Feeds

Symbian explains price cuts

Old tariff remains, with Java

The Power of One Infographic

3GSM Symbian took time out to explain its lower royalty structure - and admitted it will add a few 'kinks' to its revenue stream.

The lower tariffs make Symbian OS available for as little as $2.50 per phone, with a ceiling of $4.65. Alternatively, licensees can opt for paying two per cent of the trade price. Currently licensees pay $7.25 per unit for the first 2m handsets, and $5 per unit thereafter, and this deal remains. On average, Symbian takes home $5.14 for each unit sold.

It's really an unbundling arrangement. The two new price structures don't include a bundled JVM. Licensees have to have their own arrangements for Java, and under the original tariff were paying for it twice.

Symbian is clearly expecting the OS to move into the mid-range 'feature phone' market, which accounts for around 200m handsets per year, with its 'single chip'-capable OS, based on a new, real-time kernel.

Actually, Symbian is careful to distinguish between single-chip and single-core phones. Single-chip phones feature separate baseband processors and application processors, but put them on the same die. A single-core phone runs the signalling stack as well as the smart-phone OS, Jorgen Behrens, Symbian's VP of product management and strategy told The Register.

Back to the financials. Symbian can certainly afford to introduce lower prices. The company disclosed to its Q4 earnings today, and CFO Thomas Chambers said the company was now comfortably in the black, with £114.8m in revenue in 2005, more than the £80m he said was required to run the 1,000-strong company. Revenues grew 73 per cent over 2004, and shipments rose 136 per cent year on year. In Q4, Symbian sold 10.89m licences, up from 8.54m in Q3.

Royalties brought home £30.7m of the £34.6m of revenue booked. Nine licensees have products in development, down from 12 a year ago. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.