Subscribe free to our newsletters via your




INTERNET SPACE
Apple roars back to close smartphone gap with Samsung
By Rob Lever, with Sophie Estienne in New York
Washington (AFP) Jan 29, 2015


NEC says swings back to profit after smartphone overhaul
Tokyo (AFP) Jan 29, 2015 - Japanese information technology firm NEC said Thursday it swung back to profit in the nine months to December, after exiting the smartphone market as part of a broader restructuring.

The company said it earned 22.8 billion yen ($193 million) in the April-December period, reversing a 15.09 billion yen loss a year earlier.

Operating profit jumped to 35.6 billion yen from a profit of 23.7 billion yen a year ago, after the firm cut away its money-losing smartphone unit, but total revenue fell 3.9 percent to 2.0 trillion yen.

NEC fell into the red in 2013 due largely to losses stemming from the former smartphone powerhouse quitting the highly competitive sector, ending its development, production and sales of the devices.

It had merged its mobile phone handset operations with those of Casio Computer and Hitachi to fight off rising competition.

But the subsidiary still struggled in a market increasingly dominated by Apple and South Korean giant Samsung.

On Thursday, NEC pointed to a pickup in public-sector revenue, which rose 12 percent from a year earlier thanks to "steady sales from government offices and public services".

The company left its earnings forecast unchanged for the full year to March, predicting a net profit of 35 billion yen on sales of 3.0 trillion yen.

With its hot-selling large-screen iPhones released last year, Apple has roared back to the top of the pack with South Korea's Samsung in the smartphone market.

Surveys released Thursday showed the popular iPhone 6 and 6 Plus helped Apple pull to a virtual tie in the fourth quarter with Samsung, which has been the leader for the past three years.

The research firm Strategy Analytics said Apple and Samsung shipped 74.5 million smartphones each in the last three months of 2014 for a market share of just under 20 percent.

A separate survey by IDC analysts said Samsung had a tiny edge over Apple with 75.1 million units sold.

Apple "beat everyone's expectations," said Ryan Reith at IDC.

Even more surprising is that Apple managed to increase the average selling price of its phones at a time when many consumers around the world are looking to low-cost handsets.

Another surprise was growth of iPhone sales in the US, "which is considered a saturated market," according to Reith, and in China, where competition is intense.

"Sustaining this growth and higher (selling prices) a year from now could prove challenging, but right now there is no question that Apple is leading the way," Reith said in a statement.

Samsung, which belatedly entered the market pioneered by Apple, had dethroned the US firm as the world's top smartphone vendor in the third quarter of 2011.

The South Korean electronics giant then went on to replace Nokia as the global leader in overall mobile phone sales in the first quarter of 2012.

But Strategy Analytics said Samsung now faces "intense competition from Apple at the higher-end of the smartphone market, from Huawei in the middle-tiers and from Xiaomi and others at the entry-level."

"Samsung may soon have to consider taking over rivals, such as Blackberry, in order to revitalize growth this year," it added.

Even Apple has been surprised by its growth. Chief executive Tim Cook said during an earnings call this week that iPhone demand "has been staggering, shattering our high expectation."

IDC's Ramon Llamas told AFP that Apple is still seeing strong demand in early 2015 but that "it's going to be difficult to maintain that breakneck pace."

He added that "the fact that they attracted a number of Android users gives them growth prospects for 2015."

Analysts said the smartphone market appears to be diverging with Apple dominating the high end and other manufacturers scrambling at the low end.

"There's been so much skepticism for so many years about Apple's ability to continue to make its unique business model work over the long term, and Apple continues to prove them wrong," said Jan Dawson at Jackdaw Research in a blog post.

- Rise in China -

IDC said overall global smartphone sales hit a new record for the quarter and for the year: 375.2 million units shipped during the fourth quarter, a 28 percent increase from a year earlier, bringing the annual total to 1.3 billion, a gain of 27.6 percent.

Strategy Analytics said more than a billion Android-powered phones were sold last year, representing 81 percent of all handsets.

Chinese firms made headway in the smartphone market, led by Lenovo, which completed its acquisition of the Motorola brand last year.

IDC said Lenovo sold 24.7 million units for a 6.6 percent market share, edging out Huawei which delivered 23.5 million for a 6.2 percent share, according to IDC.

The rising Chinese star Xiaomi captured the number five spot, selling 16.6 million units with a 4.4 percent market share. Xiaomi's growth from a year ago was 178 percent, IDC said.

But "Xiaomi's grip on the number five spot is tenuous at best, with (South Korea's) LG and (China's) ZTE following close behind," the IDC report said.

soe-rl/dc

APPLE INC.

SAMSUNG ELECTRONICS


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


.


Related Links
Satellite-based Internet technologies






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








INTERNET SPACE
Samsung posts first annual profit decline in three years
Seoul (AFP) Jan 29, 2015
Samsung Electronics posted its first drop in annual net profit in three years Thursday and saw resurgent arch-rival Apple barge in on its pole position as the world's top smartphone maker. The South Korean firm, whose key mobile phone operations have struggled in the face of intense competition from cut-price Chinese rivals, also warned that it expected 2015's "business environment... to be ... read more


INTERNET SPACE
Probe after 11 die in NATO training jet crash in Spain

Hackers target Malaysia Airlines, threaten data dump

Shanghai stampede showed 'critical neglect': mayor

Protection against radiation exposure

INTERNET SPACE
Congressman claims relying on GLONASS jeopardizes US lives

Turtles use unique magnetic compass to find birth beach

W3C and OGC to Collaborate to Integrate Spatial Data on the Web

AirAsia disappearance fuels calls for real-time tracking

INTERNET SPACE
Scientists extend telomeres to slow cell aging

Early human ancestors used their hands like modern humans

A mother's baby talk isn't easier to understand

ORNL model explores location of future US population growth

INTERNET SPACE
Penn research shows relationship critical for how cells ingest matter

Ivory in Uganda seizure likely stolen from impound vault

China officials dine on endangered salamander: reports

Uganda seizes massive ivory and pangolin haul

INTERNET SPACE
Bird flu confirmed in Canadian patient after China trip

No new polio cases in Syria reported for a year: WHO

Two Nigerian cities hit by bird flu: authorities

Nigeria reports H5N1 bird flu in five states

INTERNET SPACE
China university 'expels student over genetic blood disease'

China has mountain to climb with 2022 Winter Olympics bid

China anti-terror law may 'inflict grave harm': rights group

China workers decline as demographic time bomb ticks

INTERNET SPACE
China arrests Turks, Uighurs in human smuggling plot: report

Two police to hang for murder in Malaysian corruption scandal

Nobel protester sought to draw attention to 'murdered Mexican students'

Corruption on rise in Turkey, China: Transparency

INTERNET SPACE
ECB QE could cause "competitive depreciation": China

China's economy not headed for 'hard landing': PM

China bank lending up in 2014 as govt seeks credit boost

China's economic growth slows to 24-year low: govt




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service.