q22014
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Most new Android phones sell for less than $200
Want to know a big reason why Android smartphones are virtually ubiquitous these days? Because many of them are very affordable, that's why. IDC's latest market share estimates show that 58.6 percent of Android phones shipped in the second quarter cost less than $200, many of them from surging Chinese manufacturers like Huawei, Lenovo and Xiaomi. Simply speaking, many in China and other developing countries can't (or won't) justify buying the expensive phones that thrive in regions like Europe and North America. It's no wonder that Samsung is losing the battle at the moment, then -- while the company has budget handsets, it's heavily invested in high-end hardware like the Galaxy S line.
Lenovo now ships more smartphones than PCs
Lenovo has been rapidly expanding beyond its PC-focused roots for some time, and today it crossed another important milestone: it's now selling more smartphones than computers. The Chinese tech firm's handset shipments surged 39 percent year-over-year in the fiscal quarter that ended in June, reaching 15.8 million; in contrast, it "only" delivered 14.5 million PCs over the same period. Nearly all the phones (13 million) went to the company's homeland, where it's well-known for both its budget devices and high-end flagships like the recently-launched Vibe Z2. Lenovo's claim that it was the top Chinese phone maker during the quarter is up for dispute, however -- estimates suggest that Xiaomi was the top dog by a significant margin.
Xiaomi, not Samsung, makes China's smartphone of choice
Xiaomi has been a significant contender in the phone world for a while, but it's now safe to say that the Chinese device maker has joined the big leagues. Canalys estimates that Xiaomi shipped more smartphones than Samsung in China during the second quarter of the year, making it the top vendor in its home country. Simply put, Xiaomi is a champ at making cheap yet desirable handsets -- its budget Redmi series has done a lot to boost sales, and even range-topping devices like the Mi3 (and now Mi4) are much more affordable than alternatives from the likes of Apple and Samsung.
Samsung's phone market share takes a bruising as Chinese rivals surge
Samsung warned that its smartphone sales weren't that great this spring, and now we have the numbers to show just what the company meant. IDC estimates that Samsung's smartphone shipments saw a rare year-over-year drop in the second quarter, taking it from a lofty 32.3 percent market share down to 25.2 percent. That's still enough to give it a comfortable lead, but a shock for a company which is used to growth. The cause, analysts say, is the rapid rise of Chinese brands that cut directly into Samsung's low-end business. Huawei claimed 6.9 percent of the smartphone space after doubling its shipments, thanks in part to heavy discounts on phones like the Ascend P7; Lenovo jumped to 5.4 percent on the back of both budget phones at home as well as rapid expansion abroad.
Microsoft moved 3.9 million Xbox Ones, while Surface sales soared
The company's search for a new CEO is still the dominant narrative surrounding Microsoft. But if you're able to get past the quest to replace Ballmer, you'll find a company that's starting to get something of a second wind in its long life. For one, its new Xbox One console is selling quite well. After getting off to a slightly rocky start and trailing the latest PlayStation in initial sales, it outsold its rival in the US for the Month of December. All told during the last quarter Redmond pushed 3.9 million of the next-gen (now-gen?) gaming rigs out to retail channels. That's in addition to 3.5 million Xbox 360s, which are still selling well and are quite a bargain compared to the new systems. Another unit that struggled early on, Surface, seems to be righting the ship as well. (Though, its rough patch lasted a ways longer than the Xbox One's.) Revenues from Surface sales more than doubled from $400 million last quarter to $893 million. And let's not forget, that $400 million dollars represented a 47 percent increase over the quarter before that. Obviously, things are not all rosy. Its desktop consumer Office and Windows 8 offerings continue to see revenues fall. But, the growth of its device division and increased income from Bing (which, stunningly, now accounts for 18.2 percent of searches in the US, according to Microsoft) are beginning to compensate for the "softness in the consumer PC market."
Bad news from BlackBerry: 4,500 jobs to be cut, expected Q2 net operating loss of over $950 million
Things haven't been going well at BlackBerry for awhile, what with lackluster adoption of BB10 and the hardware running it, and rumors that massive layoffs are coming before the end of the year. Today, the company confirmed the latter rumor, announcing that it will lay off around 4,500 employees as a part of a plan to reduce its operating expenditures by half over the next year. The plan's necessitated by an expected Q2 2014 net operating loss of almost one billion (955-995 million) dollars, driven primarily by the lackluster sale of its BB10 phones -- the company will take a pre-tax charge of $930-960 million which can be attributed mostly to the failure of the Z10 to sell. BlackBerry expects revenue for Q2 to be $1.6 billion, which is roughly half of the $3.1 billion it pulled in last quarter. Needless to say, the financial outlook for the company isn't good, and some changes are in order. In the near term, the Z10 will be priced " to make it available to a broader, entry-level audience," leaving the Z30 as BlackBerry's all-touch flagship. To try to turn things around in the long term, the company's going to refocus on its enterprise offerings and will reduce its device portfolio from six devices to four, with two high end and two entry level phones. And, don't get it twisted, the days of BlackBerry courting mainstream consumers is all but over -- its future phones will be aimed at the "enterprise and prosumers."
