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An iPad mini with Retina display could cost $12 more to build
Hardware market research firm iSuppli has released a new report that claims the cost-per-device of an iPad mini sporting a Retina display screen could be fairly high: as much as $12 or more. Even if all of the other parts stay the same price, just adding a Retina display in the iPad mini's size, iSuppli's report suggests, would bring Apple's cost above $200, which would likely mean higher costs for consumers as well. Which doesn't seem all that impossible -- the current iPad mini is selling quite well at $329, and you have to think that potential purchasers would be happy to spend a bit more for a full Retina display. Plus, if Apple really needed to shave some of that margin off just to boost sales, it probably could (though that would be a very un-Apple move, and it seems like it'll be a while before the iPad mini needs any extra help). For any other company, $12 per device might be a real problem, but Apple has still has quite a few options to deal with such a high increase in cost. Not to mention that Apple is always working on its supply costs, so while that may be the price now, the company may be working hard on figuring out a new way to supply and develop smaller Retina displays, or to work out a deal to make them cheaper in general. It's true, putting the Retina display in the iPad mini won't be cheap at the moment, but if anyone can figure out a way to do so without attacking their very high margin, it'll be Apple. [via App Advice]
iSuppli: Samsung forecasted to unseat Nokia for top ranking in 2012 global phone shipments
Between the years of 1998 and 2011, Nokia consistently took the first-place prize for global unit shipments, outpacing both Samsung and Apple. This year, however, iSuppli projects that the Finnish firm will slip to the second position, representing 24 percent of device shipments, compared to 29 percent for Samsung and just 10 percent for Apple. It looks like further adoption of smartphones is to blame for the shift (feature phones and basic handsets represent a large portion of Nokia's sales), and based on expectations for the future, demand for full-featured devices is only expected to rise, potentially enabling Samsung to maintain its new top slot for many years to come. This year, Samsung is expected to dominate the smartphone market as well, with 28 percent of total shipments in that category, compared to 20 percent for Apple and just 5 percent each for Nokia, HTC and RIM. Hit up our source link for the full breakdown.
IHS iSuppli: PCs no longer command biggest share of DRAM market
Times change, this is an indisputable truth. But nothing reminds us of this fact as well as a landmark statistic. If there was ever any doubt about the shift towards of mobile computing, then let this be it: personal computers no longer account for the majority of demand for DRAM chips. With 49 percent of all new memory still headed for PCs, it's hardly time to book the hearse for desk- and laptops just yet, but the statistic from IHS iSuppli remind us of the increasing market share that mobiles and tablets are taking. In fact, even though total DRAM shipments for PCs continues to rise, it's estimated that the total share will slip another 6 percent, to 42.8, between Q2 this year and the end of 2013. Of course, this is good news if you have a vested interest in both, not so good if you don't.
IHS iSuppli: Apple iPad takes 69.6 percent of tablet brand market share in Q2, reader tablets take a bruising
An earlier portrait of the second quarter's tablet market share made it quite clear that the iPad was on a rebound, if it was ever in a slump to start with. All those numbers focused on platforms and not brands, however -- we didn't know how the individual makers were doing. If IHS iSuppli's figures are on the ball, there's even more of a discrepancy if you break down the period's results by manufacturer. The iPad staked out 69.6 percent of tablet shipments in the spring. That wasn't just an 11-point jump over a year earlier; it was a level of share Apple hasn't had since the Motorola Xoom was just cutting its teeth early in 2011. As for the rest? Transformer Pads kept ASUS growing, but it's not a pretty sight if you're making an Android reader tablet; both Amazon and Barnes & Noble shed roughly a point and a half each, which is no small amount relative to their size. Samsung also lost share by this after its deliveries of Galaxy Tabs mostly stayed flat. We'd add that there's some wiggle room as to real performance knowing that units shipped and sold aren't always one and the same. Most of these companies are leaving clues regarding upcoming tablet refreshes that might level the playing field, some not so subtle, but it's currently Apple's game to win.
Mobile Miscellany: week of April 23rd, 2012
Not all mobile news is destined for the front page, but if you're like us and really want to know what's going on, then you've come to the right place. This past week, we learned that ZTE intends to release a phablet of its own, and Samsung unseated Nokia as the world's largest supplier of mobile phones. These stories and more await after the break. So buy the ticket and take the ride as we explore the "best of the rest" for this week of April 23rd, 2012.
Flat-panel TV shipments to fall for the first time ever in 2012?
The past fourteen or so years have been a great run for flat-panel TV sales, but according to IHS (formerly iSuppli), that run is finally going to turn in the down direction in 2012. The expected drop off is predicted to be five percent, which still leaves the total TVs sold in 2012 at 37.1 million, more than a few dollars for sure. The fact that last year saw a modest one percent raise is as good of an indicator as any that the good times are over. Of course this is but a single prediction from a single analyst firm and we'll all have to wait until the year is over and earnings are announced to know anything for certain.
iPhone 4S 16 GB costs US$196 to build
Shortly after iFixit tore down the iPhone 4S, iSuppli also took its turn with the iPhone 4S and evaluated the cost of the materials that go into the handset. According to its analysis, the iPhone 4S 16 GB costs US$188 in materials and and extra $8 to build, a dollar value that's close to the $187 of the iPhone 4. The 32 GB has a bill of materials of $207 and the 64 GB is at $245. Inside the iPhone 4S, the most expensive part is the NAND flash memory which costs $19.20 in the 16 GB model, $38.40 in the 32 GB and $76.80 in the 64 GB model. iSuppli also notes that the NAND flash is from Hynix and not from Samsung or Toshiba which were seen in all previous iPhone and iPad models. The second and third most expensive components are the mechanical/electro-mechanical parts which costs $33, followed by the wireless radio which is a custom part from Avago and costs $23.54. For all the nitty gritty details head over to iSuppli's report.
OEMs to spend more on semiconductors for wireless devices than computers in 2011
Well, if you didn't believe that we live in a post-PC world before, the latest report from IHS iSuppli should help persuade you. According to its research, original equipment manufacturers (OEMs) will have spent $55.4 billion on semiconductors for phones and tablets in 2011, as compared to just $53.1 billion on PC silicon. Of course, as the chart above shows, OEMs spent more money on wireless devices in 2008 and 2009. But, after an interlude of PC primacy in 2010, it looks like mobile's where the money's at for the foreseeable future -- can't say we didn't warn you.
iSuppli: Apple iCloud could affect NAND Flash market
Apple's upcoming iCloud service could have a negative effect on the NAND Flash market says IHS iSuppli. The market research firm suggests a change from phone and computer-based storage to online storage could lessen demand for flash memory in the future. Of course, iCloud in its current from is a sync service, but this could easily change to a streaming and storage service in the future. This iCloud effect won't be felt immediately. Apple is expected to scoop up 30% of the available supply of NAND flash memory in 2011 and should keep its position as the world's largest buyer of NAND flash memory for the next several years. As consumers gradually move their digital libraries online, the demand for on-device storage could decrease by as much as 100 GB per user. This drop could have a serious impact on NAND flash suppliers like Samsung or Toshiba. [Via Digitimes]
HP TouchPad parts analyzed, manufacturing cost similar to the iPad 2
We know what's inside the TouchPad and we know just what it's like to live with the culmination of those parts, and now Isuppli is doing its best to figure out just what those individual components set HP back each time one rolls off the assembly line. According to that firm's analysis, the grand cost to build a single $599.99 MSRP, 32GB TouchPad is $328. That's but $12 more than the 16GB version, which of course retails for $100 less at $499.99. That $328 cost is quite comparable to a 32GB iPad 2, which tallies up at $326 in 3G form according to the source. In other words, HP seems to be maintaining similar margins to Apple, begging the question: can it afford to do so? [Image credit: TechRepublic]
iSuppli: Apple bucks decline in smartphone market, edges closer to Nokia
Apple is edging closer to Nokia and poised to assume the leadership position in the smartphone market, according to IHS iSuppli. In the first three months of 2011, Apple shipped 18.6 million iPhones globally, a 14.9 percent jump from the previous quarter. While Apple showed impressive gains, Nokia posted a significant decline. Q1 2011 shipments from the Finnish handset maker declined 14.5 percent from the 28.3 million handsets shipped in Q4 2010 to 24.2 million in Q1 of this year. At the end of last quarter, a mere 5.6 million handsets separated the two companies. This gap could be narrowed in the current quarter by continued strong sales of the black iPhone 4 and the launch of the white iPhone 4. The long-awaited white handset sold out quickly in Asia and is expected to give iPhone sales a moderate boost. Nokia, on the other hand, is in a holding pattern while it sunsets its Symbian OS and preps for the debut of Windows Phone later this year. [Via Digitimes]
iSuppli: Apple will snag 76% of app download market in 2011
Yesterday, iSuppli released new projections for the app download market. In those projections, iSuppli stated that Apple will snag 76% of the app download market in 2011. That market share will garner Apple $2.91 billion in revenue. iSuppli, of course, attributes Apple's app download market share to the popularity of its iOS devices. However, as more Android phones flood the market, Apple's app download market share is expected to decline in future years. But that decline isn't enough to knock the Cupertino company out of the top spot. By 2014, Apple will still command 60% of the app download market, iSuppli estimated. In breaking down the download numbers for 2011, iSuppli expects Apple's App Store to have the most downloads at 10.3 billion, followed by Google's Android Marketplace with 5.8 billion downloads. Next comes Nokia's Ovi Store with 1.1 billion downloads, followed by BlackBerry's App World with 772 million downloads. [via MacRumors]
iPad 2 production shortfall cause: LCD and speaker issues
IHS iSuppli cut its forecast for yearly iPad sales following Apple's earnings conference call on April 20. iSuppli predicts the Cupertino company will ship 39.7 million iPads in 2010, a 9.1 percent reduction from its earlier forecast of 43.7 million. Apple confirmed during its earnings conference call that iPad 2 demand significantly outpaced supply. The iPad 2 flew off the shelves in Q2, and Apple sold every tablet it manufactured. According to iSuppli, Apple's manufacturing is constrained by a shortage of the new speaker that graces the iPad 2. Unknown quality concerns with the LCD display may have also played a role in this less than optimal rate of manufacturing. Demand for the iPad is expected to be strong for the rest of the year with a continuing production shortfall limiting the total yearly sales. During the Q&A session after the earnings call, Apple would not comment on when the supply of the iPad 2 would catch up with demand. Fingers crossed it happens soon so that prospective iPad owners no longer have to camp out early at their local Apple Store each day. [Via MacRumors]
iPad 2 supply line affected by Japan disaster
As Japan suffers under the weight of a major tsunami and a continuing crisis with the Fukushima nuclear power plants, it's becoming clear that the ripple effects from the combined tragedies are impacting Japan's consumer electronics industry, and of course the iPad 2. Asia Times is reporting today that the iPad 2's battery and memory are made in Japan, and with electrical shutdowns, disrupted transportation system and employees understandably staying home, supplies of these parts just aren't available. AppleInsider quotes iSuppli as saying Apple will also have difficulty getting the iPad 2 internal compass provided by AKM Semiconductor and touchscreen components likely sourced from Asahi Glass Company. At present, Apple appears to be able to build the iPad 2 for 2-3 weeks before the parts shortages impact the company. The iPad 2 went on sale in the US on the day the tsumami struck Japan, and Apple has recently announced that initial sales of the iPad 2 in Japan will be delayed. It may be frustrating to not have the latest and greatest piece of Apple tech, but those frustrations are small compared to the very real crises unfolding in Japan. Our hearts (and funds) go out to the people of Japan who are struggling with the many challenges they face. [via AppleInsider]
How the iPad 2 got thinner and lighter
Putting a device that is already thin and light onto a weight loss program seems like an exercise in futility, but it's something that Apple engineers love to do. The entire line of MacBooks has become lighter and thinner over the years, and many were surprised when the new iPad 2 weighed in a full 15 percent lighter than the original device. How did the Apple engineers accomplish this feat? Analysts at IHS iSuppli performed a detailed teardown and component cost analysis of the iPad 2 and found several factors that make the new iPad the light and thin supermodel of tablets. The iSuppli report mentions that Apple replaced the two batteries in the original iPad with three thinner cells that also allowed the removal of some internal plastic supports. In addition, the "fat" iPad had a stamped metal sheet that was part of the display. That metal is gone from the iPad 2, thanks to new glass technology that iSuppli speculates is from Asahi Glass of Japan. While shaving a few millimeters of thickness and grams of weight off of a new device might seem to be nitpicking, every bit of material that can be removed from the structure means less cost (and higher margins) for Apple, and even the slightly reduced shipping weight can result in cost savings for the company when multiplied over millions of devices. Plus, even though Apple got in trouble for saying just this, when it comes to these devices, you can't be too thin or too powerful. [via the New York Times]
Vizio starts celebrating 2010 LCD sales wins early, has bigger plans for 2011
Industry analysts will reveal all the numbers later this week but according to Vizio its LCD HDTVs have outsold all others, again. Specifically, it has again rated as the #1 seller of LCDs in North America according to DisplaySearch and #1 seller of LCDs in the US according to iSuppli by carving out a 27.6% share of the market, the largest for any seller since 2004. We spoke with Randy Waynick, Vizio's chief sales officer (and star of that tablet-exposing Rose Bowl ad) and found Vizio's telling a very different tale about HDTV sales in 2010 than some of the competition. In contrast to lower than expected sales from other manufacturers and retailers last year, especially when it came to 3D televisions and connected TV products, he claims demand was so high for the new Theater 3D HDTV with passive glasses they couldn't keep it in stock. He also attributed much of the sales growth to its strategy of offering higher end tech like local dimming LED backlighting and WiFi built in at lower prices than the competition, and plans to use its position as a market leader to push technology initiatives -- like passive 3D screens, where he echoed LG's claims that it tested far better than active shutter 3D with customers -- rather than follow them. Among some of us in the home theater community there's still, deserved or undeserved, a perception of the company as simply a cheap, low end manufacturer that's not as reliable as others but with results like these it looks like the rest of the market will be the ones with something to prove in 2011.
iTunes stays on top of growing internet movie business in 2010, but 2011 could be very different
While much of the news lately has surrounded subscription internet movie and TV services the video on-demand market was up nearly 40% last year and is expected to keep growing. According to stats from IHS Screen Digest, video revenue for the Apple iTunes store grew 60 percent last year, but saw its overall market share shrink from 74.4 to 64.5 percent. This is mostly explained as a side affect of the Kinect driving up Microsoft Xbox 360 sales at the end of last year and introducing its Zune store to a new market of families looking for digital entertainment. The up and comer to watch for 2011 appears to be the Wal-mart/Vudu combo, currently fourth in line behind Sony but poised to grow by showing up on more devices and increasing its promotional efforts. Of course, as NewTeeVee points out, the ultimate wild card in all of this is the launch of Ultraviolet buy-once/watch-anywhere DRM later this year (without support from Apple or Disney) and the effect it could have by causing consumers to see digital downloads as a viable option instead of the fragmented mess they are now -- good luck with that. [Thanks, Aaron]
iPad competitors place strain on parts suppliers
The Apple iPad kicked off a tablet revolution in 2010 that promises to explode in 2011. Global tablet shipments are expected to triple in this upcoming year as competing manufacturers rush to produce a variety of slate devices to compete with the iPad. According to IHS iSuppli, this plethora of tablets will disrupt the global display industry, leading to both shortages and excess inventories over the next 12 months. In an attempt to meet anticipated demand, display manufacturers will produce a variety of screens in different configurations. Market forces will cause some displays to sell briskly, while others will sell poorly. Inventory that is leftover will be scrapped or sold at a heavy discount. The tablet market in 2011 will be comprised of a wide variety of devices from large manufacturers (like HP and Dell) as well small manufacturers (like Viliv and Notion Ink). The total volume produced is expected to reach a staggering 57.6 million units, up from 17.1 million in 2010. The bulk of these devices will be powered by some flavor of Android including the tablet-optimized Android 3.0 Honeycomb. RIM is also expected to jump on the tablet bandwagon with its QNX-powered BlackBerry PlayBook, and HP reportedly has a webOS tablet in the works. In the face of this growing competition, Apple should remain confident as the iPad is projected to retain its title as market leader for at least the next two years.
iSuppli: Apple to sell 120 million iPads by 2012
Many analysts were disappointed when Apple announced 4.2 million iPads sold in Q4 during the conference call yesterday. The consensus -- or hope -- among many on Wall Street was a 5m+ iPad quarter. But if iSuppli's report today is any indication, the Wall Street boys have nothing to worry about when it comes to future iPad sales. iSuppli states that due to increasing component availability (a lack of which, they suggest, is the only thing that kept Apple from selling more iPads), Apple is set to sell a total of 13.8 million units in 2010, up from 12.9 million units. For 2011, iSuppli has raised total iPad sales estimates from 36.5 million to 43.7 million. It gets even better for the tablet maker in 2012, when iSuppli estimates Apple will sell 63.3 million units, up from their original estimate of 50.4 million. If iSuppli's estimates are correct, that means that by the end of 2012 -- just 2 years and 9 month since the iPad went on sale -- Apple will have sold 120 million of them. Now that's a lot of iPads. The increased forecasts are due to greater than expected interest in the iPad from business and education institutions, and also due to the fact that the iPad is now available in more retail outlets like Amazon, Verizon stores, Target, and Walmart.
Dell moves back up to #2 position in global PC sales, Acer slips to 3rd, HP still reigns supreme
Acer Chairman JT Wang is quick to say that he thinks that iPad sales are only going down from here, but maybe he should listen to that age-old idiom: people in fragile economies shouldn't throw stones. According to iSuppli's latest report on the global PC market, Acer slipped down to third place after losing 6.2 percent of its market share compared to last quarter. Dell, meanwhile, lost a relatively slim 1.2 percent of its share, bumping it back up to second place -- a position it had previously given up to Acer. Meanwhile HP still sits on top, commanding 18.1 percent of the market share, though that too is down, 6.3 percent over last quarter. Still, all three are well up over last year, an encouraging sign in these supposedly troubling times.