Apple iPhone subsidy adjustments leads to fears over smartphone pricing war, while Sprint sees unlimited M2M opportunities … 8 years ago this week
Editor’s Note: RCR Wireless News goes all in for “Throwback Thursdays,” tapping into our archives to resuscitate the top headlines from the past. Fire up the time machine, put on the sepia-tinted shades, set the date for #TBT and enjoy the memories!
Price wars beginning?: iPhone now drives subsidy strategies
Last year, of course, the iPhone launch drove hand-wringing over the need to revamp user interfaces, accompanied by a move to large-display touchscreens. A wave of devices sporting large-display touchscreens followed, with varying results on the user interface. That influence continues to play out with similar launches still slated for the back half of 2008 and beyond. This year, however, with incremental changes to the iPhone, the subject du jour has refocused on carrier subsidies and consumer-facing prices. AT&T Mobility’s decision to price 3G iPhones at $200 and $300 – a decision costing in the neighborhood of $1.2 billion that the carrier acknowledged would dampen its earnings-per-share by 10 cents to 12 cents for two years – has already led competitors Verizon Wireless and Sprint Nextel Corp. to cut prices on handsets they deem competitive. … Read More
M2M sees unbridled growth: Space ‘only limited by your imagination,’ Sprint Nextel exec says
With wireless connectivity becoming ever more common in vehicles, security systems and utility meters, machine-to-machine technology is on the path to transform vending machines, real estate lock boxes and mail drop-boxes. Although the M2M space is still evolving (even the definition of which devices and applications are “M2M” is still fuzzy), the growth is undeniable. ABI senior analyst Sam Lucero pegs the growth rate at about 33-35% per year since 2003, and said that rate is expected to continue. About 18 million M2M cellular modules shipped in 2006, Lucero said, and the number is expected to jump to about 80 million by 2013. … Read More
Palm’s long, hard climb continues
Despite delivering a bona fide hit handset, the $99 Centro, Palm Inc. continued to struggle with revenue and profit in fiscal fourth quarter. For the quarter ended May 31, Palm reported that revenue was $296 million, down 26% from the year-ago quarter, and net income was a loss of $41 million. The loss came despite shipping 968,000 smartphones, a 29% jump over the year-ago quarter. The culprit was margins, according to analyst Matt Thornton at Avian Securities L.L.C. … Read More
Sony Ericsson warns on profits, handset demand
Sony Ericsson Mobile Communications warned today that it would only break even in the current quarter and that handset shipments will be nearly flat over the first quarter, reflecting “moderating demand” for its mid- and high-tier phones. The joint venture also acknowledged that new products scheduled to ship in the current quarter were delayed. The news is likely to hurt SEMC’s reputation for execution and add to concern that demand is weakening for new handsets, particularly in the mid- and high-tier categories that SEMC specializes in. One analyst pegged SEMC’s weakness to a failure to join rivals in producing large display feature phones now in demand in Europe and Asia and to its nominal penetration of developing markets. … Read More
It’s official: Virgin to take over Helio
Virgin Mobile USA’s purchase of fellow MVNO Helio L.L.C. allows Virgin to evolve beyond its low-ARPU customers to higher-paying subscribers, as well as gain a sophisticated handset portfolio, improve its debt levels and cut a better deal with network operator Sprint Nextel Inc. Virgin Mobile announced Friday it plans to pay $39 million in equity for Helio in a deal it is hoping to close in the third quarter. Acquiring Helio will give Virgin Mobile new and unique benefits, including the ability to evolve into the postpaid market, offer advanced data services and new user applications across their customer base, said Dan Schulman, Virgin Mobile USA CEO. … Read More
Only strongest MVNOs will survive
A couple years ago, starting your very own mobile virtual network operations company was a sizzling hot idea and everybody was trying to cash in. But now, two years and a slue of MVNO closings later, the idea has fizzled. With the shut downs of Amp’d Mobile, Mobile ESPN, Disney Mobile and others, it seems no matter how hard they try or what demographic they target, most MVNOs cannot find the glue to make themselves stick. So let’s start with the problems the companies have had. Eddie Hold, analyst at Current Analysis, said a big problem laid in most MVNOs demographic selections. … Read More
Brightpoint signs Verizon Wireless for carrier’s indirect channel
Brightpoint Inc. said today it would distribute handsets for Verizon Wireless’ indirect channel of authorized agents and national retailers. Bob Laikin, chairman and CEO of Brightpoint, declined to discuss the value of the deal, citing a confidentiality agreement with Verizon. But he said that the deal was “large” and “filled a hole in Brightpoint’s portfolio.” AT&T Mobility, the nation’s largest wireless carrier, is the only major carrier in the United States that doesn’t use Brightpoint for distribution and/or logistics, Laikin said. … Read More
T-Mobile USA Inc. wades further into wireline pool
Looking to cut into its rivals’ wireless-wireline bundles, T-Mobile USA Inc. announced it will expand its wireline calling plan nationwide. The carrier’s @Home offering allows T-Mobile USA customers to place unlimited nationwide and long-distance calls over an Internet connection for an extra $10 per month. Set to launch July 2, the new service will allow customers to port their existing home phone number to the Internet-calling service, which includes features such as call waiting, caller ID, three-way conferencing, voicemail, call conferencing and others. … Read More
Feds: Drivers don’t have to hang up phones
Federal regulators agree that distracted drivers are dangerous. But the government won’t require phones built into cars and trucks to shut down automatically when the vehicles are moving. Longtime safety advocate Clarence Ditlow proposed such a rule last year. It would have required a lockout mechanism to shut off any vehicle-integrated telephone or other communication device when a motorist shifted the transmission into drive or reverse. The prohibition would have covered General Motors’ OnStar telematics system and Ford Motor Co.’s Sync onboard communication and entertainment device. … Read More
Nokia to acquire Symbian in $411M deal: Firm looks to counter Linux, Microsoft, others
Nokia Corp. will acquire total ownership of Symbian Ltd., buying out current partners in a deal valued at about $411 million, the company said today. Nokia said it would combine its own S60 platform with the Symbian platform and provide the results – a single smartphone operating system – without charge to the former owners and other parties joining a new Symbian Foundation, also announced today. According to Nokia, the Symbian OS currently runs on two-thirds of all smartphones worldwide. … Read More
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