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Atmel sales drag as iPad rivals Samsung, Dell slump

updated 12:20 am EDT, Wed November 2, 2011

Atmel touchscreen chips struggle in Q3

Atmel gave an outlook on Tuesday for the fall that was one of the few cluews as to how well iPad rivals were faring in the market. It expected its touchscreen contoller chip sales to drop 12 to 16 percent, as low as $402.7 million, at a time when shipments were normally up. Some of the company's tablet customers, including Dell and Samsung, had higher than usual inventories that pointed to a lack of sales.

The forecast for the complete year was being bumped up $25 million to $375 million based primarily on smartphones, where Android's rapid rise favored Atmel's strategy. It serves HTC, Nokia, and Samsung, among others.

CEO Steve Laub also pointed to a still-lingering tough economy and to companies consolidating around single chips for touch control, which hurt the amount Atmel could make for every device.

While not always directly connected, they come as the companies themselves have remained silent. Dell has never been known to enjoy especially strong Streak and Streak 7 sales, having dropped the five-inch model. Samsung's lack of commentary might be the most telling, as the company touts most milestones but has been silent about the performance of the Galaxy Tab 10.1. Unlike in phones, where Android has been on the rise for the past three years, Android tablets have lately been on a contraction and saw Motorola ship just 100,000 Xoom tablets, less than half what it did in the roughly five weeks after launch.

Apple in its last quarter alone moved 11.12 million iPads, or several times what its next-best rival managed. [via Reuters]



By Electronista Staff
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Comments

  1. Gooba

    Fresh-Faced Recruit

    Joined: Oct 2011

    +4

    My opinion...

    It's funny, I think we'll see a continued trend that will split the 'Android world' and 'iOS world'. Mobile phones have become an essential device for pretty much everyone. From school kids to business people and even Grandpa. iOS has seen dramatic growth in the mobile browser and Apps area...Android seems to be lagging...in a big way. The way I see it is a large majority of Android users are sold it on Price, Availability and purely because they don't care what they use to make a call on. iOS customers are a different market, they like to be connected, love the occasional game and enjoy the security of Apple's ecosystem.

    I think this explains the total lack of interest in Android tablets....for now. There is no market for them because their client base is largely out of touch with trends and vision. I feel they will find their place and gather traction but the end user is a completely different beast.

    Also...the fact that Android seems to be evolving into a 'fragmented' system as well as becoming increasingly complex will only slow down it's appeal.

    ...but I think we all need to wonder how long will Android be free for OEM's? With Microsoft making more money on Android than Google, Oracle likely to demand the removal of JAVA and the lack of revenue from mobile ads....one would think that maybe Android will someday incur a licence fee.....or be sold off!

  1. xfrgtr

    Fresh-Faced Recruit

    Joined: Sep 2010

    -5

    your opinion is wrong

    Gooba,make sure to do some research before posting nonsense,it's android that seen dramatic growth in the mobile browser and Apps area,not iOS.Android(smartphone) is gaining market share and is accounting for 48% while Apple's iOS platform seemingly trailed Android significantly with a 19% share of smartphone shipments in the second quarter of 2011.Android's growth in the mobile operating system has consistently exceeded expectations and Samsung Surpasses Apple As World’s Top Smartphone Vendor.iOS=LOL.

  1. nat

    Junior Member

    Joined: Mar 2002

    +4

    your opinion is wrong

    xfrgtr
    ios has most certainly seen growth in browser and apps. because it trails android on number of phones shipped has nothing to do with it's own growth. there are many carriers carrying many models of android phones. there's one iphone. so of course android phones will gain market share. hardly negates the growth of ios.

  1. azrich

    Fresh-Faced Recruit

    Joined: Apr 2010

    +3

    Jane, you ignorant....

    Android is growing like a crack in a windshield, creating little fragments from one large user base.

    iOS grows organically. I am impressed how much Apple has learned from MS's mistakes and experiences. One of which is - Apple doesn't have to be every phone on the planet. What they do need to do is have a critical mass of customers who realize what has value, and that 'what has value' is worth paying for.

    'The race to the bottom' sums thing up perfectly. Market forces at work where the market acts like drug addicts, instead of drug dealers.

    Of course that's my opinion, and it's worth every penny you paid for it :)

    Rich




  1. BigMac2

    Forum Regular

    Joined: Dec 2000

    +3

    Android in catch-22 situation

    There is a big problem with those sale related news, every one in the Android market want to boost their numbers. Manufacturer give shipment numbers which doesn't give any good picture of how well it sale to real user and google only give activation number without any discerning between a first time activation or a reactivation. In both case those stats are bogus when you compare them with Apple sold numbers.

    By using product shipment number, Android maker lie to us and make them looking good with new product launch by stuffing the distribution who give away the unsold stock after few month. Samsung, HTC, Motorola and all other doesn't give a s*** about customer, they only need to ship new mobile and piled them in carriers warehouse for claiming product success.

    While Android can be look as a success in a whole, no device individual device come nowhere near iPhone success. Beside, Apple has never go after market share, they don't care if their are first or last, their goal is making product which people want to buy. No one want to buy an Android phone, they can have if for free after few month.

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