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INTERNET SPACE
Apple, Samsung lose ground in shrinking tablet market
by Staff Writers
San Francisco (AFP) July 29, 2015


Twitter shares tumbles amid fresh doubts on growth
New York (AFP) July 29, 2015 - Twitter shares fell hard Wednesday after the latest update from the one-to-many messaging platform revived doubts about its growth prospects.

In early trades, Twitter was down 13 percent at $31.82, the lowest level in over a year.

Twitter on Tuesday reported that it lost $137 million in the recently ended quarter on revenue that jumped 61 percent to more than half a billion dollars.

While revenue growth was seen as positive, the sluggish increase in users sparked fresh worries among investors.

Twitter said its user base grew to 316 million worldwide, but that its core user base was up by just two million from the prior quarter. And the number of active US users was flat.

"Monetization was strong but anemic user growth combined with lower engagement will continue to put a question mark on Twitter's long-term growth prospects," said analyst Arvind Bhatia at Sterne Agee in a note to clients.

Morgan Stanley analyst Brian Nowak was also cautious, saying the results raise concerns "around the inability to break into the 'mass market.'"

"Twitter has yet to prove itself as a platform that can drive continuous (daily) engagement and usage," he said in a research note.

The majority of Twitter's additional monthly users were people in emerging markets who signed up to get updates from selected Twitter accounts via text messages sent to feature phones.

Such users, referred to by Twitter as SMS Fast Followers, are less lucrative when it comes to targeted ads.

Twitter co-founder and interim chief executive Jack Dorsey acknowledged the challenges.

"We will take the necessary time to build a service people love to use every day," he said in a call with analysts. "We realize it will take a lot of time."

Dorsey has assumed the CEO job on a temporary basis following the departure of Dick Costolo, as Twitter searches for a new chief.

Twitter took in $502 million in revenue during the recently-ended quarter, most of the money coming from advertisements on mobile devices used to access the service, according to the earnings report.

FBN Securities analyst Shebly Seyrafi said Twitter "realizes that it has a user growth problem, and interim CEO Jack Dorsey was quite frank about this."

But the analyst said Twitter remains "attractive for long-term investors" and that "it could take until 2016 before more traction" is achieved.

Tablet computer sales fell in the second quarter of 2015, with market leaders Apple and Samsung losing ground to other vendors, a survey showed Wednesday.

The survey by IDC said tablet sales fell in the April-June period, marking a third consecutive quarter of declining year-over-year sales.

Total tablet sales were 44.7 million units, down seven percent from a year earlier and 3.9 percent from the prior quarter.

Apple remained the top vendor with 10.9 million iPads sold in the past quarter, for a market share of 24.5 percent. But iPad sales were down 17.7 percent from a year earlier and Apple lost more than three points of market share.

Samsung was number two with 7.6 million tablets sold, for a 17 percent market share. The South Korean giant saw unit sales down 12 percent from a year earlier.

But the market saw modest growth from Lenovo, the number three vendor, and explosive growth from China's Huawei and South Korea's LG, tied for fourth.

IDC said the tablet market is cooling after explosive growth following the introduction of the iPad in 2010.

"Longer life cycles, increased competition from other categories such as larger smartphones, combined with the fact that end users can install the latest operating systems on their older tablets has stifled the initial enthusiasm for these devices in the consumer market," said IDC analyst Jitesh Ubrani.

"But with newer form factors (for PCs) and added productivity-enabling features... should be able to bring new vitality to a market that has lost its momentum."

Lenovo sold 2.5 million tablets for a 5.7 percent market share, with unit sales growing 6.8 percent.

Huawei doubled its sales from a year ago to 1.6 million units. LG also sold 1.6 million units, a 246 percent increase from the previous year, IDC said.

The top five vendors accounted to some 54 percent of the global tablet market, according to the survey.

soe/rl

APPLE INC.

SAMSUNG ELECTRONICS


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