El Segundo, CA —Motorola Inc. was the star of the mobile-phone business once again in the second quarter, with its shipments increasing by an industry-leading 5.8 million units during the period, according to iSuppli Corp. The company is closing its gap with market-leader Nokia, but remained in second place in terms of unit shipments.
Motorola’s mobile-phone shipments amounted to 51.9 million units in Q2, up 12.6% sequentially from 46.1 million. Company market share rose to 23%, from 21% in Q1.
The company benefited from its thin form-factor phones, including its successful RAZR. Tina Teng, analyst, wireless communications, for iSuppli, notes, “About 40% of Motorola’s second-quarter unit shipments were of its trademark thin form-factor phones, and 32.8% were RAZRs. Motorola’s market-share gains were most notable in China, North America and India.”
Nokia achieved 4.4% sequential growth in mobile-phone shipments, a slightly better performance than the overall market. The Finnish firm gained 1 point of share to 35%. The company shipped 78.4 million units this quarter, compared to 75.1 million in Q1.
Samsung Electronics Co. Ltd. suffered a setback in the second quarter due to disappointing overseas sales. The company’s biggest decline in shipments came from Europe.
Company phone shipments declined to 26.3 million units, down 9.3% from 29 million in the first quarter. Its market share declined by 1 point to 12%. However, Samsung’s mobile-phone Average Selling Prices improved by 1.5% as the company avoided low-end products for emerging regions.
Sony Ericsson posted the largest percentage increase in shipments among the top-five players, with its units rising to 15.8 million, up 18.8% from 13.3 million in Q1. The company has been making gains with its Walkman line of mobile phones, which accounted for 25% of its second quarter unit shipments. The company’s share rose to 7%, surpassing LG Electronics to take fourth place in the market.
LG Electronics slid to fifth place on a 1.9% decline in unit shipments due to competition in the U.S. market with rival Motorola. The company’s most-talked-about mobile phone, Chocolate, is expected to be available in the U.S. market in the fourth quarter to help boost the company’s results.
New Tripoli, PA -- Strong demand for semiconductors is keeping the chemical and material market in high gear, according to a recent report published by The Information Network.
The worldwide market for chemicals and materials for semiconductor manufacturing grew 6.1% in 2005 and is projected to grow another 20% in 2006.
“We continue to see strong demand across all businesses, especially in North America and Asia-Pacific,” said Dr. Robert N. Castellano, president of the market research company. “The market is being driven by strength in demand for CMP pads and slurries, along with increased sales of deep ultraviolet photoresists and related products in all regions.”
According to TIN, the clear winner in the market is the silicon wafer sector, growing 21.9% in revenues in 2006. Higher pricing, increased volume demand across all diameters and 300 mm capacity ramp-up helped promote growth. For 2006, SEH will lead the wafer market with a 33% share.
Santa Clara, CA -- Taking another stride in its recently launched yearlong turnaround effort, Sun Microsystems has laid off about 950 more U.S. employees, including about 430 in the Bay Area, the company confirmed Monday.
This second round of pink slips papered the computer-server and software maker's Newark campus and other sites across the U.S., with additional cuts in Canada, Europe and Asia. Sun spokeswoman Stephanie Hess said in a press release that a worldwide figure totaling the latest job cuts was not available.
TORONTO – SMTC Corp. reported revenue of $61.1 million and net income of $1.3 million, or $0.09 per share, for the second quarter ended July 2, up from revenue of $57 million and net income of $0.3 million from Q2 2005. The results are also up from the first quarter of 2006, when the company reported revenue of $59.9 million and net income of $1.0 million, or $0.06 per share.
Gross profit for the quarter was $6.8 million, or 11.2% of revenue, compared with $6.1 million, or 10.1%, for the previous quarter and $4.7 million, or 8.3% of revenue for Q2 2005.
John Caldwell, president and chief executive, said in a statement, “Strengthening revenue resulted from increased orders from both long standing and newer customers while improved margins in part reflect favorable customer and product mix.”
“The company again affirms annual guidance provided at the beginning of the year indicating that 2006 is expected to be a year of growth in both revenues and earnings,” stated Caldwell. “We expect continuing revenue growth in the last half of the year and increased net income.”
On July 21, SMTC was notified of the approval of a U.S. income tax refund of $2.7 million plus interest relating primarily to fiscal years 1999 and 2000. It is anticipated that the refund will be received in Q3 2006. Separately, on July 31, redundant land located in Texas was sold for net proceeds of approximately $1 million. Both transactions are expected to be recorded in the third quarter of 2006 and proceeds of approximately $4 million applied to reduce indebtedness.
TAIPEI --Recent aggressive moves by EMS providers, including Flextronics and Hon Hai, will step up competition in the digital still camera (DSC) manufacturing industry. Taiwanese contract makers are expected to come under more pressure, market watchers told the Taipei Times.
"Manufacturing digital cameras is a growing industry with higher margins, and EMS players want to have a share," said Ken Yu, an analyst with SinoPac Securities Corp.
San Jose -- The world’s third largest computer maker, Lenovo Group Ltd., is rolling out a new line of desktop PCs with chips from Advanced Micro Devices, another sign that AMD is making inroads against rival Intel Corp.
Lenovo has long offered PCs with AMD chips in its home market of China, but not until February did Lenovo launch AMD-based PCs elsewhere, with a line of computers for small and medium-sized businesses. Now, AMD chips will be available in Lenovo's new ThinkCenter A60 PCs, which are targeted at big business customers.The systems are expected to be announced later this week.
Even while locked in an intense price war with AMD, Intel sells about 80% of the world's microprocessors. But AMD has eaten up about 5 percentage points of Intel's market share in the past year with better performing chips.