Samsung Expects To Sell 200 Million Handsets In 2009. Company Has Sold 40 million Touchscreen Devices In 2009, Compared With 10 million A Year Ago.

Posted on December 2, 2009 by admin

Samsung Electronics, the world’s No. 2 mobile phone maker, gave an upbeat forecast for 2009 mobile phone sales due to sharp growth in touchscreen models, but surging sales may not guarantee higher margins.

Growing competition for market share could put Samsung under pressure to lower prices in the high-margin touchscreen phones, with iPhone‘s debut in the domestic market last week set to challenge Samsung and home-town rival LG Electronics.

“Touch phones taking a bigger portion of handset sales will not likely have a significant impact on profitability because makers eventually have to cut prices to appeal to the wider public,” said Hanwha Securities analyst Seo Do-won.

“What we have to set sight on is the smartphone market, in which Samsung is still weaker than Apple, RIM and Nokia (NOK1V.HE). Samsung has strengths in high-function and hardware sides, but is weak in software and services compared with rivals,” Seo said.

Samsung, which trails Finland’s Nokia, said on Monday it was on track to exceed its 2009 mobile phone sales target, with touchscreen models enjoying sharp growth.

It had previously said it aimed to sell more than 200 million phones this year, after selling slightly less than that figure in 2008.

The blockbuster iPhone of Apple made its debut in South Korea recently after local regulators cleared the final hurdle for its sales in a market that is home to 47 million mobile phone users.

With established strength in premium and feature phones, Samsung and LG have recently boosted their smartphone line-ups to compete with Apple and Blackberry maker Research In Motion

Samsung said its global market share in handsets rose over 20 percent for the first time in the third quarter, with its telecom unit posting a profit margin of 10 percent in the third quarter, unchanged from the second quarter.

Research firm Gartner said this month global mobile phone salesthis year would be roughly on par with 2008 and grow 5-8 percent next year.

Samsung said in a statement handsets adopting full touchscreens would account for about 20 percent of its mobile phone sales this year. In 2008, such phones made up only 5 percent of Samsung’s total sales.

Samsung had sold around 40 million full touchscreen devices between January and November this year, compared with 10 million in 2008.

Feature-packed premium phones and smartphones with intuitive user interfaces have prompted a boom in touchscreen models that allow users to manipulate cellphones more easily.

“Samsung will continue to expand the global full touch phone market by introducing phones tailored to individual regions and user requirement with stylish designs, intuitive UIs and cutting edge features,” JK Shin, head of Samsung Electronics’ Mobile Communications Division, said in the statement.

Samsung Mobile Display, Samsung Electronics’ mobile screen venture, expects touchscreens to be adopted by about 50 percent of major portable devices — mobile phones, digital cameras, navigations and digital media players – sold in 2013.

By afternoon, shares of Samsung, also the world’s largest maker of memory chips and flat screen televisions, were up 2.3 percent, in line with the broader market’s 2.5 percent gain.

California Integrated Waste Management Board Honors 250 Businesses That Reduce Waste Sent To Landfills

Posted on December 1, 2009 by admin

The California Integrated Waste Management Board on Monday honored more than 250 businesses and nonprofit organizations for efforts to reduce the amount of waste sent to landfills.

Winners in the state’s Waste Reduction Awards Program ranged from tech giants Hewlett-Packard Co, Intel Corp and NEC Electronics America Inc. Hewlett-Packard’s Roseville campus now diverts 91 percent of its waste material, from recycling cardboard and paper products to reusing bubble wrap. NEC’s manufacturing plant, also in Roseville, last year diverted 82 percent of its solid waste, raising $430,625 in recycling revenue for the company.

Driven by aggressive state mandates, recycling has become a major industry in California. The sector employs 85,000 and produces $10 billion in goods and services annually, according to the waste board.

To make the list of recycling honorees, a company must demonstrate an annual improvement in its waste-reduction practices, according to Beatriz Sandoval, a spokeswoman for the Integrated Waste Management Board.

The agency has been publishing the list since 1993. Because of the breadth of industries represented, there are no set standards for qualifying, Sandoval said. Nearly every company submitting documentation to the agency wins an award.

Nokia Files Lawsuit Complaint Against 11 LCD Manufacturers In San Francisco Court. Alleges Price Fixing

Posted on December 1, 2009 by admin

Nokia Corp. is suing 11 companies and a number of their units in the U.S., alleging they colluded to fix prices on liquid crystal displays.

Nokia’s suit comes as the LCD industry begins to emerge from a long downturn that had led to weak panel prices. LCDs are used in screens for mobile phones, personal computers and televisions.

The Finnish mobile handset giant alleges in the complaint—filed Nov. 25 with the U.S. District Court for the Northern District of California in San Francisco—that the companies raised “the price of LCDs above the price that would have prevailed in a competitive market” from at least Jan. 1, 1996 through Dec. 11, 2006.

Nokia said it purchased LCDs from the companies and then incorporated them into its mobile wireless handsets.

Three of the LCD makers accused in the suit said Tuesday they hadn’t received any documents from the U.S. court, three others said they were looking into the matter, two declined to comment and the rest couldn’t be reached for comment.

Nokia spokesman Mark Durrant said his company also filed related complaints in the U.K., against makers of LCDs and cathode ray tubes, which are used in older televisions.

Nokia believes it has a strong position in the case because there is no doubt that price fixing has been going on, Mr. Durrant said, though he declined to say how much money could be involved.

Mr. Durrant said it could take a few years to reach a settlement in court, but added that his company is interested in discussing compensation outside of the court system.

Analysts said legal battles take a while to settle so the suit won’t likely have an immediate impact on the LCD makers, though they said the companies may need to set aside provisions from their earnings in the longer term.

The complaint against the group of companies—which includes AU Optronics Corp., Chunghwa Picture Tubes Ltd., Samsung Electronics Co., Sharp Corp. and LG Display Co.—is the latest in a string of accusations of price fixing in the LCD industry.

AT&T Corp. alleged in a suit filed in October in U.S. District Court in San Francisco that AU Optronics, LG Display, Samsung Electronics and other LCD makers were involved in a “long-running conspiracy” from January 1996 to December 2006 to fix prices of LCD panels.

That complaint, filed by AT&T and its BellSouth and Pacific Bell units, Southwestern Bell Telephone Co. and others, alleged the LCD makers formed an international cartel to illegally restrict competition in the U.S. for LCD panels.

Nokia’s complaint also comes about a year after the U.S. Justice Department fined several LCD makers for price fixing.

Sharp, Chunghwa and LG Display agreed in November 2008 to plead guilty to the U.S. charges of price fixing in the LCD market from as early as April 2001 to December 2006. The companies paid $585 million in criminal fines.

Samsung Electronics, the world’s largest LCD maker, wasn’t cited in the Justice Department’s decision but it cooperated with U.S. investigators in the probe, people close to the case said. The probe into the LCD industry became public in 2006.

The European Commission in May 2009 sent formal charges to a number of companies supplying LCDs on suspicion that they have operated a cartel. The commission didn’t name the companies at the time but in July, Philips Electronics N.V. confirmed it received cartel charges from the European Commission alleging price fixing.

Other companies named in Nokia’s suit include Philips Electronics, Tatung Co., Seiko EpsonCorp., Samsung SDI Co., Hitachi Displays Ltd. and Toshiba Corp.

Hitachi Displays agreed in March to plead guilty to the U.S. Justice Department’s price-fixing charges and paid a $31 million fine. Hitachi isn’t a defendant in the AT&T case.

“Nokia suffered damages as a result…and is entitled to treble damages and injunctive relief to remedy these injuries,” Nokia said in its complaint.

Chunghwa Picture Tubes deputy spokesman Wilbur Chien said Tuesday his company hasn’t received any court documents and declined to comment further on the Nokia case. Freda Lee, a spokeswoman for AU Optronics, also said the company hasn’t received any court documents from the U.S.

A Tatung investor relations official also said the company hasn’t received any official documents from the court.

Toshiba spokesman Keisuke Ohmori declined to comment. Samsung Electronics also declined to comment.

Officials at Seiko Epson, Samsung SDI and LG Display said they were looking into the matter, while officials at Sharp, Hitachi, and Philips, weren’t immediately available for comment.

Huge Marketing Budget Drives Motorola Droid Sales. Expects to Sell 1 Million Units In 2009.

Posted on December 1, 2009 by admin

Motorola’s and Verizon Wireless’ $100 million marketing campaign for the Motorola Droid seems to be paying off with strong sales that will likely result in more than 1 million devices being sold by the end of the year.

The Droid, the only smartphone currently on the market that uses Google Android‘s 2.0 operating system, is Motorola’s second Android device and it’s available only on Verizon Wireless’s network. The device is turning out to be the hit phone of the season, thanks in large part to an expensive and extensive advertising campaign.

Motorola Droid

(Credit: Motorola)

Neither company is reporting sales figures. But analysts say sales look good. The companies have likely sold between 700,000 and 800,000 Droids since the device was launched in early November, according to equity analyst Mark Sue of RBC Capital Markets.

“Verizon’s big marketing push for the Droid is strengthening as we close in on the holidays, and following our round of checks, we believe about 700,000 to 800,000 Droids have been sold, making our hurdle of 1 [million] Motorola Droids achievable for 4Q09 [ending December 31],” Sue said in his research note. “Motorola, for its part, has done a good job on the production side, and our survey of over 100 stores indicates strong demand, limited stock outs, and very few returns.”

John Stratton, executive vice president and chief marketing officer for Verizon Wireless, said when the device was launched in late October that Verizon would be pouring in more money to market this device than any other phone it has ever sold. And now it looks like the money has been well spent. From advertisements that specificallyhighlight the Droid to ones that focus on Verizon’s extensive and reliable 3G wireless network, it’s clear that the company has AT&T and the Apple iPhone in its crosshairs.

AT&T has actually sued Verizon over the advertisements about its 3G wireless network coverage.

Some Verizon Wireless stores, especially in major cities, are selling between 100 and 200 Droids per week since the launch in early November, Sue added.

The success of the Droid is good news both for Motorola and for Verizon Wireless.

Motorola comeback
For Motorola, the Droid represents a chance to make a comeback in the cell phone market. The iconic American company that practically invented the cell phone market has struggled for the past several years now. After the runaway success of the ultra-thin Motorola Razr in 2004, the company has been unable to come up with a hit phone. And it has steadily lost market share to other competitors, such as Nokia, Samsung, and LG Electronics. It’s also ceded market share in the fastest growing segment of the market, smartphones, to newcomers like Apple and Research In Motion.

Motorola’s mobile devices CEO Sanjay Jha took a bold gamble more than a year ago when he decided to dedicate the company’s resources to building phones using the Google Android operating system. The Droid and theMotorola Cliq, which is exclusively sold on T-Mobile USA’s network, are the first two Motorola Android phones to hit the market.

But Jha said the Google Android operating system will not only be used in high-end devices like the Droid, but it will also be used to power less expensive phones, creating a new tier of smartphones that will eventually replace the basic feature phone category. Jha said the company will launch at least 20 more Android devices in 2010.

The success of the Droid is an important first step in getting Motorola back on track. But equity analyst Ittai Kidron of Oppenheimer said in a research note Monday that sales of the Motorola Cliq are falling short of expectations. Motorola is expected to sell 1.5 million smartphones in the fourth quarter. And two-thirds of them are expected to be Droids.

Kidron said the Cliq is not selling well mostly because of issues with battery life. Motorola is supposedly preparing a software patch to fix the problem. But he also noted that T-Mobile appears to be losing interest in the device and is not marketing it heavily.

But T-Mobile says that the Cliq is doing just fine. And the carrier said that it’s committed to marketing the phone through the holiday season.

“The Motorola Cliq is very popular among our highly connected customers and is the only device with Motorola’s innovative Motoblur solution,” a company spokesman said. “T-Mobile is excited about the Motorola Cliq for the holidays and continues to showcase it prominently in T-Mobile retail stores and with recent holiday deals.”

Verizon’s iPhone alternative
The Droid’s success is also important to Verizon Wireless, the nation’s largest wireless operator in the country. It is the first device that offers a true challenge to Apple’s iPhone, which runs exclusively in the U.S. on AT&T’s network. While Verizon has a strong reputation for its network, consumers often complain about its lack of cool phones. Up to this point, Verizon has mainly competed against AT&T and the iPhone with RIM’s BlackBerry devices. But RIM’s touch-screen BlackBerry Storm, which was first introduced a year ago, was largely a disappointment.

The Droid offers Verizon customers an alternative to the iPhone on the Verizon network. This fact could help Verizon retain some consumers who were thinking of leaving for the iPhone. But it might also attract new customers who are either disappointed with AT&T’s service or have heard bad things about the network.

Verizon Wireless representatives say the Droid is certainly an important part of the company’s device line-up.

“We are pleased with sales over the holiday weekend,” Brenda Raney, a spokeswoman for the carrier said in an e-mail. “This phone clearly fits the needs of a number of customers who are excited about its availability on the Verizon Wireless network.”

But if analyst data is to be trusted, it is clear that the huge marketing budget for the Droid is at least part of the reason why the device has been so successful. The HTC Droid Eris, another Android device sold exclusively on Verizon’s network, is not selling as well as the Droid, Sue said in his note. The HTC Droid Eris went on sale the same day the Droid was launched, but with much less fanfare.

Part of the problem is the fact that there are many Android devices coming to market. And the number will only increase next year. The lesson from the success of the Motorola Droid is clear. If device makers and carriers hope for break-out success, then they will have to spend big on marketing.

India Drowning In Nearly Half A Million Tons Of E-waste Generated Annually.

Posted on November 23, 2009 by admin

Without recycling facilities that can handle the loads of e-waste that need to be processed, Priti Mahesh, senior programme officer with New Delhi-based Toxic Link, says that 97% of the waste gets recycled in hazardous conditions, where workers are exposed to toxins like barium, cadmium, copper and lead.

The scale of the problem is getting government attention, with a draft of a law intending to curb the imports of e-waste and regulate recycling in the works and ready in about 6 months. However, it points to the bigger picture of too many new and unnecessary gadgets pouring into the market place, and too many old but perfectly usable gadgets pouring into dumps and recycling facilities.

Again, while percentages are unclear, “most of the waste from abroad came in the form of charity donations of old technology that finds its way to dumps or imports from countries like the United States, [Mahesh] said.”

As countries like India suffering the brunt of e-waste imports get tougher on importation legislation, organizations like Basel Action Network & ToxicsLink will have to do a tougher job as environmental watchdog groups, since more companies collecting gadgets for recycling will be tempted to unload them onto overburdened, under-protected e-waste dumps.

E-Waste Legislation Varies Among Asian Nations

Posted on November 23, 2009 by admin

Step by step, e-waste legislation is introduced at different paces in countries like China, Malaysia and Thailand. Calls are heard for increased global harmonisation of laws to tackle the problem.

Developing nations are expected to triple their output of e-waste by 2010. The effect of booming economies and increased IT consumption all over the world makes electronic waste pile up in landfills or in private homes. Increasingly loud voices call for global harmonisation of e-waste legislation. The state of e-waste policies in Malaysia, Thailand and China reveal how different the same, global problem is tackled by different legislators.

Malaysia – no proper recycling
Malaysia is part of the Basel Convention treaty which restricts the export of hazardous waste from developed countries to developing countries. The Malaysian Association of Standards Users criticises that there is no proper recycling mechanism in place at the moment to encourage consumers to recycle or discard e-waste. Malaysian consumers recycle about five per cent of their e-waste. In Malaysia e-waste is categorised as scheduled wastes under the code SW 110, First Schedule, Environmental Quality (Scheduled Wastes) Regulations 2005. But this act does not deal with household waste. The Malaysian Government has not, despite a grand campaign, changed public behaviour in or attitudes to waste recycling.

Thai RoHS – voluntary marking
The new Thai standard on RoHS-conformity marking took effect in February 2009. The standard is voluntary and more of resemblance to a label than to legislation, which may help in marketing. The standard goes under the name ‘Electrical and electronic equipment that may contain hazardous substances: restriction of the use of certain hazardous substances.’ It covers equipment that falls within the scope of EU RoHS. Consumers recycle about half their discarded electronic goods.

China – introducing RoHS and WEEE but slow progress
China, the world’s largest user community for products like mobile phones, computers and TV sets, has introduced RoHS which is finally on its way to its second step with compulsory and specific product requirements. The country, which previously did not define waste comprehensively in the law, will introduce e-waste legislation from 2011. Electronic products must then contain information on toxic and harmful contents and recycling processing. This will also include recycling and processing requirements.