Feeds

BlackBerry to be throttled by own supply chain

If you can't sell 35m phones in six months, you and your handsets are landfill

Internet Security Threat Report 2014

Mobile phone makers that can't sell 35 million phones every six months – three per cent of the global market – are doomed, according to Taiwanese analyst outfit Trendforce.

The firm has just popped out some predictions about the mobile market, one of which suggests “obtaining upstream components and materials at good prices can be difficult” for mobe-makers that don't hit the 35 million sales mark.

That's bad news because “The inability of these manufacturers to adjust or lower their products’ high retail price can be a detriment given the prevalent price-drop trend within the market.”

For the likes of BlackBerry, currently sitting at about one per cent of global market share, that means being trapped in high price hell in a market that Trendforce says has blanded out because the likes of Qualcomm and Mediatek have managed to “facilitate the surge in mid to low-end smartphones” leaving “the hardware … differences among competing smartphones … increasingly less noticeable.”

If the firm is right, it's describing a perfect storm in which struggling mobe-makers can't innovate their way out of trouble without big investments in research that result in pricey handsets. And those investments are less likely, it says, because declining margins mean outsourced manufacturing of mobile phones is about to take off.

The report also says pricey handsets are bad news, the analyst says in a prediction that the iPhone 5C's price tag is so high that it has lopped 11 million units from its forecast for sales during 2013's fourth quarter. Trendforce expexts the new model to account for only ten million or so sales, not many more than ye olde iPhone 5S in the same period.

The big mover on Trendforce's radar is the Galaxy Note S3, which it says clocked up 15 million sales in the first half of 2013.

The firm is bullish about Sony and LG's prospects, noting decent sales rises for both. HTC is a walking corpse, with sales expected to fall 40 per cent year over year. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.