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February 6, 2015
Earlier today, Corning has unveiled its Project Phire, a new Gorilla Glass-like material that's
both extremely tough and scratch-resistant to boot, making it a good product for smartphone screens.
The developmental product was announced today at a New York investor meeting by Corning executive
He said the company plans to start selling the material later this year. "We have developed a new product
that will provide sapphire-like scratch resistance while maintaining the legendary toughness and break
resistance of Gorilla Glass," said Clappin, president of Corning Glass Technologies.
Corning's Gorilla Glass division was under pressure for much of last year amid concerns that
Apple would flip from using Gorilla to synthetic sapphire, an extremely hard material that is incredibly
difficult to scratch.
While Corning repeatedly said sapphire is a poor alternative to its glass in mobile devices because
it shatters easily when dropped, the situation highlighted a weakness of Gorilla-- while it may not break,
it scratches much more easily.
Bringing together a display cover that's both highly damage-resistant and scratch-resistant could help
Corning avoid a future competitor from taking its place as the leading display-cover maker for smartphones
Corning makes most of its money from TV display glass and fiber-optics glass, but Gorilla has been a
major growth area for the company in the last few years.
It's now dominant in the hardened glass market, outpacing a handful of competitors such as Asahi
Corning's Gorilla Glass business has come a long way since Steve Jobs visited the company several
years ago and asked Corning to develop a screen that would be highly resistant for Apple's upcoming
iPhone in April 2007.
In other mobile news
A recent decision by the CRTC (Canadian Radio-Television and Telecommunications Commission) could have
some significant implications after it applied net neutrality rules to some wireless connections.
The decision wasn't expected by most observers, although some in the industry saw it coming.
In its ruling, BCE, Canada's largest telephone company was ordered to stop offering a mobile app
that for $5 per month allowed users to watch up to ten hours of video from television channels owned
or licensed by the company on their cell phones without it counting against a data cap.
If the subscriber were to watch videos from a rival app, the deal did not apply and the data would
count against their plan's download limit.
That situation prompted Canadian student Ben Klass to complain to the CRTC, and it upheld his complaint.
Crucially, however, the federal watchdog dismissed gripes put forward by Bell Canada that the video
watched was a broadcast service and so telecom regulation was not applicable.
Bell also argued that the service was a good thing for Canadians and should not be prevented.
The CRTC disagreed on both counts, and it used 'net neutrality speak' to argue that such a service wouldn't
be in the best interest of most Canadians.
The CRTC's decision could end up inhibiting the introduction and growth of other mobile TV services
accessed over the Internet, which reduces innovation and consumer choice.
More importantly, it could also tore down a somewhat arbitrary barrier between different types of
data and the rules that apply to each.
In doing so, the CRTC recognized the modern reality that people access the same content from the
same providers over different channels without differentiating between them.
"From a subscriber’s perspective, the mobile TV services are accessed and delivered under conditions
that are substantially similar to those of other Internet-originated telecommunications services,"
the decision noted, effectively extending net neutrality principles.
CRTC chairman Jean-Pierre Blais was well aware of the importance of the decision, telling reporters-- "At
its core, this decision isn’t so much about Bell or Videotron. It's about all of us and our ability to
access content equally and fairly, in an open market that favors innovation and choice. The CRTC always
wants to ensure - and this decision supports this goal – that Canadians have fair and reasonable access to
Bell Canada told CBC news that it was "shocked" by the ruling. The decision will have no impact
on the showdown expected at the end of the month in Washington DC when the FCC decides whether to introduce
new net neutrality rules.
That decision could also still impact Canadians despite the ruling today since many internet service providers
are still based in the United States and so would be subject to U.S. laws.
In other mobile news
According to the most recent numbers from market research firm Strategy Analytics, the battle appears
to be levelling off for the number one spot in the fourth quarter of 2014, with Apple's fortunes on the
rise, while Samsung is heading in the opposite direction.
To be sure, Apple's larger-screen iPhones seem to have gotten the company back in the game in a big way, and the trend
appears to be strenghtening. So it's like 'neck and neck' between Apple and Samsung in the race for smartphone supremacy. And to be sure, Apple
has all the momentum on its side of the ledger.
The iPhone maker saw its share of the global smartphone market grow to 20 percent in the fourth quarter of 2014,
up from 18 percent in 2013.
At the same time, its South Korean rival's fortunes went the other way, dropping the company to that same 20 percent
number from 30 percent for the same period a year ago.
Both companies saw fourth-quarter shipments of 74.5 million smartphones, Strategy Analytics said, and Samsung
remained No. 1 in sales worldwide when considering all of 2014. But now it all appears to be
shifting in a big way.
Samsung has been struggling a lot recently to compete against Apple in the high-end smartphone market
and also against newcomers such as Xiaomi at the low end.
In particular, Apple has become a larger threat with its bigger screen devices, the 4.7-inch iPhone 6 and
the 5.5-inch iPhone 6 Plus.
Simply wanting a larger display is no longer a reason to buy Samsung's devices, and its smartphones
can't reach the low prices of those from Chinese and Indian vendors either.
That very last point is important because markets like China are increasingly where the action is
these days. Strategy Analytics said global smartphone shipments grew by about 31.2 percent, to a record
of 380.6 million units, in the fourth quarter of 2014 from the year-ago period, with 1.3 billion smartphones
shipping globally in 2014 and "very strong growth in emerging markets such as China, India and even Africa."
And Apple doesn't seem to be having trouble in those areas either. During the company's earnings call
Tuesday, CEO Tim Cook said that iPhone sales in emerging markets such as Brazil and Mainland China were "absolutely
stunning," more than doubling year-over-year, which is three times to four times what those markets had been
doing, according to market research firm IDC.
It looks like very soon, Apple's top iPhone market may no longer be the United States by rather
Set to announce its earnings for the 4th quarter this week tomorrow, Apple could reveal that
it sold more iPhones in China than in the United States for the first time ever.
Analysts at UBS Securities predict that China captured about 36.2 percent of all iPhone
shipments last quarter, compared with 24 percent in the U.S.
Understandably, that's a very big change from the same period last year, when the U.S. held about
29 percent of iPhone shipments, and China close to 22.1 percent.
To be sure, Creative Strategies analyst Ben Bajarin forecasts that Apple sold 2 million more
iPhones in China than it did in North America.
Analysts believe the changeover was initially triggered by Apple's deal with China Mobile in
December 2013 and then boosted by the release of the iPhone 6 across all three of China's major
wireless carriers in October 2014.
In 2011, China became the world's largest smartphone market and now is home to an incredible 519 million+
Apple has been striving the past few years to gain more market share in the China by securing
deals with its major carriers.
An agreement with the nation's largest wireless carrier, China Mobile, proved challenging but
was key as it provides access to more than 800 million subscribers.
But while all of this is happening, Apple faces challenges in China getting regulatory approval
for its latest iPhones.
Though the launch of the iPhone 6 and the iPhone 6 Plus was delayed as a result, Apple still saw
a jump in sales among Chinese mobile phone consumers.
Phone sales in China grew more than 45 percent annually in November, triggering a record high in
monthly sales volumes, according to Counterpoint Research.
The market research firm attributed the gain to "rich urban Chinese consumers" attracted to the
new iPhone's form factor.
Apple's twelve percent market share in China pushed it into third place behind dominant local
players Xiaomi and Lenovo.
The quarter is a key one for Apple as it marks the first full quarter in which Apple got to play
in the big-screen leagues.
Launched in September 2014, the 4.7-inch iPhone 6 and the 5.5-inch iPhone 6 Plus were Apple's
responses to a market in which consumers have increasingly been drawn to large-screened phones.
The lack of a big-screen smartphone is one reason Apple had been losing market share and customers
to Android vendors such as Samsung, which have long been offering phones in various screen sizes.
Globally, Apple is now expected to have sold around 65 million iPhones during the final quarter
of last year, according to the crystal ball of Piper Jaffray analyst Gene Munster.
In an investor's report released late Sunday, Munster said he has upped his iPhone sales
forecast to 65 million from 61 million previously, based on supply of the iPhone 6 and iPhone 6
Plus catching up to demand before the end of the quarter.
The analyst did note that investors are looking for sales in the range of 65 million to 69 million
iPhones for the fourth quarter of calendar 2014, which was Apple's first fiscal quarter of 2015.
Other market analysts and reports are also predicting a stellar quarter for Apple thanks to the
Morgan Stanley analyst Katy Huberty is eyeing iPhone sales of 69 million. KGI analyst Ming-Chi Kuo
sees iPhone sales surging as high as 73 million, according to AppleInsider, with the iPhone 6 accounting
for more than 42 million in unit sales, and the iPhone 6 Plus a little more than 16 million.
Whatever the actual tally, last quarter's iPhone sales will most certainly outshine the record
51 million iPhones sold in the final quarter of 2013.
Apple isn't as likely to be as happy with last quarter's iPad sales, according to Munster.
The analyst has reduced his sales forecast for Apple's tablet to 22 million from 25 million.
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