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Posts with tag economy

AT&T cutting 12,000 jobs due to "economic pressures"

AT&T cutting 12,000 jobs due to
AT&T may have about the best selection of choice handsets (smart or otherwise) available in the States right now, and continued iPhone exclusivity has definitely brought a windfall of new subscribers to its wireless division, but Ma Bell wasn't built on cell towers alone. There's still an extensive landline division to support, and it seems the company is leveraging the current economic doldrums to make it a little less so, joining the layoff crowd for the second time this year by shedding a further 12,000 workers (about 4 percent of its workforce), most said to be coming from passé, non-wireless sectors. So, happy holidays, folks -- hope those severance packages get you through the winter.

[Via CellPhonesMarket.com; thanks, SK]

Smartphone numbers are in: iPhone sales exceed Windows Mobile sales for first time


Gartner's latest and greatest analysis of the global smartphone industry is in, and there are quite a few interesting nuggets tucked within all those percentages. For starters, the sector still managed to grow 11.5% in Q3 2008 compared to a year prior, but that increase is the smallest since it began tracking. Of course, given the current economic climate, we'd say it's a win to see any number not in the negative. Moving on, we see Nokia maintaining its numero uno status with 42.4% market share, though it did recognize a rare decline in sales of 3% year-on-year; as for RIM, its BlackBerry phone sales increased an amazing 81.7% in Q3. We're also clued in to why Apple was rumored to be hacking its iPhone production some 40% in Q4, as the company has some two million units of inventory built up in the supply channel. Finally, we're told that "for the first time (meaning in this quarter), iPhone sales exceeded sales of Microsoft Windows Mobile devices worldwide and in North America," and beyond that, "open-source initiatives like Android and Symbian Foundation [are set to] challenge Windows Mobile's licensing model in the short-term." Need we really reiterate how badly WinMo 7 is needed?

Palm's preliminary quarter-end results show drooping revenues, bleak outlook


Remember when we used to write about Palm in order to talk about its devices and / or operating system(s)? Man, those were the days. Now, it just seems like one sadness-filled report after another, and just days after hearing that it would be cutting an undisclosed amount of employees in order to trim operating expenses, in comes even more doom and gloom courtesy of its preliminary Q2 (fiscal year 2009) results. The company is expecting to record revenues ranging between $190 million to $195 million, far short of the $331 million Wall Street had been counting on. The shortfall was blamed on "a difficult economic environment [which had] greatly intensified the negative impact on product sales." Of course, the visionary Ed Colligan (CEO) still maintains that by reducing its cost structure it can "launch next-generation products as planned," but seriously, why should we believe that line now? Time to put up or shut up, Palm.

[Via CNET, image courtesy of PalmFocus]

Modu reportedly lays off around 25% of its employees

Who's praying now, Modu? The once cocky and altogether promising handset maker has apparently fallen on tough times, with a recent TalkingMobile report suggesting that around one-quarter of its staff (including a few executives) has been told to head home. The reason? Aside from the obvious "the economy" cop out, the company has also been hit hard by launch delays and the inability to land a carrier partner willing to shell out for promotions. Granted, this is far from the end of Modu -- there's still cash to be burnt and avenues to walk down, but we'd probably skip over it when sending out job applications right now.

[Via IntoMobile]

Samsung warns that the handset market ain't what it used to be

Echoing sentiments 'round the globe is Samsung, who evidently understands that Q4 and beyond will be much tougher for handset makers than in quarters past. According to spokesman James Chung, "the actual global market growth on a unit basis could come short of [Samsung's] initial forecast for 9% growth (in 2008)," and "as for next year, it is possible that the market could post a single-digit or even negative growth." Of course, it's not like any other cellphone maker has it too much easier, but for folks wondering if Sammy had some kind of magical elixir for generating positive numbers, we hate to say it doesn't.

[Via RCRWireless]

Virgin Mobile USA falls into non-compliance on NYSE, plans to get back on track


Virgin Mobile USA was one of the few outfits out there who managed to post a Q3 net profit, but even that couldn't help it avoid the unfortunate delivery of a non-compliance letter from the New York Stock Exchange. Just a few days before it slashed ten percent of its workforce, the company was notified by the NYSE that it was "not in compliance with certain listing criteria." More specifically, it's considered "below the applicable standards because the average market capitalization of its Class A common stock and substantial equivalents, over a period of 30 trading days, is less than $100 million." Now, it has 45 days to respond with a business plan that demonstrates its ability to get back into compliance within 18 months. Virgin Mobile USA has already texted (at least that's what we heard) the bigwigs on Wall Street with a confirmation that it would be working to get back on track, but even the best intentions fall through sometimes. Godspeed, VM.

[Via mocoNews]

Motorola and SE pinpointed, may face tough time "weathering the storm"

No, not that Storm silly -- that storm. As cellphone users around the globe put off that once imminent upgrade purchase in order to make the mortgage and feed the family, (most) handset makers are obviously feeling the pinch. A fresh report from The Wall Street Journal pretty much reiterates much of what we've already heard, but still dives deeper into which companies are best positioned to escape the madness. As predicted, HTC, Apple and Nokia were all pinpointed as being able to make it through tough economic times without losing their proverbial hats, but both Motorola and Sony Ericsson could be facing insurmountable odds. Granted, it's not like either firm has really been killing it of late, but it's a pretty bad time to be struggling, regardless. The takeaway? Don't be shocked to see some wild stuff go down in the mobile space -- all bets are off at this point.

[Image courtesy of DayLife, thanks JagsLive]

Analysts consult Captain Obvious, expect tough quarters ahead for mobile makers


Enough already, alright? After hearing analysts suggest that the current economic situation would likely hurt handset sales at large, we've now got yet another poll telling us more of the same. After contacting a number of so-called gurus for their input on the situation, 8 out of 22 expected the market to contract next year, meaning that the mobile market could shrink for the first time since the tech crash in 2001; a month ago, just 1 out of 23 analysts polled felt this way. Granted, most still expect Q4 to grow compared to Q3 as individuals splurge during the holiday season, but things may not be so pretty in the new year. Here's an idea: let's make every phone at least as costly as the Softbank 823SH Tiffany -- those seem to be selling like gangbusters.

[Via mocoNews, image courtesy of CrashOnMyHead]

$131k Softbank 823SH Tiffany handset sells out in three days


Recession? What recession? While many in this world are grumbling about a so-called weakened economy, at least eight individuals aren't hurtin' at all. Or, at least they aren't acting like it. The (very) limited edition Softbank 823SH Tiffany, which was offered up for ¥13 million, has sold out in just three days, proving once again that there is simply nothing too expensive for at least some folks to buy.

[Via textually]

Deutsche Telekom shakes economic woes, reports "good" Q3


We can't recall the last time a mega-corp informed the public that it had a "good" quarter (as in, it literally described the quarter as "good" in its headline), but we can't help but chuckle at this one. Deutsche Telekom has done what few other companies have managed to do of late, and that's post an impressive Q3. Even in a "difficult market environment," net income was up €0.6 billion ($775 million) to €0.9 billion ($1.16 billion) compared to a year ago, and it managed to snag 670,000 new T-Mobile USA customers all the while. As with most other carriers these days, DT also found lots of income flowing in from data usage; total data revenue (excluding messaging) was up 28.3% to a whopping €639 million ($825 million). For number crunchers and optimists alike, tap the read link for more material you're sure to love.

[Via mocoNews]

UIQ Technology puts entire staff on notice of dismissal

Ugh, this is just downright depressing no matter how you spin it. Sure, it's just the reality of business and all, but it's no fun to hear that 270 staffers will soon be looking for employment when UIQ Technology finishes climbing into the grave. After hacking 200 jobs in June and being coined "dead" by Sony Ericsson's Patrick Olson, All About Symbian has it that the company has put its remaining employees "on notice of dismissal." We're told that SE has agreed to "continue funding the company on a by month by month basis in order to allow it to investigate options for the future," but from the outside looking in, we'd say the outlook is bleak. Thankfully, it sounds like those affected will at least be assisted as they exit, but now would probably be an opportune time to shed a tear for UIQ as we knew it.

Sprint posts Q3 net loss of $326 million, sees 1.3 million subs leave


Sprint's year just keeps getting worse. After losing over 900,000 customers last quarter while posting a $344 million loss, the company insistent on advertising with faux soap operas and in black and white (and yellow) is hanging its head once more. During Q3, the carrier saw 1.3 million net subscribers head for the exits, and it also reported a loss of $326 million. According to CEO Dan Hesse, Sprint "has yet to turn the corner," warning that the process of turning things around would be gradual. Moving forward, the company expects gross additions to "stabilize," while the turnover rate is apt to remain at around 2.15%. In related news, the provider's stock price has sunk around 60% in the past six months, and while that's surely bad news to shareholders, not many other mega-corps out there are doing tremendously better.

[Via The New York Times]

Bluetooth headsets to feel the pinch this holiday season


Analysts are abuzz with predictions of which sectors / divisions will be hit hardest this holiday season, but this is one forecast we can definitely agree with. A recent report has found that the "least desirable holiday gift" belongs to the polarizing Bluetooth headset. With people suddenly more mindful of their spending, it's looking altogether unlikely that BT headsets will be selling like gangbusters given how unnecessary (and potentially alienating) they truly are. We'd ask if you disagree, but we're almost certainly sure there's no need.

[Image courtesy of eHow]

Analyst sez iPhone 3G production could fall 40% in Q4


No clue if you've been paying attention the past few months, but quite a bit of belt tightening has been going on. Granted, Apple's been making out just fine, but a fresh report from the doors of FBR Research asserts that it may be cutting its Q4 iPhone 3G production in the wake of a global spending slowdown. It should be noted that a 10% cut was already on the table, making this 30% larger than anticipated. According to the report, the firm's reported decision to scale back production "suggests that the global macroeconomic weakness is impacting even high-end consumers, those that are more likely to buy Apple's expensive gadgets." As we restrain ourselves from thanking Captain Obvious, we should also point out that this may not be nearly as big a deal as the numbers make it seem -- maybe it overshot Q3 production in order to guarantee 100% service levels in all markets, for instance. How's that for analysis?

[Via Silicon Alley Insider]

Motorola to layoff 3,000 employees, most of 'em in handset division

To be honest, we were surprised that we didn't hear this number along with the other doom and gloom professed during Motorola's Q3 earnings call, but the writing was very clearly on the wall. As part of the mentioned $800 million expenditure cut planned for 2009, 3,000 (more) of Moto's employees will be looking for work elsewhere. According to an unnamed spokeswoman, a "little over two-thirds of those layoffs [will be] in the handset division." And just think -- if Moto would only use all those hands to get an Android-powered phone out before "entirely too long from now," maybe these cuts wouldn't even be necessary. Maybe.




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