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On this page you can find references to CCS Insight in the media for July-December 2006. Each headline has a link to a summary of the relevant article. Headlines of articles for January-June 2006 can be found by clicking the link below.
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Mobile Fair-Wireless fair set to stage mobile Web battle
Cellphone makers, telecoms carriers and Internet groups are squaring up for a fight for dominance of the mobile Internet, finally ready for market after years of promises and hundreds of billions in investments.
Wireless broadband is coming of age, making rivals of companies such as Nokia Oyj, Google Inc, Microsoft Corp and Apple Inc, who previously could afford to coexist relatively peacefully.
Mobile networks are now capable of delivering the Internet as smoothly to a mobile phone as to a PC, with the clunky handsets, stuttering downloads and network jams of the recent past almost forgotten in many developed markets.
And the scramble to capitalise on that opportunity will loom over all other business at next week's Mobile World Congress.
"Web, Web, Web -- if you ain't walking onto the stand hand in hand with a Web guy you ain't no one," said Ben Wood, chief analyst at UK-based telecoms and IT research firm CCS Insight.
The outcome of the struggle to win the mobile Web will not only be crucial for the combatants but will decide how the mobile Web is experienced by billions of people.
Telecom Trends – Mobile World Congress (Video interview)
Analyst Geoff Blaber (CCS Insight) unveils a preview of mobile offerings from Google, Motorola, Yahoo and Microsoft at this year's event in Barcelona.
Mobiles set a new tone All-singing, all-dancing phones are taking over the gadget world
The mobile phone industry's annual jamboree gets underway in Barcelona next week and tongues are already wagging about the kind of technology, devices and services we might see at Mobile World Congress ( www.mobileworldcongress.com ).
The mobile phone, perhaps more than any other gadget, has the potential to realise the dream of the truly converged device with multiple uses. The foundations have already been laid. Many modern phones boast cameras with enough megapixels to shame some of the leading digital cameras and integrated music players that make them a match for the iPod. In the UK alone more than 30 million phones were sold last year. Our appetite for upgrades, for the latest handset, is limitless and insatiable.
The mobile has the potential to become the one gadget to rule them all, and, says Ben Wood, an analyst with CCS Insight, this year's Mobile World Congress event will consolidate its indispensable role in our lives. Here are some of the show's key themes.
Mobile broadband
Mobile broadband will come of age. Wood expects to see more network operators offering not only high-speed web access built into phones in the form of HSDPA (high speed data packet access) - a step up from 3G technology, which allows people to surf the internet on their phone at broadband-like speeds - but also increasing numbers of operators bringing mobile broadband to the home. Companies like Vodafone and 3 already offer customers "dongles'' - small USB-powered devices that can be plugged into their computers - to give them high-speed internet access on their laptops via the mobile phone network.
"Mobile broadband has become a reality,'' says Wood.”We'll see some mobile operators saying they can take on the fixed-line broadband providers. It's a great solution. You can use a dongle at your second home and get high-speed internet for the six weeks a year you are there without having to pay a year's fixed broadband subscription. You could give a mobile broadband card to a child who is off to university, but isn't there enough to justify a conventional subscription.''
Music to go
"The music industry is in crisis,'' says Wood.”All their traditional business models are being eroded. The record labels are determined to break the dominance Apple has in the mobile music space with the iPhone and iPods. The mobile phone is just the sort of partner they need. It is the most prolific consumer electronics device on the planet, with three billion users worldwide. Companies like Nokia are present in 173 countries around the world. That will get a record label's music into places where they haven't even heard of iTunes.''
Wood expects to see some of the big labels in Barcelona, thrashing out deals with network providers to develop new mobile music stores like Nokia's take on iTunes, Ovi, which launched last year.
"The mobile phone will be one of the hubs of music,'' he says. "The vision is you'll get your music anytime, anyplace, anywhere, direct to your phone or any other device, for a fixed price.''
He expects to see manufacturers unveiling phones with gigabytes-worth of memory, which will allow mobile users to store thousands of tracks. "There will be lots of new music-centric phones, phones that offer high memory capacity and design features that make phones look more like music players,'' he adds.
Video on phones
Forget live TV on your mobile, says Wood. Video is where it's at. "We're talking direct video downloads, video rentals on the device, and the side-loading of TV shows on to a phone via a computer,'' he says. "We've seen that people don't necessarily want to watch films on their phones, but if you have shorter things like Top Gear, Desperate Housewives or 24 available for download, it allows people to 'snack' on content on the way to work. That will change the way they feel about mobile video content.''
Wood says Apple will drive this trend. The company this week increased the storage capacity on its iPhone and iPod touch devices, both with large screens, and last year added video capabilities to the iPod nano range. At MacWorld in January, Steve Jobs unveiled plans to allow customers to rent videos through Apple TV and load them on to their iPods. Wood says: "Apple is going to educate consumers that you can get video on a small device. They will start to watch it on their nano, say, and demand the same from their mobile.''
Mobile GPS
Watch out, TomTom - the mobile phone is out to steal your thunder. "This is the next example of mobiles taking out consumer electronics categories,'' says Wood. "They've done cameras and music players. Personal navigation devices are next. Expect to see lots of phones with mapping applications built in and better mapping software. TomTom, Garmin and the rest will be at the show, trying to muscle into the wireless space and exploring ways to add cellular communications to their devices.'' It looks likely that every mobile will soon be able to guide you to John O'Groat's, or your sat-nav call the AA when you've broken down on the B3502.
The mobile web
"Expect an avalanche of announcements from the mobile web players, especially in terms of partnerships with handset makers, network operators and software providers,'' warns Wood. ”Social-networking applications are particularly hot. The other big deal will be ways to make it easier for people to share their content, by uploading straight to sites such as Flickr or YouTube.''
We'll see a more personalised mobile internet experience. You will be able to customise your homepage, access reviews and film times based on your detected location and better integrate your blogging and social-networking profiles into your phone's browser.
The phones
Wood predicts a slew of new handsets including light, tough carbon fibre phones and lots of touchscreen models, although not all great. "This is the year of the c**p touchscreen phone. Phones are as much about fashion as technology,'' he says.
Keep your eyes peeled for the new Nokias - rumour is they're working on a touchscreen. Will it cut the mustard?New iPhone unveiled
An iPhone with double the amount of memory was unveiled by Apple yesterday in a move expected to infuriate many existing users.
The 16-gigabyte phone's launch comes only three months after the original 8 gigabyte version of the gadget - a combined iPod music player, mobile phone and internet surfer - went on sale.
The new version costs Pounds 329, only Pounds 60 more than the original version, which many Apple fans rushed out to buy at Christmas.
Shaun Williams, of CCS Insight, the telecoms consultancy, said: "I wouldn't be overly happy if I had just bought one at Christmas. It would have been nice to have the option."
BT decides to hang up on Fusion
BT Group has stopped marketing its mobile phone service Fusion and is working on a radical new mobile strategy to target consumers.
The launch of Fusion was meant to spearhead BT's re-entry to mobile after the 2001 demerger of Cellnet, later O2. It has proved a spectacular flop.
To date just 45,000 people have signed up and BT has stopped advertising the offer to consumers. It is continuing some marketing to the business sector.
Ben Wood, analyst at CCS Insight, said: "Not only are BT feeling the pressure from mobile companies on voice calls, they now face the prospect of mobile operators aggressively targeting broadband users with high-speed mobile modems. And one of the main reasons many BT customers have kept a fixed line at home to date is broadband.''
BT unveils third-quarter results tomorrow. Its shares have fallen from 320p a year ago to 256.25p, down 5.75 yesterday, amid fears about pensions, wholesale revenues and margins at its global services unit.
Nokia starts roll-out of gaming, networking sites
Nokia began the roll-out of its "N-Gage" gaming service and "Share on Ovi" media sharing site on Tuesday as falling handset prices spur the world's largest cellphone maker to expand into mobile Internet services.
Nokia, which made 40 percent of all cellphones sold in the last quarter of 2007, is the first handset maker to move strongly into the content space.
Millions of users have downloaded songs, video clips, programmes or documents since the company launched the Nokia music store and Mosh, a file sharing site, last year.
"These are the first steps on the long journey towards becoming a competitor in the Web 2.0 services space," said CCS Insight research director Ben Wood.
"It now faces the challenge of building awareness for these and other services with consumers who have already gravitated towards established web brands such as Google."
Nokia delayed the opening of its N-Gage gaming service twice last year due to delays in software testing.Motorola may have tough time selling mobile unit
Motorola Inc has essentially put its mobile phone unit up for sale, but the company is unlikely to be able to seal a deal any time soon despite a plethora of possible buyers.
Analysts say Motorola's Thursday announcement that it is reviewing strategic options including splitting off its phone unit will draw interest from consumer electronic makers from China to Sweden. They cited Dell Inc , Samsung Electronics , Huawei [HWT.UL] and Sony Ericsson among the list of potential buyers.
Whoever picks up Motorola's mobile phone unit will have to contend with its lack of an exciting new phone line and the unit's financial troubles, but also will gain a well-known brand in a period of strong growth for cell phones.
With phone sales dwarfing PC volumes and as smart phones with computer-like features gain in popularity, several industry watchers see Dell as a possible suitor.
"Dell could use the Motorola business to continue its diversification into the consumer space with new but related products," CCS Insight analyst Shaun Collins said.
Dell, which hired Ron Garriques when he left his job as head of Motorola's mobile unit last year, declined comment.Motorola Plans Ring Mixed Blessings For Europe Telcos
European mobile phone and network gear makers face mixed fortunes if Motorola Inc. (MOT) decides to selloff its flagging handset business.
While European handset makers Sony Ericsson and Nokia Corp (NOK) are unlikely to bid for the North American handset unit, any change in Motorola's business could provide market share gains for them in the global phone market. But at the same time further pressure could be put on European infrastructure companies, say analysts.
Motorola said Thursday it may spin off or sell its flagship handset division, having faced stiff competition from rivals Nokia, Samsung Electronics Co (005930.SE), LG Electronics (066570.SE) and Sony Ericsson, a joint-venture between Sony Corp and Telefon AB LM Ericsson (ERIC).
Motorola's options from a review include: spin-off the business, sell-it, or carry on as normal.
The first two options could help Nokia and Sony Ericsson gain market share in North America, the one region where Motorola's handset business is a serious contender, says Ben Wood, an analyst at research firm CCS Insight.
"Sony Ericsson's new chief executive Dick Komiyama - who joins from working in North America - has made no secret that he wants to take market share in the U.S. and you can't underestimate efforts from Nokia," he says.
Whatever approach Motorola takes, it will have to move fast to secure its position in North America, home to 35% of its sales. Any procrastination could see a repeat of Siemens AG's (SI) abortive spin-off of its mobile unit into BenQ earlier this decade; when the deal was finally struck most consumers and retailers had already lost interest in the brand.
While Motorola has a stronger product and intellectual property portfolio, Chief Executive Greg Brown needs to ensure that he remains focused on revamping the company's products while looking at the internal restructure, says Wood.
"It would be a tragedy to see Motorola disappear from the phone market but its current fortunes are a reminder that making popular phones is key," he says. While its Razr handset boosted sales and became a big hit, Motorola has subsequently failed to innovate with new handsets.
Microsoft bids for Yahoo
NEW YORK, Feb 1 (Reuters) - Microsoft Corp, the software giant, said on Friday it had offered to acquire Internet media company Yahoo Inc in a proposed cash and stock deal valued at $44.6 billion.
Microsoft said it had offered to buy Yahoo for $31 per share, which it said represented a 62 percent premium above the company's closing stock price on Nasdaq on Thursday.
BEN WOOD, UK-BASED DIRECTOR OF TECH RESEARCH AT CCS INSIGHT
"Yahoo! delivers Microsoft a well-known web entity with a strong user base (particularly in the US), one of the largest email user communities and a wealth of other assets such as photo-sharing website Flickr.
"Yahoo!'s considerable expertise and assets in online advertising (such as its Panama platform) is relevant both in the fixed and mobile worlds. It is notable that Yahoo! already has deals with a number of mobile network operators around the world including Vodafone and T-Mobile in the UK.
O2 triples minutes and texts for iPhone customers
O2 has responded to criticisms of poor value offered on the iPhone deal by tripling the amount of minutes it offers with the £270 Apple handset.
Tariffs costing £35 per month will now come with 600 minutes and 500 texts, up from 200 minutes and 200 texts. The minutes included in a £45-per-month tariff have been doubled to 1,200; however, the number of texts remains the same at 500. The increased offerings will be available from 1 February.
The increase of 400 extra minutes for £35-per-month tariffs − which could cost O2 as much as £1,200 per customer in lost revenue – has been welcomed by analysts.
The £1,200 hit has been calculated assuming customers were using a total of 600 minutes on the old tariff, and are now continuing with the same usage.
Shaun Collins of CCS Insight described the change as ‘a welcome move’. He said: ‘It makes it easier for channels to sell. The tariff was always a weak point; it will unquestionably reinvigorate sales of the iPhone.’Nokia's Trolltech Grab Hurts Rivals
At first glance, Nokia's (NOK) Jan. 28 purchase of a small Norwegian open-source software company seems a confusing strategic shift. After all, the world's largest maker of mobile phones has long resisted the idea of using the grassroots Linux operating system in handsets, favoring instead homegrown software in its mass-market models and the Symbian operating system in its top-of-the-line smartphones.
But analysts hailed the 104 million [$153 million] acquisition of Oslo-based Trolltech as a kind of strategic hat trick. In one stroke, Nokia has managed to defend itself against incursions into the mobile-phone business by Apple (APPL) and Google (GOOG), while potentially further accelerating the meltdown of rival Motorola (MOT). "Nokia is responding extremely quickly to what Google and others are doing," notes Ben Wood, director at British mobile consultancy CCS Insight.
Trolltech has gained success in a small but growing corner of the mobile-phone business, offering widely used software tools for creating programs that can run across a variety of devices, from handsets to PCs to consumer electronics. Though the company's roots are in open source -- and many of its customers use Linux -- it also supports software such as the mobile-phone version of Microsoft (MSFT) Windows.
Nokia moves to realize Internet ambitions - Seeks $153M purchase of Trolltech for open-source, cross-platform expertise
Nokia Corp. said it would purchase Trolltech ASA, a Norwegian software company, for about $153 million, subject to approval by Trolltech’s stockholders.
Nokia appeared eager for the deal and Trolltech seemed amenable as the Finnish handset giant offered a 60% premium above Trolltech’s closing price Friday on the Oslo stock exchange. Nokia said it would acquire Trolltech’s employees, software assets and current platforms, including Qtopia and Qt.
For analyst Ben Wood at CCS Insight, the Trolltech deal is further evidence of a new Nokia on the move.
“We’ve now seen Nokia investing over $10 billion in acquisitions in the last 18 months,” Wood said via e-mail. “Historically, Nokia did not make acquisitions, preferring to develop things in-house. There is a clear change in strategy under CEO Olli-Pekka Kallasvuo. We believe that Nokia is accelerating its efforts in the software space to close the gap that opened as a result of the Apple iPhone launch. Although sales volumes of iPhones are merely background noise in the context of Nokia’s volumes, the iPhone’s impact on consumer expectations for a mobile phone, user-interface experience is immeasurable.
“Trolltech instantly beefs up Nokia’s in-house software capability and headcount in the areas of UI, cross-platform consistency, open-source and Linux.
Sony Ericsson Music Store to Challenge Apple
Mobile-phone company Sony Ericsson unveiled content deals with three of the world's four top music labels, ahead of the launch of its online-music store in May.
Sony Ericsson, a venture between Japan's Sony Corp. and Sweden's Telefon AB L.M. Ericsson, said its upgraded PlayNow Internet and mobile-phone service will be available in 30 countries world-wide by year end. It will offer more than five million music tracks, competing with Apple Inc.'s iTunes Store and Nokia Corp.'s Ovi portal.
Sony Ericsson at Midem, an international music-trade show in Cannes, France, announced deals with 10 record labels, including Sony BMG, Warner Music Group Corp. and EMI Group Ltd.
It also has struck deals with Hungama, from India, and the Orchard, popular in Latin America and Asia -- flagging Sony Ericsson's target of large emerging markets.
Sony Ericsson will face tough competition from Apple, which dominates the digital-music market, having sold more than four billion songs, said Ben Wood, an analyst at United Kingdom research firm CCS Insight.
Analysts on Nokia's Q4/2007 result
In the fourth quarter of 2007, Nokia's net sales increased by 34%. Operating profit totaled EUR 2,492mn when analysts were expecting EUR 1,732mn.
German WestLB bank's analyst Thomas Langer has said to Reuters that the numbers are fantastic. According to CCS Insight's analyst Geoff Blaber, Nokia has benefited from Apple's iPhone that made multimedia devices familiar to consumers. In the fourth quarter of 2007, Nokia Mobile Phones operating margin was 25%. Nokia Multimedia's operating margin rose to 22.1%. Multimedia's operating profit doubled to EUR 670mn.
Nokia Q4 profits jump, market share at 40%
HELSINKI, Jan 24 (Reuters) - Nokia , the world's largest cellphone maker, on Thursday beat expectations with fourth-quarter earnings per share of 0.47 euros, sending its stock up more than 13 percent.
Following are views from analysts on the results:
COMMENTARY: GEOFF BLABER, CCS INSIGHT
"Such a strong performance despite losing share in North America underlines Nokia's current dominance."
"The diversity of Nokia's portfolio combined with its unrivalled economies of scale, supply chain and distribution network presents its competitors with a significant challenge in attempting to compete profitably with Nokia in emerging markets in 2008."
"A further significant decline in market share for Motorola in Q4 of 2007 has been to the primary advantage of Nokia which has capitalised most efficiently on the gap left by the U.S. vendor in key markets such as EMEA."
"Substantial growth in emerging markets including India, China, and sub-Saharan Africa combined with a robust performance in mature markets has meant that Nokia exceeded expectations and has consistently recorded year-on-year growth in excess of 20 percent for all quarters in 2007."
"Sequential growth in ASPs (average selling prices), gross and operating margins despite further expansion into emerging markets underlines the importance of a strong mid and high tier portfolio."Sony Ericsson Aims for U.S. --- New CEO Komiyama Calls Presence 'Weak'
While fourth-quarter net profit fell, cellphone maker Sony Ericsson said it is proceeding with plans to expand in the U.S., among the world's largest cellphone markets and one where the company's presence hasn't been as big as it is elsewhere.
Sony Ericsson, the world's fourth-largest phone maker by market share and a joint-venture of Japan's Sony Corp. and Sweden's Telefon AB L.M. Ericsson, said net profit fell 17% to 373 million euros ($553 million) from 447 million euros a year earlier. Higher operating costs as well as a lower tax rate in the year-earlier quarter made for tough comparisons, the Lund, Sweden, company said.
New Chief Executive Hideki "Dick" Komiyama said in an interview that he planned to step up efforts to improve Sony Ericsson's U.S. presence. "In the largest market, the U.S., our position is weak," said Mr. Komiyama, who joined Sony Ericsson in November from Sony Electronics Inc. in the U.S., where he was chairman.
The company is strengthening its relationships with North American operators, as well as increasing distribution, supply chain and marketing, Mr. Komiyama said. He also said Sony Ericsson is broadening the range of phones it sells to appeal better to U.S. consumers. For example, the company is adding more phones capable of high-speed wireless connections and clamshell-shaped phones, which are popular in North America.
The company said that it expected the global mobile-phone market to grow by 10% in 2008 but warned that business may be tough because of economic turbulence. That growth level would be similar to 2007's, according to Ben Wood, an analyst at research-and-consulting firm CCS Insight.
Sony Ericsson Gains Market Share As Profit Beats View
LONDON (Dow Jones) -- Sony Ericsson, the mobile-phone-making joint venture of Sony Corp. and Ericsson AB, on Wednesday posted better-than-expected quarterly profit and gained market share, even as development and marketing expenses rose and sales slowed in Asia.
The world's fourth-largest maker of handsets said net income for the three months to Dec. 31 fell to 373 million euros ($548 million) from 447 million euros a year earlier. The year-ago results, however, were inflated by a tax rate of 8% vs. a more usual 24%.
"Our target remains to become one of the top three players in the industry, and the momentum we established in 2006 and 2007 makes this a realistic and achievable ambition," said Dick Komiyama, president of Sony Ericsson.
Last week at the Consumer Electronics Show 2008, Sony Ericsson also emphasized its determination to expand its presence in North America, unveiling several new products. The news came just a few months after Komiyama became president of the group.
"Komiyama's strong ties to the U.S. market make it a logical expansion target for the joint venture," according to a report from CCS Insight.
Nokia to exit handset production in Germany
Nokia Corp. on Tuesday said it may slash as many as 2,300 manufacturing jobs in Germany as it moves production to lower-cost European countries such as Romania.
The world's largest maker of mobile phones said the decision to close its production plant in Bochum, Germany, by mid-2008 was based on its lack of competitiveness. It stressed the move was "tough," but "necessary" to secure Nokia's long-term position.
"Due to market changes and increasing requirements for cost-effectiveness, production of mobile devices in Germany is no longer feasible. ... [Bochum] cannot be operated in a way that meets requirements for global cost efficiency and for flexible capacity growth," said Veli Sundback, chairman of the supervisory board of Nokia GmbH.
Geoff Blaber, a senior analyst at telecoms consultancy CCS Insight, also said Germany has long been an expensive manufacturing base. He noted that other vendors, including BenQ Siemens, have failed to operate profitably in the country.
BenQ Siemens' German factory closed in early 2007 after no suitable investors were found.
In the third quarter, Nokia posted a forecast-beating 85% jump in profit.
Analysts at the time emphasized that the biggest surprise was the strength of the operating margin in the device division, which advanced to 22.6% from 13.1% a year earlier. The margin improvement came even as the average selling price (ASP) of a Nokia phone continued to decline.
"It makes sense that as their ASP declines, they are constantly scrutinizing their cost base," said CCS Insight's Blaber.
Apple are ready to launch the next generation of iPhone for the same price
Apple could soon offer a new iPhone with twice the memory but for the same price as the original device in a move likely to disappoint existing owners, according to analysts.
An increase in capacity from 8GB to 16GB or even 32GB is expected soon, with industry analysts saying that plans could be announced as early as today's Macworld conference and expo, an annual trade show dedicated to Apple in San Francisco.
Ben Wood, an analyst for CCS Insight, said that Apple could speak today about making video content more readily available on the iPhone and iPod Touch. This may include being able to access video on the move through wi-fi. "Apple could become the market-maker for video on mobile devices. Phone manufacturers have been seeking to kick-start this category for some time with only limited success," he said.
Mr Jobs is also expected to announce plans to enter the film-rental business, which will operate through its online iTunes Store.