Posts tagged ‘smartphone’

AT&T to throttle smartphone data starting October 1st

By gbrzone, 1 August, 2011, No Comment

AT&T said on Friday that it will begin throttling unlimited smartphone data plans as of October 1st. “Like other wireless companies, we’re taking steps to manage exploding demand for mobile data,” AT&T said Friday in a statement. The carrier continued, “One new measure is a step that may reduce the data throughput speed experienced by a very small minority of smartphone customers who are on unlimited plans – those whose extraordinary level of data usage puts them in the top 5 percent of our heaviest data users in a billing period. In fact, these customers on average use 12 times more data than the average of all other smartphone data customers.” AT&T was very careful to mention, repeatedly, that the new move will not impact the “vast majority” of its customers. According to the carrier’s statement, only the top 5% of its smartphone data users will be affected. AT&T’s full statement follows below.

An Update for Our Smartphone Customers With Unlimited Data Plans

Like other wireless companies, we’re taking steps to manage exploding demand for mobile data. Many experts agree the country is facing a serious wireless spectrum crunch. We’re responding on many levels, including investing billions in our wireless network this year and working to acquire additional network capacity. We’re also taking additional, more immediate measures to help address network congestion.

One new measure is a step that may reduce the data throughput speed experienced by a very small minority of smartphone customers who are on unlimited plans – those whose extraordinary level of data usage puts them in the top 5 percent of our heaviest data users in a billing period. In fact, these customers on average use 12 times more data than the average of all other smartphone data customers. This step will not apply to our 15 million smartphone customers on a tiered data plan or the vast majority of smartphone customers who still have unlimited data plans.

Starting October 1, smartphone customers with unlimited data plans may experience reduced speeds once their usage in a billing cycle reaches the level that puts them among the top 5 percent of heaviest data users. These customers can still use unlimited data and their speeds will be restored with the start of the next billing cycle. Before you are affected, we will provide multiple notices, including a grace period.

This change will never impact the vast majority of our customers, and is designed to create a better service experience for all.

The amount of data usage of our top 5 percent of heaviest users varies from month to month, based on the usage of others and the ever-increasing demand for mobile broadband services. To rank among the top 5 percent, you have to use an extraordinary amount of data in a single billing period.

There will be no changes for the vast majority of customers. It’s not how much time you spend using your device, it’s what you do with it. You can send or receive thousands of emails, surf thousands of Web pages and watch hours of streaming video every month and not be in the top 5 percent of data users.

Typically what puts someone in the top 5 percent is streaming very large amounts of video and music daily over the wireless network, not Wi-Fi. Streaming video apps, remote web camera apps, sending large data files (like video) and some online gaming are examples of applications that can use data quickly. Using Wi-Fi doesn’t create wireless network congestion or count toward your wireless data usage. AT&T smartphone customers have unlimited access to our entire Wi-Fi network, with more than 26,000 hotspots, at no additional cost. They can also use Wi-Fi at home and in the office.

The bottom line is our customers have options. They can choose to stay on their unlimited plans and use unlimited amounts of data, but may experience reduced speeds at some point if they are an extraordinarily heavy data user. If speed is more important, they may wish to switch to a tiered usage plan, where customers can pay for more data if they need it and will not see reduced speeds.

But even as we pursue this additional measure, it will not solve our spectrum shortage and network capacity issues. Nothing short of completing the T-Mobile merger will provide additional spectrum capacity to address these near term challenges.

Source: BGR: The Three Biggest Letters In Tech

Samsung profit falls 18% in Q2; company to stop reporting smartphone, tablet shipments

By gbrzone, 31 July, 2011, No Comment

Samsung on Friday reported earnings for the second quarter of 2011 that showed a significant decline in profit despite modest revenue gains. Samsung’s revenue ticked up 4% year-over year to 39.44 trillion Korean won but its consolidated net income of 3.51 trillion won was a sharp 18% decline from the same quarter in 2010. The company’s semiconductor business recorded revenues of 1.79 trillion won in the second quarter, which was up sequentially from the 1.64 billion won but down from 2.94 billion won in the second quarter last year. Samsung’s LCD panel division was hit the hardest, registering an operating loss of 210 billion won on revenue of 7.09 trillion won, which was down 9% year-over-year. Samsung’s telecommunications business grossed 12.18 trillion won in the June quarter, and profit came in at 1.67 trillion won. “Despite the challenging business environment and global economic uncertainties, we achieved continued year-on-year revenue growth in the second quarter driven by mobile device sales, particularly the success of our smartphones,” said Robert Yi, Vice President and Head of Samsung Electronics’ Investor Relations Team, in a state. “Heading into the third quarter – which typically sees increased consumer demand for electronics – we expect competition to remain tight, and will continue to enhance our cost competitiveness and technology leadership in the components businesses.” Samsung stated that it will no longer report smartphone or tablet shipment figures in its earnings reports. Market analysis firm Strategy Analytics puts the company’s smartphone shipments at an impressive 19.2 million units last quarter, which would secure it a No. 2 spot globally behind Apple. The company’s full press release follows below.

Samsung Electronics Announces Second Quarter 2011 Results

- Consolidated operating profit reaches 3.75 trillion won on revenues of 39.44 trillion won

SEOUL, Korea – July 29, 2011 – Samsung Electronics Co., Ltd. today announced revenues of 39.44 trillion Korean won on a consolidated basis for the second quarter ended June 30, 2011, a 4-percent increase year-on-year. For the quarter, the company posted consolidated net income of 3.51 trillion won, representing an 18-percent decrease year-on-year. Consolidated operating profit for the quarter was 3.75 trillion won.

In its earnings guidance disclosed on July 7, Samsung estimated second-quarter consolidated revenues would reach approximately 39 trillion won with an operating profit of 3.7 trillion won.

By business segment, Telecommunications drove revenue growth in the second quarter, with sales rising 43 percent year-on-year due to strong demand for Samsung’s GALAXY SII smartphone and other mobile devices. Digital Media & Appliances saw sales increase from the previous quarter supported by improved demand for flat panel TVs.

Operating profit declined year-on-year from the record-setting second quarter of 2010, as weakened demand reduced margins in the Semiconductor and Display Panel businesses. The bottom line was supported by an operating profit of 1.67 trillion won from the Telecommunications businesses.

“Despite the challenging business environment and global economic uncertainties, we achieved continued year-on-year revenue growth in the second quarter driven by mobile device sales, particularly the success of our smartphones,” said Robert Yi, Vice President and Head of Samsung Electronics’ Investor Relations Team. “Heading into the third quarter – which typically sees increased consumer demand for electronics – we expect competition to remain tight, and will continue to enhance our cost competitiveness and technology leadership in the components businesses.”

Capital expenditure for the second quarter was 5.6 trillion won, bringing the total investment for the first six months of 2011 to 11.2 trillion won. Samsung said the annual projected capex of 23 trillion won remained unchanged, however a shift in allocation to increase semiconductor and reduce LCD investment was possible.

Weak Memory Demand Sees Profit Decline

Samsung’s Semiconductor businesses recorded a consolidated operating profit of 1.79 trillion won in the second quarter, improving from the 1.64 billion achieved in the first quarter but declining from the 2.94 billion won registered the previous year. Revenue reached 9.16 trillion won, a 4-percent decrease year-on-year. The operating profit margin was 19.6 percent.

The Memory Business posted 5.89 trillion won in revenue for the quarter, a 12-percent dip from the same period a year earlier. Demand for commodity DRAM remained weak as global PC shipments saw low-single digit growth, however higher growth was seen in server-related memory sales for data centers and for high-density mobile memory products for smartphones and tablet manufacturers. In response to continued oversupply in the market, Samsung strengthened its cost competitiveness through further migration to 30-nm-class DRAM production and reinforced its focus on high-value added products. For NAND, demand was also driven by orders for mobile device applications while spot prices decreased on weak seasonality.

Sales for the System LSI Business increased as demand for mobile application processors and high-quality image sensors rose. Samsung also announced its foundry business is now ready to start 28nm process manufacturing as it continues to strengthen investment in research and development.

In the third quarter, increased seasonal PC shipments are expected bolster demand in the key DRAM segment, although concerns remain over high inventory levels among PC manufacturers. NAND supply is forecast to be tight due to strong seasonal demand driven by smartphone and tablet sales.

LCD Panel Prices Fall

The Display Panel Business recorded an operating loss of 210 billion won on revenue of 7.09 trillion won, down 9-percent in sales compared with the same period last year.

Overall market shipments of LCD panels increased 8 percent quarter-on-quarter in expectation of the upcoming peak season and Chinese National Day, but panel inventory levels remained high due to slow set sales. Samsung’s total panel shipments increased in the mid 10-percent range compared with the first quarter.

While the average sales price for light-emitting diode (LED) panels for notebook PCs and monitors climbed moderately, prices dropped for TV panels over 40-inches in diameter.

With the peak season approaching, total industry panel shipments for the third quarter are expected to increase 6 percent quarter-on-quarter to 184 million units although global economic uncertainties will continue to weigh on consumer demand. Samsung aims to expand sales of premium panels for 3D and Smart TVs, while further enhancing the efficiency of its productions lines and supply chain.

Smartphone Sales Boost Telecom Profit

The Telecommunications businesses – including mobile communications and telecommunication systems – posted an operating profit of 1.67 trillion won on revenue of 12.18 trillion won. The businesses achieved an operating profit margin of 13.7 percent for the quarter.

Samsung’s Mobile Communications Business saw revenues rise 45 percent year-on-year to 11.69 trillion won. Shipments of mobile handsets increased in the high-single-digit range quarter-on-quarter driven by brisk sales of smartphones including the flagship GALAXY SII, which began to be rolled out globally during the quarter. The average sales price of handsets increased by more than 10 percent.

Samsung expected market demand for mobile handsets to increase by more than 15 percent in the second half, driven by consumers upgrading to smartphones. In the third quarter, Samsung will continue to drive sales of the GALAXY SII and strengthen its product lineup with new mobiles featuring Long-Term Evolution technology. The company will also proactively respond to increased demand for tablet devices with its GALAXY Tab portfolio in various sizes. The Mobile Communications Business is on track to achieve its 2011 goals of outperforming market growth and maintaining a double digit operating margin.

For the Telecommunications Systems Business, revenue and operating profit improved year-on-year supported by increased investment from mobile carriers in LTE network infrastructure.

Digital Media & Appliances Defies Market Conditions

The Digital Media & Appliances businesses – including Visual Display, IT Solutions and Digital Appliances – posted revenues of 14.07 trillion won for second quarter. The operating profit of 510 billion won represented an improvement on the 100 billion won registered the same period last year.

Samsung’s flat panel TV shipments and profitability both increased for the quarter, as sales of LED TVs continued to pick up in developed and emerging markets. LED TV sales accounted for roughly half of all Samsung LCD TVs sold for the quarter, reflecting the wide acceptance of the new technology.

Overall, flat panel TV market demand in the third quarter is projected to increase in the mid 10-percent range quarter-on-quarter supported by strong seasonality. Samsung aims to expand sales of Smart TVs by providing region-specific TV applications and content for viewers.

As for Digital Appliances, revenues grew strongly on sales of premium products such as air conditioners and refrigerators in both Korea and emerging markets, especially Latin America.

Source: BGR: The Three Biggest Letters In Tech

AT&T set to throttle smartphone data speeds starting October 1st

By gbrzone, 31 July, 2011, No Comment

AT&T’s new policy will affect only customers who still have an unlimited data plan, and only apply to the top 5 percent of that base

AT&T announced yesterday via press release that it will begin throttling unlimited smartphone data plans starting October 1st, 2011.

The new policy, which will no doubt enrage some customers, will affect only those who still have an unlimited data plan, and only apply to the top 5 percent of that base. The company didn’t specificy when throttling would begin for these users, but it is thought to occur once they hit a 2GB soft cap.

Like many other carriers, AT&T follows T-Mobile, which was one of the first carriers to employ throttling. Additionally, Virgin Mobile recently said it planned to move to a throttling model after ditching a truly unlimited plan. There throttling is also set to start in Ocotober.

In a statement Friday, an AT&T spokesperson said, “Like other wireless companies, we’re taking steps to manage exploding demand for mobile data.” The spokesperson continued, “One new measure is a step that may reduce the data throughput speed experienced by a very small minority of smartphone customers who are on unlimited plans – those whose extraordinary level of data usage puts them in the top 5 percent of our heaviest data users in a billing period.”

AT&T had been rumored to move to throttling over the past few days. The official announcement though came as a suprise.

At this point, Sprint is the only major carrier left to offer truly unlimited data.