Olop. Kai Öistämö said, 'what we have shared today is not the full extent of the alliance... this is about much more than just putting Microsoft software on Nokia phones. We are here to address the significant opportunity in the enterprise market and will be collaborating on the enterprise tools of tomorrow'.
The first fruits of the alliance will be a version of Office Mobile Communicator, which will ship of a Nokia Eseries device next year. Microsoft refers to Office Mobile Communicator as a unified communications application. It allows users to see the status of their contacts and choose the most appropriate communication channel be it instant messaging, voice, video or email. It uses various Microsoft technology including a corporate version of Live Messenger and accesses other Microsoft enterprise solutions (Exchange calendar) to obtain status information (e.g. in a meeting). Following on from this will be mobile versions of the Microsoft Office Suite: Word, Excel, Powerpoint and OneNote.
Initially the focus will be on Nokia's Eseries portfolio of products, but the solutions will be rolled out to other Symbian phones in Nokia's portfolio in due course. Kai Öistämö, when asked about availability on Maemo, indicated that the companies were looking to 'deliver the results on the Symbian, as it is the leading smartphone platform'. But he did note that 'we might find other business opportunities'. At this point both Microsoft and Nokia are likely to want to focus on the scale that Symbian can provide. ###
- Eric -
CNET Live (Transcript): Microsoft, Nokia Ink Mobile Office Deal ...
From Ina Fried (CNet)
Microsoft and Nokia--still significant rivals in the cell phone business--said on Wednesday that they are deepening their work together. As first reported by CNET News on Tuesday, the partnership means that a mobile version of Office will show up on Nokia cell phones. In the past, the only phones with mobile versions of Office have been those running Microsoft's Windows Mobile operating system. The two companies said they will start to work immediately to bring Office Mobile as well as Microsoft's communications and device management software to Nokia's Symbian devices. Although they hope to eventually get the software running on a range of devices, the partnership will start with Nokia's business-oriented E-series of phones. Nokia and Microsoft are both trying to improve their mobile position amid greater competition from the likes of Apple and Google. Executives from both companies are about to discuss the deal on a conference call which will be covered live here.
Update 8:11 a.m. PT: "Work is already under way," Microsoft's Stephen Elop said, adding that the companies expect a mobile version of Microsoft's Communicator product will be available for Symbian next year.
8:12 a.m: "We're only starting to scratch the surface," said Nokia Devices executive vice president Kai Oistamo. "This is much more than putting Microsoft Office on Nokia smartphones. Also working on bringing access to SharePoint access and other of Microsoft's tools. Nokia is also renewing its license to Microsoft's ActiveSync technology as part of the deal.
8:15 a.m: Of course Nokia and Microsoft do compete in some areas and we will continue to do so, elop said. Microsoft is committed to Windows Mobile Elop said, while Oistamo said that Nokia remains committed to Symbian (despite some recent reports to the contrary). We both believe strongly in our respective strategies but we also believe in this partnership, Elop said. "One size does not fit all," he added.
8:18 a.m: On to Q and A. First question is about Apple, naturally.
Oistamo said that the deal is not really about the iPhone. "This is really about creating a formidable challenge for RIM rather than anyone else," Oistamo said.
8:23 a.m: The version of Microsoft Office and other Microsoft software for Symbian will be tailored to those that make sense on their phones, Elop said. Oistamo said that the Microsoft software shouldn't require more expensive hardware than Nokia was already planning on bringing to market.
8:26 a.m: Will Nokia make Windows Mobile phones? "There are no such plans," Oistamo said.
8:29 a.m: Not sure if its just me or everyone on the phone call. But my line just went silent.
8:30 a.m: Back now. Not very impressive to have a conference call drop from two leaders in telephony. ... "Should have been using a Nokia cell phone," Elop recovered nicely.
8:32 a.m: Questioner asks why this shouldn't be seen as a sign Windows Mobile won't dominate the smartphone market. "There will continue to be competition around Windows Mobile," Elop said. "By no means is it an acknowledgment of what you described."
8:34 a.m: Elop clarifies that this deal relates to full mobile versions of Office--not Microsoft's browser-based Web applications.
Call ends.###
- Eric -
Comments on the Nokia Microsoft Symbian Enterprise Smartphone Alliance
>> Nokia and Microsoft Partnership Delivers Innovation and Symbian Delight
Mike at Nokia Conversations
New York, USA
12 August 2009
http://tinyurl.com/pc88sc
Co-creation is one of those topics that never fails to ignite sparks of enthusiasm here in the Conversations camp. So today’s news that Nokia has partnered with Microsoft to closely collaborate in the creation of innovative software services for Symbian devices marks an exciting evolutionary step for pocket productivity apps.
This pioneering partnership has been kindled to soon equip Nokia’s Symbian devices with smarter and more advanced features for working on the move. Heaps of Nokia smartphones are primed to benefit over time, with Eseries on the frontline leading the charge and set to showcase the first breed of business services and apps.
Dedicated teams from inside Nokia and Microsoft are now working together to bring this new era of mobile productivity to life on Symbian handsets. This isn’t just conceptual stuff, as both companies are closely collaborating to ensure the software and services are fully co-created, from the design and development of their creations to the marketing to ensure the best possible product ends up proudly in our palms.
Microsoft Office Mobile and its stablemates (including Word, Excel, Powerpoint, Communicator and OneNote), will be among the first to appear on Nokia’s Symbian smartphones, equipping you with the ability to easily edit and collaborate on Office docs from anywhere around the world.
This collaboration will nurture innovation in future Symbian devices too, as Nokia’s Vice President for Devices, Kai Oistamo, explains:
“Together with Microsoft, we will develop new and innovative user experiences for employees of small and large businesses alike, ensuring Nokia’s smartphones are an integral part of the office and home-office environment, and addressing the significant opportunity in mobile enterprise productivity.”
Microsoft’s Business Division President, Stephen Elop, echoed this saying:
“With more than 200 million smartphone customers globally, Nokia is the world’s largest smartphone manufacturer and a natural partner for us. Today’s announcement will enable us to expand Microsoft Office Mobile to Nokia smartphone owners worldwide and allow them to collaborate on Office documents from anywhere, as part of our strategy to provide the best productivity experience across the PC, phone and browser.” ###
>> Microsoft and Nokia to bring Office Mobile, Communicator to Symbian Phones
Mary Jo Foley
ZDNet
August 12th, 2009
http://blogs.zdnet.com/microsoft/?p=3714
Microsoft and Nokia are working together to port Microsoft Office Mobile, Communicator Mobile and other Microsoft services to select Nokia phones running the Symbian operating system, the pair announced on August 12.
Nokia is planning to offer to its Nokia E Series phone users a version of Office Mobile; a version of Office Communicator Mobile (Microsoft’s corporate instant messaging service for mobile devices), System Center device management service and other Microsoft collaboration services.
The E Series are just the first phones to which Nokia plans to bring the Microsoft services; it will expand availability across its portfolio to other Nokia Symbian phones over time.
Microsoft’s Office Mobile and Office Communicator products currently run only on Windows Mobile phones. Nokia is not planning to offer any Windows Mobile devices, Nokia’s Executive Vice President for Devices Kai Öistämö said during a call with press and analysts on Wednesday. The pair did not share a timetable as to when the Symbian ports of these products would be done or any development details regarding how they will be ported from Windows Mobile to Symbian.
Microsoft and Nokia already have distribution deals around Windows Live Services, Silverlight and Exchange ActiveSync for Nokia phones.
The next version of Office Mobile for Windows Mobile is in development. Microsoft still has yet to deliver a widescale test build of it, but it is expected to be finalized in 2010.
Microsoft also has been working on another version of Office called Office Web Apps, which will allow users to view and annotate Word, Excel, PowerPoint and OneNote documents via Internet Explorer, Apple’s Safari, and Firefox. The Microsoft-Nokia deal announced today has nothing to do with this Web-based version of Office, which also is due in 2010. ###
- Eric -
The Nokia & Microsoft Enterprise Symbian Smartphone Alliance
"The two companies will begin collaborating immediately on the design, development and marketing of productivity solutions for the mobile professional, bringing Microsoft Office Mobile and Microsoft business communications, collaboration and device management software to Nokia’s Symbian devices."
>> Microsoft and Nokia Form Global Alliance to Design, Develop and Market Mobile Productivity Solutions
Companies will collaborate to bring Microsoft Office Mobile and related communications and collaboration software and services to Nokia smartphones.
Microsoft and Nokia News Press Release
New York
August 12, 2009
http://www.microsoft.com/presspass/press/2009/aug09/08-12pixipr.mspx
http://investors.nokia.com/phoenix.zhtml?c=107224&p=irol-newsArticle&ID=1320068&highlight=
The worldwide leader in software and the world’s largest smartphone manufacturer have entered into an alliance that is set to deliver a groundbreaking, enterprise-grade solution for mobile productivity. Today, Microsoft Business Division President Stephen Elop and Nokia’s Executive Vice President for Devices Kai Öistämö announced the agreement, outlining a shared vision for the future of mobile productivity. This is the first time that either company has embarked on an alliance of this scope and nature.
Under the terms of the agreement, the two companies will begin collaborating immediately on the design, development and marketing of productivity solutions for the mobile professional, bringing Microsoft Office Mobile and Microsoft business communications, collaboration and device management software to Nokia’s Symbian devices. These solutions will be available for a broad range of Nokia smartphones starting with the company’s business-optimized range, Nokia Eseries. The two companies will also market these solutions to businesses, carriers and individuals.
Both Microsoft Corp. and Nokia possess a rare combination of enterprise experience and consumer understanding and, in addition to the collaboration on existing software and services, will use these assets to jointly design a range of new user experiences for future Nokia devices. These experiences will be identified together, and will be created by dedicated teams inside both companies to better meet the growing needs of the mobile professional.
“With more than 200 million smartphone customers globally, Nokia is the world’s largest smartphone manufacturer and a natural partner for us,” said Elop. “Today’s announcement will enable us to expand Microsoft Office Mobile to Nokia smartphone owners worldwide and allow them to collaborate on Office documents from anywhere, as part of our strategy to provide the best productivity experience across the PC, phone and browser.”
“If you are going to provide a seamless and integrated productivity experience on a mobile device, Microsoft is an ideal partner,” said Öistämö. “Together with Microsoft, we will develop new and innovative user experiences for employees of small and large businesses alike, ensuring Nokia’s smartphones are an integral part of the office and home-office environment, and addressing the significant opportunity in mobile enterprise productivity.”
This announcement builds on the existing work Nokia is doing by optimizing access to e-mail and other personal information with Exchange ActiveSync. Next year, Nokia intends to start shipping Microsoft Office Communicator Mobile on its smartphones, followed by other Office applications and related software and services in the future. These will include:
• The ability to view, edit, create and share Office documents on more devices in more places with mobile-optimized versions of Microsoft Word, Microsoft PowerPoint, Microsoft Excel and Microsoft OneNote
• Enterprise instant messaging and presence, and optimized conferencing and collaboration experience with Microsoft Office Communicator Mobile
• Mobile access to intranet and extranet portals built on Microsoft SharePoint Server
• Enterprise device management with Microsoft System Center
“Having these two major players cooperating at this level will help us continue to meet our customers’ needs and reinforces our future business mobility strategy,” said Diane Sanchez, head of Telefonica USA.
“The scope of the alliance between Microsoft and Nokia, and potential value for the enterprise and individual is significant,” said Stephen Drake, VP of Mobility & Telecom at IDC. “By bringing Microsoft’s productivity solutions to Nokia’s large customer base, the two companies should be better able to serve the needs of the growing mobile worker population, which IDC estimates to reach 1 billion worldwide in 2011.”
Additional press materials and photos can be found at:
http://www.microsoft.com/presspass and http://www.nokia.com/press/ ###
- Eric -
The Qualcomm & Nokia Settlement
Rev,
<< I believe they settled on the "steps" of the district court house. >>
They settled on the steps of Delaware Court of Chancery not US District Court in Delaware (or mote precisely across the street in Hotel DuPont's Green Room), and they settled before actual proceedings began before Chancellor Leo Strine.
Cheers,
- Eric from the 1st State -
Nokia on Ericsson's Winning Bid for Nortel CDMA & LTE Wireless Assets
Nortel confirmed early Saturday that Swedish telecom equipment giant Ericsson successfully outbid Europe's Nokia Siemens Networks and a U.S. private equity firm for the unit. Ericsson's winning bid was $1.13 billion, nearly double what Nokia Siemens initially offered for the division.
>> Nokia Siemens Networks remains committed to long term wireless leadership and growing its business in North America
Nokia PR
July 25, 2009
http://www.nokia.com/press/press-releases/showpressrelease?newsid=1330886
Following the outcome of the auction for the CDMA and Long Term Evolution (LTE) assets of Nortel, Nokia Siemens Networks remains focused on maintaining its leadership in the global wireless infrastructure industry and sustaining its recent momentum in the North American market,
"Our final offer for Nortel's assets represented a fair price, and we did not enter this process with a win-at-any-cost mindset," said Bosco Novak, Chief Markets Operations Officer, Nokia Siemens Networks. "Ours was an opportunistic bid aimed at supporting the great progress we've made in North America in the past 18 months, and we are very confident that momentum will continue to grow."
Nokia Siemens Networks has transformed its North American business under the leadership of region head Sue Spradley. The company announced on July 20, 2009 it had won a contract with the new Canadian mobile operator Globalive Wireless for the roll-out of a 3G network in Canada. This marked the fourth such agreement in just over a year following deals with Bell Canada, TELUS and Videotron in 2008.
Momentum also continues to build in the U.S. where Nokia Siemens Networks has a leading position in long-haul optical networks and is building its business with both cable and wireless operators as illustrated by recent key deals for IMS technology with Time Warner and with Verizon Wireless to support the roll-out of LTE.
Nokia Siemens Networks is well positioned to transition its leadership in 3G into long-term success in LTE throughout the network from the core IMS system it is building for Verizon Wireless to the Radio Access technology it is supplying with partner Panasonic to NTT DoCoMo in Japan. Nokia Siemens Networks has enjoyed recent wins in both Asia and Europe for LTE and is working on other prospects with customers across the globe.
"With our powerful R&D capacity, strong portfolio and Services capabilities and global scale and reach, Nokia Siemens Networks is positioned for long term success as one of the winners in a wireless industry that is rapidly consolidating around three vendors," said Mika Vehvilainen, Chief Operating Officer of Nokia Siemens Networks. "Our LTE platform is winning a growing number of customers across the world and we are well positioned to deliver the benefits of next generation wireless technology to customers in North America and elsewhere."
About Nokia
Nokia is a pioneer in mobile telecommunications and the world's leading maker of mobile devices. Today, we are connecting people in new and different ways - fusing advanced mobile technology with personalized services to enable people to stay close to what matters to them. We also provide comprehensive digital map information through NAVTEQ; and equipment, solutions and services for communications networks through Nokia Siemens Networks.
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of telecommunications services. With its focus on innovation and sustainability, the company provides a complete portfolio of mobile, fixed and converged network technology, as well as professional services including consultancy and systems integration, deployment, maintenance and managed services. It is one of the largest telecommunications hardware, software and professional services companies in the world. Operating in 150 countries, its headquarters are in Espoo, Finland. http://www.nokiasiemensnetworks.com ###
- Eric -
Nokia and the Koreans Lifting Boats: (Share Numbers, Smartphones, and the Weak Won)
For lack of another number it looks like ABI Research is using the same denominator that I am in calculating OEMs Share: i.e. Nokia's estimated 269 million units global sales.
>> Nokia, LG, Samsung Help Boost Handset Industry, Report Says
Michelle Maisto
2009-07-24
http://tinyurl.com/m8b9ul
ABI Research reports that 269 million handsets shipped in the second quarter of 2009, which “bodes well” for the second half the year. Nokia, LG and Samsung all showed market share growth, while Sony-Ericsson, Motorola and RIM saw contractions. ... <snip> ...
... The figure bodes well for the second half of 2009, according to Jake Saunders, ABI Research’s vice president of forecasting. “Shipments should build sequentially in a constructive manner with [the fourth quarter of 2009] potentially returning the industry to better sales form,” said Saunders in a statement.
Nokia exceeded expectations for the quarter, reporting smartphone sales of 16.9 million units for the second quarter, compared to 13.7 million units in the first quarter of 2009. Its market share rose to 38.3 percent, which ABI describes in the statement as a “remarkable swing in fortunes.” Samsung, which boosted its market share by 1.45 percent to a total of 19.4 percent, and LG, which grew 2.2 percentage points to 11.1 percent, both carried out refreshes of their smartphone lines and performed “particularly well,” according to ABI.
[Edit: LG really didn't have much of any smartphone presence to refresh. They have been into rouch screen feature phones -IC -]
“It is well documented that smartphones are proving to be one of the main engines of growth, but they are not just benefiting the Tier 1 players,” said Kevin Burden, ABI practice director, in the statement. “A number of Tier 3 vendors are also making headway in a competitive market, including Apple and HTC but also vendors such as Huawei and ZTE. While a consolidation is widely expected in the industry, it will not be happening in 2009.”
Pressures to consolidate, said ABI, are coming from a tighter integration between hardware, operating system and applications development. The average selling price for smartphones is higher than the overall average, and research and development price tags, explained ABI, “can only go up.”
ABI reported that it is revising its forecast 2009 contraction from negative 8.1 percent, or 1.11 billion, to negative 7.5 percent. ###
The Weak Won ...
Moon Ihlwan, Seoul bureau chief at BusinessWeek commented on the Weak Won Tailwind ..
Help from a Weak Won: The high-end focus and aggressive marketing paid off, enabling Samsung to increase the amount of profit it makes per TV. ... <snip> ... Samsung is aided by the weak Korean won, which has lost about a quarter of its value against the dollar in the past 18 months. By contrast, Japanese rivals' competitiveness is suffering due to the strength of the yen.
While SA may not have numbers out yet Moon added ...
http://tinyurl.com/naf885
Samsung's mobile-phone business, which generated $800 million in earnings, is another bright spot. The world's second-largest handset vendor after Nokia (NOK), Samsung sold 52.3 million phones in the second quarter, an increase of 14% from the previous quarter. That was enough to give Samsung a global market share in mobile phones of 20%, compared with 16.7% in 2008 and 11.3% in 2006, according to market researcher Strategy Analytics. Remarkably, Samsung executives are confident the company will keep snatching market share, with troubled rivals such as Motorola (MOT) and Sony Ericsson the likely losers. Kim Hyong Do, vice-president at Samsung's telecom unit, expects his company to achieve its target of selling more than 200 million handsets this year, even though for the overall industry Strategy Analytics forecasts a 10% drop from last year's 1.2 billion phones. "With the scheduled launch of [new] flagship models such as Jet, Galaxy, and Omnia II in the second half of this year, we expect a steady market share growth," says Kim.
- Eric -
Ericsson, ST-Ericsson (Chips), and Sony Ericssson (Handsets)
<< Ericsson reported: eric any reaction to ericsson news >>
About what I expected. Infra is tough right now and the Sony Ericsson results reported last week were awful (their report directly below) ...
http://www.ericsson.com/ericsson/press/releases/20090716-1329118.shtml
>> Sony Ericsson Posts Fourth Consecutive Quarterly Loss
Company specializes in mid-range mobile handsets such as its Walkman Cybershot line of feature phones.
By Marin Perez
InformationWeek
July 16, 2009 11:50 AM
http://tinyurl.com/noc6v9
Sony (NYSE: SNE) Ericsson continues to struggle, and its decreased shipments and sales led to a loss of about $300 million for the second quarter.
The company specializes in mid-range devices such as its Walkman or Cybershot line of feature phones, and this segment has been especially hard hit by the mobile industry's decline. The company shipped 13.8 million units for the period, which was down 43% from the same quarter last year.
The cell phone maker did improve its operating margins in part due to a massive restructuring effort that is predicted to save about $522 million in costs. Like Nokia (NYSE: NOK), Sony Ericsson sees the mobile market declining by about 10% in 2009 due to the global economic recession.
"As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson," said the company's president Dick Komiyama in a statement. "Our focus remains on bringing the company back to profitability and growth as quickly as possible, and our performance is starting to improve due to our cost reduction activities."
During its conference call Thursday, the company said it would likely need a capital injection in the second half of the year. Sony Ericsson said financing should not be an issue, and this could come from its parent companies Sony and Ericsson, or from outside sources.
The company introduced three high-end phones during the quarter, but these devices aren't scheduled to be released until the fourth quarter. The Satio, Yari, and Aino do represent the direction the company is taking its handsets, as each phone has strong multimedia capabilities and one even has deep integration with Sony's PlayStation 3. ###
ST-Ericsson results here ...
http://www.ericsson.com/ericsson/press/releases/20090723-1330457.shtml
Ericsson Results here ...
http://www.ericsson.com/ericsson/press/releases/20090724-1330715.shtml
###
- Eric -
The Koreans Check In: Samsung & LGE Results (Handsets)
• Samsung Slides here (Corrected URL):
http://tiny.cc/fhqnt
• LG Slides here:
http://www.lge.com/ir/news_ir/download/PRER|MENU_23185.jhtml
Both companies had very good quarters. Forex is very much in play. They have both been riding a tailwind because of the relatively weak Won. Both's guidance and the analysis of the Asian analysts that follow them, comment on the possibility of a strengthening of the Won against the Euro and USD which could alter their competetive advantage and change teir fortune somewhat.
Using Nokia's estimate of global sell-in temporarily and until Motorola reports, sales and share look like this ...
Q2'09
Units Share
======= =======
Nokia 103.2m 38.5%
Samsung 52.3m 19.5%
LG 29.8m 11.1%
Sony Ericsson 13.8m 5.1%
Other 68.9m 25.7%
====== ======
268.0m 100.0%
He Giveth and He Taketh Away
QCOM closed Friday at $47.40 and crabed around and up into earnings, closing Wednesday up $1.05 WTD at $48.45.
QCOM retraced below last Friday's close today, then bounced back to close at $47.40 (down -$1.05 -2.17%) ... well above its 52 week low of $28.16.
Ho Hum!
No blood in the Street. Call it a draw.
The earnings report met my expectations given sector conditions.
- Eric -
Nokia and TI
<< Texas Instruments exiting an area where it is provider for NOKIA? >>
Over time. Even though Nokia's baseband and OMAP apps processor business (integrated or unintegrated) is declining as a percentage of TI's total sales and will decline further over time, a large chunk of TI's business comes from Nokia who continues to diversify its silicon IC sources of supply.
TXN's wireless business, at $601M or around 24% of [CQ2]total sales, increased +9% QoQ, with revenue growth primarily driven by strength in connectivity products for smartphones with revenue from OMAP applications processors and basebands Looking ahead, we expect to see some modest seasonal improvement in revenue in the June quarter. We model TXN's wireless revenue approximately +7% higher QoQ as customers have largely worked through excess inventory. Longer term, we expect wireless baseband sales (approximately 68% of total wireless sales) may continue to decline through 2012 as TXN reduces investments in this arena. Management continues to see opportunities with and its OMAP applications processors and connectivity solutions longer term, however, and continues to invest in these areas. - Barclays -
- Eric -
The Smartphone Sales & Share Game ...
... with the 3 smartphone market leaders reported, and only Nokia yet providing and estimate of total global smartphone sell-in.
Q2 2009 & 12 Month Smartphone Unit Sell-In and Share (Preliminary Cut)
Units CQ3'08 CQ4'08 CQ1'09 CQ2'09 ¦ 12 Months %
======= ======= ======= ======= ¦ ========= =====
1. Nokia¹ 15.50m 15.10m 13.7m 16.9m ¦ 61.20m 36.2%
2. RIM² 6.05m 6.70m 7.8m 7.8m ¦ 28.35m 16.8%
3. Apple² 6.89m 4.36m 3.8m 5.2m ¦ 20.25m 12.0%
Others 15.77m 21.84m 10.7m 11.1m ¦ 59.41m 35.1%
------ ------- ------ ------- ¦ ------ ------
Total³ 44.20m 48.00m 36.0m 41.0m ¦ 169.20m 100.0%
==================================================================
Share CQ3'08 CQ4'08 CQ1'09 CQ2'09 ¦ 12 Months %
======= ======= ======= ======= ¦ ========= =====
1. Nokia 35.1% 31.5% 38.1% 41.2% ¦ 61.20m 36.2%
2. RIM 13.7% 14.0% 21.7% 19.0% ¦ 28.35m 16.8%
3. Apple 15.9% 9.1% 10.5% 12.7% ¦ 20.25m 12.0%
Others 35.7% 45.5% 29.7% 27.1% ¦ 59.41m 35.1%
------- ------- ------ ------- ¦ ------ ------
100.0% 100.0% 100.0% 100.0% ¦ 169.20m 100.0%
·
¹ Source: Nokia's volumes from Nokia's quarterly earning statements.
² Source: RIM's and Apple's volumes from their quarterly statements.
³ Source: Nokia's estimate of Q2 Global sell-in.
Note: Canalys and other 3rd parties have not yet provided
estimates of smartphone sell-in for Q2.
A RIM/Nortel Update from DJ
>> Nortel Says RIM Didn't Express Interest Until July 15
Stuart Weinberg
Dow Jones (Toronto)
July 21, 2009, 2:13 P.M. ET
http://tinyurl.com/lrlzao
Shares of Research In Motion Ltd. (RIMM) are down slightly Tuesday as investors try to make sense of RIM's interest in Nortel Networks Corp.'s (NRTLQ) wireless-infrastructure business.
Analysts said RIM is likely interested in adding Nortel's intellectual property, its Ottawa facility and engineers. The business would also bring RIM attractive deferred tax assets, Scotia Capital's Gus Papageorgiou said in a note. At the end of March, Nortel's overall deferred tax assets were about $6.2 billion, most of them in Canada, he said.
Papageorgiou said he believes a large portion of Nortel's 2,500 wireless-division employees are radio engineers, and they would be attractive to RIM.
UBS Investment's Philip Huang wondered why RIM would want to enter the wireless infrastructure sector, which is outside its area of expertise and a lower-margin business than the smartphone business.
One institutional investor who holds a large RIM stake said he believes RIM is interested primarily in Nortel's LTE (Long-Term Evolution) patent portfolio. He said he believes RIM may sell the network-equipment business if its bid is successful and use the acquired patents to deter infringement lawsuits by rival handset vendors.
RIM is already embroiled in a patent dispute with one-time industry titan Motorola Inc. (MOT), and its emergence in the smartphone industry could make it a target of rivals like Sony Ericsson, or Nokia Corp. (NOK), the investor said.
Last week, RIM agreed to pay closely held Visto Corp. $267.5 million to settle its long-running patent dispute with the wireless-email-software vendor. In the past 18 months, the company has spent about $1.1 billion on the acquisition of intangible assets, primarily patents.
As reported, RIM said late Monday it's being prevented by Nortel from bidding on Nortel's wireless business. Waterloo, Ont.-based RIM, maker of the BlackBerry smartphone, said it's prepared to pay roughly $1.1 billion for Nortel's CDMA and LTE access businesses and certain other Nortel assets. It said Nortel, which is in bankruptcy protection, scuttled RIM's attempt to bid by inserting conditions that it knew were unacceptable to RIM.
In particular, Nortel indicated that, to be considered a qualified bidder, RIM had to promise not to bid on other Nortel assets for one year. In seeking to impose this condition, Nortel knew RIM planned to "purchase other Nortel assets as part of a solution to retain key portions of Nortel's business under Canadian ownership," RIM said Monday. RIM asked the Canadian government to review the situation.
In an emailed statement, Canada's Minister of Industry, Tony Clement, said he's aware of the discussions between Nortel and RIM and is following the situation closely. He said any proposed sale by Nortel must be approved by the judge in charge of bankruptcy proceedings, and that the government of Canada doesn't have a say over how the judge rules. "It would be inappropriate to speculate on any future actions that Nortel may choose to undertake under the Companies' Creditors Arrangements Act (CCAA) process," the email said.
Nortel agreed last month to sell its wireless business to Nokia Siemens Networks for $650 million. Alternative bids are due Tuesday and are part of the bankruptcy court's process to see if the assets can fetch a higher price before the court approves the sale.
Officials from Nokia Siemens weren't immediately available for comment. Nokia Siemens is a joint venture between Nokia and Siemens AG (SI).
In an emailed statement, Nortel said it's disappointed that RIM issued a press release relating to the scheduled auction for Nortel's CDMA and LTE assets. The email said the court established bidding procedures for the auction on June 30 and that RIM didn't object to the approval of these procedures. The auction is scheduled for Friday.
Since then, Nortel has engaged with a number of potential bidders, including RIM, the email said. Other parties moved expeditiously to comply with the court-approved procedures to become qualified bidders, but RIM only submitted a letter on July 15 asking to be a qualified bidder, the email said. Since then, "Nortel has diligently attempted to work with RIM on acceptable confidentiality terms relating to Nortel's intellectual-property assets, but RIM refused to comply with the court-approved procedures," the email said.
The email also said Nortel remains willing to provide RIM with the opportunity to participate in the auction. However, it added that, even without RIM's participation, the company believes that an active auction will result in maximizing the value of Nortel's assets.
The Nokia Siemens transaction includes the sale of substantially all of the CDMA business and LTE access research and development resources. The deal includes some intellectual property rights but excludes a small number of 4G wireless patents. Nortel said Nortel plans to sell those patents separately, the company said.
A RIM spokewsoman said the company had no comment. ###
- Eric -
Misplaced Shock and Awe ...
Mindy,
<< It is shocking that RIM is barred because they are CANADIAN! >.
That's not the reason Mike Z. and regulators are blocking. It's about protection of Canadian (and US) Nortel jobs, and protection from liability. RIM is NOT interested in getting into the base station business, and Mike, his corporate staf, and the regulators have taken that into consideration in determining who should be qualified bidders.
RIM wants and needs Nortel's IPR and that's primarily what they are bidding for.
This is a post I just made to Slacker elsewhere when he intelligently asked "Why would RIM want a network infrastructure group?"
My response ...
Good question. Barclay's conjectured answer is that RIM wants Nortel's IPR not the base station business, and that would account for why the bid RIM is willing to make (if allowed to bid) is higher than Nokia's original stalking horse bid.
Baeclays says:
>> We believe RIM is bidding for NT’s wireless assets for the IPR rather than the core business. ... We believe LTE and possibly GSM IPR are driving RIM’s interest in Nortel’s wireless unit – companies are hardly flocking to the base station market. RIM is willing to pay ~$1.1B, $450M above NSN’s offer, should Nortel include these ‘other’ assets. This price (or less assuming value to NT’s GSM business and tax credits) could be reasonable for a robust LTE IP portfolio. QUALCOMM paid $600M for Flarion. Nevertheless, it implies RIM considers itself exposed to IP challenges.
We believe the primary difference between Nokia’s bid for $650 million and RIM’s apparent willingness to pay $1.1 billion is intellectual property. RIM obviously would not confirm or deny what it had in mind in its release last night specifying the bid for Nortel’s CDMA and LTE businesses and certain ‘other Nortel assets’. Two natural conclusions would be 1) Nortel’s GSM business and 2) the LTE IPR that was not included in the NSN deal. As we would not consider the inclusion of Nortel’s GSM business sufficient to nearly double the purchase price, we conclude that RIM considers the LTE (and possibly GSM IPR) worthy of the incremental $450 million or less. We also believe RIM would gain valuable tax credits. We do not believe that RIM would like to become a player in the base station market. This IPR strategy is consistent with RIM’s recent history. We believe a portion of RIM’s margin struggles in 2008 were driven by royalty requirements. The company has spent aggressively to acquire intellectual property from a range of sources, including Ericsson and most recently, Visto. RIM appears to consider intellectual property an increasingly important element of the mobile industry’s structure. RIM’s relatively brief history in the cellular industry has left it short of intellectual property and we believe relatively poorly represented on industry standards bodies.
QUALCOMM’s CDMA patents have generated $18 billion in revenue in the past ten years. Even assuming that the Nortel LTE IPR would generate a royalty rate closer to 0.5-1.0% rather than 4% plus for QUALCOMM, RIM would be generating a healthy return on its $450 million investment. Or less, assuming the GSM business and tax credits have value. However, RIM’s interest does imply that it believes itself exposed to additional IP challenges which may drain its cash balance. ###
Does that preserve Nortel jobs and Canadian presence in the IT market?
- Eric -
More on Modoff's Comments on Industry Profit Share ...
>> Low-Cost Handset Manufacturers Seen Making Virtually Nothing on Profit
TelecomTiger
21 Jul 2009
http://tinyurl.com/n5n7dz
Leading handset manufacturers who are reasoning to their shareholders that the current year is set to witness a drop in sales and hence reduced net income should do a rethink of their strategy as a new research by Deutsche Bank interestingly reveals that while Apple and BlackBerry account for only 3% of total handset sales recorded in 2008 by the industry, the two notched up as much as 35% share of the total operating profit recorded by the handset industry.
The year 2009 will see the two firms garnering 5% share of total handset sales and as high as 58% share of industry operating profits says, Deutsche Bank analyst, Brian Modoff.
Compare this to the fact that though Motorola has about 10% of the market share, it is only registering loss. Sony Ericsson just about manages to keep its neck above water.
As per the research, the smartphone market constitutes about 13% of the total handset market but is set to grow in near future.
The research highlights that AT&T attracts maximum subsidies at $400 per piece while BlackBerry gets about $200 per unit. Compare this to basic phones which get about $100 per unit in subsidies. Mr. Modoff goes on to say that manufacturers to basic phones make virtually nothing unless they have enormous scale. ###
- Eric -
Nokia's US Risk Stake ...
Hi Bill,
<< Eric: Would an ITC victory forbid imports of all 3G Nokia phones? or just smartphones? or something else? >>
I wouldn't think all smartphones, although in reality, most if not all their small share of US smartphones are 3G (WCDMA WEDGE and/or HEDGE). I don't think InterDigital is alleging any IP infringement relative to characteristics peculiar to a smartphone. It is not clear to me whether or not it would be all their 3GSM UMTS (WCDMA and/or HEDGE) mobile devices, but it could be all, depending on what they are allegedly infringing. There is certainly major risk since their US CDMA share (no smartphones) is even punier than their relatively small (~8%) overall share. Make no mistake about it, Nokia's potential risk is big, given the resources Nokia has devoted to regaining share in the US.
Best,
- Eric -
Nokia Market Share ...
<< another angle from a london based writer; Smaller market share >>
Actually approximately the same as last year was what Nokia stated ...
Nokia expects its mobile device market share in the third quarter 2009 to be approximately at the same level sequentially. Nokia continues to expect 2009 industry mobile device volumes to decline approximately 10% from 2008 levels. Nokia now expects its market share in mobile devices to be approximately flat in 2009, compared with 2008. This is an update to Nokia’s earlier target to increase its market share in mobile devices in 2009.
Nokia might be overly optimistic, but they didn't guide to reduced market share CYoCY, but smaller than they originally guided (i.e. up) which is what Andre Legace essentially stated ...
Nokia also said it no longer expects to gain market share in the second half of the year but for it to remain flat.
... but not clearly, and some interpreted that CY share was guided down on a YoY basis which it wasn't.
Flat's fine with me, and that would be up sequentially from prior quarters and that would also require a very strong Q4. They usually execute exceprionally well in Q4 relative to competition, but they'll neeed execution and a strong product line.
- Eric -
Market Share: Units, Revenue, Value ...
Data,
<< lol - I like Stefan's style! Good article except we (IDCC shareholders) DO care about how many units a company ships, but need to recognize a company's profit picture in the overall scheme of things >>
His article was colorful and entertaining, and he makes an important point in half baked fashion. Brian's 'Handset Industry Profit' slide was good.
It's no wonder Stefan was a short timer at Nokia. <g> Evidently he hasn't seen the Rick Simonson's 'Industry Profit Share' slides presented many times in the past by Nokia at Nokia's Cap Markets Day and elsewhere.
Value Share (as Stefan described it and as Nokia describes it) and Profit Share are not the same, however, and I would think that InterDigital investors should be as interested in device revenue share (ASP x units, which is not value share) as much if not more than unit share. Nokia (and most others) already segregate that ASP so that's an easy calculation. It's more difficult with the iPhone because of Apple's subscriber accounting and their unique proforma number which includes some measure of software upgrades through a products life cycle that Nokia also supplies at no cost, but doesn't kite their ASP as a result so the result is an apple (pun intended) and an orange that are difficult to compare.
Those that listened to Nokia's Q2 Earnings CC and/or read its transcript know that both OPK and Rick placed great emphasis (really for the 1st time ever though the intended transition was announced almost 2 years ago) on Nokia's acceleration of the transition from a a Product company to a Product AND (software and services) Solutions Company, changing there overall focus from scale to scale with value measured by a new set of dynamics and metrics for the solutions mode as opposed to the parallel product mode.
Rick defined solutions as "smartphones and related services" which in Q2 were well above one-third, however less than half of [Nokia's] devices and services net sales" and went on to show a slide showing "additional metrics and definitions [Nokia] will disclose beginning in quarter three and going forward."
He had just stated:
We are refining our financial reporting to better capture and communicate our product mode versus our solutions mode of performance and operation, and we will expand our disclosure financial metrics going forward.
In response to a question from Jeff Kvaal at Barclays he stated ...
Yes Jeff .. In terms of ASPs, I think today if you look at development from Q1 to Q2, we were down about EUR 3 and based on everything we can see, we must be down less than what the market is, because we’ve taken value share and by the way we look at it and we see our smartphone market share go up that smartly if you will from Q1 to Q2.
I'm looking forward to the revised reporting (as is Stefan]. Right now I think RIM's financial statements are the clearest in the industry in that particular respect, and Samsung's and Apple's the muddiest (although Apple's are the most creative and I don't mean that in any positive sense).
Cheers,
- Eric -
Argus's Jim Kelleher (CFA) on Nokia Q2 and Beyond
Much less 'pessimistic' than many]
Highlights of Analysis by Jim Kelleher, CFA, July 16, 2009
Argus Rating: BUY
--> 12 Month Rating: Buy
--> 5 Year Rating: Buy
--> Sector Rating: Overweight
--> Targer Price: $25.00
• NOK: Struggling but progressing
• BUY-rated Nokia issued second-quarter results slightly ahead of consensus but still disappointed investors with beaten-down margins and a cautious look forward.
• Nokia expressed a new urgency to speed the transition of Nokia from a device seller to an integrated solutions company providing user-friendly interfaces and a wealth of downloadable applications particularly in the smart-phone niche.
• While Nokia was late to this transition, we now believe the company is more successfully transitioning to a fast-changing market while aligning its cost structure to its available revenue base.
• We view the earnings-related selloff as an opportunity to build positions in NOK ADRs.
Jim's updated 'Investment Thesis' reviwing Q2 and looking forward runs several pages, and is quite thorough. Obviously he takes a positive long term view and the thesis contains his rationle for that.
He also includes a Peer Analysis and a Growth and Valuation Analysis with 25 line items expressed in USD (not Euro) for the fiscal/calendar years 2004 through 2008.
Worth a read for those with access. I catch Jim's reports on Schwab.
- Eric -