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Opera Minia vs. IPhone

Another movie on whether you really need smartphone.

Motorola Slips as Nokia Takes Over 50% Share in 2Q07 EMEA Mobile Phone Market\

According to IDC's latest EMEA Mobile Phone Tracker, the second quarter of 2007 saw total mobile phone shipments (including traditional mobile phones and converged devices) rise to almost 87 million units, representing year-on-year growth of 8%, which is up from around 80 million units in 2Q06.

Growth in the region was driven by the success of the top 3 vendors, with Nokia growing impressively to take around 51% market share in EMEA and both Sony Ericsson and Samsung gaining at the expense of Motorola, which continued to struggle due to a lack of new model activity. Overall ASPs continued to decline during the quarter as vendors looked to expand more aggressively into midrange and low-end segments of the market.

Increased focus on midrange and low-end handset terminals continued to have an eroding effect on overall ASPs, but Nokia's major gains in market share and healthy operating margins proved that a balanced portfolio with a key focus on margin-rich handsets will result in both improved margins and market share gains. The challenges faced by Motorola highlight the importance not only of a balanced portfolio, but also a core brand identity that resonates with users and avoids unnecessary churn - an increasingly painful issue for mobile operators.

"The very strong results recorded in Western Europe this quarter can in part be attributed to Apple. All the media coverage surrounding the iPhone since it was announced last January has put the mobile devices industry in the spotlight, forcing vendors to launch new design-oriented and music-dedicated products. The iPhone also shed light on lesser-known functionalities already integrated in mobile devices, like mapping and browsing, and raised the general level of knowledge on what mobile devices can do nowadays," said Jean Philippe Bouchard, senior research analyst for EMEA mobile devices at IDC.

Market performance in CEMA in 2Q07 saw a fall-back in the rate of growth, with increasing market maturity and some shipment declines in Russia, Ukraine, and the more mature markets of Central and Eastern Europe, leaving expansion focused principally on the poorer markets in the Middle East and Africa.

The April to June period was quiet in CEMA's largest market, Russia, with shipments at 6.65 million below those of the same quarter a year ago. The three brands that have been making steady gains in recent quarters - Nokia, Samsung, and Sony Ericsson - saw a better performance in Russia in the second quarter. Nokia led the market, but was only marginally ahead of Samsung. The biggest casualty was again Motorola, which has seen infrequently replenished models impact sales.

Across the Middle East and Africa, Samsung and Sony Ericsson competed strongly in the midtier and to a lesser extent the high end of the market, with the fading performance of Motorola leaving Nokia in a stronger position in key entry segments.

Vendor Highlights, 2Q07

Nokia dominated leadership of the mobile phone market in EMEA, rising to its highest level ever, with a market share of 51%. Importantly, Nokia also achieved its highest operating margins on the device business in three years, due to the success of three core products: the all-round N95, business-oriented E65, and mass market 6300 handset. The vendor also supported its core portfolio with strategically important handsets such as the 6280, 6233, and entry level 1600. IDC expects Nokia to carry on building out its low-end and midrange portfolio, but maintain margins with core products.

Samsung gained more ground and although the vendor had already overtaken Motorola in handset revenue terms it continued to gain even more on unit shipments, with 17% market share. The vendor increased the amount of shipments sold to Europe to 32% overall, up from 29% in the same period in 2006. A broad 3G portfolio and continued success of the Ultra Edition handsets in the mature markets in Western Europe and an increased volume of entry tier handsets in emerging markets of CEMA helped to drive growth for the vendor, although Samsung's average selling price, as in Sony Ericsson's case, has eroded with a push for market share and emphasis on entry level models. Samsung's ASP in the quarter was $148, down 5% from the previous quarter.

Sony Ericsson continued to record gains in major markets, with CEMA and Western Europe representing two of its three strongest growing regions, and held 14% market share in the EMEA region. Strong growth was due to low and midtier feature phones as average selling prices fell 14% from €145 in the same period last year to €125 this year as it released more low and midtier models such as the W300 and W200 Walkman phones and the K310 and Z310 phones. At the same time, the company continued to strengthen its product lineup by announcing a large number of new products across a variety of price points, including the K850, an HSDPA, 5MP Cyber-shot phone, and the W960, a high-end Walkman phone with 8GB of onboard storage.

Motorola slipped to fourth in the market in 2Q07, down one place from 1Q with 6% market share, and continued to pay the price for market share gains with low-cost handsets and over-reliance on the RAZR line. However, Motorola replaced Ron Garriques with Stu Reed, previously EVP of the supply chain organization, and emphasized the focus on distribution on logistics, although Motorola urgently needs to replenish its ageing product lines. IDC already mentioned several quarters ago that continued brand extension was a risky strategy, and now competitors have made ground from Motorola. Growing the converged device portfolio by introducing the 3G Motorola Q and the UIQ-based RIZR Z8 in order to protect margins and shift the product mix away from a higher prepaid mix will be crucial to Motorola.

LG Electronics held market share of 4% and recorded operating margin highs of 11% due to a higher-end portfolio mix, as the Prada and Shine handsets continued to prove successful on renewals in the more mature markets of Western Europe. However, with LG's planned expansion into lower-end handsets, IDC believes it is very important for the vendor to maintain a balanced portfolio.

EMEA Mobile Device Shipments, 2Q07

	2Q07	Share	2Q06	Share	Growth
Nokia	44,200,000	51%	33,595,845	42%	32%
Samsung	15,196,000	17%	9,215,032	12%	65%
Sony Ericsson	12,053,000	14%	7,539,005	9%	60%
Motorola	5,267,000	6%	13,751,265	17%	-62%
LG	3,579,500	4%	2,878,249	4%	24%
Others	6,548,665	8%	13,135,934	16%	-50%
Total	86,844,165	100%	80,115,330	100%	8%
Source: IDC, 2007

--  Jan Dadák  phone #: +420 530 334 630 Cell # : +420 731 576 030 U:Fon #: +420 910 040 375  www.honzadadak.ic.cz

Cell phone vs. iPod

Why do we need those gadgets, etc. when cellphone works pretty much the same. And its nicer.

Mac or PC

Have you ever wondered which would be better? Mac or PC.

Here is a spot to help you decide.

Three Ireland Gets Mobile TV License

Hutchison 3G Ireland says that it has been awarded a licence by the local regulator, ComReg to trial broadcast TV services over mobile handsets based on DVB-H technology. The licence takes effect immediately and runs for one year.

Robert Finnegan, 3's Managing Director commented: "3 Italy was first in Europe to launch broadcast TV over mobile, so as a Group we are already leading the development of this new technology. Ireland has a high take-up of digital TV services compared to many EU countries with 42% of all households using digital TV services. DVB-H brings the benefits of Digital TV to mobile. Mobile TV is important to 3 and to the Irish market, as consumers demand more sophisticated mobile services."

3's sister company in Italy launched its DVB-H service called WalkTV earlier this year and is already broadcasting mobile TV to a large audience, with 140,000 customers signing up in just six weeks.

3's DVB-H tests in Ireland follow the success of a range of TV content available on 3 from Barclays Premiership highlights and the best of Father Ted, to 3's own music channel hosted by Tom Dunne.

PRESS: GlobeTel responsible for WiMAX failure

MOSCOW, May 26 (Prime-Tass) -- The shareholders of Russia's Internafta said that U.S. telecommunications equipment producer GlobeTel was responsible for the failure to implement a U.S $600 million project to build a WiMAX network in Russia, Vedomosti business daily reported.

The agreement between the two companies to build the network was signed on December 29, 2005, and was cancelled by GlobeTel on May 1.

Vadim Tataurov, who owned a 25% stake in Russia's Internafta - a company that was established specifically for the project - said that during the project?s negotiations, which took place in November 2005, GlobeTel's CEO Timothy Huff was in a rush to close the deal by the end of the year "to make (GlobeTel's) shareholders happy," the daily reported. Meanwhile, the Russian businessmen said during the talks that it would take about three months to prepare the contract.

As a result, Internafta failed to meet the deadline for its first payment under the contract, which was scheduled for January 16, as nobody took into account the Russian New Year holidays, which lasted from January 1 to January 9, Tataurov said

Internafta made the first payment but at a later date, Tataurov claimed, vedomsoto reported.

Tataurov and Sergei Zhukov, another Internafta shareholder with a 25% stake, claimed that GlobeTel lost interest in the project after the agreement was signed, Vedomosti reported.

They also said that GlobeTel's managers offered them to buy GlobeTel shares before signing the contract, Vedomosti reported.

A source in GlobeTel Wireless Europe denied all the accusations, the daily reported.

Following the cancellation of the agreement, GlobeTel's shareholders accused the company of faking the agreement. Lawyers at Sarraf Gentile, filed in early May a lawsuit on behalf of GlobeTel's shareholders against the U.S. company and some of its top managers with a court in the U.S. state of Florida.

Information about the deal with Internafta moved the U.S. company's shares up, while the announcement of the cancellation of the deal sent the shares into a downward spiral, Sarraf Gentile said then.

GlobeTel's capitalization rose to $410 million as of December 2005 from $210 million after the signing of the agreement and fell to $130 million after the cancellation of the agreement, as of Thursday, the daily reported.

Some Russian market observers speculated earlier that Internafta's owners might have set up the company to obtain a developed business plan from GlobeTel for the WiMAX project, without having any intention to cooperate with the U.S. company.

No Radiation Problems at Australian University

Following a health scare, the Australian RMIT University has conducted radio emission tests on the roof and several floors of a building where a cluster of cancers had occured. However, the tests on floors 16 and 17 and the roof of RMIT University have shown no anomalies, according to independent environmental testing consultants. Tests were conducted by EMC Technologies, AMCOSH, Kilpatrick and Associates, and the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA), looking into a variety of potential risk areas including air and water contaminants, surfaces and microbiological compounds.

RMIT has welcomed the results. It has also commissioned radio frequency tests on other levels of the building, as well as epidemiological surveys.

Chris Jacka, Managing Director of Sustainable Risk Management Australia, which coordinated the testing program, said: "Measurements in Building 108 are consistent with those typically found in buildings in Melbourne. Tests identified no anomalies.

"Our tests measured outputs not just from the mobile phone base stations on the roof but from all those in the area. The results were well below national standards."

RMIT University's Vice-President Resources and Chief Operating Officer, Steve Somogyi, welcomed the results. "Staff and students have been understandably worried about the incidence of brain tumours among staff in Building 108. I hope these results will help ease those concerns.

"RMIT is committed to ensuring the health and safety of our staff and students. We shall now test radiofrequency on lower floors.

"We have engaged the services of an occupational physician, Dr John Gall of Southern Medical Services, who will continue to assess medical reports and investigate potential links between staff diagnosed with tumours."