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Lenovo buy of Motorola strengthens Apple rivals: analysts
by Staff Writers
San Francisco (AFP) Jan 30, 2014


Android in 79 percent of smartphones sold: survey
Washington (AFP) Jan 29, 2014 - The Google Android system was used on 78.9 percent of smartphones sold globally in 2013, a survey showed Wednesday.

The report by the research firm Strategy Analytics confirms the ascendancy of Android, which has extended its lead over Apple's iOS, which is used on the iPhone.

"There is little doubt that 2013 was the year of Android," said Neil Mawston, analyst with the consultancy.

"However, Android's annual growth rate slowed to 62 percent in 2013, its lowest level in the platform's history. We expect Android's growth to slow further in 2014 due to market saturation, and rivals like Microsoft or Firefox will be ready to pounce on any signs of a major slowdown for Android this year."

The report said Apple's global market share slipped to 15.5 percent in 2013 from 19.4 percent in 2012. Meanwhile Windows Phone grabbed third place with a 3.6 percent share, up from 2.7 percent a year earlier.

"Microsoft is now firmly established as the smartphone industry's third major ecosystem, shipping 35.7 million units worldwide," Mawston said.

"However, the Windows Phone platform is still struggling to gain traction in the low-tier and premium-tier smartphone categories and they remain serious weaknesses that Microsoft will need to address in 2014."

Strategy Analytics said global smartphone sales rose 41 percent last year to 990 million.

A report Monday by IDC said the total was just over one billion, with Samsung the largest vendor at 31.3 percent.

Tablet sales jumped 50% in 2013: survey
Washington (AFP) Jan 29, 2014 - Global sales of tablet computers surged 50.6 percent last year, with Apple clinging to the top vendor spot amid strong gains by rivals, a survey showed Wednesday.

International Data Corp. (IDC) said worldwide tablet shipments totaled 217.1 million, up from 144.2 million in 2012.

IDC said Apple's iPad is increasing sales but slower than the overall market, and that growth rates are tapering off in the big markets like the United States.

"It's becoming increasingly clear that markets such as the US are reaching high levels of consumer saturation and while emerging markets continue to show strong growth this has not been enough to sustain the dramatic worldwide growth rates of years past," said IDC analyst Tom Mainelli.

"We expect commercial purchases of tablets to continue to accelerate in mature markets, but softness in the consumer segment -- brought about by high penetration rates and increased competition for the consumer dollar -- point to a more challenging environment for tablets in 2014 and beyond."

IDC said sales in the fourth quarter grew 62.4 percent from the third quarter to 76.9 million, amid a holiday season featuring several new product launches. That was up 28.4 percent from the same period a year earlier.

In the quarter, Apple sold 26 million iPads, for a 33.8 percent market share, IDC said. That was down from 38.2 percent a year earlier.

"While the quarter represented (Apple's) most successful on record, its year-over-year growth of 13.5 percent was well below the industry average," IDC said.

"The numbers bring into focus the challenges the company faces as it attempts to grow its tablet business in markets outside of its traditional mature-market strongholds and in the face of continued success from competitors both large and small."

Samsung was the number two vendor, selling 14.5 million tablets for an 18.8 percent market share, according to the survey.

IDC said Amazon -- which does not publicly reveal sales of its Kindle devices -- sold 5.8 million tablets in the fourth quarter, securing the number three spot globally with a 7.6 percent market share.

Taiwan's Asus was fourth with 5.1 percent and China's Lenovo fifth with 4.4 percent, the survey showed.

Google's sale of faded mobile phone star Motorola Mobility to Chinese computer titan Lenovo promises to strengthen Apple's rivals at home and abroad, according to analysts.

The US Internet goliath on Wednesday agreed to sell Motorola to Lenovo for $2.91 billion, after a lackluster two-year effort to turn around the smartphone maker it bought for $12.5 billion.

What might appear on the surface to be a money-losing blunder by Google could actually play out as a shrewd maneuver tightening bonds with allies who make Android-powered smartphones and providing Lenovo ammunition to challenge iPhones and iPads in China and other coveted markets.

The Motorola buy provides Lenovo footholds in smartphone and tablet markets where it is eager to gain traction while acting as a peace offering to Samsung and other partners that make devices powered by Google-backed Android software.

"It is win-win," said analyst Tim Bajarin of Creative Strategies in Silicon Valley. "Google keeps the patents and the research group, and they keep partners off their back, while Lenovo gets what they need to get into the US smartphone market."

The sale of Motorola to Lenovo was announced just days after Samsung inked a long-term cross-licence deal with Google to help the South Korean technology firm stave off patent disputes.

Google is keeping the patent portfolio believed to have been its original target in the acquisition.

Samsung stands to benefit from protection offered by Motorola patents, which analysts believe turned out to be much less valuable than Google thought.

Almost all of Samsung's smartphones and tablet computers are powered by the Google's Android software, and Google's entry into the handset arena with the purchase of Motorola drove a wedge between the partners.

"The combination of a Samsung-Google peace pact and Motorola going to Lenovo means that Samsung has pledged allegiance to Google's Android," Forrester analyst Frank Gillett told AFP.

"From Apple's point of view, this means Samsung will remain strong but tight with Google, and the aspiration of Lenovo to become like Samsung and to be even stronger in emerging markets starting with its position in China."

Silicon Valley analyst Rob Enderle of Enderle Group suspects that Google would welcome Lenovo's mobile gadgets business growing big enough to offset the dominant position achieved by Samsung when it comes to Android smartphones and tablets.

"Google was not happy with Samsung owning the Android market," Enderle said.

Lenovo also appears bent on casting actor Ashton Kutcher, who played Steve Jobs on screen, in the role of a company pitchman molded after the public persona of Apple's iconic co-founder.

"Lenovo is going to try to turn Ashton Kutcher into a Steve Jobs-type guy, and it is going to be fun to watch," Enderle predicted.

Hollywood actor Kutcher donned a "Lenovo product engineer" badge for a presentation late last year in Los Angeles unveiling a Yoga Tablet.

"Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem," Google chief executive Larry Page said in a statement.

Lenovo chairman and chief executive Yang Yuanqing said the acquisition "will immediately make Lenovo a strong global competitor in smartphones."

While Google will be taking a loss on the sale, it did spin off the Motorola Home division for $2.3 billion in 2012 and sold off some of its manufacturing facilities.

"Google got what they wanted and needed from Moto -- they got patents, engineering talent and mobile market device insight," said technology analyst Jack Gold.

"They don't need to be in the device business... This is a win for Google and a win for Lenovo in my opinion."

But analyst Ramon Llamas at research firm IDC said the deal still leaves a hole of about $7 billion for Google.

"Are the patents worth $7 billion? I don't know but that is a big question," Llamas told AFP.

gc/dw

Lenovo

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INTERNET SPACE
Tablet sales jumped 50% in 2013: survey
Washington (AFP) Jan 29, 2014
Global sales of tablet computers surged 50.6 percent last year, with Apple clinging to the top vendor spot amid strong gains by rivals, a survey showed Wednesday. International Data Corp. (IDC) said worldwide tablet shipments totaled 217.1 million, up from 144.2 million in 2012. IDC said Apple's iPad is increasing sales but slower than the overall market, and that growth rates are taperi ... read more


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