It’s the season for smartphone teasers; LG has been working the Optimus 3D angle, and Samsung has been making a song & dance about the Galaxy S2, the dual-core successor to their wildly popular Galaxy S family. All in the run up to MWC 2011 of course, and in the excitement it’s easy to make a mistake: like, oh, forgetting to double-blur your Galaxy S2 pre-advert and mask out the device itself.
Video after the cut
As Engadget spotted, while Samsung’s video editing people have been very careful to mask out any sign of a device in its models’ hands, that thoroughness didn’t quite extend to any reflections in shot. So, when the grinning lady in the screencap above is busy being blinded on the right, she’s also looking straight at an unmasked smartphone in the reflection on the left.
Now, it’s not clear whether Samsung has actually used real Galaxy S2 handsets for the filming of the promotion – we imagine those with better eyesight than us are already creeping through the 1080p version of the teaser on a frame-by-frame basis – but we won’t let that worry us too much. After all, SlashGear is off to MWC 2011 in just a couple of weeks time, and we’ll have all the news for you then.
Photoshop is hard. Hell, we’re just hacks ourselves, using the tool as a means to help convey a story. But we don’t have BAs in graphic design and we’re definitely not operating within Samsung’s multi-million-dollar advertising budget. So pardon us while we tease Sammy for failing to add a starburst to cover the reflection of its super-secret next-generation followup to its Galaxy S handset. The grab above comes at the 13 second mark of the official “next Galaxy S” teaser video (posted after the break) released in the runup to the big Mobile World Congress event. We guess some secrets really are meant to be shared.
It’s been confirmed, Super Bowl XLV will not be the first one with a full HD 3D broadcast (no gimmicky 3D commercials this year either, you can put the paper glasses away) despite featuring a halftime show by James Cameron’s BFFs, the Black Eyed Peas. Still, considering what happened the last time they tried 3D at the House That Jerry Jones Built it’s probably for the best. Still, just because you don’t have one of Cowboys Stadium’s record breaking HD screens you should still enjoy the game in style. In 2011 that means going beyond just the screen, the sounds and the seats — we’ll tell you how after the break.
You can call it a Valentine’s sale or a pre-iPhone 4 blow out, but any way you slice it there’s some pretty good deals on Android phones available from Verizon right now. That includes the Samsung Fascinate and Continuum, as well as the HTC Droid Incredible and Motorola Droid R2-D2, which are all now available for just $100 on the usual two-year contract (the Fascinate deal is apparently today-only). Unfortunately, the sale doesn’t include the Droid X, Droid Pro or Droid 2 Global, but Verizon is promising some additional one-day only sales during its “ten days of sweet deals” from now until February 10th, so folks interested in one of those might not be out of luck just yet.
Samsung has admitted that its much-vaunted sales figures for the Samsung Galaxy Tab did not, in fact, refer to sales to end-users, but were merely shipment figures to retailers and carrier partners. The company had announced 1m sales of the 7-inch Android tablet back in early December 2010, and claimed to have passed the 2m sales point late last week; however, when questioned during Samsung’s quarterly earnings call, the WSJ reports, a Samsung executive admitted that actual customer sales were still “quite small.”
“Well, your question was on sell-in and sell-out. As you heard, our sell-in was quite aggressive and this first quarterly result was quite, you know, fourth-quarter unit [figure] was around two million. Then, in terms of sell-out, we also believe it was quite small. We believe, as the introduction of new device, it was required to have consumers invest in the device. So therefore, even though sell-out wasn’t as fast as we expected, we still believe sell-out was quite OK.” Lee Young-hee, Samsung
The issue appears to be in how Samsung breaks down “sales”, using “sell-in” to describe sales to vendors and carriers, and then using “sell-out” to describe those vendors’ sales to end-users. So far, Samsung appears to have been using “sell-in” figures to describe Galaxy Tab sales without necessarily making that entirely clear.
Samsung declined to give “sell-out” figures during the call, instead suggesting that “the tablet is relatively new and we need to see how the market develops before we give any firm numbers.”
Samsung has announced that it has added a new streaming service to its full line of Blu-ray players in the UK. The new streaming movie service is LOVEFiLM. The app requires a subscription to the LOVEFiLM service of at least £5.99.
Samsung Blu-ray owners with a subscription for that monthly amount or higher can stream films directly to the TV via the Internet@TV service. The full range of movie offerings from LOVEFiLM is offered from Hollywood blockbusters to Cannes Film Festival nominees.
Samsung says that it will offer more new apps for the Blu-ray players this year as well. Andy Griffiths, Vice President, Consumer Electronics, Samsung UK comments, “Adding the LOVEFiLM streaming service to all Samsung Blu-ray players and Blu-ray Home Theatre Systems is great news for us at Samsung as we’re dedicated to providing our customers with relevant and exciting content, all from the comfort of their own home.”
Apple has been pushed from its number four spot in the top worldwide mobile phone market, with ZTE entering the top five ranking and pushing the iPhone maker down to fifth place. That’s according to IDC‘s Q4 2010 mobile phone market research, which pegs Nokia as maintaining the top spot despite a 2.4-percent slip in share. It’s worth noting, of course, that this particular research covers mobile phones overall, rather than simply smartphones.
Overall, IDC reckons the global mobile phone market grew 17.9-percent in the last quarter of 2010, exceeding 401m units of shipped devices. Altogether that makes 1.39bn shipments in 2010 as a whole, an 18.5-percent increase over 2009. ZTE’s success – the first time in IDC’s rankings that the company has broken into the top five – is put down to its low-cost portfolio of feature phones and smartphones, increasingly popular as developing users upgrade to affordable data-capable devices.
Samsung’s success echoes the company’s financial results, published earlier today, in which the company announced over 80m devices sold in Q4 2010. IDC’s smartphone-specific research is due to be published next week.
Press Release:
Mobile Phone Market Grows 17.9% in Fourth Quarter, According to IDC
27 Jan 2011
FRAMINGHAM, Mass. Jan. 27, 2010 – The worldwide mobile phone market grew 17.9% in the fourth quarter of 2010 (4Q10), a new quarterly high driven by smartphones. According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 401.4 million units in 4Q10 compared to 340.5 million units in the fourth quarter of 2009. Vendors shipped a total of 1.39 billion units on a cumulative worldwide basis in 2010, up 18.5% from the 1.17 billion units shipped in 2009.
The strong quarterly and annual growth comes after a weak 2009, which saw the market decline by 1.6%. A stronger economy and a wider array of increasingly affordable smartphones helped lift the market to its highest annual growth rate since 2006 when it grew 22.6%.
“The mobile phone market has the wind behind its sails,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “Mobile phone users are eager to swap out older devices for ones that handle data as well as voice, which is driving growth and replacement cycles.”
It’s not just smartphone-focused suppliers that capitalized on the mobile phone market’s renewed growth last year. ZTE, a company that sells primarily lower-cost feature phones in emerging markets, moved into the number 4 position worldwide in 4Q10. It is the first quarter the Chinese handset maker finished among IDC’s Top 5 vendors.
“Change-up among the number four and five vendors could be a regular occurrence this year,” added Ramon Llamas, senior research analyst with IDC’s Mobile Devices Technology and Trends team. “Motorola, Research In Motion, and Sony Ericsson, all vendors with a tight focus on the fast-growing smartphone market who had ranked among the top five worldwide vendors during 2010 are well within striking distance to move back into the top five list.”
Market Outlook
IDC believes the worldwide mobile phone market will be driven largely by smartphone growth through the end of 2014. “Feature phone users looking to do more with their devices will flock to smartphones in the years to come,” noted Restivo. “This trend will help drive smartphone sub-market to grow 43.7% year over year in 2011.”
Regional Analysis
The Asia/Pacific mobile phone landscape was driven by low-cost and high-end devices in 4Q10. Domestic brands in India like G-Five, Micromax, and Karbonn grew with aggressive advertising and branding activities for entry-level phones, while ZTE and Huawei worked closely with carriers to push low-cost Android smartphones in China. High-end smartphones, however, were equally well-received, resulting in higher shipments from Apple, Samsung, and HTC in 4Q10. Korea had the biggest smartphone appetite accounting for two-thirds of phones shipped in 4Q10, up from one-eighth a year ago.
In Western Europe, carrier smartphone promotions motivated more users to scrap their feature phones, resulting in strong smartphone sales. The iPhone 4, HTC Desire, Nokia N8, Samsung Galaxy S, and Blackberry 8520, which were among the region’s top sellers, contributed to the overall market’s growth. Consequently, the feature phones experienced their sharpest decline ever. In CEMA, quarterly volumes breached the 70 million unit threshold for the first time, marked by an influx of Chinese and unbranded handsets. Meanwhile, smartphones experienced brisk growth due to falling prices and more Android-powered devices.
The United States mobile phone market closed out the year with more vendors becoming more active in this space. Market leaders RIM and Apple maintained a healthy lead, while newcomers Dell, Huawei, Kyocera, and Sanyo launched their first smartphones to the U.S. market. In addition, 4G took another step forward with the commercial launch of Verizon Wireless’ LTE network. Similarly, in Canada, the focus was on smartphones. Android-powered devices from multiple players, along with incumbent vendors RIM and Apple, pushed shipment volumes to a new record level.
In Latin America, sustained user interest in smartphones drove the market, resulting in strong results for Nokia, RIM, and Samsung as well as relative newcomer Huawei. Smartphones, as well as QWERTY-enabled feature phones, helped boost social networking and messaging, two fast-growing trends in the market. Finally, Alcatel and ZTE once again thrived in the inexpensive entry-level device market.
Top Five Mobile Phone Vendors
Nokia overall unit volume slipped 2.4% in the fourth quarter, which the vendor attributed to the “intense competitive” environment and component shortages. The result was lower feature phone shipments. The company did, however, grow smartphone volume by 38% compared to the same prior-year quarter. Nokia launched the C7 and the C6-01 touchscreen smartphones as well as the C3 combination touchscreen & QWERTY device in the fourth quarter. Still, smartphone ASPs dropped 16% on a year-over-year basis.
Samsung reached a new milestone in 4Q10, pushing through the 80 million unit threshold for the first time in the company’s history and improving its profit margins for the second straight quarter. Driving shipment volumes was the continued success of its Galaxy S smartphones, of which the company sold nearly ten million units worldwide for the year. Similarly, Samsung’s mass-market and touch-screen phones earned a strong following in emerging markets.
LG crossed the 30 million unit mark for the quarter, due in part to the success of Optimus One smartphone sales across multiple regions. LG’s smartphone strategy is paying off; the company sold more than a million units in the first month of availability, and newer versions (Optimus 2X, Optimus Black) are expected later this year. Meanwhile, LG’s feature phones comprised the majority of shipments, but an aging portfolio and lower prices within emerging markets left the company vulnerable to the competition.
ZTE finished the quarter in the number four position with shipments steadily spreading from its home country of China to developing regions such as Africa and Latin America. ZTE has also recently made inroads in developed markets such as Western Europe and the U.S. as well as Japan. While most of its shipments have historically concentrated on entry-level and mid-range devices, some of its recent success is directly attributable to its rapidly expanding smartphone line, such as the Android-based Blade and Racer devices. Meanwhile, its S- and C-series entry-level feature phones provided additional competition within emerging markets.
Apple The iPhone maker slipped to the number 5 position despite a record quarter for unit shipments and the departure soon thereafter of CEO Steve Jobs on medical leave. It was the company’s second straight quarter on IDC’s Top 5 list. The iPhone sold particularly well in developed regions of the world, such as North America and Western Europe. Apple, which said it could have sold more iPhones last quarter had it been able to make more, is set to introduce the touchscreen device on Verizon next month.
Score one for Samsung in its eternal struggle against South Korean nemesis LG. Whereas the Life’s Good crew were licking their Q4 2010 wounds yesterday, Samsung’s had the pleasure of announcing that the final quarter of last year helped it bust through all its previous fiscal records: total revenue ($139b), net income ($14b), and operating profit ($15.5b) all reached all-time highs. The fourth quarter’s contribution was $2.7b in operating profit, 80.7 million mobile devices sold, 12.72 million flat panel TVs shipped, and two million Galaxy Tabs distributed to Android lovers yearning for some Froyo. That last number’s pretty important as it shows the Tab’s sales have almost doubled over the last month of the quarter — it reached one million sales in early December — indicating that there is indeed a hunger for slate-based computing. Oh, and if you’re wondering what Samsung’s planning for the future, there’s a reminder that a device with a Super AMOLED Plus screen and a dual-core processor is coming to replace the Galaxy S in the first half of 2011. Good to know.
Samsung has announced its 2010 financial figures, and there are strong results for the company’s mobile business. Mobile device sales in Q4 2010 topped 80.7m, up 17-percent compared to Q4 2009, with 280m sales for the whole of 2010. Samsung confirms that a dual-core Galaxy S replacement with a Super AMOLED Plus display (believed to be the Samsung Galaxy S2, debuting at MWC 2011 next month) will launch in the first half of 2011, while also announcing that it “will complement its Galaxy Tab with a range of devices to optimally meet various user needs.”
Samsung has been talking about a range of Galaxy Tab slates since the debut of the original 7-inch version, though so far we’ve only been expecting a larger, 10-inch model at MWC 2011. It seems the company’s plans are on course for a number of versions in 2011, however, buoyed by passing the 2m sales point with the original Tab in just three months.
Net sales across all of Samsung’s businesses were 41.87 trillion won in Q4 2010, up 7-percent year-on-year, and 154.63 trillion won for the whole of 2010, up 13-percent year-on-year. Net profit for Q4 and 2010 was 3.42 trillion won and 16.15 trillion won respectively, up 13-percent and 65-percent compared to the previous year.
Press Release:
SEOUL, Korea – January 28, 2011 – Samsung Electronics Co., Ltd. today announced revenues of 41.87 trillion Korean won on a consolidated basis for the fourth quarter ended December 31, 2010, a 7-percent increase year-on-year. For the quarter, the company posted consolidated net income of 3.42 trillion won, a 13-percent increase year-on-year. Consolidated operating profit for the quarter was 3.01 trillion won.
In its earnings guidance disclosed on January 7, Samsung estimated fourth-quarter consolidated revenues would reach approximately 41 trillion won with an operating profit of 3 trillion won.
The fourth quarter results brought Samsung’s full year 2010 revenue to an all-time high of 154.63 trillion won, up 13-percent from last year. Net income reached a record high of 16.15 trillion won, up 65 percent compared with the previous year, while operating profit was 17.30 trillion won, also a record.
Samsung’s performance in the fourth quarter continued to be driven by memory semiconductors and strong sales of its cutting-edge smartphones. On a quarter-on-quarter basis, however, profit margins decreased primarily due to weakening pricing for memory semiconductors and LCD panels, as well as price competition in the TV market.
“Despite the difficult business environment including reduced IT demand caused by the economic slowdown, we achieved record-high results both in terms of sales and operating profit in 2010,” said Robert Yi, Vice President and Head of Samsung Electronics’ Investor Relations Team. “However, considering overall business conditions, unlike 2010, we expect the traditional earnings pattern of a weak first half, with a strong second half to return in 2011.”
Samsung expected price competition to intensify in the consumer electronics, IT and mobile device markets in 2011, while major components prices are also forecast to decline. To offset pressures stemming from adverse market conditions, Samsung will focus on the cost competitiveness of its memory semiconductor portfolio, reducing marketing expenses and increasing shipments of high-end smartphones and tablet devices.
Samsung said the forecast continued appreciation of the Korean won during 2011 could have a negative impact on earnings, but the company’s diversified foreign exchange mix would limit the effect of movements in particular currencies.
Capex to Reach 23 Trillion Won in 2011
Capital expenditure on a consolidated basis reached 21.6 trillion won for the entire year of 2010, including 12.7 trillion won for the Semiconductor Business and 4.6 trillion won for the LCD Business.
In 2011, Capex is expected to reach 23 trillion won. As was announced in early January, 10.3 trillion won will be invested in the Semiconductor Business, including 5.8 trillion in memory and 4.2 in system LSI. A further 4.1 trillion won is allocated for the LCD Business, as well as 5.4 trillion won for subsidiary Samsung Mobile Display.
Premium Memory Makes a Difference
Samsung’s Semiconductor Business recorded a consolidated basis operating profit of 1.80 trillion won in the fourth quarter. Revenue reached 9.25 trillion won, a 16-percent increase year-on-year. For the full year 2010, the Semiconductor Business registered 10.11 trillion won in operating profit on revenue of 37.64 trillion won, a record-high.
Despite a weakening market trend, Samsung secured profitability by increasing the portion of high-margin products such as server and mobile DRAM, as well as by strengthening its market position with increased production of 40nm-class processes and below.
While the global DRAM market suffered from falling prices and weakening PC DRAM demand, NAND chips did well with help from surging demand for smartphones and tablet PCs. Samsung’s market differentiation strategy in the NAND sector was to expand production of 30nm-class processes and below.
The DRAM market is forecast to improve in the second half of the year driven by growth in PC replacement demand from businesses. Samsung will continue to focus on energy-efficient green memory solutions for servers and enhancing technology leadership to maintain the profit margin of the Semiconductor Business.
LCD Looks to Second Half for Rebound
The LCD Business recorded an operating profit of 0.10 trillion won on revenue of 7.20 trillion won in the fourth-quarter, down 1 percent from a year ago as increasing shipments could not offset price falls. For fiscal year 2010, Samsung’s LCD Business posted 1.99 trillion won in operating profit with 29.92 trillion won in revenue.
Overall unit sales for the period increased more than 10 percent quarter-on-quarter. While shipments for IT panels climbed supported by demand for tablet PCs, the fall in demand for TV panels was compounded by a buildup of inventory in the TV set market.
Average industry sales prices retreated across all segments in the fourth quarter. The average price for TV panels dropped 12 percent, with prices for monitor panels dipping 5 percent and notebook PC panels falling 3 percent.
Samsung forecasted LCD panel prices will remain low in the first quarter of 2011 due to supply outpacing demand. However, the company anticipated incremental demand increases in the second half led by the economic recovery and inventory restocking by set makers. Samsung aims to drive market growth with a new line-up of entry-level LED panels and explore the high-potential market for tablet PC panels.
Strong Smartphone Growth Powers Mobile Business
Samsung’s telecommunications businesses – Mobile Communications and Telecommunications Systems – registered a record quarterly operating profit of 1.44 trillion won for the period, up 38 percent year-on-year. Fourth quarter revenue reached 12.11 trillion won, compared with 10.17 trillion won for same period of 2009. By finishing the year strongly, Samsung achieved full year 2010 operating profit of 4.30 trillion won on sales of 41.20 trillion won for its telecommunications businesses.
Driven by strong year-end demand for the company’s flagship smartphones, Samsung’s mobile device sales reached 80.7 million units for the quarter, up 17 percent year-on-year. This brought total sales for the year to 280 million units, registering growth of 23 percent and outperforming the overall market.
Following its introduction in June, Samsung’s flagship Galaxy S smartphone has achieved worldwide sales of 10 million units, while the Galaxy Tab – an Android-powered tablet device – attracted strong year-end demand. In emerging markets, Samsung’s diverse product mix of mass-market smartphones and touch-screen feature phones also registered solid sales growth.
While mobile device sales are expected to contract slightly in the first quarter of 2011 due to weak seasonal demand, Samsung forecast high single-digit sales growth for the year overall, driven by the fast-expanding smartphone and tablet segments. Samsung announced it will introduce the successor to its Galaxy S smartphone during the first half of 2011, featuring a dual-core processor and Super AMOLED Plus display to further enrich user experience. With its growing lineup, the company is targeting smartphone sales of 60 million units for the year, double that of 2010. In the tablet market, Samsung will complement its Galaxy Tab with a range of devices to optimally meet various user needs.
The Telecommunication Systems Business continues to strengthen its leadership in Mobile WiMAX and explore new business opportunities in Long-Term Evolution networks, cementing Samsung’s position as a total solution provider offering both infrastructure and devices.
Demand for LED TV to Get Stronger
Samsung’s Digital Media businesses, which encompass Visual Display, Digital Appliances, IT Solutions, and Digital Imaging, posted quarterly revenues of 15.97 trillion won for the October to December period, up 3 percent year-on-year. The businesses registered a loss of 0.17 trillion won despite improved performance in TV and IT products. For the full year 2010, the Digital Media businesses’ combined revenue totaled 57.26 trillion, up 12 percent from 2009, with an operating profit of 0.49 trillion won.
Samsung shipped 12.72 million flat panel TVs in the fourth quarter, a 40 percent jump compared with the previous quarter and a 17 percent on-year increase. LED TVs sales grew strongly during the fourth quarter as consumers in developed markets continued to adopt this new technology. Market demand for LED TVs is forecast to rise further, with the portion of LED models in the overall LCD segment expected to reach 51 percent this year.
In 2011, market demand for flat panel TVs is forecast to increase 11 percent, helped by strong emerging market sales. To enhance profitability, Samsung aims to increase sales of premium products such as LED, 3D and Smart TVs. It will also market region-specific models along with low-cost models in emerging markets.
In order to allow more consumers to enjoy 3D TV, Samsung will expand its 3D TV line-up beyond the premium segment, while offering improved picture quality and 3D glasses technology. Samsung’s Smart TVs will get smarter this year by adding various new video and search features, and expanding its portfolio of TV apps from the current 400 to 1,000 by the end of 2011.
Sales revenue of the Digital Appliances Business climbed 16 percent year-on-year due to robust sales in developed markets and some emerging markets, such as Russia. Sales are expected to continue to expand in 2011 with the launch of differentiated products, while the business will expand and improve its overseas operations.
Samsung has announced its newest sales figures for the Galaxy Tab, and the big news is that 2m of the 7-inch slates have been sold in the three months it has been available. The new milestone follows Samsung’s announcement of 1m Galaxy Tab sales back in early December; the Android tablet is available in 94 countries on around 200 different carriers and as an unlocked device.
The news still leaves Samsung significantly trailing Apple’s iPad for sales, with the best-selling iOS slate far out-performing the Galaxy Tab in the market. Now a year old, the iPad is still seeing huge demand; Apple reported 7.33m sales of the tablet in Q4 2010.
In comparison, European sales of the Galaxy Tab have reached 500,000, North American sales 350,000 and Asian sales 330,000. Still, Samsung can take some satisfaction from knowing that it will be selling Apple many of the processors found in future mobile devices.
Samsung has announced that it has added a new streaming service to its full line of Blu-ray players in the UK. The new streaming movie service is LOVEFiLM. The app requires a subscription to the LOVEFiLM service of at least £5.99.
