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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.