It might not be much, but after four years, Sony has finally begun flipping a profit on each PlayStation 3 console it sells. It took several hardware revisions to get to this point, and now that it has, the company can begin focusing on recouping some of its hardware losses, though it's unlikely Sony will break even.
That won't stop the console maker from trying, however, as rumor has it Sony would like to extend the PS3's retail lifespan for a few more years. That will depend, in part, on what the competition is cooking up for the next round of console wars, but it's worth mentioning that Sony recently released firmware that adds 3D-capability to the PS3. Combined with the integrated Blu-ray player, the PS3 is in solid shape to stay relevant beyond tomorrow.
And then there's the whole motion control bonanza. Between Microsoft's Kinect and Sony's Move technology, both console makers appear content to ride their current hardware for at least a little while longer.
Notebook makers are going to have a tough time moving units in the second half of 2010, says Joanne Chien, senior analyst of Digitimes Research.
According to Chien, one of the culprits is weaker-than-expected back-to-school demand, which means kids will have to rough it the old fashioned way - with pen and paper.
It doesn't stop there, however. Sales are likely to stay low for the end-of-year holiday shopping season, at least compared to last year, Chien noted. This will be true in both Europe and the U.S..
How tablets fit into all this remains to be seen. Apple's iPad has already jumped out of the gates with a strong start, and several competitors are lining up slates of their own for release in the second half of 2010. Depending on who releases what, and for how much, tablets could end up one of the hottest selling tech items this holiday season.
A few days ago, Microsoft revealed that it had sold 150 million Windows 7 licenses since the OS first hit the market, making it the fastest selling operating system in history with a 7-copies-per-second sales rate. Going a little further back in time, Steve Jobs suggested at the D8 conference that the PC's days as the most dominant force in computing might be numbered. He even likened PCs to trucks: “PCs are going to be like trucks. They're still going to be around, they're still going to have a lot of value, but they're going to be used by one out of X people.”
While Jobs' prognostication was rebuffed at the very same event by Microsoft CEO Steve Ballmer, the debate is likely to persist deep into the future. Now, Microsoft is again blowing its own vuvuzela.
Frank X. Shaw, Microsoft' corporate vice president of Corporate Communications, was full of big numbers in a recent blog post avowedly inspired by “the Windows 7 milestone.”Although the blog post highlighted Microsoft's success across a wide array of businesses by citing relevant statistics, it was also meant to remind ambitious rivals like Apple that Microsoft is not, after all, going to hell in a “Truck.”
Shaw pointed out that while Apple is expected to sell 7 million units of its “groundbreaking” tablet this year, PC sales are expected to top 350 million units. He even reminded Apple that it still trails Nokia and RIM in the global smartphone market. Shaw was so determined to target Apple that he conveniently overlooked the fact that Microsoft remains a fringe player in the smartphone market - someone clinging onto dear life by the skin of its teeth.
Acer has been creating a ton of headlines around the web over the past twelve months, and with good cause. The volume PC builder appears to be on-track to overtake HP as the biggest notebook PC manufacturer in the world. This is a lofty goal considering Acer's Chairman J.T. Wang admitted to dealing with struggling sales in Europe and wage increases in China. According to information compiled by Gartner, Acer shipped 9.49 million laptops, giving them a slight edge over HP who put out a meager 9.47 million.
During a conference call with investors Wang gave himself a well-deserved pat on the back by claiming the companies recent success is a result of strong leadership. "We are one of a very few that is able to respond to the market when demand stabilized in the latter part of the second quarter because we were prepared". In addition to the positive news on the laptop front, Wang also forecasts a much higher demand for desktop PCs, and expects Acer shipments in this department to rise as high as 10 million this year, a full 2 million more than in 2009.
On the mobile phone front, Acer also announced that it is investing $15 million in R&D to develop new phones based on the Android OS. It's no surprise that they are choosing to expand in the direction of Smart phones, but it will be interesting to measure this investment against HP's $1.2 billion in WebOS once all the dust settles.
At the recent D8 conference, Steve Jobs said the PC industry would be minimized in favor of touchscreen devices. Well, if it's going to happen, it isn't happening yet. Forrester Research has just released some new projctions showing strong future growth across the PC industry; tablets included. Their report says that over the next five years, PC sales will increase by 52%. The only category of computers set to see a decline is the venerable desktop PC.
Forrester also points out the increases in sales of tablets will likely cannibalize netbook sales, bypassing them in 2012. The report claims that tablets will account for 23% of computing device sales by 2015. While the desktop may be declining in 2015, Forester claims they will still be used by more consumers than any other variety of computer. If Forrester is correct, we can all cling to our desktops for just a little longer.
Perhaps Apple should send Gizmodo a Thank-You card for helping to hype the hell out of the iPhone 4 weeks before its release, or at the very least call off the dogs and lift the unofficial ban on Gizmodo from Apple-sponsored events. As it turns out, Steve Jobs and company would have bigger concerns with the iPhone 4, like trying to keep up with record-setting orders.
"Yesterday [June 15] Apple and its carrier partners took pre-orders for more than 600,000 of Apple’s new iPhone 4," Apple said in a statement posted to its website yesterday. "It was the largest number of pre-orders Apple has ever taken in a single day and was far higher than we anticipated, resulting in many order and approval system malfunctions. Many customers were turned away or abandoned the process in frustration. We apologize to everyone who encountered difficulties, and hope that they will try again or visit an Apple or carrier store once the iPhone 4 is in stock."
According to AT&T, the only wireless vendor in town officially allowed to carry and service Apple's smartphone, pre-order sales for the iPhone 4 were 10 times higher than they were for the first day of pre-ordering for the iPhone 3GS.
"Given this unprecedented demand and our current expectations for our iPhone 4 inventory levels when the device is available June 24, we're suspending pre-ordering today in order to fulfill the orders we've already received," AT&T said.
The iPhone is ready for its fourth refresh and there are still no signs of sales slowing down. The new iPhone’s arrival is expected to provide fresh sales impetus to the franchise. Recent comments from Asia Optical chairman Robert Lai provide some insight into Apple’s preparations and sales expectations.
Lai told Digitimes.com that his company began shipping VGA lens kits for the iPhone 4 in May. According to Lai, Asia Optical has been asked to deliver 3 million units every month. It is conspicuous from Lai’s revelation that Apple is prepping itself for unprecedented demand.
The sheer volume of components ordered by Apple is also being regarded as the death-knell for AT&T’s iPhone exclusivity. Some people believe that Apple will have to end AT&T’s exclusivity for the iPhone 4 to sell the way it wants it to.
Numbers are hard. Either that, or someone over at Sprint-Nextel wasn't paying very close attention when tallying up the number of HTC Evo 4G smartphones sold at launch. Maybe both.
"We originally reported that the total number of HTC Evo 4G devices sold on launch day was three times the number of Samsung Instinct and Palm Pre devices sold over their first three days on the market combined. We inadvertently erred in the comparison," Sprint said in a statement.
After carrying the 1 and correcting any other mathematical errors that were made, Sprint now says that the actual number of HTC Evo 4G devices sold on launch day was in line with the two other above-mentioned smartphones. Even still, that's not all bad if the real numbers from the first weekend come out to 150,000 as some analysts have estimated.
Although Sprint refrained from letting out any numbers, it revealed that EVO's first day sales far exceeded the previous record for the “largest quantity of a single phone sold in one day ever for Sprint - the record was previously held by both Samsung Instinct and Palm Pre.”
Furthermore, the EVO's launch day sales also blazed past the tally racked up by Samsung Instinct and Palm Pre during their first three days on the market: “The total number of HTC EVO 4G devices sold on launch day was three times the number of Samsung Instinct and Palm Pre devices sold over their first three days on the market combined.”
The huge demand lead many of the 22,000 retail locations to expend their quota of EVO's in no time at all. To counter this, Sprint is constantly sending in fresh supplies, with some sales locations even receiving them on a daily basis.
Another sign that the tech recession is finally subsiding, worldwide semiconductor sales continue to grow and have never been higher than they were in April, according to the Semiconductor Industry Association (SIA).
SIA's numbers have global chip sales checking in at $23.6 billion in April 2010, a 2.2 percent increase from one month prior when sales hovered around $23.1 billion.
"Global sales of semiconductors grew at a healthy rate in April, surpassing the previous monthly record level of November 2007," said SIA president George Scalise. "As expected, both the year-on-year and sequential growth rates moderated slightly. The unusually high year-on-year comparison is a reflection of the trough of the recession in early 2009 compared to strong demand today."
According to Scalise, the worldwide adoption of 3G wireless communication played a big in the industry's growth, as did the consequent investment in infrastructure and recovery of demand from the enterprise, automotive, and industrial sectors.