Motorola is really going to reduce its workforce by 4,000 positions. Approximately 3,000 of them will be associated with the Mobile Devices business. The company also reports that the workforce reductions will begin immediately. These workforce reductions are expected to save $700 million in 2009, and other cost-reduction initiatives – $800 million more. Sanjay Jha, co-chief executive officer of the company, says that these actions will position Motorola for improved financial performance in 2009, when the company is going to develop new smartphones.    

  Generator Research carried out an analysis showing that Nokia could give the palm to Apple in smartphone manufacturing and delivery of mobile services. Apple is engaged in mobile business for a short time but it is already possible to look into the future of the company. Generator Research explains excellent prospects by the fact that Apple is holding all the aces presented by a fully integrated platform with rich application programming interface (API) open to third party developers on favourable commercial terms. The fact of the matter is that these platforms have become crucial in development of mobile industry. Generator Research has come to a conclusion that iPhone and App Store are very promising and will be developed like Apple’s digital music platform that includes iPod and iTunes Music Store. Andrew Sheehy, head of research, states that with cash reserves exceeding $25 billion, 33% gross margins and iPhone about to enter the phase of the fastest growth, the company has everything to invest in the mobile sector. Moreover, Apple is granted this opportunity when the economic climate is forcing many mobile manufacturers to reduce the pace of development. Apple competitors may suffer a very strong blow. For instance, Nokia’s share

  The National Safety Council, which campaigned to enforce seatbelt laws, started a campaign to ban the use even of handsfree cell phones while driving. Up until now, it was considered that talking on the phone while driving is dangerous only because a driver can’t use a hand holding the phone, that’s why many states have laws requiring the use of a handsfree cell phone while driving. However, recent studies show that a driver is distracted no matter if he uses a hadsfree cell phone or not. It should be mentioned that it is less dangerous to talk to a live passenger because he “provides another pair of eyes on the road”. This is also confirmed by respective studies. A team of researchers has come to a conclusion that the use of a cell phone on the road increases the probability of a car accident four times because a driver is distracted as if he is drunk. According to a study from the Harvard Center of Risk Analysis, 6% of car accidents happen because drivers are talking on the road. These 6% equal 636 thousand accidents with 330 thousand injuries and 2600 deaths in USA per year. There may be many people doubting the reasonability of a complete cell phone use ban and saying that a cell phone isn’t the only thing that

  Chinese government is likely to grant operators permission to launch 3G network. The ministry for industry and information technology plans to grant operators 3G licenses in January of 2009. It is already known that according to one of the conditions of the licenses the three operators (China Mobile China Telecom and China Unicom) must develop the network together and share deployment costs. 3G network is expected to bring $30 billion to the government that will be felt in the economy of the country.    

  Portio Research, a research company, suggests that SMS will continue to be popular even during the global economic downturn. In 2008 the whole SMS industry was worth USD 130 billion and in 2013 it is expected to be USD 224 billion. High popularity of SMS can be easily explained. There exists no other cheaper and simpler technology that can be supported by all mobile operators and all kinds of cell phones. Filipinos are the record holders in SMS sending – an average user sends 755 messages each month.  

  Samsung Electronics Co. overtook Motorola Inc. as the leading vendor of handsets in the U.S. for the first time in the third quarter, according to data from Strategy Analytics Inc. The South Korean company reached the milestone -- with 22.4% of the market compared with Motorola's 21.1% -- by offering carriers a full portfolio of devices, from high-end products such as the touch-screen Instinct to lower-end phones given free to customers who sign up with a particular carrier.

  AlleyInsider reports on a new analyst report from Friedman Billings Ramsey which claims that Apple's iPhone production could fall "more than 40%" in the 4th Quarter of 2008. AlleyInsider points out this may simply represent a surplus of iPhone production from Q3 2008 and the decrease in Q4 is to adjust inventory to match demand. Another contributing factor is believed to be the recent economic downturn: That the firm's iPhone production plans are being revised lower suggests that the global macroecomomic weakness is impacting even high-end consumers, those that are more likely to buy Apple's expensive gadgets, and that no market segment will be spared in this global downturn. This is a negative signal for global demand, in our view. The analyst bases his findings on "recent checks" on the chip industry which supplies parts for Apple's iPhone. The news comes shortly after Apple reported record iPhone earnings capturing 2.3% of the mobile phone market. Source

  A weekend report reveals a Japanese newspaper and news agency are reporting electronics maker Panasonic may buy majority stake in Sanyo Electric before 2009. While the news is unofficial, Sanyo has made a statement saying it is considering options of selling its preferred stock shares but is yet to make a decision. Panasonic's press release, meanwhile, simply reads the company has not made such an announcement, but nothing was yet decided in regards to the rumored purchase, confirming the two companies are in talks. This year's fall in stock prices would mean Panasonic would buy Sanyo shares for a third less than they cost as early back as July. If the deal goes through, it would let Panasonic add Sanyo's extensive battery business to its own, along with giving the giant access to Sanyo's solar panel business and enter that industry. Panasonic would need to deal with Sanyo's majority shareholders Goldman Sachs, Sumitomo Mitsui Banking and Daiwa Securities SMBC, which made a saving 300 billion yen ($3 billion) investment in Sanyo back in 2006. The rumors regarding the sale were reported by Japan's biggest business daily, the Nikkei, along with the Kyodo News agency. Struggling Sanyo was rescued in 2006 with by Goldman Sachs, Sumitomo Mitsui Banking

  The worldwide mobile phone industry felt the impact of the global financial crisis in the third quarter of 2008 (3Q08) as total handset shipments were down significantly over previous quarters. Mobile phone manufacturers shipped a total of 299.0 million handsets in 3Q08, up 3.2% from last year, and down -0.4% over 2Q08. The third quarter of the year has historically been a ramp-up quarter as manufacturers load their sales channels with handsets in preparation for the holiday season, producing year-over-year growth rates as high as 20% as a result. This year has not witnessed a similar ramp up, largely due to the current economic situation. Looking forward to the holiday season, mobile phone average selling prices have already begun to drop and marketing campaigns are ramping up, and competition for buyers will remain high as spending will be a concern to consumers. IDC expects tight economic conditions will make 2009 slower and more competitive as well. Regional Analysis In North America, new releases from Apple, Palm, and Research In Motion, along with the highly anticipated release of the HTC G1, pushed the converged mobile device further into the public eye and into users' hands. Conversely, traditional mobile phones were not able to keep up

  According to the latest forecasts from Informa Telecoms & Media, there will be four billion global mobile subscriptions at the end of this year! To put the number in perspective, it took five full quarters for the latest billion net additions. Naturally emerging markets such as India and China are to “blame” for this rapid growth. The two mentioned countries have seen over 50 million new mobile subscriptions during the last six months. Other countries that also saw a significant growth in mobile phone penetration include Indonesia, Vietnam, Pakistan and Brazil. On the down side, though, this growth is set to slow, and Informa predicts the five billionth subscription will be signed during Q4 2011, with worldwide penetration reaching in excess of 70% by this time. Only in Africa will penetration at the end of 2011 still be below 50%. The world’s largest mobile operators know the market will stop growing at some point, hence they’re broadening, and in some cases reconsidering their strategic thinking. Informa’s “Mobile Operator Strategies” report studies the parallel business lines being assumed by the likes of Vodafone, China Mobile and Telenor. On the one hand, the extension of basic mobile connectivity

  These days, anyone with Photoshop and a fanboy bent can come up with fake (or, as they are known, "concept") product design. To achieve smart, desirable simplicity, though, requires some talent. Mac Funamizu has it, as we saw with his transparent tablet computer, which overlays the internet on the real world. Now he has theoretically embedded e-ink into simple plastic block to make a smart phone. Based on the Nokia Aeon (another concept), the Nanokia has no buttons. The interface is configured on-the-fly, like the iPhone, but the e-ink makes you forget thare is a screen involved. The planned haptic interface furthers the illusion of real, solid buttons. I love it. Especially the slide-out-screen configuration. It's one step closer to something that was already perfected 11 years ago.

Q3 highlights: Break even results, excluding restructuring charges, as challenging business conditions continued C902 Cyber-shot™ camera phone is hit model of the quarter First Xperia™ branded multimedia phone X1 began shipping   Expansion of music service offering with announcement of PlayNow™ plus   Units shipped in the quarter were 25.7 million, a sequential increase but flat year-on-year, while sales for the quarter were Euro 2,808 million, a decrease of 10% compared to the third quarter of 2007. Most of this decrease reflects the impact of exchange rate fluctuations, as well as a shift of the product mix to more lower priced phones. Gross margin also decreased year-on-year and sequentially due to continued price pressure at a time of adverse cost trends in the supplier base. This was partially mitigated by the introduction of new products at the end of the second quarter, such as the C902 Cyber-shot™ camera phone, which is selling well; however, strong competition continues, particularly in Europe. Income before taxes for the quarter was Euro 12 million, excluding restructuring charges of Euro 35 million, a decrease compared to the third quarter of 2007. Average selling price (ASP)

  According to JPMorgan, mobile phone handset growth for 2009 will drop by roughly two per cent, primarily because consumers, particularly in Europe, are reluctant to upgrade their phones. Other ­market analysts argue that consumers are being put off buying new mobile phones because of the current economic climate. This follows recently issued research findings from Globo, which show that 65 percent of users of mobile phones, who want access to emails or other online applications, aren't ready to replace their handsets just to obtain it. Dr. Joseph Coughlin, Director, AgeLab, Massachusetts Institute of Technology (MIT) and Non-Executive Director, Globo, believes that new developments in mobile software are the logical next step in the development of the mobile society. He argues that current economic developments highlight the requirement for the market to adopt a new breed of open software that has the ability to turn every mobile phone into a 'smart' phone. The next generation of 'all-in-one' solutions will push, synchronise and share all a users' different applications onto one single platform - regardless of the service provider or handset. "We have already seen communications bring the death of distance and the next generation of mobile

  Oct. 13 (Bloomberg) -- Intel Corp., Microsoft Corp. and the technology companies that so far have escaped the credit crisis relatively unscathed will lose out on as much as $170 billion in sales next year as the crunch catches up with them. Corporate spending on computers, software and communications equipment may be little changed or fall as much as 5 percent next year as the lending freeze spooks clients, said Jane Snorek, an analyst at First American Funds in Minneapolis who has followed the industry for 13 years. It would be the first decline in the $3.41 trillion market since 2001 after the dot-com bubble burst. ``Business kind of stopped dead in the last two weeks,'' said Snorek, whose firm owns Microsoft and Intel stock among more than $100 billion in assets. ``People are pushing off orders and saying, `I have no idea if we're going to have a global meltdown, so I'm not going to buy anything right now.''' While consumer spending growth slowed this year as the economy slumped, corporate budgets stayed fairly constant until now. Snorek said the collapse of financial-services customers, who account for a quarter of technology outlays, and a subsequent surge in interest rates persuaded clients to pare back. More data will emerge tomorrow when

  HTC Corporation has reported September revenues of NT$13.7 billion, up 30% from the same period last year. For the third quarter of 2008, the company's total revenues reached NT$37.86 billion, representing 30.06% year-on-year growth. The company also reported pre-bonus adjusted net income before tax of NT$ 9.4 billion, total net income of NT$ 8.4 billion, and earnings per share of NT$11.14. For its post-bonus adjustment, the company had total net income before tax was NT$ 7,846 million, total net income was NT$ 7,071 million, and earnings per share after tax were NT$ 9.36. HTC's third quarter revenue were in line with guidance provided during last quarter's conference call. Nevertheless, September revenues were slightly affected by the delay of shipment due to a series of typhoons. The company remains optimitics it will achieve annual revenue growth of 20-30%, and close to the upper end of the target.