sunbattery's posterous http://sunbattery.posterous.com Most recent posts at sunbattery's posterous posterous.com Tue, 27 Mar 2012 21:06:00 -0700 IPhone Failing to Gain Market as Samsung http://sunbattery.posterous.com/iphone-failing-to-gain-market-as-samsung http://sunbattery.posterous.com/iphone-failing-to-gain-market-as-samsung

IPhone Failing to Gain Market as Samsung

By Bloomberg News.

IPhone Failing to Gain Market Share in China as Samsung Lead Triples. Apple Inc. (AAPL) got a second partner in China to sell the iPhone in the world's biggest mobile-phone market. The deal may be too late to catch Samsung Electronics Co. (005930), with a market share that's three times larger and growing.

China Telecom Corp. (728) began selling the iPhone last week as Apple tries to build on its 7.5 percent share of the country's smartphone sales. Samsung controlled 24.3 percent of the market for phones that can play videos and games, according to Gartner Inc., using a strategy of allying with all three of the nation's third-generation networks since such services started in 2009.

Succeeding in China is important for Apple as shipments of smartphones in the country are projected to jump 52 percent this year to 137 million units, overtaking the U.S. for the first time as the world's biggest market. Unlike Samsung's strategy of partnering with all carriers, Apple has limited its own success by not making a device compatible with the nation's biggest operator, China Mobile Ltd. (941)

"I don't expect Apple to replace Samsung any time soon," Gartner analyst Sandy Shen said in an interview. "China Telecom is the nation's smallest carrier, so the extent to which they can help Apple is quite limited."

The 16.8 percentage-point gap in China between Cupertino, California-based Apple and Samsung almost doubled from the third quarter. While Samsung is No. 1 and Apple No. 5 in China, the global story is different: Worldwide, Apple passed its Suwon, South Korea-based competitor to become the biggest smartphone vendor in the fourth quarter, according to Gartner.
China Mobile

Apple's partnerships with China's second- and third-largest carriers give it access to about 34 percent of the nation's 988 million mobile users, while Samsung targeted the whole market. iPhones aren't sold to China Mobile's 655 million subscribers, a number almost equal to the combined population of the U.S., Brazil and Mexico.

"Having access to more subscribers gives vendors like Samsung an advantage," said Teck Zhung Wong, a Beijing-based analyst with IDC China, who forecast the 52 percent jump in smartphone sales this year. "If Apple is going to continue to grow in the Chinese market, it has to consider very seriously a handset with China Mobile."

China Telecom had a total of 129.3 million wireless users at the end of January, including 38.7 million 3G subscribers.

Apple introduced the iPhone in 2007 in the U.S. exclusively with AT&T Inc. (T) and added a second carrier partner last year in Verizon Communications Inc. (VZ)
Pelting Eggs

Apple chose not to make a phone with China Mobile because the operator had a unique 3G standard called TD-SCDMA, even after the Chinese company's Chairman Wang Jianzhou met with the then Chief Executive Officer Steve Jobs in early 2010. Wang told the company's annual meeting in May that he didn't expect Apple to introduce an iPhone until the carrier rolled out the fourth- generation TD-LTE network by end of this year.

China Unicom (Hong Kong) Ltd. (762) was the nation's first carrier to offer the iPhone with a service contract in October 2009.

Even though Apple trailed Samsung, Nokia Oyj (NOK1V), Huawei Technologies Co. and ZTE Corp (000063) in China's smartphone market, people still crave an iPhone.

Apple's oldest store in China was pelted with eggs from a crowd of customers on Jan. 13 when the shop, in Beijing's Sanlitun district, failed to open on the first day of sales for the iPhone 4S. After police sealed off the area to remove more than 500 people, Apple said it would suspend sales of iPhones at all its stores.
'Didn't Bet High Enough'

The maker of iMac computers and iPad tablets underestimated the "staggering" demand for the iPhone 4S when it started sales in China in January, Chief Executive Officer Tim Cook said. "We thought we were betting bold," Cook said Jan. 24. "We didn't bet high enough."

The iPhone 4S has been "an incredible hit" with customers around the world, Apple spokeswoman Carolyn Wu said in an e-mail. Apple "can't wait to get it into the hands of even more customers in China," Wu said, declining to comment further on the company's handset strategy in China.

Samsung's approach to China is "the same" as other markets, Juha Park, senior vice president of product strategy, said in an interview in Barcelona.

"We make product innovation and make our brand very desired in the market," Park said. "That's what we do to become a major player. We have been doing quite strong growth in the China market."
Unlocked IPhone

Even without an agreement with Apple or a device that's compatible with its high-speed 3G network, China Mobile still has 15 million iPhone users, spokeswoman Rainie Lei said. Those China Mobile users buy unlocked devices and surf the web at slower 2G speeds, or else connect to Wi-Fi hotspots for a faster connection.

China Telecom projects that the iPhone will "significantly enhance its long term sustainable growth and value creation despite the short term pressure on its profitability," spokeswoman Lisa Lai said in an e-mail.

"For China Telecom, its 4S launch comes late and the low- hanging fruit may already be exhausted," said Lisa Soh, a Hong Kong-based analyst at Macquarie Group Ltd.

The egg pelting also resulted in Apple losing one advantage it had over Samsung -- its own retail stores stopped selling iPhones. Apple said at the time the move was "for the time being." Apple's Wu said the phones remain available through Apple's online store in China, and declined to provide an update on when the shops would resume sales of the devices.

That leaves Samsung free to further widen its gap.

"It's just one country, but it's such a big market and its portion in the global market is huge, so Samsung is trying to act fast to capture the market," said Kim Young Chan, a Seoul- based analyst at Shinhan Investment Corp. "Dealing with different network standards will give them a pretty valuable competitive edge."

 

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Fri, 17 Feb 2012 01:36:00 -0800 A Closer Look: Comparing Apple's iPhone 4S and Samsung's Galaxy Nexus http://sunbattery.posterous.com/a-closer-look-comparing-apples-iphone-4s-and http://sunbattery.posterous.com/a-closer-look-comparing-apples-iphone-4s-and

A Closer Look: Comparing Apple's iPhone 4S and Samsung's Galaxy Nexus

By Michael J. Miller.

For the past couple of months, I've been walking around with both an iPhone 4S and a Samsung Galaxy Nexus, with the former running iOS 5 and the latter running Google's Android 4.0, known as Ice Cream Sandwich. I posted my initial impressions a while back, after having used both devices for a week or two, but now that I've gotten used to both, I thought I'd reevaluate how they compare in several categories.

Size: Of course, the Galaxy Nexus, with its 4.65-inch display, is a lot larger than the iPhone 4S, which has a 3.5-inch display. The Nexus measures 5.3-by-2.7-by-0.4 inches, while the iPhone measures 4.5-by-2.31-by-.37 inches. Initially, I thought the size would make carrying the Nexus more difficult, but both fit into my pocket. The Nexus's size makes it better for reading lots of text on a page and for viewing videos, but the iPhone's smaller size means it's easier to carry and to use single-handedly because you can reach all the controls. Let's call it a wash.

Display: The Nexus display is not only physically bigger, but it also offers higher 1280-by-720-pixel resolution, compared with the iPhone's 960-by-480. That means you can see more on a webpage, for instance. The Nexus display uses Samsung's "Super AMOLED" organic LED display, but uses Samsung's PenTile technology (which has two subpixels per dot, not three); the iPhone uses an IPS LCD display. The basic technology-OLED versus LCD-means that the Nexus has really dark blacks (since it doesn't use backlighting), and thus better contrast. In practice, though, the iPhone looks quite good and is typically brighter. There are pros and cons, but overall I'd give the advantage to the Nexus, mostly because I do a fair amount of browsing and email, and the larger, higher-resolution screen matters. Advantage: Galaxy Nexus

Camera: The iPhone 4S has an 8-megapixel rear-facing camera; the Nexus has a 5-megapixel one. The iPhone has a VGA resolution front-facing camera; the Nexus has a 1.3MP one. Ice Cream Sandwich gives you a lot more control over the camera settings, with more screen modes and more control over exposure and white balance. But forget the specs; I've now used both, in a variety of situations, and the iPhone 4S simply takes better pictures. Advantage: iPhone

Network: This is going to vary a lot depending on which carrier you choose, and where you live and travel. The Galaxy Nexus is currently only available in the U.S. as a Verizon LTE phone, whereas iPhones are available on multiple networks. Mine uses AT&T's HSPA+ network. As someone who works in New York but travels to the West Coast pretty often, there's just no question: Verizon's LTE network is faster. I've been particularly happy using it with a hotspot feature (and have stopped using a separate mobile hotspot as a result). For voice calls, Verizon seems to be a bit more reliable than AT&T, but I find that varies a lot by location. I still get no service from Verizon when I'm on the train tracks at Grand Central Terminal, for instance, but AT&T works fine there. At my home, both are fine; at my office, both are horrible. (I thought midtown Manhattan was getting better for a while, but it's gotten worse again.) Traveling, I've seen lots of variability. On balance, I'll give this to LTE. Advantage: Galaxy Nexus

Battery Life: In part, it may be the LTE support, but this really isn't a competition. I almost always can get through a day with the iPhone 4S without concern but I'm always worried about battery life with the Nexus, and often drain it. Third-party apps to better manage the battery have helped, as has an extended life battery, but it's just not as good. Advantage: iPhone

Browser: I like the iPhone browser, which is quite fast, but the Nexus's has more features. Sure, everyone talks about the ability to run Flash on Android, but actually, the feature I found most useful was the ability to request the desktop site instead of the mobile one. Advantage: Galaxy Nexus

Apps: There are plenty of great Android applications, and you will probably be very happy with the selection on either platform. There are a few more iPhone apps, and in some cases, they are a bit more polished, but Android is catching up. Advantage: iPhone

Voice recognition: Apple has given Siri a lot of attention. There's no question that its ability to query multiple databases simultaneously and generate an answer is more advanced than the relatively straightforward Google Voice Search on Android. Still, other than as I demo, I don't find myself using voice very much; most of the time, I can get what I want a lot faster through a browser. Apple has a noticeable lead here, though I really can't say it matters much to me yet. Advantage: iPhone

Operating System/Stability: Overall, I've found many reasons to applaud the Ice Cream Sandwich version of Android. I really like the way it handles multitasking; a single button that shows you thumbnails of all your loaded applications, making the switch among applications faster and easier. I've seen crashes on both systems (not to mention on Windows and Mac OS X), but in general, the iPhone has been more reliable. As a result, I'm giving Apple the point here, but minor tweaks to Android could change things. Advantage: iPhone

Reviewing this list, the iPhone wins in more categories. For the most part, that comes down to software; Apple's iOS 5 is just a bit more refined, and a bit easier to use. Make no mistake, though, Android 4.0 is narrowing the gap quickly. From a hardware perspective, the Android ecosystem just gives you more choices. Users can get a larger display on the Galaxy Nexus, a keyboard on the Droid 4, or a much less expensive Android model. That diversity is a major strength of the Android platform, and Apple can't really compete with that. If I had to pick just one, though, I'd still choose the iPhone 4S today.

By the way, in addition to the iPhone 4S and the Galaxy Nexus, I always have my BlackBerry Bold 9810, which still has the best corporate mail solution, even if it lacks the application array of the other two. Carrying three phones all the time probably makes me look like a nerd, but that's not really new news.

 

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