Smartphone Market Grows 79.7% Year Over Year in First Quarter of 2011

By Mobiletechnews,
The worldwide smartphone market grew 79.7% year over year in the first quarter of 2011, driven by a combination of vendors releasing highly anticipated models, widespread availability of older smartphones at lower prices, and sustained end-user demand. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, smartphone vendors shipped a total of 99.6 million units in 1Q11, nearly double from the 55.4 million units in the first quarter of 2010.
"Conditions in the smartphone market are creating a perfect storm for sustained smartphone growth," says Ramon Llamas, senior research analyst with IDC's Mobile Phone Technology and Trends team. "First, vendors are increasingly emphasizing smartphones as the key to their own growth. Second, selection has proliferated from mostly high-end devices to include more mid-range and entry-level offerings. Third, pricing has become increasingly competitive, with even high-end devices available at low price points. Finally, users continue to seek greater utility from their mobile phone beyond voice, and smartphones have been the ideal solution. Altogether, these add up to continued smartphone growth throughout the year."
The strong demand for smartphones also means the market will remain highly competitive and fragmented. "The rise of Android as a prominent mobile operating system has allowed several suppliers to gain share quickly," adds Kevin Restivo, senior research analyst with IDC's Worldwide Quarterly Mobile Phone Tracker. "Also, the relatively nascent state of smartphone adoption globally means there is ample room for several suppliers to comfortably co-exist, at least for the short term."
Top Five Smartphone Vendors
Nokia, despite announcing its intentions to move from Symbian to Windows Phone as its primary smartphone operating system, maintained its leadership position in the smartphone market. Demand for Symbian-powered smartphones remained strong within its traditionally strongest markets of EMEA and Asia/Pacific, and the company continues to announce more devices running on Symbian, including the E6 and the X7. Still, as Nokia transitions from Symbian to Windows Phone, it may find itself in danger of ceding market share as the competition ramps up smartphone production.
Apple reached a new record shipment volume in a single quarter, and inched closer to market leader Nokia with fewer than six million units separating the two companies. The company posted market-beating year-over-year growth and recorded triple-digit growth in two key markets: the United States, with the release of its CDMA-enabled iPhone, and Greater China. Additionally, the company enlisted South Korean Telecom and Saudi Telecom as carrier providers of the iPhone.
Research In Motion remained solidly in third place from the previous quarter, as the company grew its presence outside of its home territory of North America. RIM has launched several 3G devices to the market, and recently announced two new BlackBerry smartphones running on its new BlackBerry 7 OS. Still, the majority of RIM's shipment volumes have been comprised of older, lower-cost devices. The company expects this trend to continue into the following quarter.
Samsung posted the largest year-over-year gain of any other vendor on the list. With a multiple operating system strategy in place, Samsung has been able to grow its smartphone portfolio to meet the needs of a diverse market. Accounting for the majority of its smartphones and driving shipment volumes higher was the continued success of its Android-based smartphones, including the high-end Galaxy S devices and mass-market Galaxy Ace and Galaxy mini devices. Meanwhile, its bada-powered Wave devices and Windows Phone 7 devices continued to gain traction.
HTC posted yet another record shipment volume, nearly surpassing the ten million unit mark for the first time. Like other vendors, HTC announced multiple new devices, including the Facebook-optimized Salsa and ChaCha. In addition, the company launched several new devices, including its Inspire 4G, WiMAX-enabled EVO Shift 4G, and LTE-enabled Thunderbolt. These, along with its investment and developments on hardware, displays, and its HTC Sense layer have helped HTC differentiate itself further in an increasingly crowded market.

Apple Brand Value at $153 Billion Overtakes Google for Top Spot

By Bloomberg,
Apple Inc., maker of the iPhone, iPad and iMac, overtook search-engine giant Google Inc. to become the world’s most valuable brand, WPP Plc said in a report today.
Apple’s brand value climbed 84 percent in the past year to $153.3 billion, WPP’s Millward Brown unit said. Google’s brand lost 2 percent to $111.5 billion, ending four years atop the rankings, while International Business Machines Corp. climbed 17 percent to be the No. 3, ahead of McDonald’s Corp. 
New versions of the iPhone and iMac, and the introduction of the iPad tablet, helped Cupertino, California-based Apple almost double sales and profit for the latest quarter. Apple, which overtook Redmond, Washington-based Microsoft Corp., as the most-valuable technology company by market value in May 2010, boosted its share of the global phone market and is the leading seller of tablet computers.

“It’s clear that every single Apple employee, from Steve Jobs and Tim Cook to the summer interns, see protecting and nurturing that brand as a top priority,” Millward Brown Chief Executive Officer Eileen Campbell wrote in the report. “Tablet computing also drove value growth not just for Apple, but also for the providers who support yet another networked device.”
Facebook Inc., operator of the world’s largest social- networking site, had a 246 percent climb in brand value, the fastest, to become the No. 35 brand at $19.1 billion, according to the report. Baidu Inc., Google’s Chinese rival, posted the second-fastest climb at 141 percent, to be the No. 29 brand at $22.6 billion.
Twelve of the top 100 global brands were from China, led by China Mobile Ltd. (941) at No. 9 and Industrial & Commercial Bank of China Ltd. at No. 11. Amazon.com Inc., which ranked 14th, overtook Wal-Mart Stores Inc., which ranked 15th, to become the most-valuable retail brand.

Wi-Fi Direct: Creating a Wireless Powerhouse

By Mobiletechnews,


Wi-Fi Direct is software that sits on top of IEEE 802.11x silicon, so Wi-Fi Direct’s success is fully dependent on the success of that underlying 802.11x chip solution. Because it is software and not a change to the silicon, it does not require a new IEEE specification, and is governed instead by the Wi-Fi Alliance?the Austin, Texas-based trade association.
Wi-Fi Direct creates a very powerful Wi-Fi solution, as it enables the premier wireless networking standard to add peer-to-peer capability, with no need for a Wi-Fi access point. This creates a much more compelling and complete wireless standard, and brings Wi-Fi into competition with specifications such as Bluetooth. And because Wi-Fi Direct is software based, the marginal cost of Wi-Fi Direct-enabled silicon over basic Wi-Fi silicon is minimal.
"Wi-Fi Direct enjoys wide backing from Wi-Fi silicon vendors. Companies such as Atheros, Broadcom, CSR, Intel, Marvell, Qualcomm, Ralink, and Realtek all have plans for widespread release of Wi-Fi Direct-enabled silicon," according to Brian O'Rourke, Research Director. "In fact, many of these companies received Wi-Fi Direct certification for at least one chip solution in the fourth quarter of 2010, shortly after the specification was released by the Wi-Fi Alliance in October. In terms of adoption by 802.11x type, 802.11a/g chip vendors are not likely to add Wi-Fi Direct, as the standard has a limited life span remaining. However, it will be seen in the vast majority of new 802.11n silicon beginning in 2011. And it will be standard in 802.11ac silicon as it begins to ship."
However, adoption of Wi-Fi Direct software in Wi-Fi silicon is only half the battle to ensure its success among consumers. Another vital issue will be making the Wi-Fi Direct standard useful with application programming interface (API) software. APIs ease the connection between devices, and increase the usability of Wi-Fi Direct for consumers. Without solid APIs, Wi-Fi Direct will only be marginally more useful than the current 802.11x ad-hoc mode?the first, complex, little-used attempt at Wi-Fi peer-to-peer connectivity. Wi-Fi chip vendors are already delivering API solutions. For example, Broadcom has announced its Maestro API suite, Atheros has Direct Connect, and Qualcomm has introduced AllJoyn. Nevertheless, there is a danger in Wi-Fi silicon vendors creating APIs. A rival company may be hesitant to use one of these solutions for fear of helping, and possibly becoming dependent on, the competition. And without widely accepted APIs, it will be difficult for a Wi-Fi Direct ecosystem to develop. This could create an opening for a third-party software vendor to provide an API.
Wi-Fi Direct devices came to market in very small numbers in late 2010, a result of the 21 Wi-Fi Direct-certified products approved by the Wi-Fi Alliance in the fourth quarter of 2010. Many more products will hit the market in 2011. The first applications to adopt Wi-Fi Direct include mobile PCs, mobile phones, and digital televisions (DTVs). These devices share a trait: they are the respective centers of the PC, CE, and mobile device clusters, and they ship in the hundreds of millions of devices annually. So it makes sense for Wi-Fi Direct to start with these applications, and then move to the rest of the PC, PC peripheral, and CE ecosystems. Ultimately, we expect Wi-Fi Direct to be successful and that, by 2014, all Wi-Fi devices that ship will be enabled with Wi-Fi Direct, creating a one-stop shop for wireless networking and connectivity.

Juniper Research: Application-generated texts to exceed $70 billion in revenues by 2016

In its “Mobile Messaging Report,” Juniper Research (among other things) looks at the Application-to-Person (A2P) messaging, forecasting that revenues from such services will exceed $70 billing by 2016, effectively overtaking revenues from Person-to-Person (P2P) messaging during the year 2016.
The research company points to various use-cases of A2P messaging, including financial services, advertising, marketing, business administration, ticketing, television voting and any other service where information needs to be sent to, or received from a large number of users in text form.
According to the report author Daniel Ashdown, although SMS has its unique appeal, revenues from P2P messaging will peak in a number of regions during the period 2010-2016 as it reaches a low point in valuation.
Other key findings include:

• Premium-rate SMS and MMS will decline due to challenges from other forms of billing/delivery.
• MMS traffic and revenue will continue to grow, but A2P MMS will not have as bigger impact as A2P SMS.
• Mobile instant messaging will increasingly become a customer retention exercise as with fixed line services.

For more information about this survey, here is the link to follow: http://www.juniperresearch.com/reports/Mobile_Messaging_Markets

PayPal to process $2 billion in mobile payments this year

By fiercemobilecontent,

During eBay's first quarter earnings call, PayPal, the digital transaction arm of eBay, said that it expects to process more than $2 billion in mobile payments this year, which is nearly three times the amount it processed in 2010. In addition, the company announced that it acquired Fig Card, the maker of a low cost USB device that plugs into the cash register at point of sale offering merchants an easy way to handle mobile payments.

According to a transcript of the earnings call from Seeking Alpha, John Donahoe, eBay's CEO, said that mobile payments offer strong growth potential for PayPal particularly since it doesn't require consumers to enter their credit card information. Consumers' concerns over security have prevented many from entering credit card data via their mobile phones, but PayPal alleviates those concerns. "The fact is PayPal is the only safe way to pay on mobile phones," he told analysts.

In addition, Donahoe said PayPal's agreements with VeriFone Systems and Bling Nation have helped the company penetrate the physical point of sale for the first time.

Regarding the purchase of Fig Card, PayPal did not reveal the terms of the deal. However, in a blog post, Peter Chu, senior director of PayPal Mobile, said that Fig Card founders Max Metral and Hasty Granbery will join PayPal.

 

Three-quarters of Americans want multi-mode mobiles

By wirelessfederation,

A survey commissioned by the Consumers Union shows that nearly three-quarters of Americans would support legislation that would force mobile phones to be compatible with all wireless standards.

According to the survey, 73% said they would support a government rule that requires handsets to be compatible with all US cellular services. This view was supported most strongly by smart phone owners (81%). Virtually all respondents (96%) felt that consumers should be able to keep their existing handsets when changing carriers. An overwhelming majority (88%) said that their handset should work on any cellular network they choose.

According to Parul P. Desai, policy counsel for Consumers Union, as technology makes it easier for people to take their phones with them when changing wireless carriers; they want to make sure this benefit is extended to all consumers. The poll results announced today make it clear that this is a feature that nearly all cell phone owners feel they should be able to utilize.

It is important that they work to put rules in to place to ensure that the benefits of interoperability be made available to consumers, rather than prolonging the current trend of locking handsets to specific providers.

Whether consumers would be willing to pay the fairly steep price premium and performance loss that would come from having phones that are required to be compatible with WiMAX, iDEN, CDMA and GSM remains to be seen.

Methodology The Consumer Reports National Research Center conducted a telephone survey using two nationally representative probability samples: landline telephone households and cell phones. 981 interviews were completed among adults aged 18+ who own a cell phone. The margin error of this poll is +/- 3.2 percentage points at the 95% confidence level.

Android smartphones winning over 'app' makers

By Glenn Chapman (AFP News),
Google is the new darling of software wizards out to cash-in on the world's love for customizing smartphones with fun, hip or functional applications.
Developers once obsessed with "apps" for Apple's hot-selling iPhones are touting creations tailored for smartphones built on the Google-backed Android platform.
"In the past seven months, Android has become the de facto second platform out there that people are developing for," AppNation chairman Drew Ianni told AFP during the gathering of software entrepreneurs this week in San Francisco.
"I think there is a general wait-and-see interest regarding platforms outside of Apple iOS and Android," he added.
Mobile platforms being watched by developers include BlackBerry, Microsoft Windows Phone 7 and Hewlett-Packard's webOS.
Ianni expected smartphones based on Microsoft or HP software to increase in allure as they gain traction in the market.
"We need a third platform that is viable, otherwise it is going to be the Android show," Urban Airship chief executive Scott Kveton said after taking part in an AppNation panel.
"Android is growing at a phenomenal rate," he continued. "I'm afraid it is going to be Android running away with it."
Urban Airship provides tools that help developers make money from smartphone programs. Early in April the Oregon-based company added a feature allowing people to make purchases inside Android applications.
"Increasingly, people are finding it a good investment to build for Android and build for tablets and we are trying to support them," Google director of mobile Americas Jason Spero said after an on-stage chat at AppNation.
Android's share of the US smartphone market has surged this year while BlackBerry's sunk, according to recent figures from industry tracker comScore.
Android commanded a third of the market, while BlackBerry ranked second with 29 percent and Apple third with 25 percent, comScore reported.
"Almost everyone developing for iPhone has moved on to Android," said Mario Tapia, director of mobile products at application store GetJar and coordinator of a Mobile Mondays social group for developers in Silicon Valley.
"At the end of the day, it is about distribution," he added. "You move to where the audience is."
Apple had slightly more that 333,000 iPhone applications in its App Store in March, but Google's Android Market boasted 206,000 "apps" and was growing fast, according to figures from industry tracker Distimo.
"The Android Market is going to take over as biggest application store in terms of quantity of apps in about five months," Distimo researchers concluded.
Distimo predicted that Apple's App Store would be relegated to second place, followed by Windows Phone 7 Marketplace and BlackBerry App World.
Windows Phone 7 Marketplace had about 12,000 applications in March while Nokia Ovi Store had 30,000 and BlackBerry had 27,000, according to Distimo.
Distimo expected Windows 7 Marketplace to leap ahead of BlackBerry and Ovi by October.
"If Apple has 150 million iOS devices out there it is almost a no-brainer, you write for iOS," said analyst Tim Bajarin of Creative Strategies.
"You see Android coming up the line, and that is almost a no-brainer," he continued. "Where it becomes tougher is making the next step to go after webOS or BlackBerry or whatever with limited money and talent."
Independent application operations typically have only a few, if not just one, software developer, according to Bajarin.
Finding ways to get noticed and make money in a sea of more than 600,000 smartphone applications were hot topics at AppNation.
Attendance at the event grew to 1,700 this year from 1,100 at its premier in San Francisco last year. The number of exhibitors grew to 210 from 80.
Opera Mobile Store that spans more than 200 countries launched an "Appcelerator" program at AppNation to help developers promote and profit from software creations.
"The apps here are great," said Opera Software consumer mobile executive vice president Mahi de Silva. "You are seeing the tip of the iceberg in innovation."
Advertisers are increasingly tuning into the potential to target consumers on smartphones and tablet computers.
"There is no question that ultimately, this is probably the most powerful vehicle for ads that we've ever had," Bajarin said. "Television was obviously significant but if I can do location-based services tied to ads this changes the dynamics of advertising completely."
Mobile ads are more effective for advertisers and can translate into more money for developers, according to Lisa Abramson, director of marketing at mobile video ad network Rhythm New Media.
"Consumers love free and the best way to monetize that is through advertising," Abramson said.
Developers can also make money from in-application transactions, selling virtual goods, or simply charging for software.
"It becomes a collage of monetization mechanisms," Spero said. "Each developer has to be an expert on what their audience has a tolerance for."