On Smartphone Growth and Technology Innovation

• Last week, while discussing its quarterly results, Apple CEO Tim Cook said “Our results are particularly impressive given the challenging global macroeconomic environment. We're seeing extreme conditions unlike anything we have experienced before just about everywhere we look. Major markets including Brazil, Russia, Japan, Canada, Southeast Asia, Australia, Turkey and the Eurozone have been impacted by slowing economic growth, falling commodity prices, and weakening currencies. 
• Samsung, in its quarterly results statement said, “As for the outlook for 2016, Samsung expects single-digit percentage growth in both the smartphone and tablet categories amid softening demand and intensifying competition. Despite this challenging environment, the company will focus on increasing smartphone shipments and maintaining a double digit margin through releases of competitive devices and an optimized product portfolio.
• Melissa Chau,Senior Research Manager with IDC said "Usually the conversation in the smartphone market revolves around Samsung and Apple, but Huawei's strong showing for both the quarter and the year speak to how much it has grown as an international brand."

• Separately, announcing a business partnership, Blaise Agϋera y Arcas, head of Google’s machine intelligence group said “By working with Movidius, we’re able to expand this technology beyond the data center and out into the real world, giving people the benefits of machine intelligence on their personal devices” and Movidius CEO  Remi El-Ouazzane said “This collaboration is going to lead to a new generation of devices that Google will be launching …  What Google has been able to achieve with neural networks is providing us with the building blocks for machine intelligence, laying the groundwork for the next decade of how technology will enhance the way people interact with the world.”

OUR TAKE

• Regarding Apple, Samsung and Huawei – As the smart phone market matures, market share gains will be driven by factors such as price, battery life and software enhancements - rather than look and feel.
• Regarding the Google – Movidus partnership -  it is another example of how innovation is focused on artificial intelligence, visualization, sensors and aerial, terrestrial and aquatic robots.