Word: handsetting
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...None of the consumer electronics companies banking on 3G to drive handset sales to pre-recession levels are going to be able to count on their carrier partners for services that will show off the best features of phones that can download and manipulate files, access the internet, and play video. (See the top iPhone applications for new moms...
...reflection of a fundamental power shift taking place globally. Once untouchable telcos and their suppliers, including Nippon Telegraph & Telephone Corp., Deutsche Telekom and France Telecom, have become mastodons stuck in a tar pit. They are surrounded by a host of new technologies and hungry cable companies, wireless operators and handset providers with low-cost solutions and must-have apps. These competitors and their supply chains are smarter, faster, more aggressive. And they're gobbling up business in the $1.7 trillion global market for telecom services, including traditional fixed lines, at a ferocious rate...
...Microsoft is still trying to get its Windows mobile operating system into as many handsets sets as it can, but there is plenty of competition in the field particularly from Symbian, Blackberry, and Apple's software. An alliance with Verizon, which is the largest cellular carrier in the United States, could help Microsoft's efforts to become a significant presence in the mobile software market. Microsoft's problem is that there is no reason to believe that it, or any other company, will be able to launch a phone that will break the chokehold that the Blackberry and iPhone have...
...conventional wisdom is that the Microsoft phone launch with Verizon will be a failure before the first handset is shipped. This is a case where conventional wisdom is almost certainly true. Microsoft's Zune could not compete with the iPod because it did not offer any important new features and Apple has been in the market long enough to dominate...
What does not make sense, at least at first blush, is that the financial results of all of the other major handset companies from Sony Ericsson to Nokia (NOK) to Motorola (MOT) were down. These firms can hardly give handsets away, much less sell them. Each of these operations said that global cell phone unit sales will be down in 2009. What is even more puzzling is that large handset companies don't just make smart phones; they make a lot of cheap phones for people in emerging markets and consumers who don't want a handset that acts...