Cell Phone Market Growth Slowing-Ericsson
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Ericsson, the world's biggest  producer of mobile phone networks, said market growth would  slow next year, sending its share price down sharply despite  reporting a big jump in third-quarter profits on Friday.
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Nokia, the world's largest mobile-phone maker, has lowered its profitability targets in spite of rising sales, highlighting the growing difference in its performance with that of rival Ericsson.
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Mobile communications specialist Ericsson reported strong third-quarter earnings on Friday but said it expected only slight growth in mobile networks in the coming months.
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Beleaguered Swedish telecom infrastructure group Ericsson, hit hard by a slowdown in the telecom sector, announced on Friday a 17-percent fall in 2007 net profit and the shedding of 1,000 jobs in Sweden.
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Worldwide mobile phone gaming revenue  slid 9 percent during the three months ended in June, sparking  concern about slowing demand in the category, research firm  iSuppli said on Wednesday.
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Ericsson, the world's leading mobile networks maker, reported sharply lower results Thursday, in line with last week's profit warning that shocked investors, but said the market could touch bottom by early 2008.
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Revenue from its basic phone service is slipping as consumers make more cellular calls and experiment with upstart Internet-based phone providers.
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Motorola executives said demand for the companyâs cellphones had slowed and the company was losing market share.
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(InfoWorld) - Motorola has a strategy for improving its struggling cell phone business: Be boring. That's what CFO Tom Meredith said on Wednesday during the Citi Investment Research Global Technology Conference. "I believe we can right our ship by being boringly consistent," he said during a webcast of the conference. Motorola's history as a cell-phone developer is anything but boring, littered with iconic phones from the StarTac clamshell 10 years ago to the recent hit with the Razr. But you'd be hard pressed to name an iconic product from market leader Nokia or Sony Ericsson, Meredith noted. "Yet, when you look at their profitability and successes, you see they have a portfolio that was complete and ran the gauntlet from mass market to feature to enterprise, and they effectively competed more effectively than we did," he said. Taking a cue from competitors, Motorola will focus going forward on developing a broad portfolio of phones that will be attractive to a wide range of users rather than looking for the next Razr, he said. Combined with a couple of other new strategies, Motorola should be able to regain lost market share, he said. For instance, Motorola hopes to do better in developing markets like India and China. While Meredith didn't describe how, he did point to ways that the company has stumbled there recently. He said that Motorola missed an opportunity with its Moto phone, which was designed to be a low-end handset for developing markets. That phone failed because it didn't have a color screen and neglected to recognize how important texting is in its target markets, he said. Motorola should also benefit from some developments Apple's iPhone has spurred. Operators have historically resisted including Wi-Fi capabilities in phones, he said. But because the iPhone includes Wi-Fi, the operators are starting to come around and recognize that it's inevitable, Meredith said. "I think Steve [Jobs] and Apple did companies like Motorola a favor in that regard," he said. The iPhone may also have generated interest in the touchscreen concept. Motorola has sold 12 million phones with touchscreens, primarily in China, but hasn't targeted them to North America. The company is still watching the market and listening to carriers, but it may introduce touchscreen phones in North America, he said. Motorola recently reported that slow sales of mobile phones contributed to a second quarter loss of $28 million.Â It also cut 3,500 jobsÂ in the first half of the year and is in the process ofÂ laying off another 4,000. The struggles have put company CEO Ed Zander in the spotlight, but the board has not had a "no confidence" vote in their leader, Meredith said, in response to a question from the audience.
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Sony Ericsson, the world&#39;s fourth  biggest mobile phone maker, posted higher second-quarter sales  on Wednesday but its profit and its average phone sale prices  were below analyst estimates.
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Ericsson, the world's largest supplier of mobile telecommunication networks, on Friday posted an 8.2 percent rise in profits in 2006 but disappointed the market by revising downwards its forecast for 2007.
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Swedish telecoms equipment maker Ericsson reported a lower-than-expected fourth-quarter gross profit margin on Thursday as the rollout of more mobile networks added to costs, sending its shares down despite strong orders.
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Down 3.7% from last year The German mobile market will experience sluggish growth in 2006, according to a report from analyst Telecompaper.â¦
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Nokia (NOK1V.HE), the world's largest mobile phone maker, expects slowing mobile phone growth in 2005 but plans to launch more phones next year and regain lost market share, the company said on Thursday.
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U.S. telephone carrier customers of Samsung Electronics saw slowing sales of cell phones towards the end of the 2007 holiday shopping period, which was a strong sales period for Samsung, a top executive for the phone maker said on Sunday.
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Ericsson ERICb.ST, the top global   mobile telecoms equipment maker, said on Thursday it expects   growth of about 5 percent for the world's biggest mobile   standard, GSM, and its successor, WCDMA, in 2006.
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Market researcher IDC expects growth  in the global market for mobile phones to slow to single digits  from this year onwards after unit sales rose 11.6 percent last  quarter, it said in a statement on Friday.