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Samsung Galaxy Note. First Look

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Spillikins #76

I can't but feel that the heat wave has altered the preferences of people and companies. One week without news is followed by head-spinning events. Apple stole the show by its press conference where the company offered to give free cases for iPhone 4 until September 30. I could have cited the summary I came up with in my blog, but I will refer you to this source if you have not read it yet:

Nokia also commented on iPhone 4 antenna issue, but it does not sound smart enough. You can read a separate entry about it here.

During the last week I tried to learn about Samsung Wave sales results. I needed the first retail figures. 1 million phones was sold worldwide within the three weeks. The demand is so high that it is still in short supply. Samsung Wave is the bestseller in its segment. Samsung is not sure that the deficit issue can be solved until the start of 2011 as they don't have enough of Super AMOLED screens. The price will remain stable or will even go up a bit. Due to the high demand the price is unlikely to decrease soon. As far as I remember this is one of the few Samsung models in this price range to enjoy such high sales from the very beginning. 12-13 million items of the model will be sold this year, while the plans regarding Samsung Galaxy S lag behind a bit at 12 million.


  1. Sony Ericsson is in Black for the Second Quarter in a Row
  2. NOKIA CEO is in hot water; OVI Store Underperforms Again
  3. Make Your Own Applications for Google Android
  4. Preferences of UK Smartphone Users
  5. Bellperre or One More Expensive Phone

Sony Ericsson is in Black for the Second Quarter in a Row

In this table you can compare Sony Ericsson quarterly results.

    Q2 2009   Q1 2010   Q2 2010
Number of units shipped (million) 13.8 10.5 11.0
Sales (Euro m.) 1,684 1,405 1,757
Gross margin (%) 12% 31% 28%
Operating income (Euro m.)  -274 20 36
Operating margin (%) -16% 1% 2%
Restructuring charges (Euro m.) 1 3 32
Operating income excl. restructuring charges (Euro m.) -274 23 68
Operating margin excl. restructuring charges (%) -16% 2% 4%
Income before taxes (IBT) (Euro m.) -283 18 31
IBT excl. restructuring charges (Euro m.) -283 21 63
Net income (Euro m.) -213 21 12
Average selling price (Euro) 122 134 160

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NOKIA CEO is in hot water; OVI Store Underperforms Again

The atmosphere around Nokia top executives is heating up. The quarterly results will be reported July 22 and according to the manufacturer they are sure to be disappointing. There is no positive market news for Nokia, it is getting rid of its assets (after the modem department, MetaCarta was sold for the undisclosed fee). Nokia shares were supported last week by rumors around the possible takeover of Motorola infrastructure unit. This is a typical stock market gossip aimed at helping the share price stabilization. If we analyze the performance of this unit we will see that Motorola cannot boast many contracts in networks development apart from LTE for Verizon, while the intellectual property and know-how are comparable with Nokia Siemens Networks. It is an unlikely purchase scenario, but if it comes through then the merger with Siemens will be the child's play. But I do not think it will happen.

I have mentioned my forecast before that due to the bad management issues and the loss of market position the incumbent CEO of Nokia will step down or will be removed. I think it will happen by the end of this year. The only contender from within the organization is likely to be Anssi Vanjoki. Alternatively, they can opt for an external candidate, which is not a good choice for the company as they cannot lose time and have to regain its position starting from today. I have to mention that this is my forecast only and not the insider information. The forecast is based on what I know about Nokia and in the present situation investors are unlikely to forgive the current CEO.

Let's move on. This week Unwiredview published the screenshots of Symbian^4 interface. It does not impress much as it is an early version. I believe that the announcement of Symbian^4 scheduled for the start of 2011 will not be postponed, which means that the interface will be similar to the pictures showed today. Unfortunately, it will be another mistake when the company fails to make a big step forward in terms of the interface and will lose time and ground to the rivals. They should probably postpone the release of this version, but offer users distinctive features in the new UI and different experience. Superficial updates will not be enough and the lion's share of features in the UI must be changed.

OVI Store cannot boast the sales increase and the number of applications is hardly mind boggling. The same applies to the search function in the shop. Out of the available solutions Nokia shop is the most uninspiring. The company tries to boost sales by all means and until August 12 it offers a special offer of 26 games (most popular games on all platforms, not only for Nokia phones). For one dollar, euro or pound you can buy any of the games. It is an excellent solution for those who remain loyal Nokia customers. The following games are available:

  • Doodle Jump
  • Fieldrunners
  • Bejeweled
  • Bejeweled Twist
  • California Gold Rush
  • Pac-Man Championship Edition
  • Armageddon Squadron
  • ToonWarz
  • WSOP – Hold’em Legend
  • Wave Blazer
  • Fieldrunners
  • UniWar
  • The Sims 3
  • Monopoly World
  • Uno
  • Raging Thunder
  • Call of Duty: Modern Warfare 2
  • Where’s Wally
  • California Gold Rush
  • Zuma
  • Zuma’s Revenge
  • Burning Tires
  • Tetris Revolution
  • Trivial Pursuit
  • Jewel Quest III
  • Tony Hawk VERT
  • Super KO Boxing 2
  • Heli Strike

I am sure these games will sell well. I bought a couple of them to compare with the similar ones for iPhone 4 and HTC Desire. Everything remains the same, but it is not as comfortable to play in Fieldrunners on Nokia due to the screen resolution. Not to be accused of groundless allegations I will say that the screen resolution is the main platform limitation today and the company somehow does not handle it or tries to ignore the problem. You can put it differently.

Disorder and confusion in Nokia reached the level that the Dutch website mixed the pictures for Nokia C6 and Nokia C6-01 (the latter has not been officially unveiled yet). Judging by the back panel a 5 MP camera was substituted by an 8 MP module and more metal was added as well. Nokia corrected its mistake after all news agencies reported about the new model. Such things really do happen, but it seems the company does not keep any secrets and all information becomes publicly available.

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Make Your Own Applications for Google Android

Google created an excellent service, which enables any housewife to "create" applications for her phones. It is called Google App Inventor and is available for users after the registration. You can download application on your phone and use it. The possibility to distribute such applications among other users has not been mentioned.

In the window you see bricks, which symbolize the blocks of your future application. You have the maximum range of settings, access to all phone functions, for example, SMS, Twitter, motion sensor. You get a powerful, but easy to use instrument to show your wit. Having spent the entire evening creating my own applications I can sincerely claim that this tool can change our ideas about the way applications are developed. People who have no experience in programming will get a powerful tool and many will use it to realize their potential.

The developers should not worry as their services are still required. I can come up with a good idea, but to optimize the application and launch a commercial product I will definitely need the professionals.

No other company offers anything similar in terms of features. It is ridiculous to refer to OVI APP Wizard, which allows integrating RSS into the application's shell, because it is just a fraction of capabilities provided by App Inventor. I strongly recommend you to try it yourself. This is a genuine revolution and it should not be underestimated. At the moment Android Market has 70,000 applications and the threshold of 100,000 will be reached soon. I am afraid to think about the number of applications when App Inventor will be in its final release stage. The figures will be staggering. For the first time the company addresses not the developers, but the general public, which now gets a tool to create apps for mobile phones. It is a truly remarkable story. In the video below you can see how easy it is to create a simple "kitty" application. I am absolutely delighted with new opportunities available for Android with this smart and nice move.

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Preferences of UK Smartphone Users

British marketing research firm YouGov published its report on Smartphone Mobile Internet Experience. 2121 smartphone users took part in the poll. The most alerting tendency is the drop in preferences for Nokia by 12% within 6 months, which correctly describes Nokia, its products and marketing. The number of people who plan to buy Nokia smartphones soon decreased two times. It is sad, but Nokia may label YouGov as one of unreliable information sources and claim that everything they say is not true. It is easier to ignore your market position, than to improve the situation.

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Bellperre or One More Expensive Phone

The market of luxury phones greets one more newcomer - Bellperre. The vision of the company is based on one of Nokia phones and offers a 5MP camera, Noise Cancelation, 2.2" QVGA screen, GPS, FM radio, etc. The exterior of the body is made of steel, silver and gold at your discretion. You can also choose from 125 variants of leather. This is a boutique company, which makes bespoke models to meet your preferences based on the elements to choose from. There is nothing interesting here, just one more market player. This segment is already quite crowded, but despite the rush to get into it, there will be enough space for many.

P.S. Starting from this issue I drop Questions to Nokia as they have already described the position of the company in full. It does not want to communicate in any way. This is their right, but I do not see any point in asking questions nobody bothers to answer. Fortunately, the information on Nokia is abundantly present in open sources.

Do you want to talk about this? Please, go to our Forum and let your opinion to be known to the author and everybody else.

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Related links

Spillikins #73. iPhone 4 Hits the Shelves and Android Conquers the World

Spillikins #74. Apple Acknowledges Its Technical Ignorance in Phones

Spillikins #75. Samsung Becomes the Leader in European Sales of Traditional Mobile Phones

Eldar Murtazin (eldar@mobile-review.com)
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Translated by Maxim Antonenko (maxantonenko@ukr.net)

Published — 19 July 2010

Have something to add?! Write us... eldar@mobile-review.com



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