Monday 4 March 2013

Apple, BlackBerry, Nokia slip on latest data

Forecast from IDC sees sharp slowdown in smartphone sales growth

By Dan Gallagher, MarketWatch

V. Phani Kumar
An Apple store in Hong Kong when the iPhone 5 launched on Sept. 21. The company is expected to add a new handset this year that is compatible on China Mobile’s network.
SAN FRANCISCO (MarketWatch) — Smartphone makers Apple Inc., BlackBerry Inc. and Nokia Corp. all saw their share prices slip on Monday after brokers expressed various points of concern about near-term sales of those companies’ key devices.
Apple shares AAPL -2.02%  fell 1.3% to $422.86 after Cowen & Co. predicted a later launch for the company’s next iPhone that is expected to be geared for the Chinese market. BlackBerry shares BBRY -1.51%   were down 1.2% to $13.09, while Nokia’s U.S.-listed shares NOK -2.23%  fell nearly 3% after other analysts issued downbeat forecasts for those companies’ newest handsets.



The action also came after IDC issued a forecast that projected global smartphone shipments will hit 918.6 million units this year. While that is up 29% from the firm’s shipment totals from 2012, it is a far slower annual growth rate than the 44% seen by the industry in the prior year.
“Now that smartphone users constitute the majority of all mobile phone users in the United States, IDC expects slower growth in the years ahead,” the firm said in its report.
China is expected to be the top market for smartphone shipments this year, comprising about 33% of total global shipments, IDC predicted. However, lower-cost handsets are expected to comprise a larger chunk of that business when compared to developed markets like North America.
“Also, smartphone prices are expected to fall amid increased competition,” IDC wrote.
Apple, which took a sharp hit on Friday after a federal judge reduced the size of a verdict the company won against rival Samsung KR:005930 -0.32%  in a patent dispute, is looking to China as a key market to drive sales of its iPhone this year.
But Matthew Hoffman of Cowen & Co. wrote on Monday that he now expects a launch for the next iPhone — which many believe will be called the iPhone 5S — in the September quarter rather than the June period. This iPhone is expected to include 3G TD-SCDMA technology that would allow it to operate on the network’s of China Mobile — the country’s largest mobile carrier.

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“We are trimming our Apple estimates given that a ‘5S’ launch now appears to have slipped into [fiscal Q413],” Hoffman wrote.
For BlackBerry, Canaccord analyst Mike Walkley cited his latest surveys indicating “mixed initial sales” for the newly launched Z10 smartphone, which is now available in the U.K. Canada, France, Germany and India. A U.S. launch for the handset is expected sometime this month.
“With new BlackBerry 10 smartphones launching in the U.S. only in mid-March or later at subsidized prices no better than competing high-end Apple/Samsung smartphones, combined with our expectations for the Galaxy S IV to launch at a similar time frame in the U.S. market, we anticipate BlackBerry will struggle to reclaim high-end smartphone market share,” Walkley wrote.
Nokia shares slipped after Bernstein Research issued a report predicting weaker sales for the Lumia 920 — the flagship phone for the Windows Phone 8 operating system that the company launched last fall.
Analyst Pierre Ferragu cited a “steep fall” in Google searches for the Lumia 920 as an indicator that “consumer interest has already flagged and now stands at very similar levels to the Lumia 800 last year and the Nokia N8 in 2011.”
Dan Gallagher is MarketWatch's technology editor, based in San Francisco. Follow him on Twitter @MWDanGallagher.

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