Yesterday it was revealed that the popular social networking app Path was uploading entire iPhone address books to the company’s server. The data uploaded included full names, phone numbers and email addresses, and the app uploaded all this data without ever asking for permission. Dave Morin, Path’s co-founder and CEO, admitted fault on Wednesday through the company’s website and announced an update to allow users to either opt in or out of the contact collection feature. “We believe you should have control when it comes to sharing your personal information. We also believe that actions speak louder than words,” Morin said. “So, as a clear signal of our commitment to your privacy, we’ve deleted the entire collection of user uploaded contact information from our servers. Your trust matters to us and we want you to feel completely in control of your information on Path.” The company maintains that when data is transmitted to its servers, it is always sent securely through an encrypted connection and protected by industry-standard firewalls.

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Path, the popular social network that competes with the likes of Instagram, may be uploading your iPhone’s entire address book up to its servers. Arun Thampi from mclov.in noticed the Path app’s steal data dump while trying to create a Mac OS X application for the social network during a hackathon. “Upon inspecting closer, I noticed that my entire address book (including full names, emails and phone numbers) was being sent as a plist to Path,” Thampi said, noting that Path didn’t ever ask for permission to do so. It’s unclear why Path is uploading the iPhone’s entire address book, but Thampi noticed that the social network performs the action during an API call with basic HTTP authentication. It remains unclear if Path’s Android application is also guilty of uploading personal information. Thampi has instructions on how to catch Path in the action on his blog.

UPDATE: A response from Path’s CEO follows after the break.

Arun, thanks for pointing this out. We actually think this is an important conversation and take this very seriously. We upload the address book to our servers in order to help the user find and connect to their friends and family on Path quickly and effeciently as well as to notify them when friends and family join Path. Nothing more.

We believe that this type of friend finding & matching is important to the industry and that it is important that users clearly understand it, so we proactively rolled out an opt-in for this on our Android client a few weeks ago and are rolling out the opt-in for this in 2.0.6 of our iOS Client, pending App Store approval.

Dave Morin
Co-Founder and CEO of Path

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Rogers on Monday announced two new LTE devices that will offer even faster speeds than earlier 4G modems on its network. The company will soon launch the Sierra Wireless AirCard 330U LTE Rocket stick as well as the Sierra Wireless AirCard 763S LTE Rocket mobile hotspot. Both devices utilize the 2600MHz spectrum and will offer LTE download speeds of up to 40 Mbps, compared to the 12-25Mbps offered by Rogers’s earlier devices. ”We are thrilled to offer Canada’s fastest LTE devices on Canada’s fastest and largest LTE network,” said Rogers Executive Vice President and Chief Marketing Officer John Boynton. “We were the first to launch an LTE network in Canada and we have invested in the network technology that enables us to keep raising the bar for our customers to experience faster speeds, more devices and more LTE plan options.” Plans for the LTE Rocket stick and mobile hotspot will start at $22.93 per month. Read on for Rogers’s press release.

Rogers to launch Canada’s fastest LTE devices and new price plan options

TORONTO, Feb. 6, 2012 /PRNewswire/ – To continue bringing more speed and choice to Canadians, today Rogers Communications announced the addition of two new Long Term Evolution (LTE) devices that will offer the fastest speeds inCanada, as well as more LTE plan options.

Rogers will soon be launching the Sierra Wireless AirCard® 330U model of the LTE Rocket™ stick as well as the Sierra Wireless AirCard® 763S LTE Rocket mobile hotspot which offer maximum theoretical LTE download speeds of up to 100 Mbps. These devices will be the first to support connectivity on both the 1700/2100 MHz and the 2600 MHz spectrum on Rogers LTE network, offering typical LTE download speeds of up to 40 Mbps, compared to 12-25 Mbps for devices using 1700/2100 MHz only.

“We are thrilled to offer Canada’s fastest LTE devices on Canada’s fastest and largest LTE network,” said John Boynton, Rogers Executive Vice President and Chief Marketing Officer. “We were the first to launch an LTE network in Canada and we have invested in the network technology that enables us to keep raising the bar for our customers to experience faster speeds, more devices and more LTE plan options.”

Rogers will also extend its range of 4G HSPA+ mobile internet plans to LTE models including the Flex Rate plan for Rocket stick and mobile hotspot starting from $22.93 per month and Flex Rate plans for tablets starting from $7.93 per month. Rogers continues to offer the LTE Introductory Plan of $52.93 for 10 GB/month on a three-year-term and plans include no overage fees for the first month.

The new LTE pricing options will be available this week. The Sierra Wireless AirCard® 330U model of the LTE Rocket stick will be in stores in the next few weeks and the Sierra Wireless AirCard® 763S LTE Rocket mobile hotspot will be available this spring. Rogers customers can reserve the new LTE devices online at www.rogers.com/lte.

Rogers was the first to launch an LTE network in Canada, starting in Ottawa last July, followed by Toronto, Montreal andVancouver in September as well as surrounding cities. Rogers will expand to more than 25 additional cities to bring the benefits of LTE to more than half the Canadian population by the end of the year.

Rogers was the first to launch LTE devices in Canada and continues to expand its selection with innovative devices such as the recently announced Samsung Galaxy Note™, an all-in-one LTE tablet and smartphone hybrid. Rogers also carries the Sierra Wireless AirCard® 313U model of LTE Rocket stick, the Sierra Wireless AirCard® 754S model of LTE Rocket mobile hotspot, the Rogers exclusive Samsung Galaxy S II LTE™ smartphone, the HTC Raider™ as well as Canada’s first LTE tablet, the Rogers exclusive, HTC Jetstream™.

The national launch of the LTE network reinforces Rogers proud history of innovative firsts and commitment to investing inCanada’s digital future. Rogers was the first carrier in North America to launch an HSPA+ network and offers Canada’s only coast to coast GSM network. Rogers was the first in the world to launch BlackBerry® devices; and the first in Canada to launch both Android products and the iPhone.

Samsung and Corning — best known for its Gorilla Glass products — announced a new joint venture this week that will manufacture specialty glass substrates for OLED displays. The joint venture will be based in South Korea and will combine Samsung’s OLED display technology with Corning’s ultra tough Lotus Glass substrate. The new displays will be utilized in mobile devices as well as larger products, such as televisions, and will be used in Samsung products and sold to other South Korean manufacturers. ”Corning and Samsung have a long and successful partnership in the display industry, dating back nearly 40 years to the early days of television,” Corning chairman, President and CEO Wendell P. Weeks said. “The strength of our business relationship is built on Corning’s ability to develop and make high-technology glass with the key attributes that enable Samsung’s next-generation displays.” Samsung’s full press release follows after the break. 

Corning and Samsung Mobile Display Form New OLED Glass Venture

New business expands Corning’s long-standing collaboration with Samsung

CORNING, N.Y.–(BUSINESS WIRE)–Corning Incorporated (NYSE: GLW) and Samsung Mobile Display Co., Ltd. have signed an agreement to establish a new equity venture for the manufacture of specialty glass substrates for the rapidly expanding organic light emitting diode (OLED) device market. The new business will be located in Korea.

“Samsung Mobile Display has led the global display industry by constantly seeking innovations and challenging current technologies’ limits. We are confident that combining our business powers with Corning’s technology leadership will deliver greater value to our clients”

Combining Corning’s Lotus™ Glass substrate technology and Samsung Mobile Display’s OLED display expertise, this new entity will be well-positioned to provide outstanding product solutions for current and future OLED technologies, from handheld and IT devices to large TVs and beyond.

The newly formed entity will supply OLED backplane glass substrates for Samsung Mobile Display, as well as for the broader Korean market.

According to a recent NPD DisplaySearch report, OLED technology advanced rapidly in 2011, setting a trend that is forecasted to continue through this decade. They estimate that OLED display revenues will exceed $4 billion in 2011 (approximately 4% of flat panel display revenues), and will reach more than $20 billion (approximately 16% of the total display industry) by 2018.

Samsung is playing a leading role in this emerging market through its Galaxy mobile device products and Super OLED TV technology introduced in January at the International Consumer Electronics Show. Corning’s ongoing advanced glass technology development includes a strong focus on high-performance displays. Most recently, this focus has been demonstrated through Corning’s new Lotus™ Glass substrates, which deliver the higher processing temperatures and improved dimensional stability needed to produce the new high performance displays.

“Samsung Mobile Display has led the global display industry by constantly seeking innovations and challenging current technologies’ limits. We are confident that combining our business powers with Corning’s technology leadership will deliver greater value to our clients,” said Soo In Cho, Samsung Mobile Display’s president and chief executive officer.

“Corning and Samsung have a long and successful partnership in the display industry, dating back nearly 40 years to the early days of television,” said Wendell P. Weeks, Corning’s chairman, chief executive officer, and president. “The strength of our business relationship is built on Corning’s ability to develop and make high-technology glass with the key attributes that enable Samsung’s next-generation displays. Together, we have led the evolution of displays – from the high-growth years of CRT, to our current successful business supplying world-leading substrates for today’s high-definition LCD TVs, and now to the launch of this important new venture to advance OLED technology,” Weeks stated.

NPD In-Stat recently issued a report in which the firm said it expects smartphones, tablets and notebooks — which are all included in its “mobile magnet platforms” category — to grow at a compounded annual growth rate of of 25.7% through 2015. The company also said it expects the overall mobile market to grow 8.7%. ”The technology driver of all these smart devices is the mobile technology, because it represents the largest and fastest growing segment of the entire electronics market,” Jim McGregor, Chief Technology Strategist for NPD said. “The innovation of the mobile market is being driven by four key factors: richer content, network access for communications and content, increased bandwidth to enable this access, and new technologies. These four factors form a self-sustaining circle of innovation that feeds from and enables each factor.” The market research firm also expects that smartphones to grow from under 20% of all phones  sold in 2010 to 43% of all handsets sold by 2015. NPD’s full press release follows after the break.

Smartphones, Tablets, and Notebook PCs to Grow at 25.7% CAGR Through 2015, Says NPD In-Stat

SCOTTSDALE, Ariz., February 1, 2012—While the consumer electronic (CE) market was once driven by the ability of devices to provide specific functions, like music playback, video, or voice communications, CE devices are increasingly providing multiple functions and Internet connectivity for information, communications, and entertainment. This is resulting in the overlap of features and functions between product categories not only in the mobile segment, but also in other CE devices like digital TVs and set top boxes. As a result, this entire category is morphing into a larger category often referred to as smart devices. These devices are increasingly sharing the same silicon components, operating systems, and application software.There are three leading platforms in the mobile segment—smartphones, tablets, and notebooks PCs—and new NPD In-Stat (www.in-stat.com) research forecasts that this category of mobile “magnet platforms” will grow at a CAGR of 25.7% through 2015 as compared to 8.7% for the overall mobile market.

“The technology driver of all these smart devices is the mobile technology, because it represents the largest and fastest growing segment of the entire electronics market,” says Jim McGregor, Chief Technology Strategist. “Even in PCs, where increasing performance was once the mantra, CPU vendors are now focused on the performance efficiency of mobile computing and using the resulting products to drive advancements in other forms of computing including desktop PCs, servers, and embedded applications. The innovation of the mobile market is being driven by four key factors: richer content, network access for communications and content, increased bandwidth to enable this access, and new technologies. These four factors form a self-sustaining circle of innovation that feeds from and enables each factor.”

Key research findings include:

• Only 40% of the mobile SoC TAM will use at least one dedicated GPU in 2011. It is important to note that both the number of SoCs using GPUs and the number of GPU cores per SoC is increasing throughout the forecast period.
• The mobile SoC TAM will exceed 3.1 billion devices in 2015.
• Intel and Imagination lead the GPU market because of their dominance in PCs and smartphones, respectively. Combined, the two are projected to comprise 61.3% of the GPU technology mobile serviceable available market in 2011.
• Smartphones will increase from just under 20% of total handsets in 2010 to 43% in 2015.

New NPD In-Stat research, Mobile Graphics: Smartphones Beat the Drum to Which All Markets March (#IN1105075SI), provides a comprehensive look at the graphics, or GPUs, with a strong emphasis on the integrated or intellectual property (IP) solutions that are available for mobile consumer electronic (CE) devices.

The forecasts in this report include:

• Five-year mobile graphics TAM by mobile device platform
• CE device forecasts for cellphones, smartphones, notebook PCs, tablets, digital cameras, MP3 players, personal navigation devices, e-readers, handheld game consoles, digital camcorders, portable media players, and mini-note PCs (netbooks).
• Market shares for 2010 and estimated for 2011 for vendor and GPU technology: smartphones, notebook PCs, tablets, e-readers, handheld game consoles, portable media players, and mini-note PCs (netbooks).
• Vendor profiles including AMD, ARM, Digital Media Professionals (DMP), Imagination Technologies, Intel, NVIDIA, Qualcomm, and Vivante.

Apple’s iMovie mobile application has new competition when it comes to mobile video editing. Long-time digital video editing software vendor Avid has released its Avid Studio mobile video editing app for the iPad. The app is currently available in the App Store for an introductory price of $4.99 and will increase to $8 after 30 days. Avid Studio for the iPad is the company’s first video editing program for Apple’s mobile platforms. Avid Studio looks to provide most of the features offered through the desktop version, going above and beyond what iMovie is capable of in many cases. The app comes only two days after Apple released a big update for Final Cut Pro X for OS X.

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ComScore released its most recent U.S. Mobile Subscriber Market Share report for the three-month period ending in December, 2011. The research firm found that Samsung remained the top mobile phone vendor in the fourth quarter with a 25.3% market share — the same share as it held in the third quarter. LG’s market share dropped 0.6 percentage points to a 20% share for second place followed by Motorola, which fell 0.5 percentage points to 13.3%. Apple had the fourth largest share with a 12.4% market share, up 2.2 percentage points, and RIM fell 0.4 points to a 6.7% share. Read on for more.

Android remains the most used smartphone operating system in the United States with a 47.3% share of the market, up 2.5 percentage points from the last report. Android is followed by iOS, which grew 2.2 points to a 29.6% share, BlackBerry OS, which fell 2.9 points to a 16% share, Microsoft’s mobile Windows platform (4.7%, down 0.9 percentage points) and Symbian (1.4%, down 0.4 percentage points). ComScore did not distinguish whether or not Microsoft’s share represented Windows Phone, Windows Mobile or both.

ComScore said that 97.9 million U.S. residents owned a smartphone during the three months ended December 2011, which represents 40% of all mobile subscribers. The firm also said 234 million Americans aged 13 and older own a mobile device. The company’s full press release follows below.

comScore Reports December 2011 U.S. Mobile Subscriber Market Share

Smartphone Penetration Climbs Over 40 Percent during December Holiday Shopping Season

RESTON, VA, February 2, 2012 – comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released data from the comScore MobiLens service, reporting key trends in the U.S. mobile phone industry during the three month average period ending December 2011. The study surveyed more than 30,000 U.S. mobile subscribers and found Samsung to be the top handset manufacturer overall with 25.3 percent market share. Google Android strengthened its lead in the smartphone market to reach 47.3 percent market share.

OEM Market Share

For the three-month average period ending in December, 234 million Americans age 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 25.3 percent of U.S. mobile subscribers, followed by LG with 20 percent share and Motorola with 13.3 percent share. Apple continued to gain ground in the OEM market with 12.4 percent share of total mobile subscribers (up 2.2 percentage points), while RIM rounded out the top five with 6.7 percent share.

Top Mobile OEMs 3 Month Avg. Ending Dec. 2011 vs. 3 Month Avg. Ending Sep. 2011 Total U.S. Mobile Subscribers (Smartphone & Non-Smartphone) Ages 13+ Source: comScore MobiLens
	Share (%) of Mobile Subscribers
	Sep-11	Dec-11	Point Change
Total Mobile Subscribers	100.0%	100.0%	N/A
Samsung	25.3%	25.3%	0.0
LG	20.6%	20.0%	-0.6
Motorola	13.8%	13.3%	-0.5
Apple	10.2%	12.4%	2.2
RIM	7.1%	6.7%	-0.4

Smartphone Platform Market Share

97.9 million people in the U.S. owned smartphones during the three months ending in December, representing 40 percent of all mobile subscribers. Google Android ranked as the top smartphone platform with 47.3 percent market share, up 2.5 percentage points from September. Apple maintained its #2 position, growing 2.2 percentage points to 29.6 percent of the smartphone market. RIM ranked third with 16 percent share, followed by Microsoft (4.7 percent) and Symbian (1.4 percent).

Top Smartphone Platforms 3 Month Avg. Ending Dec. 2011 vs. 3 Month Avg. Ending Sep. 2011 Total U.S. Smartphone Subscribers Ages 13+ Source: comScore MobiLens
	Share (%) of Smartphone Subscribers
	Sep-11	Dec-11	Point Change
Total Smartphone Subscribers	100.0%	100.0%	N/A
Google	44.8%	47.3%	2.5
Apple	27.4%	29.6%	2.2
RIM	18.9%	16.0%	-2.9
Microsoft	5.6%	4.7%	-0.9
Symbian	1.8%	1.4%	-0.4

Mobile Content Usage

In December, 74.3 percent of U.S. mobile subscribers used text messaging on their mobile device, up 3.2 percentage points. Downloaded applications were used by 47.6 percent of subscribers (up 5.1 percentage points), while browsers were used by 47.5 percent (up 4.6 percentage points). Accessing of social networking sites or blogs increased 3.8 percentage points to 35.3 percent of mobile subscribers. Game-playing was done by 31.4 percent of the mobile audience (up 2.6 percentage points), while 23.8 percent listened to music on their phones (up 2.9 percentage points).

Mobile Content Usage 3 Month Avg. Ending Dec. 2011 vs. 3 Month Avg. Ending Sep. 2011 Total U.S. Mobile Subscribers (Smartphone & Non-Smartphone) Ages 13+ Source: comScore MobiLens
	Share (%) of Mobile Subscribers
	Sep-11	Dec-11	Point Change
Total Mobile Subscribers	100.0%	100.0%	N/A
Sent text message to another phone	71.1%	74.3%	3.2
Used downloaded apps	42.5%	47.6%	5.1
Used browser	42.9%	47.5%	4.6
Accessed social networking site or blog	31.5%	35.3%	3.8
Played Games	28.8%	31.4%	2.6
Listened to music on mobile phone	20.9%	23.8%	2.9

Thanks to a strong fourth quarter, Apple has passed LG to become the world’s third largest cell phone vendor by volume, according to new estimates from market research firm IDC. The worldwide mobile phone market grew 6.1%  year-over-year in the fourth quarter as the feature phone market continued to decline to its lowest growth rate in two years. Vendors shipped 427.4 million phones in the fourth quarter compared to 402.8 million units in the same quarter last year. Nokia and Samsung remained the top and No.2 vendors, respectively, though Nokia’s phone shipments slid 7.9% while shipments of Samsung handsets grew 17.6% compared to the same quarter in 2010. Read on for more

“Apple jumped into the third spot globally from the fifth spot last quarter thanks to a record-breaking quarter of shipments,” IDC stated in a press release. ”That represents the Cupertino-based company’s highest-ever ranking on IDC’s Top 5 global mobile phone leaderboard. The launch of Apple’s iPhone 4S smartphone, which is now available in over 90 countries (as of mid-January), was the primary reason the company leapt over LG and ZTE in 4Q11. Device sales in the U.S. and Japan were particularly strong given extra sales days in the quarter and carrier distribution.” The firm’s full press release follows below.

Worldwide Mobile Phone Market Maintains Its Growth Trajectory in the Fourth Quarter Despite Soft Demand for Feature Phones, According to IDC 

01 Feb 2012

FRAMINGHAM, Mass. February 1, 2011 – The worldwide mobile phone market grew 6.1% year over year in the fourth quarter of 2011 (4Q11), as the feature phone market declined faster than anticipated, dragging market growth down to its lowest point in over two years. According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 427.4 million units in 4Q11 compared to 402.8 million units in the fourth quarter of 2010. The 6.1% year-over-year growth was higher than IDC’s forecast of 4.4% for the quarter, but weaker than the 9.3% growth in 3Q11.

“The mobile phone market exhibited unusually low growth last quarter, which shows it is not immune to weaker macroeconomic conditions worldwide,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “The introduction of high-growth products such as the iPhone 4S, which shipped in the fourth quarter, bolstered smartphone growth. Yet overall market growth fell to its lowest point since 3Q09 when the global economic recession was in full bloom.”

While smartphones continue to grow in popularity, feature phones still comprise the majority of all mobile phone shipments. “Feature phones accounted for a majority of shipments from four of the five market leaders during the quarter,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “Even though their proportion is eroding, feature phones maintain their appeal on the basis of price and ease of use.

“At the same time, feature phones are fighting to maintain their market share,” added Llamas. “To meet the challenge, feature phones are becoming more like smartphones, incorporating mobile Internet and third-party applications. While this may not stem the smartphone tide, it should slow down the rate at which smartphones are selected over feature phones.”

Regional Highlights

• In Asia/Pacific (excluding Japan), the feature phone market declined in conjunction with the region’s largest feature phone markets – China, India, and Indonesia. The impact on phone demand due to the holiday season, which generally means a sales uplift, was minimal in this category. Meanwhile, smartphones maintained their growth momentum as the iPhone 4S was well received in Australia, Hong Kong, Korea, and Taiwan. Competition in the Android market intensified as mid-range vendors, such as Lenovo, Coolpad, and Huawei, shipped large numbers in their home market of China. Elsewhere, the rest of the Android market was dominated by Samsung, followed by HTC and LG. Windows Phone gained some momentum thanks to sales of the HTC Titan and Radar and Nokia Lumia. In Japan, pent-up demand for mobile phones after last year’s natural disasters and weakened economy meant unusually high growth for the country’s mobile phone market. Smartphone sellers, such as Apple, fared particularly well while non-Japanese vendors continue to make incremental gains in the market.

• The Western European mobile phone market was impacted by lower demand, a result of the worsening economic environment. Smartphone growth was not enough to offset the feature phones decline, despite excellent performances from Apple and Samsung. Nokia experienced another difficult quarter as a result of its transition towards Windows Phones. Feature phone shipments were near historic lows, supported primarily by very low-end devices. Overall, the Central Europe, Middle East and Africa (CEMA) markets showed strong double-digit growth due in large part to Samsung’s continued strength in the regions. Bucking its global troubles, Nokia shipments flattened out in the regions after a strong third quarter, enabling it to remain the market leader in the regions. Apple continued to make quiet progress in the regions as well.

• In North America, smartphones held the spotlight with the launch of the Apple iPhone 4S, while LTE smartphones from HTC, LG, Motorola, and Samsung also made important gains. Research In Motion launched several new phones running on BB OS 7 during the quarter, and signaled a late 2012 timetable for its first BlackBerry 10 smartphones to reach the market, leaving an opportunity to its competitors to attack its market share.

• Smartphones also took center stage in Latin America with the launch of multiple models across the region, particularly sub-$200 Android models. The low price points have enabled broader appeal, and have also found placement among popular prepaid markets. Although smartphones continued to grab attention, low-cost feature phones ruled the market, with strong participation from Nokia, Samsung, and multiple Chinese vendors.

Vendor Highlights

Nokia finished the year exactly where it began: as the undisputed leader of total mobile phone shipments. The company took another step in its storied transition, having officially launched its first Windows Phone-powered Lumia smartphones and its Asha line of smartphone-like feature phones. While both have received positive response from the market, Nokia has been quick to adjust its retail experience, customer engagement, and hardware bug fixes. At the same time, the increased focus on the Lumia, combined with changing market conditions in key markets, has prompted Nokia to change its strategy on Symbian smartphones. Fewer Symbian devices will be sold in 2012. Still, Nokia’s broad distribution around the world and manufacturing capabilities make it a serious contender to maintain its leadership position.

Samsung finished the quarter and the year reaching new record levels: breaking the 90 million unit mark for the first time in a single quarter and breaking the 300 million mark for the first time in a single year. Leading the charge for Samsung was its growing smartphone volumes, boosted by the release of several high-end devices (Galaxy S II, Galaxy Note, Galaxy Nexus), mass market models (Galaxy Ace, and Galaxy Y), and new Windows Phone smartphones (Focus Flash and the Focus S). These, along with its own steadily growing feature phone volumes, pushed Samsung closer to market leader Nokia, with fewer than 20 million units separating them in 4Q11.

Apple jumped into the third spot globally from the fifth spot last quarter thanks to a record-breaking quarter of shipments. That represents the Cupertino-based company’s highest-ever ranking on IDC’s Top 5 global mobile phone leaderboard. The launch of Apple’s iPhone 4S smartphone, which is now available in over 90 countries (as of mid-January), was the primary reason the company leapt over LG and ZTE in 4Q11. Device sales in the U.S. and Japan were particularly strong given extra sales days in the quarter and carrier distribution.

LG‘s total volumes declined for the third consecutive quarter, sinking to levels not seen since the second quarter of 2007. Driving this result was a combination of waning interest in its aging feature phones and stalled smartphone volumes. In addition, from a full year perspective, LG posted the largest full year-over-year decline among the leading vendors. Still, the quarter did have some bright spots, including a return to profitability and a warm reception for its Optimus LTE smartphones across multiple markets. 2012 will feature more smartphones from LG, especially LTE-powered models, but the competition has similar smartphone strategies.

Chinese vendor ZTE nearly tied with LG for fourth place, with fewer than a million units separating the two vendors. Long known as a purveyor of entry level devices, ZTE’s smartphones increasingly moved into the spotlight. The company’s primary targets included countries throughout Asia/Pacific, but it also gained presence in EMEA and Latin America, and branched out into North America. Key models for the quarter included its popular mass-market Blade and mid-range Skate Android smartphones, and recently the company added its first Windows Phone-powered smartphone, the Tania.

If you’re signed up for a daily deal service on your phone, odds are you’re from a high-income household. According to new data from comScore, 36.5% of U.S. phone owners who are signed up for a daily deal service have an annual income of more than $100,000. 19.6% come from households that have an annual income of between $75,000 and $100,000, 18.1% have a household income of between $50,000 and $75,000, 16.9% fall between $25,000 and $50,000, and 8.9% earn less than $25,000 per year. ComScore did not specifically name the mobile deal services included in the study, though Living Social and Groupon are among the more popular daily deal services.

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Democratic Representative Edward Markey of Massachusetts released a draft of his cell phone privacy bill on Monday. The Mobile Device Privacy Act is designed to protect consumers from tracking software such as Carrier IQ, which caused an uproar late last year when it was discovered to be secretly monitoring 150 million smartphone users. The bill would require companies to disclose the use of such tracking software and clarify exactly what information the software collects. Customers would have to consent to any data collected or transmitted, and third parties would have to file applications with the Federal Trade Commission and the Federal Communications Commission to ensure the data is being transmitted securely. “Consumers have the right to know and to say ‘no’ to the presence of software on their mobile devices that can collect and transmit their personal and sensitive information,” said Markey when speaking to The Hill. Markey serves on the House Energy and Commerce Committee and is the co-chairman of the Congressional Privacy Caucus.

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Texas Instruments announced recently that, even though it reported better than expected chip sales during the fourth quarter of 2011, the company will shut down its plants in Texas and in Japan. Texas Instruments has seen an increased demand for its mobile chips but will close the two factories during the next 18 months while increasing its employee numbers at different plants. The move is an effort to cut costs, Reuters said. The company reported a fourth-quarter profit of $298 million, down from $942 million during the same quarter last year. Revenue also fell from $3.53 billion last year to $3.42 billion during the fourth quarter. “Everybody feared we’d end the holiday season with abysmal sales,” Cody Acree, an analyst with Williams Financial, told Reuters. “The reality is that end-demand is better than TI customers had originally feared. We’re not calling for great growth but we’re not heading into the abyss.”

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Verizon on Tuesday reported its fourth quarter 2011 results. The company noted record revenue growth during the quarter, which it said was fueled by strong demand for wireless service. Revenue for the year totaled $110.9 billion, up 4% from 2010. Its quarterly revenue of $28.4 billion was up 7.7% from the same time period last year. Verizon Wireless, a joint venture between Verizon Communications and Vodafone, reported the highest number of retail net additions in three years driven by smartphone sales. Revenues tipped at $18.3 billion during the quarter, up 13% from the same period last year. Data revenues was up even higher year over year, at $6.3 billion, up 19.2% ($1 billion) from the same period one year prior. ARPU grew 2.6% to $53.14. Verizon also reported $0.85 EPS, down from $0.90 EPS in 2010. The carrier added a total of 1 million total net connections during the fourth quarter and 1.5 million retail customers, including 1.2 million retail postpaid customers. Postpaid churn was 0.94% for the quarter. Verizon’s full press release follows after the break.

Verizon Reports Record Revenue Growth in 4Q, Fueled by Strong Demand for Wireless, FiOS and Strategic Services

Verizon Generates Strong Cash Flows, 18.2 Percent Shareholder Returns in 2011; 4Q Earnings Impacted by Non-Cash Pension Items

 4Q 2011 HIGHLIGHTS

Consolidated

·         7.7 percent year-over-year quarterly revenue growth in 4Q, a company record.

·         A loss of 71 cents in diluted earnings per share (EPS), impacted by non-cash pension items, compared with earnings of 93 cents per share in 4Q 2010.

·         52 cents per share in adjusted EPS (non-GAAP), which excludes $1.23 per share in non-operational items, compared with 54 cents in adjusted EPS in 4Q 2010.

 

Wireless

·         $18.3 billion in total 4Q revenues, up 13.0 percent year over year; data revenues of $6.3 billion, up 19.2 percent, representing 41.6 percent of service revenues; $15.1 billion in service revenues, up 6.4 percent.

·         1.5 million retail net additions (excluding acquisitions and adjustments), largest increase in three years, includes 1.2 million retail postpaid net customer additions; 108.7 million total connections, includes 92.2 million retail customers.

·         2.6 percent growth in retail service ARPU over 4Q 2010; retail postpaid data ARPU up 14.3 percent.

·         23.7 percent operating income margin; 42.2 percent Segment EBITDA margin on service revenues (non-GAAP).

 

Wireline

·         201,000 FiOS Internet and 194,000 FiOS Video net additions, with increased sales penetration for both products; net increase of 98,000 broadband connections from 3Q 2011.

·         8.5 percent year-over-year increase in consumer ARPU; FiOS ARPU was more than $148 per month.

·         14.7 percent increase in strategic services revenues, representing 51 percent of global enterprise revenues.

·         3.0 percent operating income margin; 23.8 percent Segment EBITDA margin (non-GAAP), compared with 23.5 percent in 4Q 2010 and 21.4 percent in 3Q 2011.

 

NEW YORK – Verizon Communications Inc. (NYSE, Nasdaq: VZ) posted the highest year-over-year quarterly revenue growth in the company’s 11-year history in fourth-quarter 2011, fueled by continued strong demand for Verizon Wireless services and handsets, FiOS fiber-optic services, and strategic business products and services.

 

‘Great Momentum for 2012’

 

“Verizon finished 2011 very strong, both in terms of revenue growth and by delivering an 18.2 percent total return to our shareholders for the full year, and the company has great momentum for 2012,” said Lowell McAdam, Verizon chairman, president and chief executive officer.  “Verizon Wireless produced particularly strong growth in the fourth quarter.  While that diluted wireless margins in the short term, it is good news for revenue and margin growth over the long term, particularly given our leadership in the rapidly developing 4G LTE ecosystem.”

 

McAdam added: “Wireline margins recovered from third-quarter pressures, and we expect wireline margin expansion in 2012.  With recent strategic moves and our investments in FiOS, LTE, and global IP and cloud-based strategic services, Verizon has set the stage for accelerated growth across our business units, and we look to continue to build significant value for shareholders in 2012.”

 

Verizon’s total shareholder return is a combination of stock-price appreciation and dividend payments.  Regarding recent strategic moves, Verizon last month strengthened its ability to provide fully integrated solutions by creating Verizon Enterprise Solutions, a sales and marketing organization, to harness all of Verizon’s solutions for business and government customers globally.  In addition, Verizon Wireless announced agreements to purchase AWS (Advanced Wireless Spectrum) licenses, an important step toward meeting customers’ needs for wireless data and broadband services.

 

4Q and Full-Year Earnings Results

 

Due primarily to the impact of previously announced non-cash pension items, Verizon reported a loss of 71 cents in EPS in fourth-quarter 2011, compared with earnings of 93 cents per share in fourth-quarter 2010.

 

Adjusted fourth-quarter 2011 earnings (non-GAAP) of 52 cents per share exclude $1.20 per share, or $3.4 billion after-tax, due to the actuarial valuation of Verizon’s benefit plans, and 3 cents per share for the early extinguishment of debt.  This annual valuation adjustment, resulting from changes in actuarial assumptions, is in accordance with a Verizon accounting policy adopted last year.  Comparable adjusted fourth-quarter 2010 earnings were 54 cents per share, excluding the impact of non-operational items, the largest of which was a gain from benefit-plan valuation of 44 cents per share.

 

On an annual basis, Verizon reported 85 cents in 2011 EPS, compared with 90 cents per share in 2010.  Adjusted annual EPS (non-GAAP) was $2.15 in 2011, compared with $2.08 on a comparable basis (non-GAAP, excluding results from divested businesses) in 2010.

 

Consolidated Revenue Growth, Strong Cash Flows

 

In fourth-quarter 2011, Verizon’s total operating revenues were $28.4 billion on a consolidated basis, an increase of 7.7 percent compared with fourth-quarter 2010.  For full-year 2011, revenues totaled $110.9 billion, a 4.0 percent increase compared with 2010, when results included revenues from operations that have since been divested.  On a comparable basis (non-GAAP), Verizon’s 2011 full-year revenues increased 6.2 percent compared with 2010.

 

Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $29.4 billion in 2011.  On an adjusted basis (non-GAAP), EBITDA increased by more than $950 million in 2011 compared with 2010.

 

Cash flow from operating activities totaled $29.8 billion in 2011, and capital expenditures totaled $16.2 billion.  Free cash flow (non-GAAP, cash flow from operations less capex) was more than $13.5 billion in 2011.  From this total, Verizon returned $5.6 billion in quarterly dividends to shareholders in 2011, as the company’s Board of Directors approved a fifth consecutive year of dividend increases.

 

Verizon Wireless Delivers Strong Customer and Revenue Growth

 

In fourth-quarter 2011, Verizon Wireless delivered the highest number of retail net additions in three years and strong growth in revenues, driven by increased smartphone penetration and increased retail postpaid ARPU (average monthly service revenue per user).

 

Wireless Financial Highlights

·         Total revenues were $18.3 billion in fourth-quarter 2011, up 13.0 percent year over year.  Data revenues were $6.3 billion, up more than $1.0 billion or 19.2 percent year over year, and represented 41.6 percent of all service revenues.  Service revenues were $15.1 billion, up 6.4 percent year over year.  For full-year 2011, total revenues were $70.2 billion, up 10.6 percent over full-year 2010, and service revenues were $59.2 billion in 2011, up 6.3 percent year over year.

·         Retail service ARPU grew 2.6 percent over fourth-quarter 2010, to $53.14.  Retail postpaid ARPU grew 2.5 percent, to $54.80.  Retail postpaid data ARPU increased to $22.76, up 14.3 percent year over year.

·         In fourth-quarter 2011, wireless operating income margin was 23.7 percent, and wireless generated $6.4 billion of EBITDA.  Segment EBITDA margin on service revenues (non-GAAP) was 42.2 percent, down 530 basis points from fourth-quarter 2010.  For full-year 2011, operating income margin was 26.4 percent, down 310 basis points from full-year 2010; Segment EBITDA margin was 44.8 percent, down 210 basis points.

 

Wireless Operational Highlights

·         Verizon Wireless added 1.0 million total net connections in fourth-quarter 2011.  The company added 1.5 million retail customers, including 1.2 million retail postpaid customers.  While the wholesale channel grew during the fourth quarter, a loss of telematics customers resulted in a net decrease of 490,000 wholesale and other connections in the quarter.  These totals exclude acquisitions and adjustments.

·         At year-end 2011, the company had 108.7 million total connections, a 6.3 percent increase year over year, consisting of 92.2 million retail connections and 16.5 million wholesale and other connections.

·         At year-end 2011, smartphones accounted for 44 percent of the Verizon Wireless retail postpaid customer phone base, up from 39 percent at the end of third-quarter 2011.

·         Retail postpaid churn was 0.94 percent in fourth-quarter 2011, an improvement of 7 basis points year over year.  Total retail churn was 1.23 percent, an improvement of 14 basis points year over year.

·         Verizon Wireless continued to roll out its 4G LTE mobile broadband network, the largest 4G LTE network in the U.S.  As of Monday (Jan. 23), Verizon Wireless 4G LTE service was available to more than 200 million people in 195 markets across the U.S.

·         Verizon Wireless introduced six new 4G LTE devices in fourth-quarter 2011: the Droid Razr by Motorola; the Samsung Stratosphere; the HTC Rezound; the Galaxy Nexus by Samsung; and Droid Xyboard tablets in 10.1-inch and 8-inch form factors.  Earlier this month, the company announced that six additional 4G LTE devices would be available in the coming weeks, including two mobile hotspots, now called Jetpacks, from ZTE and Novatel; three smartphones – the Droid 4 and Droid Razr Maxx from Motorola, and the Spectrum from LG, which launched last week; and the Samsung Galaxy Tab 7.7.

·         In December, Verizon Wireless announced agreements to purchase AWS licenses from SpectrumCo – a joint venture of Comcast, Time Warner and Bright House Networks – and from Cox TMI Wireless.  The spectrum licenses under the two agreements cover 93 percent of the U.S. population, and the purchases are subject to regulatory approval.

·         Verizon Wireless’ 4G LTE network was ranked No. 1 on PC World’s 100 Best Products of 2011 list.  In October, RootMetrics ranked Verizon Wireless tops for network performance in Boston and 21 other cities nationwide; in November, Verizon Wireless won the RootMetrics RootScore award for data performance in 36 markets.

 

FiOS, Strategic Services Contribute to Revenue Growth

 

In fourth-quarter 2011, revenues and customers continued to increase for FiOS services, and sales of strategic services to business customers remained strong.  Segment EBITDA margins (non-GAAP) also increased both sequentially and year over year.

 

Wireline Financial Highlights

·         Fourth-quarter 2011 operating revenues were $10.1 billion, a decline of 1.5 percent compared with fourth-quarter 2010.  Consumer revenues grew 1.3 percent compared with fourth-quarter 2010.

·         In fourth-quarter 2011, wireline operating income was $300 million, up 18.6 percent from fourth-quarter 2010.  Segment EBITDA (non-GAAP) was $2.4 billion in fourth-quarter 2011, flat compared with fourth-quarter 2010 and an increase of $243 million from third-quarter 2011, when the Segment EBITDA was impacted by storm-related repair costs and a two-week strike.  Operating income margin was 3.0 percent in fourth-quarter 2011.  Segment EBITDA margin (non-GAAP) was 23.8 percent, compared with 23.5 percent in fourth-quarter 2010 and 21.4 percent in third-quarter 2011.

·         Consumer ARPU for wireline services was $96.43 in fourth-quarter 2011, up 8.5 percent compared with fourth-quarter 2010.  ARPU for FiOS customers totaled more than $148 in fourth-quarter 2011, rising approximately $2 year over year.  FiOS services to consumer retail customers represented 61 percent of consumer wireline revenues in fourth-quarter 2011.

·         Global enterprise revenues totaled $3.9 billion in the quarter, up 1.3 percent compared with fourth-quarter 2010.  Sales of strategic services – including Terremark cloud services, security and IT solutions, and strategic networking – increased 14.7 percent compared with fourth-quarter 2010 and represented 51 percent of global enterprise revenues in fourth-quarter 2011.

 

Wireline Operational Highlights

·         Verizon added 201,000 net new FiOS Internet connections and 194,000 net new FiOS Video connections in fourth-quarter 2011.  Verizon had a total of 4.8 million FiOS Internet and 4.2 million FiOS Video connections at year-end.

·         FiOS penetration (subscribers as a percentage of potential subscribers) continued to increase.  FiOS Internet penetration was 35.5 percent at year-end 2011, compared with 31.9 percent at year-end 2010.  In the same periods, FiOS Video penetration was 31.5 percent, compared with 28.0 percent, respectively.  The FiOS network passed 16.5 million premises at year-end 2011, up more than 900,000 from year-end 2010.

·         Broadband connections totaled 8.7 million at year-end 2011, a 3.3 percent year-over-year increase.  FiOS Internet connections more than offset a decrease in DSL-based HSI connections, resulting in a net increase of 98,000 broadband connections from third-quarter 2011.  Total voice connections, which measures FiOS Digital Voice connections in addition to traditional switched access lines, declined 7.2 percent to 24.1 million – the smallest year-over-year decline since first-quarter 2006.

·         Verizon continued to enhance its global portfolio of secure IT and advanced communications platforms and industry-focused solutions.  In fourth-quarter 2011, this included an expansion of the company’s Voice-over-IP service within the Asia-Pacific region and the rollout of an automated healthcare fraud-detection platform for private health insurers and government agencies.

·         Multinational corporations, leading businesses and government agencies – including Accenture plc; Chrysler Group LLC; the Commonwealth of Pennsylvania; GXS Inc.; MagnaCare Holdings Inc.; Tyson Foods Inc.; Consolidated Edison Company of New York Inc.; and Orange and Rockland Utilities Inc., a Con Edison subsidiary – completed new agreements or expanded their relationships with Verizon for a range of advanced communications and information technology solutions.  Verizon also announced that it had been named a prime contractor under the U.S. General Services Administration’s CONNECTIONS II contract to provide professional and managed services and custom networking solutions at federal facilities.

·         Verizon continued to broaden the scope and capabilities of its network infrastructure.  In fourth-quarter 2011, the company completed deployment of its next-generation 100 gigabit-per-second network route between New York City and Chicago and kicked off seven additional routes in the U.S.; expanded the Ethernet footprint to an additional 80 nodes supporting 23 areas in the Eastern part of the U.S.; expanded the global Private IP network into six additional countries in Africa and two more countries in the Middle East; and activated the first phase of the Europe India Gateway (EIG) submarine cable connecting Europe to the Middle East and Africa with 40G high-speed connections.

Best Buy on Friday reported weaker than expected revenue for the five weeks ended December 31st, 2011. The company noted $8.4 billion in revenue, which was flat compared to the same period last year but included a comparable store sales decline of 1.2%. The company’s international segment generated $1.9 billion in revenue, a 1.7% decrease and a 4.3% drop off in store sales. Its domestic segment generated $6.5 billion in revenue, which was up 0.4% from the same period last year but it also represented a 0.4% drop in store sales. Read on for more.

“Based on our performance in December we continue to expect to achieve our annual guidance, despite customer traffic that was lower than expected until the last week before Christmas, which resulted in December revenue that was slightly lower than our expectations,” Best Buy CEO Brian Dunn said. “The actions we have taken during the year to improve our performance online and in key connectable products such as tablets, eReaders and smart phones continued to deliver strong growth in December.”

Cell phones helped drive domestic revenue and mobile-related store sales increased 20% over December of last year. Domestic tablet and eReader store sales jumped into the low triple-digits and domestic online channel sales increased 26%. Best Buy’s full press release follows below.

Best Buy Reports December Revenue of $8.4 Billion

Continued strong growth online and in connected products including mobile phones, tablets and eReaders
Company reaffirms fiscal 2012 EPS guidance range

Fiscal 2012 December Revenue Summary
(U.S. dollars in billions)
	Revenue		Revenue % Change		Fiscal Dec. 2012  Comparable Store Sales % Change(1)		Fiscal Dec.  2011  Comparable Store Sales % Change(1)
Total company	$8.4		0.0%		(1.2%)		(4.0%)
Domestic segment	$6.5		0.4%		(0.4%)		(5.0%)
International segment	$1.9		(1.7%)		(4.3%)		(0.1%)

December Highlights

• Domestic segment online channel sales increased 26 percent
• Domestic segment tablets and eReaders comparable store sales each increased low triple-digits
• Domestic segment mobile phones comparable store sales increased 20 percent

MINNEAPOLIS, Jan. 6, 2012 — Best Buy Co., Inc. (NYSE: BBY), a leading multi-channel global retailer and developer of technology products and services, today reported revenue for the five weeks ended Dec. 31, 2011, of $8.4 billion, which was flat compared to the prior-year period and included a comparable store sales decline of 1.2 percent.

“We built off of share gains in the third quarter to deliver December sales that we believe compared favorably to the retail CE industry,” said Brian J. Dunn, CEO of Best Buy. “Based on our performance in December we continue to expect to achieve our annual guidance, despite customer traffic that was lower than expected until the last week before Christmas, which resulted in December revenue that was slightly lower than our expectations. The actions we have taken during the year to improve our performance online and in key connectable products such as tablets, eReaders and smart phones continued to deliver strong growth in December. I want to thank our employees for their significant dedication to serving our customers during this key holiday period.”

The company’s Domestic segment generated $6.5 billion in revenue for fiscal December, an increase of 0.4 percent when compared with the prior-year period. The Domestic segment’s revenue performance was driven by the addition of new stores in the past 12 months, partially offset by a comparable store sales decline of 0.4 percent. Domestic segment areas of comparable store sales growth included tablets and mobile phones within the Computing & Mobile Phones revenue category, eReaders within the Consumer Electronics revenue category, and the Appliances revenue category. Tablets and eReaders each delivered low triple-digit comparable store sales gains during the month. Mobile phones had a 20 percent comparable store sales increase during the month, driven by strong smart phone sales. These increases were more than offset by comparable store sales declines in other areas, including gaming within the Entertainment revenue category and digital imaging within the Consumer Electronics revenue category. Gaming and digital imaging both experienced low double-digit declines in comparable store sales. The company noted that televisions experienced a mid single-digit comparable store sales decline within the Consumer Electronics revenue category. The company also noted that overall Domestic segment inventory levels finished fiscal December in line with its expectations.

The Domestic segment online channel delivered a 26 percent revenue increase compared to the prior-year period, driven by a strong traffic increase and momentum from share gains achieved in November.

The International segment’s fiscal December revenue totaled $1.9 billion, a decrease of 1.7 percent versus the prior-year period. The revenue decline was driven primarily by a comparable store sales decline of 4.3 percent and unfavorable fluctuations in foreign currency exchange rates, partially offset by the addition of new stores in the past 12 months. The International segment comparable store sales decline was driven by comparable store sales declines in our stores in Canada and Europe. Sales results for all countries in the International segment other than Canada are reported on a two-month lag.

Company Reaffirms Fiscal 2012 Annual EPS Guidance Range 
The company is confirming its annual adjusted diluted EPS guidance in the range of $3.35 to $3.65 as previously disclosed in its press release dated December 13, 2011. This guidance includes the estimated impact from fiscal 2012 share repurchases and excludes the gain on the sale of investments and previously announced charges, which are comprised of the purchase of CPW’s share of the Best Buy Mobile profit share agreement, a non-cash impairment charge to reflect the write-down of Best Buy Europe goodwill, restructuring charges (primarily associated with U.K. big-box store closures) and other related charges.

The company’s annual guidance reflects basic EPS loss calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”) in the range of ($3.52) to ($3.17). This loss is primarily driven by charges attributable to Best Buy outlined above which total approximately $2.6 billion in fiscal 2012. Please see table titled “Reconciliation of Non-GAAP Guidance” attached to this release for further details.

(1) Best Buy’s comparable store sales is comprised of revenue at stores, call centers, and Web sites operating for at least 14 full months as well as  revenue related to other comparable sales channels. Relocated, remodeled and expanded stores are excluded from the comparable store sales calculation until at least 14 full months after reopening. Acquired stores are included in the comparable store sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The portion of the calculation of the comparable store sales percentage change attributable to the International segment excludes the effect of fluctuations in foreign currency exchange rates. The method of calculating comparable store sales varies across the retail industry. As a result, Best Buy’s method of calculating comparable store sales may not be the same as other retailers’ methods.

Forward-Looking and Cautionary Statements:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management’s current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “project,” “guidance,” “plan,” “outlook,” and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions, changes in consumer preferences, credit market constraints, acquisitions and development of new businesses, divestitures, product availability, sales volumes, pricing actions and promotional activities of competitors, profit margins, weather, natural or man-made disasters, changes in law or regulations, foreign currency fluctuation, availability of suitable real estate locations, the company’s ability to react to a disaster recovery situation, the impact of labor markets and new product introductions on overall profitability, failure to achieve anticipated benefits of announced transactions and integration challenges relating to new ventures, consummation of the transaction with Carphone Warehouse Group plc and unanticipated costs associated with previously announced or future restructuring activities. A further list and description of these risks, uncertainties and other matters can be found in the company’s annual report and other reports filed from time to time with the Securities and Exchange Commission, including, but not limited to, Best Buy’s Annual Report on Form 10-K filed with the SEC on April 25, 2011. Best Buy cautions that the foregoing list of important factors is not complete, and any forward-looking statements speak only as of the date they are made, and Best Buy assumes no obligation to update any forward-looking statement that it may make.

Google’s Android platform and Apple’s iOS dominated the U.S. smartphone space in 2011 while a number of companies that helped shape the market as we know it were forced to reboot. Market research firm The NPD Group on Tuesday issued a report on the smartphone market through October 2011, stating that Android and iOS extended their lead while companies like RIM and Microsoft scrambled to reform their respective strategies. Google’s Android platform represented 53% of the U.S. smartphone market through October in 2011 and Apple’s share grew to 29%. RIM’s market share with the BlackBerry OS dropped to 11% and Microsoft’s Windows Phone continued to struggle out of the gate with less than 2% of the market. “The competitive landscape for smartphones, which has been reshaped by Apple and Google, has ultimately forced every major handset provider through a major transition,” said Ross Rubin, executive director of Connected Intelligence for The NPD Group, in a statement. “For many of them, 2012 will be a critical year in assessing how effective their responses have been.” NPD’s full press release follows below along with a chart breaking down smartphone share in the U.S. by platform.

The NPD Group: For Once-Strong Smartphone Makers, 2011 Was The Year of New Beginnings

As Android and Apple continue to dominate the U.S. smartphone market, RIM and other smartphone manufacturers have made moves to reclaim lost market share.

PORT WASHINGTON, NEW YORK, December 13, 2011 – According to The NPD Group, a leading market research company, Android’s operating system (OS) share of smartphone sales grew to command more than half of the U.S. smartphone market (53 percent) from January through October 2011, as Apple’s iOS share grew to reach 29 percent of the market, and RIM’s OS share declined to 11 percent. RIM and other companies that were formerly on top of NPD’s smartphone rankings, however, have made critical business decisions this past year in a quest to shore up their U.S. smartphone businesses.

“The competitive landscape for smartphones, which has been reshaped by Apple and Google, has ultimately forced every major handset provider through a major transition,” said Ross Rubin, executive director, Connected Intelligence for The NPD Group. “For many of them, 2012 will be a critical year in assessing how effective their responses have been.”

Google acquires Motorola

Motorola’s share of smartphone sales once reached more than a third of the smartphone market (36 percent) in the fourth quarter (Q4) of 2006; however, the company’s smartphone market share dropped as low as 1 percent by Q3 2009. After adopting Android, Motorola’s share of smartphone sales rose to 16 percent of the market in Q4 2010 before settling back down to 12 percent by Q3 2011. “Android has helped Motorola climb back into the smartphone market; now, though, Google will seek to use Motorola’s patent pool to help protect other Android licensees,” according to Rubin.

The fall of RIM

“Few companies have felt the impact of the shift to touch user interfaces and larger screen sizes as negatively as RIM, but the company is beginning anew with a strong technical foundation and many paths to the platform,” said Rubin. Back in Q2 2006, RIM comprised half of all smartphone sales; however, by Q3 2011 the company had fallen to 8 percent. As it prepares to introduce smartphones on its next-generation platform, RIM has already made some important incremental improvements this year with the release of the BlackBerry 7 operating system. RIM is now is ranked fifth among smartphone OEMs, behind Apple, HTC, Samsung, and Motorola.

Nokia does Windows

One of the biggest news stories of the year was Nokia’s agreement with Microsoft to use the Windows Phone operating system on its smartphones. “Nokia and Microsoft must build from almost nothing to carve out success between the consistency of the iPhone and the flexibility of Android,” according to Rubin. Even though Microsoft’s former smartphone operating system, Windows Mobile, peaked at 50 percent of smartphone sales in Q2 2007, Windows Phone 7 by comparison has not achieved more than 2 percent of smartphone sales since launching in Q4 of 2010.

Information this press release is from “Mobile Phone Track” and “Smartphone Track,” both of which report on the activities of U.S. consumers, age 18 and older, who reported purchasing a mobile phone or smartphone. NPD does not track corporate/enterprise mobile phone purchases.

Adobe on Wednesday confirmed that it is ceasing development of Flash Player for mobile devices. Instead, with regard to mobile platforms, the software company will focus on HTML5 and Adobe AIR-packaged native apps moving forward. “Our future work with Flash on mobile devices will be focused on enabling Flash developers to package native apps with Adobe AIR for all the major app stores,” Adobe VP Danny Winokur wrote in a post on the company’s blog. “We will no longer continue to develop Flash Player in the browser to work with new mobile device configurations (chipset, browser, OS version, etc.) following the upcoming release of Flash Player 11.1 for Android and BlackBerry PlayBook. We will of course continue to provide critical bug fixes and security updates for existing device configurations. We will also allow our source code licensees to continue working on and release their own implementations.”

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