According to research firm Gartner, although Microsoft shipped 2 million Windows Phone units during Q4 of 2010, it sold 1.6 million units during Q1 of 2011.”Windows Phone saw only modest sales that reached 1.6 million units in the first quarter of 2011,” wrote Gartner. “Devices launched at the end of 2010 failed to grow in consumer preference and CSPs continued to focus on Android.” Gartner is, however, predicting big things for Microsoft’s smartphone operating system. By 2015, the analytics company predicts that Windows Phone will see shipments in excess of 215 million units — thanks in large part to its partnership with Nokia. This would put Microsoft in second place in global market share — behind the open-source smartphone-overlord Android and ahead of the not-so-open-source iOS.

[Via WinRumors]

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Operating systems are big business. But just how big you ask? According to research firm Gartner, sales of server and desktop operating systems totalled nearly $30.4 billion in 2010 alone. “As the global economy recovered, worldwide operating system (OS) revenue totaled $30.4 billion in 2010, a 7.8 percent increase from 2009,” explains Gartner. “Among client OSs, Mac OS was the fastest-growing subsegment in 2010 as the unit shipments of Mac desktop/laptop devices saw strong sales, although from a much-smaller basis. Windows client was still the largest client OS segment, with high-single-digit growth, particularly driven by adoption of Windows 7 and the imminent end of life (EOL) of Windows XP.” Oracle saw the largest percentage-growth year-over-year thanks to its acquisition of Sun Microsystems. Analysts are expecting the operating system revenues to continue to rise in 2011.

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Analytics company Flurry has published an interesting study involving Android, iOS, and the U.S. video game market. Following up on a report from 2009, the company notes that the two mobile operating systems accounted for 8% of all U.S. video game sales in 2010 when calculated by revenue. What’s even more interesting is where both Android and iOS are taking their share from: portable gaming players. Console software revenues grew by 5% from 2009 to 2010 — 71% to 75% respectively — with portable gaming systems (e.g. Sony PSP, Nintendo DS) revenue falling nearly 8% in during the same period. Combined, Android and iOS accounted for 34% of all U.S. portable gaming software revenues — behind the Nintendo DS with 57% and ahead of Sony’s PSP with just 9%. Portable game software was a $2.4 billion business in 2010, with overall U.S. video game software revenues hovering around $10.7 billion. “Over 2011, we expect to see continued and significant smart-device game growth fueled by the recent launch of iPad 2, iPhone coming into distribution on Verizon, the expected release of iPhone 5, a relentless expansion of Android devices by leading OEMs across all major U.S. carriers, and Google’s enablement of in-app purchase billing, a proven key driver in iOS game revenue,” reads Flurry’s report. Smartphones and tablets may not be immersive enough for the most hardcore mobile gamers, but they seem to be more than adequate for most.

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Market analytics firm International Data Corporation (IDC) is predicting a big boom for semiconductor manufactures in 2011. Citing strong tablet and eReader-based semiconductor revenues — $3.3 billion in 2010 alone — IDC is predicting an additional 120% growth rate in 2011. “Media Tablets and eReaders are two devices that share components but whose bills of materials (BOM) are optimized for very different functions,” writes IDC. “The 2010 average Tablet semiconductor BOM was nearly one and one half times as much as the BOM for eReaders.” The firm also notes that 99% of advanced processing unit shipments in 2010 were based on ARM technology. IDC predicts that ARM will continue to have a stranglehold on the industry in 2011, only shedding one to two percentage points as x86 tablets begin to trickle into the market place. Hit the jump for the full press release.

Market for Media Tablet and eReader Semiconductors Explodes in 2010 and Will Only Keep Growing, According to IDC

Semiconductors empower Media Tablets and eReaders as content consumption truly goes mobile, providing OEMs and consumers with intelligence, storage, connectivity, and software

SAN MATEO, Calif., April 5, 2011 – Worldwide revenues for Media Tablet and eReader semiconductors grew over 2,000% to $3.3 billion in 2010 as semiconductor suppliers enabled original equipment manufacturers (OEMs) to bring new products to market less than 8 months after the iPad launched, according to the latest consumer semiconductor study from International Data Corporation (IDC). With the arrival of Android Honeycomb, dual core processors, and increased bandwidth, IDC expects Media Tablet and eReader semiconductor revenues to grow by 120% year over year in 2011.

“The opportunity for semiconductors in Media Tablets and eReaders has exploded and semiconductor suppliers are scrambling to bring to market semiconductor and software platforms to enable these products,” said Michael J. Palma, research manager for Consumer Semiconductor research at IDC. “Beyond semiconductors, these suppliers are also providing OEMs with much of the system software as well as support for access into app stores, which is helping to dramatically shorten product design cycles.”

Tablets are defined by their connectivity, user interface, and battery life. Semiconductor firms provide the technology to enable these features, with touchscreen controllers and sensors providing the rich user experience; baseband modems, WiFi chipsets, and related integrated circuits (ICs) providing connectivity; specialized semiconductors managing the battery life; and the overall device managed by application processors (APUs).

Highlights

At 99% share of APU shipments, the ARM processor architecture dominated this market in 2010 and is expected to lose only a few points in 2011 as the MIPs and x86 architectures struggle for a role in the market.

Media Tablets and eReaders are two devices that share components but whose bills of materials (BOM) are optimized for very different functions. The 2010 average Tablet semiconductor BOM was nearly one and one half times as much as the BOM for eReaders.

Storage and memory ICs accounted for 40% of the semiconductor revenue opportunity in 2010, but falling prices for Flash and DRAM will drive system BOM cost reductions through 2015, leading these components’ share of semiconductor costs to fall nearly in half over the forecast period.

Market Outlook

The appeal of Media Tablets will drive the semiconductor revenue opportunity to a five year compound annual growth rate (CAGR) of 31%. “For the next several years, we will see rapid innovation cycles for products launched into the marketplace and semiconductor suppliers will continue to satisfy evolving end user requirements over the coming years,” added Palma.

The IDC report, Worldwide Media Tablet and Semiconductor Forecast: The Explosion of an Opportunity (IDC #227716), provides worldwide revenue forecasts for application processors, Flash and DRAM, connectivity, display related, sensor, power management, and other semiconductor categories for Media Tablets and eReaders. The report also includes semiconductor bill of materials (BOM) for the two system categories, as well as a unit shipment forecast of application processors by architecture.

Market research firm IMS Research on Tuesday said the growing market for tablets and eReaders will continue to have a significant impact on portable PC sales this year. The report shows that the 2010 holiday season capped off a massive fourth quarter for tablets and eReaders. eReader shipments in the quarter were up 90% over the third quarter and 116% year-over-year to 5.1 million units, with Amazon’s Kindle and Barnes & Noble’s NOOK the biggest winners. Led by Apple’s iPad, tablet shipments were even more impressive in the fourth quarter. The tablet market grew 124% in the quarter, with 9.4 million units shipped. Apple led the market with a 78% share, followed by Samsung. This impressive performance only represented 8% of the portable PC market in 2010, however, but IMS foresees a tablet explosion this year. The firm predicts tablet shipments will grow 242% to 58 million units in 2011, which will account for 23% of the portable PC market. Hit the break for the full press release.

eReaders and tablets have a great holiday, set to continue performing through 2011 and beyond

IMS Research forecasts 213% growth & 90 million shipments combined in 2011

Austin, Texas – March 29, 2011. eReaders and tablets were the hot products of the final quarter of last year as consumers gifted the devices during the holiday season, according to IMS Research’s latest Quarterly eReader & Tablet Report.

eReader shipments totaled 5.1 million units worldwide in Q410, up 90% on the previous quarter, and an increase of 116% on Q409. Amazon and Barnes & Noble were the primary beneficiaries, gaining share at the expense of Sony, Hanvon and others. Barnes & Noble overtook Sony to rank second in the market, and its new NOOK Color eReader, retail presence and growing eBookstore should result in further gains.

“With strong promotional efforts in the first quarter, and the NOOK Color ramping, we expect minimal seasonal weakness in Q1 11,” says IMS Research Displays SVP Ross Young. “In fact, a 2% sequential rise, and 178% year-on-year spike to 5.2 million eReader units is expected. IMS Research also forecasts 146% growth for 2011, with total shipments running to 29 million units, on the back of lower prices in the second-half, increased availability of new functions (touch) and new features (color), plus the maintenance of a wide price gap vs. tablets.

Tablets outperformed eReaders in Q410, with sales rising 124% quarter-on-quarter to 9.4 milion units thanks to strong iPad holiday sales and significant sell-in of the Samsung Galaxy Tab. Apple’s sell-in market share fell to 78%, with sell-through share significantly higher.

“In Q1 2011, the tablet market is also expected to experience minimal seasonal weakness, falling 6% to 8.8 million units,” says Young. “Sequential growth is not expected as new product shipments from Apple, Motorola, RIM and others are unlikely to be sufficient to offset sell-through challenges at Samsung, traditional seasonal weakness and certain component constraints.”

For all of 2011, IMS Research predicts tablet growth of 242% to 58 million units. This represents 23% of the total portable PC market, up from 8% in 2010 on widespread consumer adoption and increased acceptance in commercial environments. Apple is forecast to maintain over a 75% share of the tablet market in 2011 on its software, cost, price and first-mover advantages. Tablet display shipments are expected to rise 247% to 63 million units.

According to new data issued by wireless market intelligence firm Berg Insight on Thursday, the global smartphone market grew by nearly three-quarters in 2010. Global smartphone shipments hit 295 million units for the year, a 74% increase over 2009 totals. The firm anticipates that shipments will hit a staggering 1.2 billion units in 2015, at which time there will be an estimated 2.8 billion smartphone users scattered across the globe. Berg sees the bulk of the growth coming from mid and low-end smartphone sales, which will continue to become more capable moving forward. “Chipset developers and handset vendors are working on technologies that will ensure a good user experience also for low cost smartphones,” said Senior Analyst André Malm in a statement. “The challenge is to develop a handset with enough memory, graphics performance and processing power to run the operating system with multiple applications while ensuring a responsive system with fluid user interface and still keep costs down.” Hit the break for the full press release.

Berg Insight says shipments of smartphones grew 74 percent in 2010

Gothenburg, Sweden – March 10, 2011: According to a new research report by Berg Insight, global shipments of smartphones increased 74 percent in 2010 to 295 million units. Growing at a compound annual growth rate (CAGR) of 32.4 percent, shipments are forecasted to reach 1,200 million units in 2015. The global user base of smartphones increased at the same time by 38 percent year-on-year to an estimated 470 million active users in 2010. In the next five years, the global user base of smartphones is forecasted to grow at a compound annual growth rate (CAGR) of 42.9 percent to reach 2.8 billion in 2015. Smartphones are receiving more attention from handset manufacturers, network operators and application developers. Most importantly, an increasing number of users are now discovering how smartphones can act as personal computing devices enabling access to the mobile web and applications, besides voice and text services. Although high-end devices tend to get most attention, the primary growth will come from medium- and low-end smartphones.

“Chipset developers and handset vendors are working on technologies that will ensure a good user experience also for low cost smartphones”, said André Malm, Senior Analyst, Berg Insight. “The challenge is to develop a handset with enough memory, graphics performance and processing power to run the operating system with multiple applications while ensuring a responsive system with fluid user interface and still keep costs down”. He adds that smartphones in general will also benefit from advancements in chipset design. In the next five years, further performance increases will come from dual- or quad-core application and graphics processors. These new processors will enable smartphones to rival the performance of dedicated gaming consoles and notebook computers. At the same time, new user interfaces will be developed that make better use of sensors such as accelerometers and gyroscopes as well as cameras to detect movement or gestures without the need to touch the display.

Concord Securities analyst Ming-Chi Kuo revealed on Saturday that Apple shipped a total of 1.1 million MacBook Air units over the course of the refreshed laptop’s first quarter of availability. Though the firm’s figure is most certainly not confirmed by Apple, Ming-Chi cites channel checks in Asia in revealing shipment numbers, which would make the new MacBook Air one of the fastest-selling Mac computers in Apple’s history. Ming-Chi notes that sales have likely begun to slow in the first quarter of 2011, and Concord estimates that Apple will ship approximately 700,000 units this quarter. Shipments of Apple’s newly refreshed MacBook Pro computers are expected to make up for the slowing Air sales, however, and Concord notes that demand for the new Pro line will help offset slowed MacBook Air shipments.

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The fourth quarter of 2010 — the busy holiday quarter — was not all that fruitful for the U.S.’s forth largest wireless provider. In an earnings call today, T-Mobile posted a nearly flat revenue number — $4.69 billion in Q4 2010 versus $4.71 billion in Q3 of 2010, and $4.65 billion in Q4 of 2009 — and less than stellar customer retention numbers. T-Mo saw net losses of 318,000 customers in Q4, along with a churn rate rising from 3.4% in Q3 to 3.6%. One bright spot on the company’s balance sheet is the 25% jump in “data services revenue” year-over-year.

“I am pleased with the increase in smartphone adoption and our ongoing improvement in data ARPU.  Data growth in the U.S. mobile market continues to accelerate and with the largest 4G network T-Mobile USA is well-positioned to differentiate itself and grow consumer usage,” said René Obermann, CEO of Deutsche Telekom. “We are not satisfied with contract churn, but we expect that the measures presented at the T-Mobile USA Investor Day in January will lead to improvements in 2011.”

T-Mobile’s full press release is after the break.

T-MOBILE USA REPORTS FOURTH QUARTER 2010 RESULTS

• Service revenues in the fourth quarter of 2010 at $4.69 billion, up 0.9% compared to the fourth quarter of 2009
• Blended data ARPU of $12.80 in the fourth quarter of 2010, up 25.5% from the fourth quarter of 2009
• 8.2 million customers using 3G/4G smartphones as of the fourth quarter, a net increase of 1 million customers in the fourth quarter of 2010
• OIBDA of $1.34 billion in the fourth quarter of 2010 was comparable to $1.38 billion in the fourth quarter of 2009
• America’s largest 4G network: T-Mobile USA’s national HSPA+ network now covers 200 million people delivering 4G speeds

BELLEVUE, Wash., February 25, 2011 — T-Mobile USA, Inc. (“T-Mobile USA”) today reported fourth quarter of 2010 results.  In the fourth quarter of 2010, T-Mobile USA reported service revenues of $4.69 billion compared to $4.65 billion in the fourth quarter of 2009, and OIBDA of $1.34 billion compared to $1.38 billion reported in the fourth quarter of 2009.  The number of customers using smartphones continued to increase significantly during the quarter, driving growth in blended data ARPU.  Blended data ARPU in the fourth quarter of 2010 was $12.80, up 25.5% from the fourth quarter of 2009.  Net customer losses were 23,000 in the fourth quarter of 2010 compared to 371,000 net customer additions in the fourth quarter of 2009.

“Our service revenues increased year-on-year in the fourth quarter.  Data ARPU growth rates are outperforming our main competitors as we leverage our 4G network and provide rich and compelling smartphones and data plans.  However, high contract churn and significant contract customer losses in the fourth quarter of 2010 indicate that we still have a fair amount of work ahead of us and that any turnaround will take time.  With the ongoing implementation of our challenger strategy we are laying the foundation for improved performance going forward,” said Philipp Humm, President and CEO of T-Mobile USA.

“I am pleased with the increase in smartphone adoption and our ongoing improvement in data ARPU.  Data growth in the U.S. mobile market continues to accelerate and with the largest 4G network T-Mobile USA is well-positioned to differentiate itself and grow consumer usage.  We are not satisfied with contract churn, but we expect that the measures presented at the T-Mobile USA Investor Day in January will lead to improvements in 2011,” said René Obermann, CEO of Deutsche Telekom.

Customers

• T-Mobile USA served 33.73 million customers (as defined in Note 3 to the Selected Data, below) at the end of the fourth quarter of 2010, down from 33.76 million at the end of the third quarter of 2010 and 33.79 million at the end of the fourth quarter of 2009.
• In the fourth quarter of 2010, net customer losses were 23,000, compared to net additions of 137,000 in the third quarter of 2010 and 371,000 in the fourth quarter of 2009.
• Contract customers were the primary driver for the sequential and year-on-year change in net customers.
• Contract net customer losses were 318,000 in the fourth quarter of 2010, compared to 60,000 net contract customer losses in the third quarter of 2010, and 117,000 net contract customer losses in the fourth quarter of 2009.
• Sequentially and year-on-year, the decline in net contract customers was driven primarily by fewer contract gross customer additions.  Traditional postpay gross customer additions decreased in the fourth quarter of 2010 driven primarily by revised credit standards and competitive intensity.  FlexPay^SM contract gross customer additions also decreased related to competitive intensity.
• Connected device net customer additions, included within contract customers (as defined in Note 3 to the Selected Data, below), were lower in the fourth quarter of 2010 than in the third quarter of 2010 and now total 1.9 million at December 31, 2010.
• Prepaid net customer additions, including MVNO customers (as defined in Note 3 to the Selected Data, below), were 295,000 in the fourth quarter of 2010, compared to 197,000 in the third quarter of 2010 and 488,000 in the fourth quarter of 2009.
• MVNO customer additions were the primary driver of prepaid net customer additions.  MVNO customers totaled 2.8 million at December 31, 2010.
• Year-on-year, FlexPay No-Contract net customer losses were the primary reason for the decrease in prepaid net customer additions.

Churn

• Blended churn (as defined in Note 2 to the Selected Data, below), including both contract and prepaid customers, was 3.6% in the fourth quarter of 2010, up from 3.4% in the third quarter of 2010 and 3.3% in the fourth quarter of 2009.
• The sequential and year-on-year increase was driven primarily by prepaid churn.
• Contract churn was 2.5% in the fourth quarter of 2010, up from 2.4% in the third quarter of 2010 and consistent with the fourth quarter of 2009.
• The sequential increase in contract churn was due primarily to higher churn of connected devices in the fourth quarter of 2010 and competitive intensity.
• Prepaid churn increased in the fourth quarter of 2010 to 7.5% from 7.2% in the third quarter of 2010 and 6.8% in the fourth quarter of 2009.
• The sequential and year-on-year increase in prepaid churn was driven primarily by MVNO customers.

OIBDA and Net Income

• T-Mobile USA reported OIBDA (as defined in Note 6 to the Selected Data, below) of $1.34 billion in the fourth quarter of 2010, consistent with $1.32 billion in the third quarter of 2010 and $1.38 billion in the fourth quarter of 2009.
• Compared to the fourth quarter of 2009, OIBDA decreased slightly due primarily to a higher equipment subsidy loss from more customers upgrading to smartphones (as defined in Note 11 to the Selected Data, below).
• OIBDA margin (as defined in Note 7 to the Selected Data, below) was 29% in the fourth quarter of 2010, up from 28% in the third quarter of 2010 but down from 30% in the fourth quarter of 2009.
• Net income in the fourth quarter of 2010 was $268 million, compared to $320 million in the third quarter of 2010 and $306 million in the fourth quarter of 2009.

Revenue

• Service revenues (as defined in Note 1 to the Selected Data, below) were $4.69 billion in the fourth quarter of 2010, consistent with $4.71 billion in the third quarter of 2010 and up slightly from $4.65 billion in the fourth quarter of 2009.
• Service revenues in the fourth quarter of 2010 were positively impacted by data revenue growth, driven by the adoption of mobile broadband data plans, the revenue contribution from providing handset insurance services, and higher prepaid revenues from the growth of unlimited usage plans.  In the fourth quarter of 2010, T-Mobile USA began directly providing handset insurance services which had previously been provided by a third party.
• Year-on-year, quarterly service revenues increased due primarily to data revenue growth and from directly providing handset insurance services which more than offset voice revenue declines.  The 0.9% increase in quarterly service revenues year-on-year in the fourth quarter of 2010 was an improvement from the 0.5% year-on-year decrease in the third quarter of 2010.
• Total revenues, including service, equipment, and other revenues were $5.36 billion in the fourth quarter of 2010, consistent with $5.35 billion in the third quarter of 2010 but down slightly from $5.41 billion in the fourth quarter of 2009.
• Equipment revenues decreased year-on-year due primarily to lower sales volumes.

ARPU

• Blended Average Revenue Per User (“ARPU” as defined in Note 1 to the Selected Data, below) was $46 in the fourth quarter of 2010, down slightly from $47 in the third quarter of 2010 but consistent with the fourth quarter of 2009.
• Contract ARPU was $52 in the fourth quarter of 2010, consistent with the third quarter of 2010 and up slightly from $51 in the fourth quarter of 2009.
• Year-on-year contract ARPU increased as data revenue growth and handset insurance revenues more than offset lower voice revenue.
• Prepaid ARPU was $19 in the fourth quarter of 2010, consistent with the third quarter of 2010 and up from $18 in the fourth quarter of 2009.
• The increase in prepaid ARPU compared to the fourth quarter of 2009 was due primarily to the growth of customers on unlimited usage plans.
• Data service revenues (as defined in Note 1 to the Selected Data, below) were $1.29 billion in the fourth quarter of 2010, up 25% from the fourth quarter of 2009.  Data service revenues in the fourth quarter of 2010 represented 28% of blended ARPU, or $12.80 per customer, up from 27% of blended ARPU, or $12.40 per customer in the third quarter of 2010, and 22% of blended ARPU, or $10.20 per customer in the fourth quarter of 2009.
• 8.2 million customers were using smartphones enabled for the T-Mobile USA UMTS/HSPA/HSPA+ network (as defined in Note 11 to the Selected Data, below) such as the T-Mobile^® myTouch^® 4G, T-Mobile G2^TM with Google^TM and the Samsung Vibrant^TM at the end of the fourth quarter of 2010.  This was a net increase of 14% or 1 million customers using smartphones from the third quarter of 2010 and more than double the 3.9 million customers as of the fourth quarter of 2009.  3G/4G smartphone customers now account for 24% of total customers, up from 21% in the third quarter of 2010 and 12% in the fourth quarter of 2009.
• While messaging continues to be a significant component of blended data ARPU, the increase in the number of customers using smartphones and the continued upgrade of the network are driving Internet access revenue growth with the increasing adoption of mobile broadband data plans.

CPGA and CCPU

• The average cost of acquiring a customer, Cost Per Gross Add (“CPGA” as defined in Note 5 to the Selected Data, below) was $290 in the fourth quarter of 2010, consistent with the third quarter of 2010 but down from $300 in the fourth quarter of 2009.
• Year-on-year, CPGA decreased in the fourth quarter of 2010 due primarily to the shift in customer base towards MVNO customers and connected devices.
• The average cash cost of serving customers, Cash Cost Per User (“CCPU” as defined in Note 4 to the Selected Data, below), was $24 per customer per month in the fourth quarter of 2010, consistent with the third quarter of 2010 and up from $22 in the fourth quarter of 2009.
• Year-on-year, CCPU was higher due primarily to a higher equipment subsidy loss as more customers upgraded to smartphones and the cost of directly providing handset insurance services.

Capital Expenditures

• Cash capital expenditures (as defined in Note 8 to the Selected Data, below) were $2.8 billion in 2010, compared to $3.7 billion in 2009.
• The primary reason for lower cash capital expenditures relates to the 2009 build-out of the national UMTS/HSPA network.  In 2010 cash capital expenditures were driven by continued network investment including coverage expansion and the upgrade to HSPA+.
• Cash capital expenditures were $828 million in the fourth quarter of 2010, compared to $643 million in the third quarter of 2010 and $697 million in the fourth quarter of 2009.
• Sequentially, the increase in cash capital expenditures was due primarily to the build out of the network, including new cell sites and the HSPA+-enabled 4G network upgrade (as defined in Note 10 to the Selected Data, below).  With the latest expansion, T-Mobile USA’s 4G network is available in more than 100 major metropolitan areas, reaching 200 million people at the end of 2010.
• Year-on-year, the increase in cash capital expenditures was due primarily to payment timing differences.

T-Mobile USA Recent Highlights

• On January 20, 2011 T-Mobile USA and Samsung Telecommunications America (Samsung Mobile) revealed the Galaxy S™ 4G.  Powered by Android™ 2.2, the Galaxy S 4G is  T-Mobile USA’s first smartphone capable of delivering theoretical peak download speeds of up to 21 Mbps, delivering rich entertainment experiences on T-Mobile USA’s 4G network (previous 4G smartphones, such as the myTouch 4G and the G2, were enabled for 14.4 Mbps).  The Samsung Galaxy S 4G is exclusive to T-Mobile USA and went on sale on February 23.
• On February 1, 2011 T-Mobile USA announced that it will introduce the T-Mobile Global for Business^TM plan, a unique approach to international voice and data roaming that reinforces the company’s commitment to support multinational corporations, as well as government agencies and U.S. enterprises conducting business internationally.
• On February 2, 2011 T-Mobile USA and LG Mobile Phones unveiled their Android™ 3.0 (Honeycomb)-powered tablet, the T-Mobile^® G-Slate™ with Google™ by LG.  With a brilliant, high-definition (8.9-inch, 3D-capable multi-touch display, the T-Mobile G-Slate delivers a groundbreaking mobile entertainment experience, including the ability to record 3D and full HD video. The tablet is expected to be available this spring.  T-Mobile USA’s 4G network, America’s largest 4G network™, is currently available in more than 100 major metropolitan areas, reaching 200 million people nationwide.  With aggressive plans to expand and double the speed of its 4G network in 2011, T-Mobile USA expects that 140 million Americans in 25 major metropolitan areas will have access to increased 4G speeds (HSPA+ 42 Mbps) by mid-year 2011.
• On February 3, 2011 T-Mobile USA was awarded the highest ranking for the second consecutive time (and the 11th time in the last 13 surveys) in J.D. Power and Associates’ 2011 Wireless Customer Care Performance Study^SM — Volume 1.
• On February 17, 2011 T-Mobile USA continued its streak of recognition for excellence in customer satisfaction with the fourth consecutive highest ranking in J.D. Power and Associates’ 2011 Wireless Retail Sales Satisfaction Study^SM— Volume 1 results. T‑Mobile USA ranked not only highest overall, but the highest in each area for which the study measured customer satisfaction.

T-Mobile USA is the U.S. wireless operation of Deutsche Telekom AG (OTCQX: DTEGY).  In order to provide comparability with the results of other US wireless carriers, all financial amounts are in US dollars and are based on accounting principles generally accepted in the United States (“GAAP”).  T-Mobile USA results are included in the consolidated results of Deutsche Telekom, but differ from the information contained herein as Deutsche Telekom reports financial results in Euros and in accordance with International Financial Reporting Standards (IFRS).

This press release includes non-GAAP financial measures.  The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP.  Reconciliations from the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below following Selected Data and the financial statements.

No platform in recent history has grown as fast as Google’s Android OS, and now Google has created a quick video to help us visualize the Android phenomenon. The sequence was first shown ahead of former CEO Eric Schmidt’s keynote at Mobile World Congress, and this week Google finally posted it to its Android Developers YouTube account. The video gives us a visual representation of all Android device activations from October 2008, when the platform launched, through the end of December 2010. It also displays helpful indicators just ahead of major device launches, such as the Motorola DROID launch in November 2009. Hit the jump for the video and prepare to be wowed.

Thanks, Will

IHS, new owner of research firm iSuppli, has issued its full-year data on app stores in 2010. According to the company’s report, Apple’s market share decreased significantly last year while its revenue more than doubled. The app store pioneer pulled in $1.78 billion in global app sales during 2010, up 132% from the $769 million its App Store earned in 2009. Not surprisingly, its market share dropped from 93% in 2009 to 83% during the period. RIM’s BlackBerryApp World grew 360% year-over-year, pulling in $165 million and accounting for nearly 8% of the market. Nokia’s Ovi Store jumped 719% to $105 million in 2010, and Google’s Android Market was up 862% to $102 million. All in all, the top four mobile app stores combined to reel in $2.16 billion in revenue last year, up 160% from the $828 million of revenue they earned in 2009.

[Via All About Symbian]

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Ladies and gentlemen, it is with great pleasure that I inform you that U.S. wireless provider Sprint, for the first time in thirteen quarters, has reported gains in post-paid subscribers. Ending its long drought, the Now Network added a total of 1.1 million new subs; 58,000 of which were post-paid. Sprint also reported a drop in churn during its earnings call, down to 1.86 in Q4 from 2.11 in Q3. It isn’t all good news, however. The company still posted a $929 million loss on revenues of $8.3 billion in Q4, or $0.31 per share. Sprint’s stock was trading slightly higher on the news.

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If you’re a hardware manufacturer trying to figure out where to delegate R&D funds, you might want to pay attention to this. According to an article on ReadWriteWeb, smartphones outsold personal computers in the fourth quarter of 2010, marking the first time such an event has occurred. Analytics firm IDC provides the data, and indicates that smartphone OEMs sold 100.9 million units worldwide — an 87.2% jump year-over-year — while PC OEMs sold 92.1 million units worldwide — a 5.5% increase year-over-year. The report lists the top five smartphone vendors of 2010 (by units shipped and market share) as: Nokia, Research In Motion, Apple, Samsung, and HTC.

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Lead by the impressive sales of Samsung’s Galaxy Tab, the Android platform is finally starting to gain momentum in the emerging consumer tablet market. Analytics firm Strategy Analytics reports that Android owned 22% of the global tablet market in the fourth quarter of 2010. The iPad’s share of the market dropped from 96% to 75% in the fourth quarter last year, according to the report. Apple shipped 7.3 million iPads last quarter, up 74% from the third quarter, while 2.1 million Android tablets were shipped — 2 million of which were built by Samsung. But Samsung won’t be carrying the market on its own for long. Android is already well on its way to overrunning the consumer tablet market as it did with smartphones. Over 100 tablets were announced at the Consumer Electronics Show earlier this month, and about half of them will run Android. With multiple new Android tablets launching each month compared to one new iPad from Apple each year, Google’s OS is bound to continue growing. RIM is also preparing to launch the BlackBerry PlayBook as its first tablet offering this year, which could sell as many as 6 million units during its first year of availability.

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Canalys today becomes the first major firm to report a changing of the guard we all knew was coming. According to the industry watcher’s fourth-quarter 2010 data, Google’s Android platform outsold Nokia’s Symbian OS to become the best-selling smartphone platform in the world. Canalys’ figures show 32.9 million Android-powered smartphones having been shipped last quarter, while Symbian device shipments slid in at 31 million units. In terms of market share, Android reeled in 32.9% of the market in the fourth quarter while Symbian owned 30.6% of the market. This marks the first time in 10 years that another smartphone operating system has outsold Symbian — and as fast as Android is growing, it most definitely will not be the last. Other notable takeaways from the report: Apple shipped 16.2 million smartphones to take 16% of the market, down 0.1% from the same quarter in 2009, and RIM’s global market share slid from 20% in the fourth quarter of 2009 to 14.4% last quarter. Despite losing ground in market share, Apple and RIM both saw year-over-year growth in terms of device shipments — up 85.9% and 36%, respectively. Hit the break for Canalys’ full press release.

Google’s Android becomes the world’s leading smart phone platform

- Canalys reveals smart phone market exceeded 100 million units in Q4 2010

Palo Alto, Singapore and Reading (UK) – Monday, 31 January 2011
For immediate release

Canalys today published its final Q4 2010 global country-level smart phone market data, which revealed that Google’s Android has become the leading platform. Shipments of Android-based smart phones reached 32.9 million, while devices running Nokia’s Symbian platform trailed slightly at 31.0 million worldwide. But Nokia did retain its position as the leading global smart phone vendor, with a share of 28%. The fourth quarter also saw the worldwide smart phone market continue to soar, with shipments of 101.2 million units representing year-on-year growth of 89%. The final quarter took shipments for the year to fractionally below 300 million units, with an annual growth rate of 80% over 2009 (see table below).

In Q4 2010, volumes of Google OS-based smart phones (Android, OMS and Tapas) were again boosted by strong performances from a number of vendors, notably LG, Samsung, Acer and HTC, whose volumes across these platforms grew 4,127%, 1,474%, 709% and 371% respectively year-on-year. HTC and Samsung together accounted for nearly 45% of Google OS-based handset shipments.

‘2010 has been a fantastic year for the smart phone market. After a difficult 2009, the speed with which the market has recovered has required real commitment and innovation from vendors and they have risen to the challenge,’ said Canalys VP and Principal Analyst Chris Jones. ‘But vendors cannot afford to be complacent. 2011 is set to be a highly competitive year with vendors looking to use new technology, such as dual-core processors, NFC and 3D displays, to differentiate their products and maintain value.’

At a regional level, Europe, the Middle East and Africa (EMEA) remained the largest market, with shipments totalling 38.8 million and a year-on-year growth rate of 90%. Nokia continued to lead in EMEA and Asia Pacific, but in 2010 it was overtaken by RIM in Latin America, which shipped over a million more units than Nokia in Q4 2010. The vendor was particularly helped by the popularity of its mid-range smart phones, such as its Curve family of devices.

The United States continued its reign as the largest country market in terms of shipments, at more than double the size of the Chinese smart phone market. RIM recaptured first place from Apple, as the latter experienced its usual US seasonal dip, and RIM benefited from the first full quarter of shipments for the BlackBerry Torch. HTC successfully maintained its third-place ranking in the US for the third consecutive quarter, driven by its speed to market with the latest Android updates and new Windows Phone 7 devices.

‘The US landscape will shift dramatically this coming year, as a result of the Verizon-Apple agreement,’ said Canalys Analyst Tim Shepherd. ‘Verizon will move its focus away from the Droid range, but the overall market impact will mean less carrier-exclusive deals, while increasing the AT&T opportunity for Android vendors, such as HTC, Motorola and Samsung.’ Android was by far the largest smart phone platform in the US market in Q4 2010, with shipments of 12.1 million units – nearly three times those of RIM’s BlackBerry devices. Windows Phone 7 devices appeared too late in the quarter to take full advantage of holiday season purchasing. As a result, Microsoft lost share in the United States, from 8% in Q4 2009 to 5% in Q4 2010.

Analysis of the published country-level data shows that, around the world, the strength of smart phone performances remained diverse. In South Korea, for example, shipments grew from under 700,000 units in Q4 2009 to just under 3.4 million units in Q4 2010, making the country a top 10 market. In Japan, Android shipments have taken off over the past year, with nearly 1.4 million units shipping from local as well as international vendors, such as HTC. More Japanese vendors have also announced plans to launch Android devices in 2011, such as NEC Casio and Panasonic. Under pressure from Huawei and Samsung in particular, Nokia’s share in China slipped to 56%, down from 76% a year ago, despite growing its volume in the country by over 70% in the same period. Albeit from a smaller base, the Chinese market grew 134% year-on-year, notably faster than the US market, which grew at 64% in the quarter.

Canalys analysts in Asia Pacific, the Americas and EMEA are available for press interviews on topics related to mobile devices and the growing ecosystem for mobile applications and services. There will also be a significant Canalys analyst presence at Mobile World Congress in Barcelona from 14 to 17 February. To arrange an interview, please send a request to press@canalys.com. Photos and bios of analysts are available from the Canalys web site.

Canalys Smart Phone Analysis, Quarterly Shipment Data

Samsung on Friday reported its fourth quarter and full year 2010 earnings, highlighting revenue and net income growth but missing Wall Street’s consensus as operating profit slid for the first time in six quarters. The company posted fourth quarter revenue of 41.87 trillion won, up 7% from the same quarter in 2009, and net income was up 13% year-over-year to 3.42 trillion won. Operating profit missed the Street’s consensus, however, falling 12% year-over-year to 3.01 trillion won. Samsung reported record revenue for the full year, up 13% from 2009 to 154.63 trillion won. 2010 net income set a full-year record as well, up 65% year-over-year to 16.15 trillion won, as did full-year operating income, which came in at 17.3 trillion won. Samsung’s mobile division reported a record profit of 1.44 trillion won in the fourth quarter, up 38% year-over-year, and the company shipped 80.7 million cell phones in the quarter. Full-year shipments reached 280 million units, up 23% from 2009 and outpacing the global market. Hit the break for Samsung’s full press release.

Samsung Electronics Announces Fourth Quarter & FY 2010 Results

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.