Smartphones are constantly reaching new heights in sleekness and cutting-edge technology, but investors in the U.S. wireless sector seem unconvinced. Weak results and poor growth in both major and minor telecoms firms nationwide helped spark an investor exodus from the sector, and analysts say small operators like MetroPCS and Leap Wireless have indicated they’ve simply lost faith in the promise that smartphones can boost growth. Popular with consumers and heavily subsidized to encourage uptake, investors now look to be assessing whether a future of ever-increasing costs for carriers is one they’d like to take part in.
Apple jumped to the top of the global smartphone sales rankings in the second quarter, ending Nokia’s 15-year run as the lead smartphone vendor, according to new research from Strategy Analytics. Apple sold a record 20.3 million iPhones during the quarter, which amounts to about a fifth of the global smartphone market. Impressive considering its iPhone 4 model was released more than a year ago. Samsung also surpassed Nokia to claim second spot, with 17.5 percent of market share. Nokia fell to third place as its market share tumbled to 15.2 from 38.1 percent a year ago.
Microsoft reported a greater-than-expected 30 percent increase in fiscal fourth-quarter profit, helped by sales of its Office software, but profit from its core Windows product fell on soft PC sales. Microsoft posted net profit of $5.87 billion, or 69 cents per share, compared with $4.52 billion, or 51 cents per share, in the year-ago quarter. That easily beat Wall Street’s average estimate of 58 cents, according to Thomson Reuters I/B/E/S.
Two days ago, I suggested that Nokia’s newly introduced N9 phone based on the MeeGo zombie OS was released to generate buzz around the features and form we could expect from the Finnish company’s first handset based on the Microsoft’s Windows phone OS.
The LulzSec group of rogue hackers threatened to steal classified information from governments, banks and other high-ranking establishments, teaming up with the Anonymous hacker activist group to cause more serious trouble in an escalation of their cyber attacks.
Yes, Nokia promised to release a phone this year based on the MeeGo OS, a merger between the company’s Linux Maemo software platform with Intel’s Moblin, also based on Linux. But the soon-to-be former No.1 handset maker later announced that it would be their last, relegating MeeGo and Nokia’s other OS, Symbian, to zombie status.
Nokia is likely to be paid hundreds of millions of dollars by Apple after victory in a legal wrangle over technology used in its arch-rival’s top-selling iPhone. Nokia said the deal would boost second-quarter earnings. Analysts said it was clear the sums involved would be significant, with some experts estimating Apple’s one-off payment at $650 million.
Samsung will become the world’s largest smartphone maker this quarter followed by Apple, overtaking struggling Nokia which has lead the market since 1996, Nomura said. Research firms Gartner and Canalys both said they saw Nokia — which created the smartphone market with its 1996 launch of the Communicator model — losing smartphone volume leadership later this year.
Spanish police arrested three men suspected to be members of the hacker group Anonymous, charging them with organizing cyber attacks against the websites of Sony, Spanish banks BBVA and Bankia, and Italian energy group Enel SpA– but not the recent massive hacking of PlayStation gamers. Anonymous responded by threatening to retaliate for the arrests: “We are Legion, so EXPECT US,” the group said on its official Twitter feed.
An investor group involving Activision Blizzard CEO Bobby Kotick is in final talks to take a controlling stake in News Corp’s social network site Myspace, according to a source familiar with the matter. Kotick’s involvement is personal and nothing to do with Activision at this stage, the source said.