| From: Jon Koplik | 11/3/2014 1:03:47 AM | | | | | | WSJ -- Google’s Android Begins to Top Out ............................................
[ Personally ... I had no idea that Android was (roughly) 85% of smartphones shipped globally, and Apple was not even the remaining (roughly) 15%. Uh, why do we always hear about Apple so much ? ]
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Nov. 2, 2014
Google’s Android Begins to Top Out
Market Share for Smartphones Slips as Firm Gains More Control Over Devices That Run Its Software
By Rolfe Winkler
Google Inc.’s dominance over the smartphone landscape appears to be topping out, but the company is gaining more control over the devices that run its Android mobile operating system.
Android ran 84% of smartphones shipped globally in the third quarter, according to research firm Strategy Analytics, down slightly from 85% in the second quarter.
“Android’s global smartphone market share is peaking,” said Neil Mawston, executive director of Strategy Analytics. “Unless there is an unlikely collapse in rival Apple iPhone volumes in the future, Android is probably never going to go much above the 85% global market share ceiling.”
Market share for Apple Inc.’s mobile operating system was 12% in the third quarter. Microsoft Corp. ’s Windows Phone captured 3% market share and BlackBerry Ltd. ’s devices had 1%.
Even if Android’s market share doesn't go any higher, there is still good news for Google.
For starters, the market overall is still growing. Strategy Analytics forecasts 12% growth in smartphone shipments in 2015.
Google also appears to be turning the tide on the growth of so-called Android forks -- versions of the mobile operating software that are developed independently and don't come with Google’s lucrative mobile apps.
As a percentage of total Android shipments, forks made up 37% in the third quarter, down slightly from 39% in the second quarter.
Google makes no money on Android itself, since it gives away the operating system free to device makers. It profits from revenue generated by advertisements that appear in apps like Google Search, Google Maps and YouTube, as well as a cut of sales of apps, files, subscriptions, and the like sold through the Google Play Store.
Mr. Mawston chalks up the decline in Android forks to a “maturing” China smartphone market, where most forked Android devices are sold.
In addition, Google is asserting control over its operating software through its newly launched Android One program, which is designed to provide cheap, reliable smartphones to consumers in emerging markets such as India. Those phones come with Google’s various services installed.
Meantime, Samsung Electronics Co.’s dominance over other Android handset makers is waning, reducing the threat that the Korean hardware maker could wrest more control from Google. In the third quarter of this year, 25% of smartphones shipped were Samsung devices. That figure fell from the year prior, when it stood at 35%.
Samsung ships mostly Android devices and long has been dominant among Android vendors thanks in part to big commissions it pays to smartphone distributors, particularly in emerging markets. That gives them an incentive to push its devices over rivals.
Yet Samsung is losing out to startups like China’s Xiaomi Inc., which are undercutting the Korean giant on price.
Samsung sells its smartphones at a premium and captures bigger profit margins on each device sold, while Xiaomi prices its devices closer to the cost of making them and makes its profit instead on the sale of accessories and software add-ons.
In the previous two years, as Samsung’s market share peaked, it tried to assert more independence from Google by distributing more of its own services on its Android devices while simultaneously playing down the fact that Google’s software powered them. That sparked concerns inside Google that it could lose some control over the operating system, according to people familiar with the company’s internal deliberations.
Earlier this year, Samsung and Google reached a detente of sorts, when the companies agreed to a broad patent cross-licensing deal.
The biggest challenge to Google’s mobile dominance could come from regulators. European Union antitrust authorities are poised to unleash a formal investigation into Android in the wake of concerns that Google shuts out rivals in promoting services such as Google Maps.
The Wall Street Journal reported earlier this year about Google’s strict agreements with handset makers that required them to feature those services prominently if they wanted access to the services in the first place.
A Google spokesman declined to comment.
Write to Rolfe Winkler at rolfe.winkler@wsj.com
Copyright © 2014 Dow Jones & Company, Inc.
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| To: waitwatchwander who wrote (122644) | 11/3/2014 6:42:29 AM | | From: JeffreyHF | | | | | The Europeans had a lock on China's mobile technologies, when the CDMA deal was signed. China had two objectives in doing the deal, removing U.S. objections to WTO admission, and ripping off IPR to develop TD-SCDMA. They accomplished both, but failed to make balky and cumbersome TD-SCDMA "sufficient" for 3G, and attractive for export. This time around, they've decided to rip off TD-LTE, and damage Qualcomm's business model. The outcome has yet to be determined. |
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| To: Jon Koplik who wrote (122646) | 11/3/2014 10:58:11 AM | | From: pyslent | | | | [ Personally ... I had no idea that Android was (roughly) 85% of smartphones shipped globally, and Apple was not even the remaining (roughly) 15%. Uh, why do we always hear about Apple so much ? ]
It depends on the context. Apple punches well above its market share class in terms of user engagement metrics (app downloads, web surfing, NFC payments), but if you are selling modem chips, you might make as much from a $50 mass market LTE phone as from a $650 iPhone. I'm still not clear how it works from a royalty perspective though. |
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| To: pyslent who wrote (122648) | 11/3/2014 11:01:45 AM | | From: engineer | | | | Foxcon pays the royalty on the price they charge Apple wholesale.
So take the BOM, add about 10%, then take that as the ASP of the handset for royalty purposes.
Then after that Apple adds their markup. |
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| From: Jim Mullens | 11/3/2014 11:50:24 AM | | | | | | Oppo's double impact - Premium China device w/ snapdragon 801
Snips>>>>>>>>>
Oppo, the premium smartphone brand company from China, has unveiled a new flagship model, the N3, at a regional launch event in Marina Bay Sands, Singapore.
Other notable features include a 5.5in full-HD display, quad-core Qualcomm 2.3GHz Snapdragon 801 processor, 2GB RAM, 32GB internal storage, fingerprint sensor and support for dual Sim cards.
There is also a rapid charging technology which Oppo claims will power up the smartphone from zero to 75 per cent in just half an hour.
>>>>>>>>>>>>>>>>>>
Oppo's double impact
Lee Kah Leng The Star/Asia News NetworkMonday, Nov 03, 2014
20141103_R5N3-oppo.jpg
Oppo, the premium smartphone brand company from China, has unveiled a new flagship model, the N3, at a regional launch event in Marina Bay Sands, Singapore.
Just like its predecessor, the N3 Android smartphone has a single rotating camera that doubles up as both the front and back camera.
The camera has been improved in two ways - it has been bumped to 16-megapixel and it's now auto-rotating. Users no longer have to manually rotate the device to capture a panoramic image, as the auto-rotation feature will easily handle this.
That's not all - for the lens, Oppo worked with Schneider Kreuznach, a German lens brand.
"For Oppo, every single product is designed for life," said Oppo Indonesia chief executive officer, Jet Lee.
Other notable features include a 5.5in full-HD display, quad-core Qualcomm 2.3GHz Snapdragon 801 processor, 2GB RAM, 32GB internal storage, fingerprint sensor and support for dual Sim cards.
There is also a rapid charging technology which Oppo claims will power up the smartphone from zero to 75 per cent in just half an hour.
The N3 is expected to hit Malaysia's shores late next month and according to Oppo Mobile Malaysia chief executive officer William Fang, the N3 will retail for about RM2,000 (S$782).
If you have been following Oppo closely, you will have noticed that the company has skipped N2, jumping from N1 to N3. Apparently, it favours odd numbering and there will be no N2.
The company also surprised everyone by unveiling a second phone, which it claims is the thinnest on the market. Oppo product manager Bakarrik Azeri says the R5 is just 4.85mm.
The R5 has a 5.2in full-HD Amoled display and octa-core 1.5GHz Qualcomm Snapdragon 615 processor, 2GB RAM and 16GB internal storage.
For shooting photos and recording videos, it has a 13-megapixel rear camera and a front-facing 5-megapixel camera.
The R5 will be available in two colour options - white and gold - when it ships here later this month. It's expected to cost about RM1,500 to RM1,600.
Both the N3 and R5 will come preloaded with Android 4.4.4 KitKat and feature the company's ColorOS 2.0 user interface.
- See more at: digital.asiaone.com |
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| To: JeffreyHF who wrote (122652) | 11/3/2014 1:59:19 PM | | From: slacker711 | | | | I think that Foxconn's ASP would be below Q's royalty cap.
OTOH, I believe Q has said that contract OEM's have higher royalty rates than the handset vendor.
Slacker |
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| To: Jon Koplik who wrote (122646) | 11/3/2014 1:59:25 PM | | From: BDAZZ | | | | | Why do we always hear about Apple? Because they make tons of money. Instead of looking at them as a mobile OS company (as Apple against the rest of the world), look at them as a handset company against other handset companies. Very few enter a store and request an Android OS. They want a Samsung or an LG. I bet 85% have no idea or care what OS runs their phone. If Android had Siri and would auto post to my other devices I wouldn't care. (Wait now Apple pay is great too.) what counts is how does the Apple handset division fair against the handset division of any other company in the world. There isn't a division that wouldn't trade places with Apple in a heartbeat. I think Samsung is number one in units, yet they are struggling and Apple is flying, so what's more important, especially where investment is concerned? When Nok ruled the world they only had 38 percent unit share, not dollar share, and nobody will ever reach that again. (BTW are there any stats as to what percent of the high end market Apple owns.) |
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