Displaying items by tag: market
Global ride-hailing firm Uber has projected a more measured valuation ahead of its IPO debut on the New York Stock Exchange later this week.
Ericsson has reported its first quarter results which reflect an increase driven by the growth the Swedish vendor has registered in North America.
A new report from analyst group Dell’Oro showed that Huawei holds 29 per cent of the Telecom equipment market which puts it in a position ahead both Nokia and Samsung. The Chinese vendor’s market share has increased by 8% since 2013.
In 2018, Huawei dominated the race, leading Nokia, Ericsson, ZTE, Samsung and Ciena as the primary equipment manufacturer. Dell’Oro found that all these companies combined possessed around 80% of the global market revenue of service provider equipment.
The market grew by a steady 1 per cent in 2018, after three years of decline. This growth is due to an increased demand in broadband access, optical transport, microwave and other mobile technologies. However, Huawei is the only vendor in the market that is experiencing consistent growth. Indeed, ZTE declined by a great deal and other primary vendors have remained in the same position.
Huawei is also at the top of the market in terms of wireless packet core (WPC).
Senior analyst at Dell’Oro Group Dave Bolan said: “The modest growth of the WPC market in 4Q 218 was due to the 4G Evolved Packet Core (EPC) technologies that service providers are using for 4G networks, but also for EPC use in upcoming 5G network deployments.” He added: “For 2018 WPC market shares, Huawei was the number one vendor based on revenues: however, Ericsson retained its first-place ranking for the EPC market that was the largest sub-segment of the wireless packet core market.”
Last week, the telecoms industry gathered in Barcelona for MWC where an abundance of discussions were around 5G. EE, Qualcomm, and OnePlus launched ‘5G Apps of Tomorrow’ and the GSMA found that by 2025, 15 per cent of all mobile connections would be powered by 5G.
South Korean conglomerate Samsung has unveiled its ambitious strategy to enhance its market share in the US by launching three new retails stores nationwide.
Samsung officially announced that it will open the new retail facilities as it gears up to launch an updated version of its flagship Galaxy handsets in the United States.
Some consumer experts are also claiming that the marketing strategy adopted by Samsung indicates clearly that the Seoul-based behemoth is directly challenging Apple in its domestic market.
Samsung said in a detailed statement that it made the move based on feedback from its customers.
The statement said, "They told us that they love having the ability to walk into a store and experience how the latest technology from Samsung works together to create a unique, immersive experience. Galaxy fans, in particular, mentioned that they were looking for a space to call their own, a place where they can get a feel for Samsung products first-hand."
It was further disclosed that the new stores will be located at the Americana at Brand mall in Los Angeles; Roosevelt Field in Garden City, New York; and The Galleria in Houston, Texas.
In addition to this, Samsung is holding a product launch in San Francisco amidst speculation it may launch a folding smartphone, which would make it the first of the major handset makers in the segment.
President of Samsung Electronics America, YH Eom, expressed his delight at the announcements and said the decision would solidify Samsung’s position as the world’s most popular smartphone manufacturer.
He said, “Our new Samsung Experience Stores are spaces to experience and see Samsung technology brought to life, to empower people to do what they never thought was possible before. We want to build a 'playground' for Samsung fans -- a place to learn about and try out all of the amazing new products we have to offer."
Samsung remained the number one global handset maker with a 20.8 percent share in 2018 despite an eight percent sales slump for the year, according to research firm IDC -- which also said last year showed the worst overall decline in sales for the smartphone sector.
US technology behemoth Google is at the centre of an investigation by Indian competition officials after it was alleged that Google may have engaged in anti-competitive practices.
Google stands accused of abusing the market dominance of its Android platform. The European Union conducted a 3-year investigation that only concluded last year.
The European Commission determined that the deemed requirements for Android device makers to use Google apps were illegal. The US tech leader was subsequently fined €4.3bn.
Reports emerging from India claim that the Competition Commission of India (CCI) began probing potential abuse of Android’s position six months ago, following a complaint filed by a group of individuals.
In addition to this, it has been further disclosed that Google executives met with Indian officials to discuss the matter in greater detail. The CCI must now make their deliberations before deciding whether the case merits a further investigation, or if it should be dismissed.
A source told Reuters, “It is on the lines of the EU case, but at a preliminary stage. The EC’s action would make it difficult for the CCI to reject further investigation without demonstrating the problem has been addressed.”
Following the decision handed down by the EC, Google announced its intentions to stop bundling preinstalled apps with its Android platform and instead charge manufacturers a fee to licence its apps, as part of a bid to avoid additional fines.
Google has been in trouble in India before.
In February 2018, the CCI imposed an INR1.36 billion ($19.3 million) fine on the company for abusing its dominance in online web search and search advertising markets.
Google appealed against the fine, stating it could cause irreparable harm and reputational loss.
Global smartphone sales saw their worst contraction ever in 2018, and the outlook for 2019 isn't much better, new surveys show. Worldwide handset volumes declined 4.1% in 2018 to a total of 1.4 billion units shipped for the full year, according to research firm IDC, which sees a potential for further declines this year.
“Globally the smartphone market is a mess right now,” said IDC analyst Ryan Reith. “Outside of a handful of high-growth markets like India, Indonesia, (South) Korea and Vietnam, we did not see a lot of positive activity in 2018.”
Reith said the market has been hit by consumers waiting longer to replace their phones, frustration around the high cost of premium devices, and political and economic uncertainty. The Chinese market, which accounts for roughly 30 percent of smartphone sales, was especially hard hit with a 10% drop, according to IDC's survey.
IDC said the top five smartphone makers have become stronger and now account for 69% of worldwide sales, up from 63% a year ago. Samsung remained the number one handset maker with a 20.8% share despite an eight percent sales slump for the year. Apple managed to recapture the number two position with a 14.9% market share, moving ahead of Huawei at 14.7%, the survey found.
IDC said fourth-quarter smartphone sales fell 4.9% - the fifth consecutive quarter of decline. “The challenging holiday quarter closes out the worst year ever for smartphone shipments,” IDC said in its report.
A separate report by Counterpoint Research showed similar findings, estimating a seven percent drop in the fourth quarter and four percent drop for the full year. “The collective smartphone shipment growth of emerging markets such as India, Indonesia, Vietnam, Russia and others was not enough to offset the decline in China,” said Counterpoint associate director Tarun Pathak.
US technology giant Apple has announced that it will impose a recruitment cutback - which has been primarily forced due to weak sales on the company’s iPhone devices in the lucrative Chinese market.
Bloomberg has reported that Apple CEO, Tim Cook, announced the recruitment cutbacks just a day after he sent a letter to Apple investors that warned the company was bracing itself for a year-on-year decline in revenue for its fiscal Q1, which would shave $5bn from its guidance.
In a series of meetings that were held following the disclosure, it was reported that Cook informed some staff that a number of divisions would reduce hiring, but stated that he didn’t think a complete freeze in recruitment would be an appropriate solution to take.
In addition to this, it has been further disclosed that the CEO is also yet to determine which divisions will face hiring cutbacks. However, it is believed that divisions such as Apple’s AI team will not be affected due to the leverage of investment made by the US tech company into the emerging technology.
The move will also not affect plans to open a state-of-the-art new office in Austin, Texas or its expansion plans in Los Angeles, where the company is fleshing out its original video content ambitions.
Bloomberg also pointed out that Apple has hired new staff at a significant rate over the past decade. The company recruited 9,000 workers in its most recent fiscal year, taking the total up to 132,000, while adding 7,000 a year earlier.
US technology behemoth Apple has signed a new agreement with Samsung in relation to its streaming and content services in an effort to offset a decline in iPhone sales. The deal brokered between Apple and the South Korean conglomerate will enable the use of iTunes streaming services on Samsung smart TVs.
To support the accelerated build out of 5G in the United States, European telecommunications vendor Ericsson will increase its investment in the market. This series of strategic initiatives will allow Ericsson to operate even closer to its customers, meeting the growing demand for 5G globally and in the region.
The investments will fall into two categories: 1) increase research and development work done close to customers in the US and 2) increase flexibility to shorten the timeline for new product introduction and product delivery to customers. This will enable Ericsson to recruit new expertise from the US, complementing the company’s existing highly-skilled employees in the region.
Börje Ekholm, President and CEO of Ericsson, says: “The United States is our largest market, accounting for a quarter of Ericsson’s business over the last seven years. To serve the demand of these fast-moving service providers, we are strengthening our investment in the US to be even closer to our customers and meet their accelerated 5G deployment plans.”
Ericsson predicts that 5G subscriptions will reach the 150 million-mark, accounting for 48 percent of all mobile subscriptions in North America by the end of 2023.
Increase R&D in the US:
In late 2017, Ericsson opened the Austin ASIC Design Center in Austin, Texas, to focus on core microelectronics of 5G radio base stations to accelerate the path to 5G commercialization. The 1,400-square-meter facility (15,000-square-feet) will have 80 employees once fully staffed.
Ericsson will also open a new software development center with baseband focus in 2018, employing more than 200 software engineers once fully operational. This facility and its employees will further strengthen Ericsson’s 5G software development. Baseband provides intelligence to the radio access network. It is also the interface between the core network and radio units, processing and forwarding voice calls and internet data to end users.
Beginning in 2019, both of these facilities will introduce 5G products and software features into the Ericsson portfolio, and will be available for customers globally, including in the US.
Additionally, Ericsson will increase its investment in Artificial Intelligence (AI) and automation, employing around 100 specialists in North America by the end of 2018. This team will work on utilizing AI technologies to accelerate automation, examine product road maps and explore new business opportunities. They will focus on boosting the company’s current portfolio, strengthening customer engagements and promote innovation of new disruptive business opportunities.
New product introduction and manufacturing in the US:
To increase flexibility in bringing new products into the market, Ericsson will recruit a dedicated team to work specifically on introducing products for the US market, conducting production engineering, testing/integration and supply preparations on early prototypes. This will be done in close collaboration with US-based R&D resources.
To make 5G products available to customers as fast as possible, Ericsson will also begin manufacturing in the US in the fourth quarter of 2018. This will enable Ericsson to operate closer to customers -- providing volume production of next-generation radios and the fast introduction of new products into the US market. Initially, Ericsson will work with a production partner and the first radios for the US will be produced before the end of 2018.
WhatsApp, which is one of the world’s most popular messaging applications - has finally announced a strategy for the monetization of its service in an effort to address issues regarding its ‘sustainability’. Concerns have long been raised over its sustainability, but now the application which was acquired by Facebook in 2014 for $22 billion has revealed its plans.
WhatsApp published a blog post in which it outlined its plans to launch a new innovative service that specifically targets large businesses, with green tick verification badges and a host of other communications tools. In addition to this, it also plans to introduce a ‘free app’ for SME’s.
A spokesperson for the messaging platform said, “Over a billion people use WhatsApp every day to stay connected with their family and friends, and over time, more people are using the app to communicate with businesses they care about too.”
Analysts have claimed that WhatsApp have identified a gaping hole in the market for businesses all over the world, especially those located in Asia, where the platform is a staple, use the service as a free way of connecting merchants and consumers. On the company’s blog post it highlighted information gathered from a survey it conducted, which indicated that users prefer when businesses use WhatsApp as it makes them feel more comfortable buying from a retailer that establishes a connection between the invisible sides of a digital transaction.
The blog post added, “We’ve heard stories of shopkeepers who use WhatsApp to stay in touch with hundreds of customers from a single smartphone, and from people who are unsure about whether or not a business on WhatsApp is authentic.”
The issue of monetization has always been an issue for technology products as companies have to engage in an education process in order to convince users to get past the notion that digital services are ephemeral enough to not warrant a cost. That’s fine, but tech firms have overheads and employees to pay, which makes it extremely challenging in the sense that one of the biggest problems in the industry are its most integral.
WhatsApp COO, Matt Idema confirmed that the firm does plan on introducing fees for businesses, but claimed that he didn’t yet have the details of what services would be monetized. In an interview with the Wall Street Journal, he said: “We do intend on charging businesses in the future. Naturally, people might wonder how we plan to keep WhatsApp running without subscription fees and if today’s announcement means we’re introducing third-party ads. The answer is no.”
The COO also disclosed that WhatsApp will commence tests on tools that enable users to use WhatsApp to communicate with businesses and organizations that you want to hear from. This could for example allow you to communicate with financial institutions such as a bank over a recent transaction which you believe to be fraudulent - or with an airline over a cancellation or a delay.
WhatsApp continues to appear reluctant to want to go down the advertising route, which is in stark contrast to its parent company, Facebook, whose entire business is funded by huge advertising revenues. Facebook began introducing sponsored posts in its Messenger app in July of this year as it seeks new ways to engage users of its messaging service with advertising clients. However, it’s plain to see that Facebook is now pushing for WhatsApp to make its acquisition worthwhile.