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Filed under: Apple Financial, iPhone

iPhone leads Apple past Nokia to #1 in mobile phone profits

Apple doesn't make the most mobile phones but, as of the third quarter of 2009, the Cupertino company does make the most money from them. Research firm Strategy Analytics says Apple is now the world's most profitable mobile phone maker, kicking Nokia from the top spot between July and September.

Apple's phones only command about 2.5% of the world's cellphone market, though the iPhone's cool factor and the company's premium pricing let it rake in about $1.6 billion in operating profit from the iPhone in the third quarter of 2009, besting cellphone stalwart Nokia and its $1.1 billion in operating profit for the same period.

Alex Spektor, an analyst with Strategy Analytics, says, "With strong volumes, high wholesale prices and tight cost controls, the PC vendor has successfully broken into the mobile phone market in just two years."

What did Nokia do wrong? Reverse what Apple did right. Nokia seems to have slipped thanks in part to lower margins from the weak economy and a less-than-stellar presence in the United States, though Spektor thinks there is time to turn the Finnish ship around. He suggests the company focus more on the U.S. and less on traditional 'non-smart' phones, which don't make as much money per unit as the likes of the iPhone or the Blackberry.

While Nokia may not make the most money, at this point it still makes the most handsets. Nokia's worldwide market share for mobile phones sits at 37.9%. At least for now.

[via The Mac Observer, Electronista]

Filed under: Apple Corporate, Odds and ends, iPhone

Ouch! Nokia suing Apple over iPhone tech

Nokia isn't happy with the iPhone. In a suit filed today in U.S. District Court, Nokia claims that Apple has violated 10 of Nokia's wireless technology patents. The company says the patents "relate to technologies fundamental to making devices," that are compatible with the GSM, UMTS, or 3G WCDMA, and wireless LAN standards.

The claims involve cover wireless data, speech coding, security and encryption technologies. Nokia says Apple has been in violation of these patents since the iPhone launched in 2007.

Nokia says it has invested more than 60 million billion dollars in research and development, but says Apple has not adequately compensated the firm. Nokia is the world's largest supplier of smartphones, but most recently reported a loss of U.S. $836 million dollars, while company shipments of phones has dropped.

Apple, on the other hand, reported 4th quarter results Monday with iPhone sales up 7% from the same period a year ago.

Nokia sued Qualcomm over wireless patents and settled that dispute in July of 2008, but the terms remains confidential.

[Thanks to many of our readers for sending this in]

Filed under: Rumors, iPhone

iPhone rumor roundup: New handsets in June, background tasks, and more

Possibly thanks to a chatty Emirates Telecom/Etisalat executive, we have some more details about when we might see a new iPhone handset: June. While not directly attributed to Mark Davis, iPhone program director at Etisalat, a quote in the report reads that the "next version of the device, which is due out in June, will be launched in the UAE at the same time." Analysts had been hoping for a new iPhone handset sometime during the first half of the year. [Via AppleInsider.]

Nokia is apparently readying smartphones that contain touch technology, advanced 3G connectivity, and multimedia functions in a bid to regain control of the mobile phone market. The devices, so far named "IP08" and "Eitri" will have touch capability, but it's unclear if either device will raise Apple's ire when it comes to protecting its intellectual property surrounding multi-touch gestures. The "Eitri" model will allegedly feature haptic feedback, as well. [Via Electronista.]

Finally, MacRumors.com has some tidbits about what Apple is doing to replace the so-far-missing Push Notification System that Mike mentioned this morning. Instead, Arnold Kim hears that Apple may allow one or two "user-selectable background processes" on current hardware with a software update, and more processes on new hardware (thanks to hardware improvements). [Via MacRumors.]

Filed under: Apple Financial

Nokia, Microsoft drop while Apple stock soars

While Apple stock is up over seven percent since its positive earnings report and conference call yesterday afternoon, both Nokia and Microsoft have released dourer reports about their financial outlook.

Microsoft said that it will lay off up to 5,000 people, about five percent of its workforce, over the next year and a half, according to the Seattle P-I. 1,400 of those jobs would be eliminated today. The news comes as the company announced earnings per share two cents less than their quarterly guidance -- 47 cents versus 49 cents -- on revenues of $16.63 billion. Analysts had expected revenues upwards of $17 billion.

Nokia today posted a 69 percent drop in profits for its last quarter. Nokia stock earned 15 euro-cent per share in profit, compared with 47 euro-cent in the same quarter last year. Sales fell 19 percent to €12.66 billion, missing forecasts of €13 billion.

What can we take away from this? Perhaps this is understating things, but Apple appears to be doing very well against its competitors. In yesterday's conference call, the company announced that it had grown sales and revenue even in the face of challenging worldwide economic conditions. In both retail and iPod sales, much of the growth was outside the United States. Apple sold 88 percent more iPhones than they did the same time last year, although much of that may be attributed to pent-up demand for the iPhone 3G.

At midday, AAPL is $10 higher than its record-low close on Tuesday, trading at around $88 per share. Both NOK and MSFT are trading down about $1.65 each.

[Via Daring Fireball.]

Update: Sony, too: It's posting a record annual loss of $3 billion, and plans to close factories and lay off workers.

Filed under: Analysis / Opinion, iPhone

iPhone triples market share as of Q3 2008

Apple saw the iPhone's market share triple over the past year, capturing 12.9 percent of the worldwide smartphone market, according to a new Gartner analysis.

For the quarter ending September 30, iPhones accounted for 3.4 percent of the market in 2007. That figure was more than 3x higher on the same day in 2008.

Nokia is the leader worldwide in smartphone sales, with 42.4 percent of the market. BlackBerry maker Research in Motion comes in second with 15.9 percent. In North America, Apple is in second place behind RIM, with iPhones accounting for over a quarter of all smartphones.

Gartner analyst Roberta Cozza also noted that this quarter marked the first time iPhone sales exceeded those of Windows Mobile devices; that's pretty astonishing when you consider how many flavors of WM handsets are out there.

[Via Macworld.]

Filed under: Analysis / Opinion, OS, iPhone

Ballmer channels 1985, suggests Apple split iPhone hardware and OS

Steve Ballmer is imitating his CEO predecessor by suggesting that Apple separate its iPhone hardware from OS X, according to Ars Technica.

Nokia leads the smartphone market today with about a 30 percent share, he said. "If you want to reach more than that, you have to separate the hardware and software in the platform," he said in an discussion forum with the Churchill Club, a Silicon Valley business and technology group.

In 1985, Bill Gates approached Apple (and its then-CEO, John Sculley) with prospects in hand to convince it to license Mac OS to third-party vendors. As we all know, that didn't happen (at least not with Microsoft as a partner), keeping the bond tight between Apple hardware and software. Microsoft wound up doing it themselves with Windows.

The idea that Ballmer thinks other companies should be more like Microsoft isn't shocking at all; in fact, what else was the man supposed to say? Like Jobs with Apple, Ballmer's talks and interviews wield a great deal of influence on Microsoft's stock price. If he said anything other than what he did, MSFT would have taken a hit. As CEO, that's unconscionable.

Continue readingBallmer channels 1985, suggests Apple split iPhone hardware and OS

Filed under: Analysis / Opinion, Apple

Why is everyone picking on Apple?

A spate of bad news surrounding Mobile Me and iPhone 3G quality problems paired with renewed vigor from competitors Microsoft, Dell, and Nokia has Apple running out of slack from the normally fawning press (TUAW certainly not withstanding).

Forbes has a story about why Apple seems to have lost its luster recently. The New York Times is waxing nostalgic with a retrospective article titled Apple Imperfect. The National Post cites TechCrunch's Michael Arrington saying Apple is "rotting" and "flailing badly at the edges."

Consider the parable of the friend. Say you have a good friend, who's trustworthy, reliable and generally happy to be around you. If that friend suddenly isn't glad to see you anymore, swears at the elderly and starts drinking cheap bourbon from a hip flask in meetings, you'd say something, right? At least you'd worry that your friend was on the wrong path.

That's where we find Apple today: A friend on the wrong path. Many have noted that a lack of transparency in admitting its mistakes is hurting its credibility. The fact that it's making mistakes in the first place is generally forgivable, but we've been spoiled by Apple's pristine track record of consistently delivering quality. As consumers, we want the quality back. If anything, our expectations are even higher now to properly correct the various perceived injustices we've suffered.

Taking the long view, Apple will pull out of its funk. Knowing Steve Jobs, it will do so in a spectacular fashion, too, with new products, product improvements, or both. Apple isn't suffering from a lack of talent or innovation. It's suffering from management problems that any company of its size faces on a daily basis: scheduling new products, preventing employee burnout, and managing logistics.

We're nowhere near Apple's nadir under Gil Amelio, over a decade ago. In fact, investors don't seem to be fazed at all, with stock prices rebounding to their levels in May. Apple may already be back.

Filed under: Analysis / Opinion, Apple, iPhone

Nokia and Apple both target price drop searchers (Updated)



In among all of the furor about the big iPhone price drop yesterday, there is, of course, marketers trying to ply both sides. Nokia was first with the Google ad you see above, in the results page for "iphone price drop"-- they called out early adopters and tried to lure them to something called Mosh, apparently some kind of social network. I really doubt any iPhone users would join a Nokia social network, even if they were unhappy about the price drop, but nice try Nokia.

And then Apple came up with a little plan of their own. As you can see on the right, they wrote their own "late adopter" Google ad, cheering on folks who purposely waited for an iPhone price drop (like yours truly-- OK, it was so much on purpose as it was being cheap, but still).

Now, most of the tipsters who let us know about this (thanks everyone!) were pretty unhappy that Apple so clearly targeted folks who waited, but that whole $100 rebate thing probably eases the pain a little bit, eh? Can you really blame these marketers for seeing a clear demographic and driving for it?

UPDATE: Cory O'Brien emailed us and let us know that Apple didn't place this ad, he did. Read his whole story at his blog.

Filed under: Humor, Found Footage, iPhone

Found Footage: iPhone.. by Nokia?


Our sister blog Engadget is crazy about all things gadgety, which is why they covered the boatload of Nokia announcements today. Those announcements included the phone in the video above. Look a little familiar to anyone? Now, I'm not usually one to accuse companies of copying Apple, product development is a long process and different paths can lead to the same destination. That being said, when questioned during the press event about how this phone looks a little like the iPhone (i.e. exactly like it) Nokia's Exec VP said, "If there is something good in the world then we copy with pride."

At least they are honest.

This phone should be available sometime next year, unless Apple Legal stops it.

Filed under: Hacks, iPhone

Hack Alert: ssh from iPhone

This morning, reigning iPhone hack-king NerveGas compiled and installed sshd2 and ssh on his iPhone. So what does this mean? It shows that the first steps have been taken towards allowing the iPhone to natively ssh out. For all of you who are inclined to say "Oh ssh, my Nokia can do that... pffft", remember we're still in iPhone's early days. And, no, there isn't a GUI version yet. If you need ssh on your iPhone right now, you'll need to use a Web-based solution. Want to learn more? Head over to #iphone-shell at irc.osx86.hu.

Thanks to the whole iphone-shell gang.

Filed under: Analysis / Opinion, Features, iPhone

Most so-called iPhone alternatives are nothing of the sort

I think a lot of people are getting confused as to what expensive phones are actually designed for. Analysts are trying to compare the iPhone to efforts from other companies, or folks like Walt are touting the Nokia N95 and BlackBerry Curve as potential alternatives.

While I might be a little biased since I write for TUAW, I still think these are bad comparisons. Just because a phone costs north of $400 or $500, doesn't mean that phone is designed for the same purposes as any other phone in the general vicinity of its price. Take the Nokia N95, for example - it's an über-camera phone (which costs nearly $800, by the way). That's what it does. It has a freaking 5 megapixel camera that is making mobile photo geeks go nuts, and that's what it should do. It doesn't have any form of a full QWERTY keyboard, and it isn't designed to be a full-featured multimedia rollercoaster ride of music, movies, and podcasts. It's an über-camera phone. Period.

Continue readingMost so-called iPhone alternatives are nothing of the sort

Filed under: Analysis / Opinion, Hardware, Software, iPhone

On doubting the iPhone and making the wrong comparisons

John Gruber already pointed out some flaws of The Register's Lance Davis who doubts the iPhone, but I have an even bigger problem with the line of thinking Davis used in his analysis. He writes:
Remember, the mobile industry is one where some of the biggest companies in the world have tried and failed: Siemens, Philips, Fujitsu. None of them have creditable [sic] market shares. Even IBM put a toe in the water in the late nineties and then stayed away.
Obviously, no one can truly say one thing or another about the iPhone until we all get our hands on one and the market decides whether the device sinks or swims. Until then, everyone is free to say what they want as long as we all take it with a grain of salt. The qualm I have with Davis' analogy is that the manufacturers he cites - Siemens, Philips and Fujitsu - are using Microsoft's Windows Mobile platform on their smartphones. Setting aside the debate about Microsoft's ability to write software for a moment, the more significant factor here is that these manufacturers are using someone else's software on their products, which means they're susceptible to all the circumstances that come with pairing one's hardware with software they have an inarguable lack of knowledge and experience with.

Continue readingOn doubting the iPhone and making the wrong comparisons

Filed under: iPhone

Nokia excited about iPhone

According to this Tech.co.uk article by James Rivington Nokia is super-duper excited about the upcoming iPhone. Nokia CEO Rick Somonson said that the iPhone could "raise the profile of smartphones and boost the market as a whole". Translated, this presumably means that Apple is charging way too much and if they get away with it Nokia can follow suit.

In related news, Coke just wuvs Pepsi, McDonalds is grateful for Burger King's latest offerings and, um, you might want to check your wallet.

Filed under: Software, Cool tools, Productivity, Internet Tools

Nova Media Address Book plugin for Nokia, Sony Ericsson phones

German-based Nova Media landed on our radar last year with their iSync plugin that supports more phones than Mac OS X's default set. Not content with mere syncing, however, the company also makes an Address Book plugin, recently updated with more supported models, that allows phones from Nokia and Sony Ericsson to shake hands with Apple's contact manager for all sorts of phone call integration. Sending calls to voicemail, replying via an SMS, logging the call and even starting one are all possible from within Address Book. And while AB supports these operations with the default batch of iSync-supported phones, Nova Media's Address Book plugin enables these operations with a large set of Nokia and Sony Ericsson phones that Apple likely never will support.

Unfortunately, there doesn't appear to be a demo available for download, but at roughly $8.50 USD (Euro 6,50), I bet it would be hard to go wrong. After all, I can say from personal experience that $8.50 would be a small price to pay for the satisfying ability of clicking a button in a Mac OS X dialog to send someone directly to voicemail.

Filed under: Analysis / Opinion, iPod Family, Apple

Can Nokia kill the iPod?

Conventional tech wisdom tells us that convergence will conquer all. People don't want to lug around multiple devices when they can have one device that does it well. Sadly, this isn't as easy as it sounds.

Take, for example, two pieces of tech that seem pretty standard issue now a days: the cell phone and the iPod. Motorola tried to combine the two with the ROKR and it didn't work out all that well (they were even working with Apple). The trick is that you can't just combine a crappy phone and a crappy MP3 player and hope for the best. This is why the iPhone rumors are so persistent; Apple is known as a company that 'gets it' therefore, so goes the thinking, an über-phone from Apple will solve all of our problems.

The Nokia Music Manager which allows you to transfer songs from iTunes to your phone.

So, will customers clamor for all in ones and leave Apple behind? I can't predict the future, but at this point I wouldn't bet against Apple, though the N91 does look pretty slick.

Thanks, Mikek.

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