Q2 2003 mobile phone sales up

Consumers around the world bought a total of 115 million mobile phones in the second quarter, putting the industry on a record path to sell between 450 and 460 million phones this year, a survey found on Tuesday.

Growth in emerging markets was the main reason why handset unit sales rose 11.9 percent year-on-year and two percent from the first quarter to a new high, despite the “unquestionable negative impact of the severe acute respiratory syndrome (SARS),” research group Gartner Dataquest said.

Demand in emerging markets was mostly for cheaper handsets. At the other end of the spectrum, sales also rose strongly in Japan as the first country in which consumers could buy handsets with very high-quality cameras built in.

“Sales in Japan, Latin America and the developing markets of central and eastern Europe and the Middle East and Africa far exceeded expectations during the quarter,” Gartner said.

Growth continued unabated in the first month of the third quarter, with India’s Reliance Infocomm signing up a million customers in just 10 days in July, which could well be a world record, said Gartner analyst Ben Wood.

Year-over-year, Finland’s Nokia, Japanese-Swedish joint venture Sony Ericsson and South Korea’s LG and Samsung grew above average, but sales fell at Motorola and Germany’s Siemens.

Gartner’s 2003 forecast, implying growth of nine percent after three years of stagnation, is in line with that of most mobile phone producers as well as of rival research firm Strategy Analytics, which published second-quarter statistics last month.

The difference between the two is that Gartner measures sales from distributors to real users, while Strategy Analytics only measures sales from handset manufacturers to distributors.

Compared with the first quarter, Nokia strengthened its No 1 position with a 35.9 percent market share from 35 percent in Q1. Economies of scale allowed it to cut prices for low-end products aggressively in emerging markets, Wood said.

Wood reiterated his expectation that Nokia could hit its 40 percent target later this year on the back of its new models, including handsets for Asian and American CDMA-standard networks, where until now it has trailed other vendors such as Samsung.

Motorola dropped to 14.6 percent from 14.7 percent in the first quarter, hurt by SARS and intense competition in the Chinese market where it used to be the largest vendor. Samsung fell to 9.9 percent from 10.5 percent due to SARS and lower handset subsidies.

Siemens declined to seven percent from 7.6 percent due to a lack of new models. Sony Ericsson rose to 5.5 percent from 4.8 percent as a result of new products in both Japan and Europe.

All vendors have vowed to grab market share in the all-important second half.

67% Steal Music

Data gathered from Pew Internet & American Life Project surveys fielded during March – May of 2003 show that a striking 67% of Internet users who download music say they do not care about whether the music they have downloaded is copyrighted. A little over a quarter of these music downloaders – 27% – say they do care, and 6% said they don?t have a position or know enough about the issue.

The number of downloaders who say they don?t care about copyright has increased since
July-August 2000, when 61% of a smaller number of downloaders said they didn?t care about the copyright status of their music files. Of those Internet users who share files online (such as music or video) with others, 65% say they do not care whether the files they share are copyrighted or n

E-mail click rates

Since the first quarter of this year open rates have declined from 39.2% in Q1 and click-through rates have fallen to 8.3% this past quarter from 8.9% in Q1. Nonetheless, it is important to note that legitimate e-mail marketers can carve a space for themselves over time.

DoubleClick’s report is based on aggregate data from hundereds of DoubleClick clients who sent 2 billion permission-based commercial e-mails using the company’s DARTmail delivery technology. DoubleClick notes that companies in certain industries fared better than others in Q2. For example, e-mails promoting retail companies and catalogs experienced delivery rates of 91.3% this past quarter — up from 85.4% in Q2 2002 — while click-through rates rose 9.8% over the year.

Linux, blades the high spots in server market

The worldwide server market was worth US$10.6 billion in the second quarter of 2003, a scant 0.2 percent higher than in the same quarter last year, according to revenue figures released Friday by IDC.

The market for servers based on standard Intel Corp. architecture has now overtaken the commercial Unix server market, growing 10.7 percent to reach revenue of $4.46 billion. Unix server sales dropped 5.2 percent from the year-earlier period for revenue of $4.3 billion, according to IDC.

The market for Linux-based servers grew at 39.5 percent year-on-year to reach $650 million, while blade server revenue reached $119 million, almost eight times more than in the second quarter of 2002.

The shifting market was reflected in the varying fortunes of the leading vendors. IBM Corp. took over from Hewlett-Packard Co. (HP) as the leading server vendor overall following 10.1 percent year-on-year revenue growth compared with HP’s 0.4 percent growth.

Although HP leads IBM in each of the three main Intel-standard, Unix and Linux markets, IBM still gains considerable sales from proprietary server hardware such as the iSeries, giving it overall market leadership.

Sun Microsystems Inc. saw sales fall by 18.7 percent over the year and is being challenged for its third position by Dell Inc., whose sales grew 10 percent over the year, according to IDC figures.
Table 1: Worldwide server revenue in millions of U.S. dollars, Q2 2003.
Q2 ’03 sales Q2 ’02 sales Q2 ’03 to Q2 ’02
IBM $3,228 $2,931 +10.1%
HP $2,946 $2,935 +0.4%
Sun $1,434 $1,763 -18.7%
Dell $980 $891 +10.0%
Others $2,028 $2,077 -2.4%
TOTAL $10,616 $10,594 +0.2%
Figures are in U.S. dollars, by millions.

Worldwide Analytic Applications Software Market to Reach Over $4.8 Billion in 2007

The worldwide analytic applications software market is forecast to reach over $4.8 billion in 2007, according to IDC. To capitalize on the growth of this market, vendors centered in one sector of analytic applications should consider expanding their presence to all three sectors customer relationship management (CRM) analytics, financial business performance management, and operations through development, acquisition, or partnering.

Analytic applications are the best means of navigating from data to decision-making and action. As companies adopt these applications to enhance the effectiveness of finance, customer relationship management (CRM), and operations, they will gain a distinct competitive advantage over those companies that tolerate traditional inefficiencies, said Bob Blumstein, research director for IDC CRM analytics and marketing applications research.

All three sectors of the analytic applications market are projected to enjoy healthy revenue growth rates through 2007. CRM analytics will grow the fastest with a compound annual growth rate (CAGR) of 12.9%, followed by financial analytics/business performance management at 10.3%, and operations analytics at a 7.4% growth rate.

China Mobile Phone Users Hit 250 Million

The number of mobile phone users in China – already the world’s biggest market – has hit 250 million, the government said Friday. Chinese phone companies signed up nearly 29 million new mobile customers in the first half of the year, the Ministry of Information Industry said. The country has 472 million fixed-line phone subscribers, the ministry said in a report carried by the official Xinhua News Agency.

IBM Retakes No. 1 Worldwide Computer Server Spot

International Business Machines Corp. (IBM.N) reclaimed the top market share spot among computer server companies worldwide during the second quarter, pushing Hewlett-Packard Co. (HPQ.N) back into the No. 2 position, according to market research firm IDC.

IBM, which makes everything from computers based on Intel Corp. (INTC.O) microprocessors to giant mainframe systems that use proprietary semiconductor technology, had 30.4 percent of global server systems revenue during the quarter.

HP, which held the No. 1 spot last quarter, had 27.7 percent of total revenues.

The overall server market was $10.616 billion in revenues, a slight increase from a year earlier’s $10.597 billion.

EFM Enables Cheap Broadband in Asia Pacific

The worldwide number of residential
Ethernet in the First Mile (EFM) subscribers will rise from 2.1 million
in 2002 to 23.9 million in 2007, with most of these subscribers residing
in the Asia Pacific region, reports In-Stat/MDR.

The high-tech market research firm finds that since the end of 2000,
there has been growing momentum for the use of Ethernet in the
residential subscriber access network, owing to Ethernet?s relatively
low cost, simplicity, flexibility, ubiquity and high bandwidth.

R&D the next to be outsourced

The next wave of outsourcing will be research and development (R&D) functions, according to the latest Santa Clara University Business Index released Thursday.

The monthly business indicator tracks business conditions and jobs by polling executives and managers in a wide range of companies. While R&D hasn’t been moving offshore at the rate of manufacturing and customer support, SCU finance professor Robert Henderschott told internetnews.com says a trend is developing.

“There are quite a few companies in our survey — over one-fifth — putting their toe in the water,” he said.