Which Component Makers Benefit the Most from SmartPhone Boom ?

Component Makers benefit from SmartPhone BoomWe believe smartphone makers cannot compromise on the display, processor and memory for high-end smartphones as they are critical components that affect user experience. There is also a limited supplier base for these components and tight supply issues (memory), which would make it difficult for smartphone makers to exert pricing pressure on these critical components.

Display makers and lens module makers set to benefit
The key to hardware upgrades will likely be the display, as a direct user interface, followed by camera. We expect the smartphone screen resolution to move up from HD (1280×720) in 2012 to FHD (1920×1080) in 2013 and QHD (2560×1440) in 2014. The larger and higher resolution display comes at a higher cost, as does (more…)

Vodafone India’s Voice Profits Rise Subscribe Base at 155Mn

Vodafone India Voice Profits RiseVodafone India’s 1QFY14 results appear to have benefited from a stable competitive environment in India, with revenues growing 7.8% QoQ and voice ARPMs rising. Indeed, the growth in voice realizations were the highlight, which is likely to increase gradually. Vodafone’s India revenues increased 7.8% QoQ to Rs94bn (excluding Indus revenues) underpinned by a strong growth in voice and data revenues in 1QFY14. Voice revenue growth (including messaging revenues; change in reporting by Vodafone) increased 7.4% QoQ whilst data revenues increased 17.6% QoQ.

Revenue growth during the quarter was led by both, (more…)

Improving Voice Good for A-Vo-Id, Reliance Jio Challenge from Data in Medium Term

Improving Voice Business India - Headwinds from DataWe expect sustained improvement in the Indian wireless industry’s fundamentals as basic scale economics of the business catch up and both the scope and intensity of competitive pressure reduce. The A-Vo-Id group is very well-positioned to benefit from this theme and expect sustained market share gains for these company over the next few years. We also believe that incremental regulatory developments should be in favor of the industry as spectrum pricing and allocation start falling in sync with (more…)

Why Baidu Bought 91 Wireless ?

Baidu 91 Wireless AcqusitionChinese Internet Giant, Baidu has signed a Memorandum of Understanding to fully acquire 91 Wireless (NetDragon’s subsidiary) for a total of US$1.9bn in cash. According to the agreement: 1) Baidu will purchase NetDragon’s 57.41% equity interest in 91 Wireless for US$1.09bn (~HK$8.46bn). 2) Baidu also agreed to purchase the remaining shares from other shareholders of 91 Wireless if they are willing to sell on the same terms.

Launched in 2007, 91 Wireless operates one the leading mobile app distribution platforms in China and has attracted over 10bn application downloads (more…)

InfoEdge Growth Tapered in Core Naukri.Com Business

Naukri Slowdown in All BusinessesInfoEdge India, owner of the Online Recruiting Business Naukri.Com reported a tepid growth of mere 8% YoY, reflecting poor demand conditions. Collections over half-year ended Jun-13 were up 9% YoY. Management remains cautious on the revenue growth outlook given no signs of a pick-up in the Indian economy, and therefore its core recruitment business. It reiterated its strategy of focusing on market share at the expense of near-term margins.

Overall, Standalone revenue grew 14% YoY and normalised profits were flat YoY. Collections growth for the six-month period ended Jun-13 for the Naukri.Com, and 99acres business was up 9% YoY and 50% YoY, respectively. In Jeevansathi (Matrimonial / Dating classifieds), (more…)

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