Samsung gives weaker-than-expected earnings guidance and HTC posts tepid results
“The mid and entry-level smartphones are quickly picking up share, and are getting quite powerful in their capabilities,” said CK Lu, an analyst at Gartner in Taiwan. “Basically, a year ago, you didn’t have many choices in low-end smartphones. But now in the China market, you can buy a 5-inch smartphone for around US$200.”
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“Shares are trading at a discount for smartphone makers like HTC, because investors have no idea if future models will be a success or not,” said Paul Chan, chief investment officer for Asia ex-Japan at Invesco Ltd., which holds HTC shares. “Earnings visibility for the sector is very low.”
Phi Beta Iota: The traditional companies are lost. They have fallen into the trap of believing that technology is a substitute for thinking. They have failed to attend to the human factor not just in the use of a hand-held device, but as a global support network able to connect dots to dots, dots to people, and people to people. The next big leap will be a combination of OpenBTS (free cell phones with $2 a month connectivity funded by sponsors), wireless mesh and area call centers with full Internet access, and a mix of SMS and twitter-like queries that quickly receive a human-enabled response. The center of gravity is the five billion poorest, not the one billion rich. The cell companies have not gotten that memo. Neither have most governments or most international organizations. It is quite interesting when Crisis Mappers shows more potential for the future of humanity than the National Security Agency. Humanitarian technology is low-cost bottom-up human-centric technology. It thrives among those whose mind-set is open and multinational. Sell the shave not the razor — monetize the content, not the connectivity.