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MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 internationally (via LightTake)
This is the most competitive offering from the wave of Boosting the MediaTek MT6575 success story with the MT6577 announcement – UPDATED with MT6588/83 coming early 2013 [June 27, July 27, Sept 11, 2012] and now is the key manifestation of a much broader and very significant trend of The low priced, Android based smartphones of China will change the global market [Sept 10-17, 2012]. The details are therefore worth to examine:
(Pre-order) JiaYu-G3 4.5″ MTK6577 Dual-core 1GHz Dual SIM Android4.0 1GB+4GB IPS(1280*720) Screen 3G WIFI Smartphone – Black [LightTake, Sept 9, 2012]
[availability for shipment on eBay from Sept 12, LightTake press release on availability]
by Cell Phones – Android OS phone
(1 customer Discussion)
Our Price: $183.32
…
JiaYu-G3 Basic Information:
Model JY-G3 Network Frequency 2G:GSM850/900/1800/1900MHZ
3G:WCDMA850/900/1900/2100MHzSIM Card Dual Sim Cards Style Bar Phone Color Black
JiaYu-G3 Hot Spots:
OS Android 4.0.3 CPU MediaTek MTK 6577 1GHz
Cortex-A9 Dual-coreRAM 1GB ROM 4GB Card Extend Support TF Card 64GB MAX (Not included) Screen 4.5inch Capacitive Touch Screen,
IPS Resolution:1280*720G-Sensor Support More Information Flashlight,Maps,Latitude,Gallery,
Navigation,Play Store,Gmail,
Wireless Keyboard
JiaYu-G3 Features:
GPS Built in GPS Wireless Transmission WiFi/ Bluetooth 2.0 Bluetooth Yes Photo Format JEPG Camera Dual Cameras, Front:2.0 MP,
Rear:8.0 MP, with flashlightsJiaYu-G3 General:
Media Player MP3 & MP4 player
(support MP4/3GP format)Sound Recorder FM Radio Earphone Interface 3.5 mm standard audio output jack Tools Calendar,Calculator,Alarm,World Clock Package:
Product Size 135*65*10.8mm Weight(w/box) 500.0g Battery Lithium Batteries:2750mAh Standard Accessories 1*Batteries,1*Charger adapter(US plug, if you need other contry’s standard plug, please tell us.),
1*USB cable,1*Enlish manual
JiaYu G3 [gfscorner YouTube channel, Sept 5, 2012]
Jiayu G3 720P Video Playing Review [July 30, 2012]
JiaYu G3 Unboxing [Gizchina YouTube channel, Sept 6, 2012]
JiaYu G3 used to smash walnuts MT6577 phone with Gorilla glass [Gizchina YouTube channel, Sept 6, 2012]
Jiayu G3 MTK6577 Dual-Core 4,5″ 720p 1280×720 Test Gorilla Glass [chiribe YouTube channel, Aug 13, 2012]
First announcement on July 9, 2012 as translated by Bing:
Through the efforts of Golden people, Golden G3 Design work has now been completed, entering the testing phase, in order to meet the concerns of her friends, Super G3 configuration information as follows, welcome to continue to focus on supporting good domains! …
Second announcement on September 5, 2012 as translated by Bing:
Golden G3 put on sale the first approach … The so-called registration, meaning that user orders, eligibility for Golden G3 to buy, but do not make immediate payment. Golden while waiting for a cell phone network card duly issued, payment orders and then notifies the user. NET label officially reaches Golden factory, beginning the actual shipping. …
JiaYu G3 Preorders: Did You Get One? [Gizchina.com, Sept 5, 2012]
The JiaYu G3 marks the first time (which I know of) that a Chinese phone has managed to go viral in both China and across the globe and it’s easy to see why with such a great looking design and high specification at a low price of just 899 Yuan ($140 in China).
If you have managed to completely miss the JiaYu G3 for the past few months (is that even possible?) let me quickly fill you in;
The G3 is JiaYu’s all new Androidsmartphone set to replace the JiaYu G2 as JiaYu’s flagship model, but unlike most phone manufacturers, JiaYu have managed to give their top of the range phone all the bells and whistles at an extremely low price without any (notable) corner cutting price lowering measures.
For example the G3 has a 1280 x 720 4.5 inch IPS display which boasts a Gorilla Glass screen to ward of knocks and scratches! This in itself would be worth the $140 price tag, but JiaYu have also loaded the G3 with a dual-core MTK MT6577 CPU, 1GB RAM, 4GB ROM and high quality 8 mega-pixel rear camera!
Even the battery is a great size and should last a good while as it is a 2750mAh unit!
So what are the catches? There has to be at least one! And yes there are!
- The first catch is that the $140 price tag in China IS in fact only for the phone (I know this as my wife is online ordering a G3 for me now as I type), but for just $12 extra you can get the battery, charger, screen protector and protective case!
- Secondly is the fact that although we can order our JiaYu G3 phones today, we don’t actually know when we will be getting them as JiaYu is still waiting on the network licences, but that’s ok as JiaYu aren’t asking for full payment yet (although 3rd party resellers are!)
G3 [JiaYu product page, Aug 20, 2012] as translated by Google
[Yuan 899, i.e. US$142, see the full product page transcription on SlideShare [Sept 12, 2012] ]
CPU The MT6577 1G dual-core Memory RAM1G + ROM4G Screen Size 4.5-inch Screen material IPS Resolution 720 × 1280 Touch screen Second-generation multi-touch with Corning Gorilla Glass Camera 2,000,000 8,000,000 physical pixel back-illuminated CMOS AF Operating system Android 4.0.4 Battery capacity 2750 mA Sensor Light, distance, gravity, magnetic sensor, gyro External storage Support maximum 64G expansion card Network GSM \ WCDMA dual network dual standby WCDMA frequency 2100MHz GSM frequencies 850/900/1800/1900MHz Body parameters Of 135x65x10.8 mm weight 154 g Factory standard A mobile phone, battery, charger, data cable, manual, warranty card
?Good domain / Golden? [Baidu encyclopedia, Dec 20, 2011] as translated by Google/Bing:
?Good domain / Golden? from Shenzhen City, Guangdong Province (now moved to Baoji City, Shaanxi Province) the ?good domain / Golden? Yutong Electronic Science and Technology Co., Ltd. produces smartphones, the company was founded in April 2009, the headquarters is located in Baoji City. The company has a strong R & D capability. Always carry out the marketing strategy of “quality affordable” Android smartphone to create a leading level in the domestic market. Has launched two smart models the good domain G1 , best domain G2 . The upcoming good domain G3 ?good domain / Golden? G series phones using the Android 4.0 operating system, to configure powerful but affordable, so the company is known as a “smartphone civilians practitioner”.
Chinese name: ?Good domain / Golden?
Foreign name: JIAYU [JiaYu]
Company Name: The ?good domain / Golden? Yutong Electronic Technology Co., Ltd.
Chairman: Zhang Guojun
Corporate Headquarters: Baoji City
Products: Jia domain G1, good domain G2
Company Profile [JiaYu website page, July 9, 2009] as translated by Bing:
Shenzhen Golden Yutong electronic technology limited company was established in April 2009, is a professional dedicated to mobile communication product research and manufacturing, sales and service in one of the high-tech enterprises. Since its establishment the company has been adhere to people-oriented policy, talent is the largest corporate wealth is fundamental to the development of enterprises. Company has a staff of more than 800 people, including developers, more than 30 people, engineers and technicians more than 40 people. And has been cultivating and absorbing talents. Now company to design for mobile communication terminals, Terminal product research and development as well as sales and service-oriented, continuously enrich their research and development, in the context of talent, we have established the domestic first-class research and development team. Employees of one mind, adhere to the quality is life, for consumers of all staff to provide the best quality products for the mission, to create first-class products.Companies now have 10 complete product lines, two laboratories, a variety of advanced testing equipment, equipment! Company is willing to work with customers at home and abroad hand in hand, create brilliant!
Reception
Factory
Workshop II
Assembling workshop
Assembling Workshop II
Class 100,000 Cleanroom SMT
Silk steel net detection
Silk screen printing machine
Plant and equipment
The low priced, Android based smartphones of China will change the global market
During the 12 months or so China took over the overall leading market role for smartphones from the key markets considered to be in the lead: US, Australia, Brazil, Great Britain (GB), Germany, France, Italy and Spain.
An even more dramatic change was that while on the old, combined lead market of the above countries high/moderate margin products were the dominating ones, on the new lead market of China average retail prices went down in the second quarter of 2012 to 1560 yuan (i.e. US$246) for the #1 Android with a whopping 82.8% market share, and to 1320 yuan (i.e. US$208) for the #2 Symbian now having only 6% share of the market.
It is notable as well that in China Apple had only a 6% market share vs. 23.7% in the combined old lead markets. According to a recent Reuters video report from Hong Kong we are witnessing (you can also watch this report in this post, as embedded well below in the following elaboration of details):
… commoditization of smartphones … hardware specifications for the handsets have already peaked…
A race to the bottom therefore will present a major challenge for Apple and Samsung who put together have dominated the industry in the last couple of years. If the China trends spread globally the shift to cheaper handsets will mean tighter margins and slower growth for this industry powerhouses and new opportunities for little known upstarts like Xiaomi.
Given my previous trend tracking posts the change will even be more dramatic as:
- The best smartphone based on the MediaTek MT6577 both technically and in terms of price is the MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012], which is also the best example of the low priced, Android based smartphones of China will change the global market.
- – Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Aug 16, 2012]
– Boosting the MediaTek MT6575 success story with the MT6577 announcement – UPDATED with MT6588/83 comingearly 2013in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, Oct 2, 2012]
– Smartphone-like Asha Touch from Nokia: targeting the next billion users with superior UX created for ultra low-cost and full touch S40 devices [July 20 – Aug 12, 2012]
– MediaTek’s ‘smart-feature phone’ effort with likely Nokia tie-up[Aug 15-31, 2012] - Update: China to ship 300 mil. smartphones in ’13: MediaTek head [The China Post, Sept 26, 2012]: … overall shipments in China may reach 200 million in 2012. …
- Update: China market: Dual-core CPUs, 4-inch displays become standards for entry-level smartphones [DIGITIMES, Sept 17, 2012]:
Local brands in China have made upgrades to the specifications of their entry-level smartphones for the CNY1,000-1,500 (US$158-237) segment making dual-core 1GHz processors and 4-inch displays the industry standards, according to industry sources.
Prices of the previous mainstream models with single-core CPUs and displays below 4-inch sizes for the CNY1,000 segment in the first half of 2012 are now expected to drop to CNY500-800, the sources added.
China Unicom has led the purchase of the upgraded dual-core, 4-inch display smartphones recently, and its suppliers are all China-based vendors including Huawei Technologies, ZTE, Lenovo, Coolpad, TCL, Hisense, K-Touch and Wanlida, the sources revealed, adding that those makers will source chipset solutions from Qualcomm or MediaTek.
First-tier international players did not participate in China Unicom’s procurement on concerns of pricing and hardware specifications, the source asserted.
However, the pace of hardware upgrading may start slowing down as telecom companies in China are mulling reducing their subsidies to smartphone subscribers, while smartphone makers are also trying to maintain their profit margins, commented the sources.
The next round of competition will shift from hardware to software including product design, user’s interface and also smart audio recognition, the sources noted.
Neither Apple nor Samsung reacted to these challenges yet. Nokia was also playing safe with its recent announcement:
– Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere [Sept 6, 2012]
We may expect a fundamental reorganisation of the market in the next two quarters.
Meanwhile read through the details included below and make your own, hopefully more fine-tuned conclusions and predictions:
See: Kantar: Windows Phone has overtaken RIM Market Share in USA, “Key 8 Countries”
[WMPoweruser, Sept 3, 2012]
Note that in terms of mobile data traffic the market share is quite different. For North America (U.S. and Canada) Chitika Insights, the independent research arm of online ad network Chitika, released the following web usage market share report [Sept 5, 2012]:
Remark: iPads and other tablets are included here as well!
Relative to all that China is a quite different story:
3G phones months shipments reach 21.64 million, domestic mobile share over 70% – 3G手机月出货量达2164万部 国产手机份额超七成 [Sohu IT – 搜狐IT, Sept 10, 2012]
According to data published by the Telecommunications Research Institute of the Ministry of Industry and Information Technology …
根据工业和信息化部电信研究院公布的数据 …[the data in the translated Chinese text I’ve compiled into the below table:]
China sees soaring smartphone market in Q2 [Xinhua, Sept 3, 2012]
Beijing: China’s smartphone market saw its sales volume soar to 38.19 million units in the second quarter, according to a report released Monday by market researcher Analysys International.
The figure represented a 22.5-per cent increase compared with that of the previous quarter and a sharp rise of 127.1 per cent over the corresponding period in 2011, said the report.
Nearly 67 million mobile phones were sold in China in the second quarter, the report said, representing a 1-per cent decrease from the previous quarter and a 2-per cent decrease from the corresponding period in 2011.
Stellar growth sees China take 27% of global smart phone shipments, powered by domestic vendors [Canalys press release, Aug 2, 2012] – Android is the clear platform of choice, accounting for 81% of Chinese shipments
Shanghai, Palo Alto, Singapore and Reading – Canalys published its final Q2 2012 country-level shipment estimates to clients yesterday. Results show that China saw phenomenal growth of 199% year-on-year and 32% over the previous quarter. In total, more than 42 million smart phones were shipped into the channel in China in Q2 2012, representing the second consecutive quarter of record breaking volumes in a single country market. China accounted for 27% of the 158 million global smart phone shipments, compared to 16% for the United States.
Notably, growth in China was heavily driven by domestic vendors, while international vendors struggled to keep pace.
While Samsung maintained its overall leadership position in China with a 17% market share, this reduced sequentially as volumes were flat and as several local vendors closed the gap. ZTE, Lenovo and Huawei were the second-, third- and fourth-placed vendors, ahead of Apple, making up a third of the market. They achieved growth of 171%, 2,665% and 252% year-on-year respectively. Collectively, domestic Chinese vendors shipped 25.6 million units, representing a growth of 518% and 60% of the market. By comparison, international vendors grew by a more modest 67% to 16.7 million units. Apple fell to fifth place in China. While its shipments were up 102% year-on-year, they were down 37% compared to Q1 2012.
‘The rise of the domestic tier-one brands has been aided by a number of factors. Their reactiveness to market demands and deep understanding of local consumer behavior and preferences have been key in helping them surpass international peers in the fast-evolving Chinese market. Local tier-one vendors have worked hard in recent quarters to greatly improve their brand resonance among consumers and to expand and enhance their relationships and influence within operators,’ said Canalys Research Director for China, Nicole Peng. ‘But the tier-two vendors — the likes of Oppo, K-Touch and Gionee — have also stamped their mark, boosting smart phone shipments into tier-three and tier-four cities, predominantly through the open channels. As feature phone vendors, they already have established partnerships and strong brand awareness. These domestic vendors are making significant progress transitioning their portfolios and customer bases to be more focused on smart phones.’
Nokia and Motorola both lost significant ground in China, with Nokia’s volumes down 47% on Q2 2011. ‘Among the international vendors, only HTC managed an outstanding performance in mainland China. Its shipments grew 389% year-on-year to reach 1.8 million units for the quarter,’ said Jessica Kwee, Canalys Research Analyst. ‘Its success this quarter is heavily based on the strong performance of Desire V series devices, designed with the local China market in mind, underscoring the importance of tailoring propositions to local consumer preferences.’
Android has become a major growth driver in China, running on 81% of the smart phones shipped in China in Q2 2012.
On a global basis, Android continued to grow in significance, surpassing 100 million quarterly smart phone shipments for the first time and reaching two-thirds share of the market. ‘Growth in Android volumes of 110% far outpaced growth in the overall market of 47% year-on-year, heavily driven by Samsung, which saw Android volumes of over 45 million, contributed to by a full and broad portfolio of products, from its high-end flagship Galaxy S III down to its aggressively priced Galaxy Y and Galaxy Mini. Its sponsorship of the London Olympics and subsequent product placements are sure to attract new customers to ensure that Q3 delivers a strong performance,’ commented Pete Cunningham, Canalys Principal Analyst.
Samsung retained its gold medal position in the global smart phone market with a 31% share, followed by Apple and Nokia once again. Huawei and ZTE were unable to push in on the global top five with shipments of their own branded devices. HTC moved up to fourth place, though, just ahead of RIM, which shipped 8.5 million units in the calendar quarter.
Analyst contacts
To speak with any analyst quoted in this release, please contact the appropriate Canalys office: Nicole Peng, Jessica Kwee (Canalys APAC), Pete Cunningham (Canalys EMEA). Alternatively, you can speak with other members of Canalys’ global team of mobile analysts: Chris Jones (Canalys Americas), Rachel Lashford (Canalys APAC), Tim Shepherd (Canalys EMEA).
About Canalys
Canalys is an independent analyst firm that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. Our customer-driven analysis and consulting services empower businesses to make informed decisions and generate sales. We stake our reputation on the quality of our data, our innovative use of technology, and our high level of customer service.
Smart phone and pad forecasts show varying OS fortunes [Canalys press release, Sept 10, 2012] – China and Android influence smart phone landscape, the US and Apple dominate pads
Shanghai, Palo Alto, Singapore and Reading – The latest product announcements by leading smart phone and pad vendors will help drive consumer demand to new heights, according to Canalys. It forecasts that in 2016, global annual smart phone shipments will be around 1.2 billion units, meaning a CAGR (Compound Annual Growth Rate) of 19.5%. It predicts pad shipments in the same year will hit 207 million – a CAGR of 26.8%.
Apple’s latest unveiling is attracting extraordinary interest and competitors have also made several major announcements in the past week, including Windows 8 devices from Nokia and Samsung; new Android smart phones from Sony, Motorola and Samsung; and Amazon’s enhanced Kindle Fire pads. With these big vendors attracting the headlines, Canalys has issued a timely reminder that the trends across pads and smart phones in various countries will be markedly different.
In smart phones, Canalys expects Asia Pacific to remain the largest region by volume, with annual shipments reaching 594 million by 2016. China will account for almost half of all shipments in the region and nearly a quarter of the world’s smart phones in 2016. This equates to only 10 million less than is forecast to ship in the whole of the Americas in that year.
Canalys managing director for Mobile and APAC, Rachel Lashford, said, ‘The latest, in-depth research for our dedicated Smart Phone Analysis China service reveals there will be a substantial increase in the number of first-time smart phone users in China over the next 12 months, while feature phone shipments will continue to decline. Smart phone sales will move beyond tier-one and tier-two cities.’
China’s domestic feature phone vendors are rapidly moving their businesses to smart phones, supported by low-cost solutions from chipset providers, such as MediaTek, Spreadtrum and Qualcomm’s QRD.
‘We anticipate strong demand from local Chinese vendors selling in both operator and open channels,’ said Nicole Peng, Canalys Research Director for China. ‘Chipset vendors are reporting growing momentum in 2.5G (EDGE) smart phone solutions. For less developed areas where 3G coverage is limited, 2.5G smart phones have advantages in cost and battery life. They are becoming popular with consumers, especially where prices are already close to those of feature phones (around RMB500, US$78). The tier-three and tier-four cities are feature phone vendors’ traditional strongholds. Local vendors will use their long-standing relationships with open channels and their established infrastructure to distribute smart phones, with or without operator subsidies, over the next few years.’
In terms of percentage growth, Canalys expects Latin America to move fastest, with a CAGR to 2016 of 27.3%. It forecasts good double-digit growth in all countries, but Brazil and Mexico will account for more than half of all shipments in the region.
Globally, Canalys expects Android to remain dominant, with 57% of the smart phones shipped in 2016 running the OS (up from 49% in 2011). It expects Apple’s share of this much larger market to remain similar to today, at around 18%. Microsoft is expected to make inroads over the coming years.
In the pad market, however, the OS picture will be quite different. Canalys expects Apple to take a little under half of the market in 2016. The plethora of Windows 8 pads that will be introduced over the next few years are predicted to bring Microsoft’s share to around 17%. Competitively priced Android pads, such as Google’s Nexus 7 and Amazon’s Kindle Fire models will have an impact in terms of volumes, but Android’s share is forecast to remain relatively stable at 35%, unless vendors make radical improvements to the overall user experience. In contrast to smart phone market trends, the US is expected to dominate pad shipments, with the volume more than doubling to 88 million units in 2016. China is expected to be the second largest country market, with shipments of around 20 million.
‘Pads are the fastest growing consumer electronics products in history and are forecast to represent 29% of total PC shipments in 2016. But the market remains dominated by a single vendor. Other PC and smart phone vendors are currently finding it hard to weaken Apple’s position,’ said Canalys Analyst Tim Coulling. ‘The only product that most would consider a big hit is the Kindle Fire, brought to market by Amazon – an Internet retailer. Tight integration of hardware, software and services is a prerequisite for competing in the pad market, even at low price points, and fragmentation among other pad vendors’ offers helps Apple maintain its position.’
Analyst contacts
To speak with any analyst quoted in this release, please contact the appropriate Canalys office: Rachel Lashford, Nicole Peng (Canalys APAC), Tim Coulling (Canalys EMEA). Or contact another member of Canalys’ global analyst team: Chris Jones (Canalys Americas), Jessica Kwee, Pin-Chen Tang (Canalys APAC), Pete Cunningham, Tim Shepherd, Tom Evans (Canalys EMEA).
Analysys data: 2012Q2 China Android Smartphone market 82.8% [Analysys International release, Sept 5, 2012] as translated by Bing:
Easy views network hearing” easy views international: according to EnfoDesk easy views intellectual library industry database recently publishing of 2012 2nd quarter China phone terminal market monitoring report under displayed, 2 quarter, China smart phone terminal (does not containing parallel and cottage machine) market in the, Android Department sales accounted for than from Shang last quarter of 76.7% upgrade to this quarter of 82.8%, net 6.1%. While the Symbian sales percentage has continued to free fall to the ground from the parent 11.8% to 6%. In addition, iOS small callback to 6%.
2012Q2 OS smartphone market penetration in China (not including parallel and cottage)
2 quarter pick-up systems from Smartphone ( encyclopedia of Analysys : smartphones ) [average smartphone] price changes, Android from 1670 [yuan i.e. US$263] last quarter, continuing down to the quarter of 1560 [yuan i.e. US$246]; 1320 [yuan i.e. US$208] of Symbian from last quarter down to 1170 dollars [yuan i.e. US$185] this quarter.
2012Q2 China Android and Symbian Smartphone price
(not including parallel and cottage)Information about the mobile Internet more relevant data, please visit
http://data.eguan.CN/yidonghulianFor more content, please visit http://www.enfodesk.com/SMinisite/maininfo/regapply-cf-17.html
Or call the customer service-4006-515.
Analysys data: 2012Q1 China Android Smartphone market share increased from 76.7% [Analysys International release, June 6, 2012] as translated by Bing:
“Analysys Web video” Analysys: at present, according to EnfoDesk Analysys think-tank on traditional retail markets of mobile phones (of the last quarter of 2012 quarterly monitoring mobile terminal market) data monitor display: Chinese smartphone market, Android system’s market share in handset sales rising 5 consecutive quarters.
Vulnerability analysis:
In the last quarter of 2012 China Mobile end-markets quarterly monitoring data show end of 2012 Q1, carrying Android in the Smartphone market system’s market share in the Smartphone Terminal 76.7%, 10% average quarterly market share gain. At the same time, as the Smartphone market continues to mature, carrying Android system average Smartphone prices are also way down to 1670 [yuan i.e. US$263 from 2300 yuan i.e. US$363 a year earlier].
Combined with traditional mobile phone sales channels under the line status, EnfoDesk Analysys Research think-tank believes that mobile phone sales market share of Android system continue to enhance, benefit from its open source nature attract numerous manufacturers to participate in, and China in the past two years in the Smartphone market and 3G business increment. Through the performance of manufacturers on the market today as well as the impact of EnfoDesk Analysys think tank study says
1. Is now dominated by application of the formation of eco-systems, as well as the Android open source, attracting new industry participants, such as Internet companies to enter product prices are depressed, make the increasingly intense market competition environment, product prices are driven down, threats to traditional enterprise bargaining power in the channel.
2012Q1 China smartphone sales share
2. Fragmentation trends exacerbate the Android system. Traditional manufacturing enterprises to overcome the effects of homogenization of products of intelligent systems, secondary development on the Android system, causes the application to version adjusted accordingly, application developer development costs gradually increased.
Smartphone price quarterly changes of 2011Q1-2012Q1 Android system
3. Sales in this period dominated by domestic brands in the low-end products, intelligent products of these enterprises continue to 3G input costs on the production line. But at the same time, while veteran international brand market share continues to decline, it would shorten the product line, focusing its research and development production 4G products research and development. With the advent of 4G era, will reshuffle the mobile terminal market. (Analysys International)
Information about the mobile Internet more relevant data, please visit http://data.eguan.CN/dianzishangwu
For more content, please visit Enfodesk Analysys Thinktank
http://www.enfodesk.com/SMinisite/maininfo/regapply-cf-17.html
Or call the customer service-4006-515.Related reading:
2011Q2 China’s massive increase in Android share Symbian tumble
Is sun setting on smartphone profit miracle? [ReutersVideo YouTube channel, Aug 16, 2012]
… in 2 years the low-end has blown up …
China smartphone sales by price tier Q1 – 2010 Q1 – 2012 <1,500 yuan [<US$ 237] 17.7% 60% 1,500-3,000 yuan [US$ 237-473] 51.5% 24% >3,000 yuan [>US$ 473] 30.8% 16% Source: Jefferies Research
Cynthia Meng, China/HK TMT Equity Research, Jefferies Hong Kong:
[00:49] Next year it’s going to be about who is going to provide the best value for my money from a consumer point of view, from a telco point of view, because we think that hardware specifications for the handsets have already peaked. [01:03]Narrator, xxx Gordon in Hong Kong:
In other words the oversized screen and quadcore processors of your precious Samsung [Galaxy] S III will soon be standard and achieved in handsets in China. [01:13]… commoditization of smartphones …
[02:11] A race to the bottom will present a major challenge for Apple and Samsung who put together have dominated the industry in the last couple of years. [02:19] If the China trends spread globally the shift to cheaper handsets will mean tighter margins and slower growth for this industry powerhouses and new opportunities for little known upstarts like Xiaomi. [02:26]
The Chinese View: VIDEO: STUDIO INTERVIEW: CHINA’S SMARTPHONE MARKET [CCTV News – CNTV English, Sept 3, 2012]
iPhone Ranked Seventh in China’s Smartphone Market — Watch Out, ZTE [AllThingsD.com, Aug 24, 2012]
Apple’s iPhone has been gaining a lot of traction in China recently. As Apple CEO Tim Cook said during the company’s third-quarter earnings call, greater China accounted for two-thirds of Apple’s revenue in the Asia-Pacific region during the period.
“In terms of iPhones in general in mainland China, we were incredibly pleased with our results,” Cook said. “We were up over 100 percent, year over year.”
That’s an impressive achievement. But Apple still has a lot of work to do in China before the iPhone claims the same levels of market penetration it enjoys in the U.S. In China, the iPhone has captured about 7.5 percent of the smartphone market, compared to rival Samsung, which has claimed more than 20 percent, according to IHS iSuppli. Despite its popularity in the country, the iPhone is still ranked seventh in the Chinese smartphone market.
Why? Two reasons. First, Apple doesn’t yet offer a truly low-end smartphone that appeals to price-conscious Chinese consumers. (To be clear, China Telecom is offering the iPhone fully subsidized, but it requires subscribers to sign a contract that ties them to a two-year $62 per month plan.) Second, and more importantly, the iPhone doesn’t yet support Time Division Synchronous Code Division Multiple Access (TD-SCDMA), China’s homegrown wireless standard. And until it does, China Mobile, the world’s largest wireless carrier, can’t offer it to its 688 million or so subscribers.
“Among all the international smartphone brands competing in China, Apple is the only one not offering a product that complies with the domestic TD-SCDMA air standard,” IHS iSuppli’s Kevin Wang said in a statement. “For Apple, this is a huge disadvantage, as TD-SCDMA represents the fastest-growing major air standard for smartphones in China, with shipments of compliant phones expected to rise by a factor of 10 from 2011 to 2016.”
In other words, if Apple wants access to the massive addressable market that China Mobile has to offer, it’s going to have to offer a lower-end iPhone variant designed specifically for TD-SCDMA, something it has been loath to do in the past, and hasn’t given any indication that it’s willing to do in the future. As Cook said during Apple’s last earnings call, the company feels that its business is strongest when it focuses on making the best products it can, not the most inexpensive ones.
“I firmly believe that people in the emerging markets want great products, like they do in developed markets,” Cook said. “And so we’re going to stick to our knitting and make the best products. And we think that if we do that, we’ve got a very, very good business ahead of us. So that’s what we are doing.”
Breakingviews: Apple v. Samsung [ReutersVideo YouTube channel, Aug 27, 2012]
Apple Should Take The $199 Chinese Smartphone Seriously [Seeking Alpha, Sept 6, 2012]
At a time when China is set to overtake the U.S. as the world’s largest smartphone market, little-known Chinese firms are prepared to battle it out for market dominance with the maker of the game-changing iPhone, Apple (AAPL). As per the predictions of IDC and Gartner, China’s smartphone shipments could hit 140 million this year, exceeding those in the United States.
There are a number of Chinese brands offering similar capabilities, nominally, as the iPhone at half the price, most of them using a forked version of Google’s (GOOG) Android. The names include ZTE Corp., Lenovo Group, and other small private firms like Xiaomi, Gionee, and Meizu Technology. Even cheaper smartphones are offered by Alibaba Group, Shanda Interactive, and Baidu (BIDU) for fewer than ¥1,000 (~$150 U.S.).
Xiaomi Technology, founded just two years ago, has emerged as a serious potential threat to the likes of Apple and Samsung in smartphone arena. According to its CEO, the company sold more than 3 million phones with revenues close to $1 billion for the first half of 2012. Its latest offering, a successor to its popular MiOne (MI) smartphone, the MI2, costs less than half the price of iPhone 4S, but exceeds its specifications. Xiaomi not only tries to mimic the iPhone’s specifications, but has also been able to charge fans ¥199 (~$31) to attend the Beijing launch of the phone, the same way as Apple followers would pay to see Steve Jobs showcasing new products. The Xiaomi conference was attended by more than 1,000 people, with the proceeds going to charity. The MI2, which is expected to hit the markets in October, will have quad-core Qualcomm (QCOM) S4 Pro SoC, an 8 mega-pixel camera, and a voice-assistant similar to Apple’s Siri, and is priced at ¥1,999 ($310). This is no cheap knock-off, but rather a serious piece of hardware packed with the latest technology.
The fascinating part of Android’s rise here is that Microsoft (MSFT) will likely see more profit from many of these phones than Google will due to the licensing agreements many of them have made to avoid patent issues with Redmond. Reports are spotty, but Microsoft collects anywhere from $5 to $15 per Android license and has deals with at least half of the phones sold. Moreover, it is very possible it makes more money than Google does.
In the coming years it is expected that Apple’s market share may flatten out or even dip, as it has this year, but market share is not Apple’s goal; it has always been about margins — selling a premium product at extremely high margins to those with the resources to not care about the upfront cost. Estimates from IDC place the sub-$200 smartphone at 40% of the shipments, while devices costing more than $700 made up 11% of the market, which is where Apple plays and why it still controls most of the profits generated by the industry. China and India make up 40% of new smartphone activations.
This huge difference in shipments is mainly due to the limited purchasing power of an average Chinese person, which is around ¥800-¥1,500 ($130-$240). By contrast, the iPhone comes with a price tag of around $800, the equivalent of two months of earnings of an urban Chinese person (in an area that has around 670 million people).
According to a report from Gartner, Apple’s market share by volume has been sliding and iOS‘ share of the mobile operating system space is expected to slip to third place by 2016 below Android and Windows Phone. The Gartner report is, however, very controversial as Windows Phone has not proven anything to this point, although Nokia’s (NOK) sales of its Lumia 610 and Asha line of proto-smartphones are keeping its brand alive while it searches for the killer phone. Even in its second-largest market, iPhone sales slipped for the April-June quarter due to inventory adjustments after the huge launch of the iPhone 4S.
Apart from these estimates, Apple also suffers on various fronts in China. The iPhone is backed by China Telecom and China Unicom, but the country’s and the world’s leading telco China Mobile (with about 655 million subscribers) has still not supported it. Apple and China Mobile are still working on the details of China Mobile’s implementation of CDMA, which requires Apple to build a specific phone for its network.
Responding to the competition and the difference between the iPhone and the local offerings, Apple recently slashed the price of the iPhone 3GS below $200. While an entry-level Apple phone is something that the market will absorb, part of Apple’s appeal is the status it confers and a 3GS simply not a strong enough status symbol to drive sales. Mix in that with Chinese preferences for buying from Chinese companies and this market becomes a whole lot harder for Apple to maintain not its sales per se — it can manipulate prices to maintain sales — but its extreme margins. The latest earnings call highlighted this as it sold a lot of lower-end iPads and iPhones in Asia, which pushed its results and future guidance under 40% net margins.
Companies like Lenovo, ZTE, and Huawei are gaining because they are Chinese and are providing good products at reasonable prices. Lenovo, in particular, is pushing its smartphone and PC strategy both up and down the value chain, similar to Samsung’s approach. It is working very well for Lenovo, whose revenues were up 40% in the second quarter when everyone else was complaining of softening business.
Apple’s problems are the standard problems for a company on top of the world; everyone will nibble away at it in various little ways. How it responds to this is key.
The recent lawsuit victory over Samsung and its pressing of the legal attack smacks of a company that is frightened. Why should it fear Samsung? And if it doesn’t, why did it go after Samsung and restrict consumer choice, a clear breach of its branding compact with its fans? Is it trying to push Samsung into Windows 8 Phone’s arms? All of these things point to further margin erosion for Apple and a slowing of its titanic growth without a new market to push into. As things stand now, staking a new position in Apple requires believing none of these issues matter.
It points to Apple becoming a value trap at some point in the future. Not every country, especially China, will grant Apple an injunction against knockoff competition; quite the opposite is true. Many investors are sitting on capital gains so large they can’t sell, and the dividend will pay them well enough to stay in even if the price goes nowhere. But new investors should be very careful in light of the market dynamics.
Microsoft adding staff, R&D in China mobile push [Associated Press, Sept 6, 2012]
BEIJING (AP) — Microsoft Corp. will hire more than 1,000 additional employees in China this year and boost research and development spending by 15 percent as it tries to catch up with Apple and Google in the fast-growing mobile Internet market, executives said Thursday.
The announcement adds to intensifying competition in wireless Internet in China, where nearly 400 million people surf the Web using mobile phones and other devices. Microsoft is promoting its Windows 8 mobile operating system but came late to the market and trails Apple Inc. and Google Inc., whose Android system is widely used in China.
“We respect that we have two players in the market which have a strong role, and we feel ready to attack and have different offers to basically change the game plan on that one,” said Microsoft’s CEO for China, Ralph Haupter, at a news conference.
The new employees will be in addition to Microsoft’s workforce of 4,500 in China and will be spread across research and development, marketing and customer service, Haupter said.
Research spending in China will rise by 15 percent over last year’s $500 million, according to another executive, Ya-Qin Zhang, Microsoft’s Asia-Pacific chairman for research and development. He said the current research staff of 3,000 would be expanded by about 15 percent.
Global technology companies and local rivals are spending heavily to gain a foothold in mobile Internet in the world’s most populous online market as Chinese users shift quickly to the new technology.
This week, Chinese search engine Baidu Inc. released its own new mobile browser to compete with Google and Apple and announced it will open a cloud computing center.
China had 538 million people online at the end of July, up 11 percent from a year earlier, according to the China Internet Network Information Center, an industry group. The share that uses wireless devices grew twice as fast, rising 22 percent to 388 million, or 70 percent of the total.
Android dominates the Chinese smartphone market, used on 76.7 percent of phones in the
secondfirst quarter of this year, according to Analysys International, a research firm. Apple’s iPhone dominates the higher end of the market.Microsoft plans to recruit more local partners to develop mobile applications specifically for China, said Haupter. He said the company believes it has an advantage in doing that because developers can draw on their experience working on other Microsoft products.
Zhang said Microsoft’s six development centers in China that now spend about 80 percent of their time working on products for global markets will focus more on creating offerings tailored to Chinese customers.
Microsoft also plans to expand its cloud computing business in China, the executives said. Zhang said about 100,000 commercial customers now use its private cloud computing service and a service for use by the public is being developed.
Microsoft Names New Leaders in Key International Markets [Microsoft press release, April 13, 2012]
… Ralph Haupter, currently serving as area vice president (AVP) for Microsoft Germany, has been promoted to corporate vice president and named CEO for Microsoft GCR. Haupter is replacing Simon Leung who has decided to leave Microsoft for personal and family reasons. Gordon Frazer, currently serving as managing director (MD) for Microsoft U.K., has been named chief operating officer (COO) for Microsoft GCR. He is replacing Michel van der Bel, who will assume the role of MD for Microsoft U.K. Haupter and van der Bel will report to Jean-Philippe Courtois, president of Microsoft International, and Frazer will report to Haupter. …
…
Haupter is a seven-year veteran of Microsoft, having delivered excellent and sustainable results in growth and profitability and repeatedly proving his ability to build and grow high-performing, diverse organizations. He previously served as head of the partner division for Europe, Middle East and Africa and general manager (GM) of Microsoft’s Small and Midmarket Solutions & Partners Group for Western Europe, both based in Paris, and served as COO for Microsoft Germany before becoming the German AVP. Before that, he worked for IBM both in Germany and internationally.
Frazer is a 16-year veteran of Microsoft, having served as the GM for Microsoft South Africa for four years and most recently as the Microsoft U.K. MD for the past six years. He brings a tremendous amount of operational expertise to the Microsoft GCR team from his various roles across both developed and emerging markets. His leadership in managing the full breadth and depth of Microsoft’s business in the U.K. will serve as a strong asset in helping take Microsoft China’s operations to the next level of efficiency and growth.
…
Leading the New Era, Winning the Future—Microsoft Announces Development Strategy in China [Microsoft China press release, Sept 6, 2012]
Partnering for an Innovative, Competitive, and Talented China
New leadership team in Greater China
(third from left is the COO Gordon Frazer and the fourth is the CEO Ralph Haupter)September 6, 2012, Beijing– Microsoft China today announced its new strategy and commitment to partnering with the country for an innovative, competitive and talented China by further enhancing and accelerating investments. In the new fiscal year, Microsoft will recruit more than 1,000 staff in China, 50% of which will be college graduates. Microsoft’s annual R&D investment will exceed $500 million, and the company will explore local markets in more provinces and deepen its engagement in industrial informatization.
Over two decades of growth, Microsoft China has continued to penetrate deeply into increasingly important local markets. Ralph Haupter, Corporate Vice President, Chairman & CEO Microsoft Greater China Region, said: “Since entering China 20 years ago, Microsoft has grown steadily in China and acquired a deeper understanding of the Chinese market. Our new strategy reflects our perception, emphasis and commitment to the China market. In this new era, China and the entire Greater China Region will become the source of global innovations. Through comprehensive devices and services combined with cloud computing, Microsoft is working closely with the Chinese government, partners, customers and the academic world, entering this new era by leveraging our advantages.”
Haupter stressed that this year is a big year for Microsoft, with the introduction of many new products and technologies, and also a year where Microsoft China is making a great effort to further develop the market. “Our new leadership team in Greater China has helped develop a new strategy for customers and partners, deepening cooperation with governments of all levels to strengthen innovation in China. The team will popularize new technologies and explore new markets,” Haupter said.
Through continuous investment of innovation resources and improving the scale of partnerships in China over the years, Microsoft Asia-Pacific R&D Group has become Microsoft’s largest R&D base outside of the United States, with the most complete functions and innovation chain covering basic research, technology incubation, product R&D and industry cooperation. Chinese R&D teams have made great contributions to Microsoft products launched this year, such as Windows Server2012, Windows 8, New Office, SQL Server 2012 and Surface. Ya-Qin Zhang, Corporate Vice President and Chairman of Microsoft Asia-Pacific R&D Group, said: “We are lucky to be in an era where globalization is deepening, the IT revolution is emerging and China is rising. Microsoft’s continuous exploration in natural human-machine interfaces, mobile Internet and cloud computing will help us win the future and contribute to China’s sustainable development.”
Samuel Shen, COO of Microsoft Asia-Pacific R&D Group, said Microsoft’s software outsourcing business was now worth more than $200 million per year. In the future, Microsoft will continue to work closely with local communities through programs such as the Internet of Things, Big Data, cloud computing, cloud-based smart cities and the Microsoft Accelerator for Cloud Computing, accelerating the vision of “Innovation in China, Innovation for the World”
According to Microsoft’s new strategy in China, Microsoft is committed to cooperating with the Chinese government and industry, aligning with China’s priorities and partnering for an Innovative, Competitive, and Talented China. Gordon Frazer, Vice President and COO of Microsoft Greater China Region, said that over the next five years, Microsoft China will expand its footprint in China, deepen cooperation with governments of all levels and partners, improve customer support and foster talents on a broad scale:
Expand Microsoft’s footprint in local markets: Over the next five years, Microsoft will expand its presence in over 20 cities across 15 provinces by expanding local teams, enhancing local management, working closely with local governments, making contributions to local informatization, building cloud-based smart cities, and providing cloud-based solutions for e-government, city management and citizen services.
Accelerate local partner ecosystems and expand service coverage: Microsoft will deepen customer services, deliver joint services and solutions with partners, and engage in further convergence of informatization and industry upgrading to improve the core competency of Chinese enterprises. By the end of this year, Microsoft will set up its second technical support center in China to enhance support for Chinese customers and partners, share best practices and knowledge of supporting global customers to help them accelerate the adoption of new technologies and share with them the experience of providing cloud services to customers in Asia. Microsoft will also drive partners’ development through many forms: system-grade innovation support for OEMs, software engineering assistance for software outsourcing companies and innovative design references for hardware manufacturers.
Foster talents in a large scale: Over the next five years, Microsoft will hire more talent in China to better serve and support its partners in China, foster talents for the Chinese software industry and improve the skills of Chinese youths.
China to Overtake United States in Smartphone Shipments in 2012, According to IDC [IDC press release, Aug 30, 2012]
Top Five Smartphone Markets and Market Share for 2011, 2012, and 2016 (based on shipments)
Country 2011 Market Share 2012 Market Share 2016 Market Share 2011 – 2016 CAGR PRC 18.3% 26.5% 23.0% 26.2% USA 21.3% 17.8% 14.5% 11.6% India 2.2% 2.5% 8.5% 57.5% Brazil 1.8% 2.3% 4.4% 44.0% United Kingdom 5.3% 4.5% 3.6% 11.5% Rest of World 51.1% 46.4% 46.0% 18.1% Total 100.0% 100.0% 100.0% 20.5% Source: IDC Worldwide Mobile Phone Tracker, 2012 Q2 Forecast Release, August 30 2012
Strong end-user demand and an appetite for lower-priced smartphones will make China (PRC) the largest market for smartphones this year, overtaking the United States as the global leader in smartphone shipments. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China will account for 26.5% of all smartphone shipments in 2012, compared to 17.8% for the United States.
“Looking ahead, the PRC smartphone market will continue to be lifted by the sub-US$200 Android segment,” said Wong Teck-Zhung, senior market analyst, Client Devices, IDC Asia/Pacific. “Near-term prices in the low-end segment will come down to US$100 and below as competition for market share intensifies among smartphone vendors. Carrier-subsidized and customized handsets from domestic vendors will further support the migration to smartphones and boost shipments. Looking ahead to the later years in the forecast, the move to 4G networks will be another growth catalyst.”
“Regionally, we expect smartphone demand to flow down to lower-tier cities,” added James Yan, senior market analyst for Computing Systems Research at IDC China. “After going through a period of sustained high growth, top-tier cities are likely to see decelerating smartphone growth rates. In contrast, secondary cities are expected to experience accelerated smartphone growth, with strong demand for low-cost models as well as high-end models, which are desired as status symbols.”
“The fact that China will overtake the United States in smartphone shipments does not mean that the U.S. smartphone market is grinding to a halt,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends program. “Now that smartphones represent the majority of mobile phone shipments, growth is expected to continue, but at a slower pace. There is still a market for first-time users as well as thriving upgrade opportunities.”
“In addition to China and the United States, several other countries will emerge as key markets for smartphone shipment volume over the next five years,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker program. “High-growth countries such as Brazil and Russia will become some of the most hotly contested markets as vendors seek to capture new customers and market share.”
Top Five Markets for Smartphone Shipments
As it becomes the leading country for smartphone shipments this year, the PRC smartphone market will continue to grow, primarily on demand for lower-cost handsets. While this bodes well from a volume perspective, it also means lower average sales values (ASVs), thinner margins, and increased competition from all players. Over the course of the forecast, China’s share of the global smartphone market will decline somewhat as smartphone adoption accelerates in other emerging markets.
Smartphone shipments into the United States will increase as users upgrade their devices and feature-phone users switch over to smartphones. Furthermore, a combination of lower-priced models, expansion of 4G networks, and the proliferation of shared data plans will encourage continued smartphone adoption. Smartphones are already the device of choice at the major carriers, and regional and prepaid carriers are following suit and competing with alternative service plans.
With smartphone penetration in India currently among the lowest in Asia/Pacific, the market has tremendous untapped growth potential. Low-end smartphones offering dual-SIM capability and local apps and priced around US$100 will rapidly bring this market to life. Although 3G data plans are currently too expensive for the majority of consumers in India, IDC expects the popularization of 3G, and in later years 4G, to drive smartphone uptake as operators roll out more affordable data plans and generous subsidies while expanding offerings to tier 2 and tier 3 cities. The affordability of service plans will be another important key to smartphone adoption in India.
Smartphone growth in Brazil will be bolstered by strategic investments by mobile operators, smartphone vendors, and regulators. Operators’ focus on increasing ARPU will drive greater demand for smartphones while smartphone vendors will look to reap greater profitability from offering such devices. The Brazilian government, meanwhile, will offer tax exemptions for smartphones and protect local manufacturing against foreign vendors. These factors, combined with solid end-user demand, will drive smartphone volumes in the coming years.
The United Kingdom has been one of the fastest growing smartphone markets in Western Europe, driven by the high operator subsidies and long-term post-paid contracts. Over the forecast period, smartphone shipments will continue to increase due to the introduction of LTE and a new range of services that will appeal to heavy smartphone users. In addition, price erosion on HSPA devices will also attract feature phones users. Growth rates will slow in the later years of the forecast as penetration plateaus and operators seek out alternative subsidy models.
Cloud experience development: the new essence
application development >>> web development >>> mobile development >>> ???
This was the well known route for the development of usable, now we would call consumable values delivered on top of computing, then ICT technologies over the last 50 years or so. Now we are at the point when a new naming is required since neither of the previous ones is satisfying the proper description of truely successful development practices. So a big question is left hanging in ther air at the moment.
“Cloud experience development” as my answer to the question of proper naming is coming quite easily and naturally as it stems from the very fact that I started this “trend tracking” blog more than 2 years ago under the umbrella of “Experiencing the Cloud” which was already well founded with the recognition of the fact that cloud computing is “fueled by 3.5G/3.9G, SoC & reflectivity” in its technological bases. The same way as microprocessors were fueling the personal computing revolution 25+…30+ years ago. What resulted then in the personal computing experience we are all familiar with.
The reason for introducing my own suggestion with this post now is based on recent observation of growing confusion that exist about this problem in the open. A simple search about the fashionable “apps are dead” declaration (with 10,800 hits currently) is showing perfectly the current controversy as there you can find equally good arguments for and against that declaration in abundance.
Browsing through that stuff I found that one opinion leader stands out of the crowd of many others. He is Charlie Kindel. In his last public appearance about “The Future of Mobile” [cek.log, Aug 28, 2012] he is concluding that “the industry is moving from an apps world to an experiences world” where the simplest definition of an experience is an all kind (eg. the whole Madonna ‘experience’) of “stuff over time” while in more detail he defines it by the following slide:
as well as in a kind of “more scientific way” by the following formula:
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For this see his posts of Experience = Stuff / Time [cek.log, Apr 2, 2012] and Brand is a Critical Part of the End-to-End Experience [cek.log, Apr 1, 2012] as the “foundational”articles for his way thinking.
His “The Future of Mobile” [cek.log, Aug 28, 2012] article contains an embedded video record as well, alternatively you can watch his Aug 28 “The Future of Mobile” presentation [ustream, Aug 28, 2012]:
then you can read additional articles by him on the same subject (see his slides on SlideShare as well):
- A Mouse and Keyboard Don’t Make a Hardware Company[cek.log, July 25, 2012]
- Apps Must Be Cross Platform[cek.log, July 24, 2012]
- Windows Phone is Superior; Why Hasn’t it Taken Off?[cek.log, Dec 26, 2011]
- Google Will Abandon Android[cek.log, March 31, 2012]
- Fragmentation Is Not The End of Android[cek.log, Jan 14, 2012]
- Experience = Stuff / Time[cek.log, Apr 2, 2012]
- Brand is a Critical Part of the End-to-End Experience[cek.log, Apr 1, 2012]
- Wanna Compete with Apple? Focus on Experiences [cek.log, June 7, 2012]
In fact I found his “experience concept” so well thought out and formulated that I do not need to elaborate on the “cloud experience development” concept introduced here, except the fact that the “experiences” are limited to “cloud experiences” here. The same components are here, just limited to all kinds of cloud experiences. I need to warn you only that the services component of a “cloud experience” is not limited to a “cloud service”!
Then a cloud experience development “simply” becomes a cohesive whole of the development of each of the (same kind of) components (as Kindel’s) over time. This I am emphasizing here for the very simple reason that—unlike the previous application, web and mobile developments—it should be a continuous, ongoing effort in a significantly expanded sense! Otherwise it would end up nowhere like the once successful SurfCube effort on the Windows Phone 7 “sank” into oblivion with revenue of something like US$10+K for the whole lifetime (as acknowledged by its creator, András Velvárt recently).
Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere
Updates: Is Nokia A Value Buy At $2.65? [Seeking Alpha, Nov 13, 2012]
AT&T (T) announced it is offering Nokia’s (NOK) flagship phone, the Lumia 920, for $99 with a two year contract. In addition, AT&T is offering the Lumia 820 for $49.99. When compared to its competitors, Apple’s (AAPL) iPhone 5 costs $199 with the same two year contract and Samsung’s (SSNLF) Galaxy Note II for $299. Even when you compare the price of previous iPhone models to the Lumia 920 (all with a two year contract) the iPhone 4S costs $99.99 and the iPhone 4 $49.99 in some areas. That means that a Lumia 920 costs the same as an iPhone 4S and the Lumia 820 costs the same as the ancient iPhone 4. On top of this good news AT&T also announced that it will add a wireless charging pad for free for those who purchase a Lumia 920 early but be warned this is a limited time offer and AT&T most likely has a cap for the free charging pads.
The Lumia 920, with no contract commitment, costs $449.99, whereas the iPhone 5 and the Samsung Galaxy Note II costs $649.99. With no commitment for a two year plan there are no carrier subsidies, and the $200 price difference is very promising for Nokia. In just its second generation Windows phone is was able to match, if not beat, the competition in both software and hardware while making it for roughly $200 less.
I personally love the strategy Nokia is moving forward with. The company is temporarily cutting profit margins in its Lumias in order to establish a larger customer base. … Brand loyalty is always prevalent but in the U.S. it is in overdrive and customers need an obvious reason to switch operating systems. With a much lower price point many will be willing to give the Lumia 920 a shot and those on a tight budget that never even considered buying a newer smart phone and would opt out for older smart phones such as an iPhone 4 or older now have a new option with the Lumia 820 which costs less than $50. Assuming Nokia can gain a decent market share in the U.S., say around 4-5%, that will get its foot in the door and become relevant as an alternative to the other operating systems. …
And a summarized report on how Lumia 920 went on sale November 9 through AT&T:
Nokia’s Lumia 920 Sold Out Many Places Over The Weekend, But There Weren’t That Many To Begin With [Business Insider, Nov 13, 2012]
End of updates
Although the price of Lumia 920/820 will be announced later, with selected country availabilities, the effective retail prices of them should be in the current US$450-600 range of what I am considering as “high-volume superphones”. Detailed comparison of Lumia 920 with the leaders on that
market is here (source: The Verge). Note that the lead market for that segment is North America and Europe, and this will remain so for the foreseeable future (unlike below of that, where China and the BRIC countries are leading the market).
What was announced by Nokia should therefore be evaluated in terms of unique Nokia differentiators introduced for the current state of that market. Otherwise Nokia will be misunderstood like here.
Note as well that Samsung GALAXY S III Reaches 20 Million Sales Milestone in Record Time [Samsung Mobile press release, Sept 6, 2012]: “…in just 100 days since its debut in May 2012. … a new record …”
Update as of Sept 11, 2012: Nokia Lumia 900 LTE (4G) list price went down to $499.99 and with a 2-year AT&T contract it only costs $9.99 and without it but AT&T locked $299.99. It received 437 reviews with an average score of 4.6 out of 5.0. This is the highest average customer score of all high-end smart phones sold by Amazon.
Update: Nokia Lumia 900 Buy now – Nokia – India [Sept 14, 2012]: list price Rs 32,999 i.e. US$ 608.
Update as of Sept 13, 2012: … according to the Marketing Director of Nokia China Huang Guoqiang’s personal micro-blog and displays, Nokia will launch China Mobile’s customized version of Lumia 920, supporting the TD-SCDMA standard. … Via: WinP.cn
Nokia Lumia 920 & 820 Announcement – Nokia and Microsoft Press Conference on September 5 in New York [nokia YouTube channel, Sept 7, 2012]
The major specs are as follow (the differentiators are highlighted in bold; Nokia ClearBlack with high brightness mode; Sunlight Readability Enhancements and color boosting are just in this type of lesser way because there are no explanations for them although they were not present in any of the previous Lumias):

| Nokia Lumia 920 | Nokia Lumia 820 | |
| Display: | 4.5 inch Nokia PureMotion HD+ WXGA 1280×768 IPS LCD; Super Sensitive Touchfor nail & glove use; Nokia ClearBlack with high brightness mode; Sunlight Readability Enhancements, luminance 600 nits; color boosting and Corning® Gorilla® Glass | 4.3 inch ClearBlack AMOLED WVGA 800×480; Super Sensitive Touch for nail & glove use; Nokia ClearBlack with high brightness mode; Sunlight Readability Enhancements and color boosting |
| Battery: | 2000mAh with integrated Qi wireless charging (built-in) | 1650mAh with support for Qi wireless charging(via a Wireless Charging Shell) |
| Processor: | 1.5GHz Dual Core Snapdragon S4 | 1.5GHz Dual Core Snapdragon S4 |
| Main Camera: | 8.7MP with Nokia PureView advanced optical imaging stabilization and Carl Zeiss optics; Full 1080p HD video capture at 30fps | 8MP Auto Focus with Carl Zeiss optics; Dual LED flash; Full HD 1080p video capture at 30fps |
| Front camera: | 1.2MP with 720p HD video | VGA |
| Memory: | 1GB RAM | 1GB RAM |
| Storage: | 32GB mass memory with 7GB free SkyDrive storage | 8GB mass memory with upto 32GB microSD memory card support and 7GB free SkyDrive storage |
| Upload speed: | HSUPA Cat 6 – 5.76 Mbit/s LTE Cat 3 – 50 Mbit/s |
HSUPA Cat 6 – 5.76 Mbit/s LTE Cat 3 – 50 Mbit/s |
| Download speed: | EGPRS MSC 12 – 236.8 kbit/s HSDPA Cat 24 – 42.2 Mbit/s LTE Cat 3 – 100 Mbit/s |
EGPRS MSC 12 – 236.8 kbit/s HSDPA Cat 24 – 42.2 Mbit/s LTE Cat 3 – 100 Mbit/s |
| Exclusive new apps: | Nokia City Lens Nokia Smart Shoot [Nokia] Cinemagraph Angry Birds Roost (for 3 months) and more |
Nokia City Lens Nokia Smart Shoot [Nokia] Cinemagraph Angry Birds Roost (for 3 months) and more |
Joe Belfiore on the Nokia Lumia 920 [nokia YouTube channel, Sept 5, 2012]
So let’s see the unique screen and camera technologies and other innovations behind the new, Windows Phone 8 based Lumia devices:
- An addition to the innovative Nokia ClearBlack display technology: Nokia Pure Motion HD+ [nokiaYouTube channel, Sept 5, 2012]
The great pixel run. A film about the best display. Nokia PureMotion, making pixels faster! Building on top of innovations in the ClearBlack technology, PureMotion introduces new innovation on outdoor viewing experience in mobile displays. In addition to the very low reflectance, which largely improves dark tone rendering in ambient light, PureMotion adds high luminance mode for backlight LED-driving and image contrast enhancement, on top of superb optical stack design. Together they improve the overall contrast and thus brightness and sunlight readability. In an extremely bright environment the Lumia 920 PureMotion display its backlight luminance reserve and becomes the smartphone WXGA (1280×768) display with highest peak luminance. For user high luminance mode is fully automatic, working based on the data coming from ambient light sensor. The adaptive image contrast enhancement compensates the loss of contrast caused by the unavoidable ambient light reflections inside the display-touch-window optical stack. It enhances the display readability by altering the user interface graphics color and contrast mathematically and optimizes it dynamically for any ambient light viewing condition. Nokia stated on the New York that the Lumia 920 screen is perfectly readable even in a desert. Equally important is that these sunlight readability enhancements are fully automatic for the user.
More information: PureMotion Technology White Paper [Nokia , Sept 4, 2012]
as well as The leading ClearBlack display technology from Nokia [this same ‘Experiencing the Cloud’ blog, Dec 18, 2011 – May 8, 2012] - Another direction of Nokia PureView technology with the advanced Nokia Optical Image Stabilisation (OIS) using so called floating lens technology:
OIS on Nokia Lumia 920 [nokiaYouTube channel, Sept 5, 2012]This is the real comparitive shot since the below, more comprehensive marketing video giving a misleading perception that the bicycle shot was done by Lumia 920. “In an effort to demonstrate the benefits of optical image stabilization (which eliminates blurry images and improves pictures shot in low light conditions), we produced a video that simulates what we will be able to deliver with OIS. … we should have posted a disclaimer stating this was a representation of OIS only. This was not shot with a Lumia 920. At least, not yet. We apologize for the confusion we created.” Nokia told in a separate, “An apology is due” post. See: http://conversations.nokia.com/2012/09/06/an-apology-is-due/PureView: The next innovation [nokia YouTube channel, Sept 5, 2012]
The latest innovation in PureView technology: http://nokia.ly/Q7qTtR changing the way we capture the world around us! The fundamental elements of PureView announced as part of the first phase were pixel oversampling, enabled through the use of a high performance sensor, high performance Carl Zeiss optics and Nokia proprietary image processing. As part of the original announcement Nokia outlined their intention to reuse the core elements, high performance optics, sensor and image processing in different combinations over time. With this second phase development of PureView, these fundamental enabling elements are used again, but in different forms. In place of the 808 PureView’s 41mp sensor lies the latest generation BSI (Backside illumination) sensor with a total of 8.7mp. The new optics are again developed in conjunction with Carl Zeiss; Nokia’s most challenging opto-mechanical design to date. The hardware has also been designed to accommodate further future developments in software image processing. Then comes Nokia’s new OIS system which, based on lab tests, can cater for around 50% more movements per second than conventional OIS systems – up to around 500 movements every second! An OIS works by detecting camera movement using a gyroscope – a highly accurate sensor used to detect the degree and direction of movement. But that’s pretty much where the similarity between Nokia’s OIS system and broadly comparable OIS systems ends. Rather than a single lens element being shifted to compensate for camera shake (as in most OIS systems), Nokia’s OIS system moves the entire optical assembly in perfect synchronisation with the camera movement, or to be more precise, unintended camera shake. The benefit of this approach is that the amount and form of camera movement that can be compensated for is much greater. In addition the position of the lens assembly is monitored in real time, even whilst it’s moving to its calculated position allowing it to be continuously updated regardless of how random the camera movement is. This process of checking operates at a rate of up to 5x more frequently than typical OIS systems, approximately 300 times faster than that of the average human reaction time to an expected event. Nokia calls this approach “floating lens” technology. Adding up all of the advantages of Nokia’s OIS system means camera shake in lower light can be compensated for to lower lighting levels than conventional OIS systems, ultimately resulting in low light photography as well.The above videos are demonstrating PureView advanced optical imaging stabilization for HD video recording on the move (except the closing part of the second video). And the following one was the example of the low light, still image photography which without PureView would have been blurry (because of the need to keep the lens open for longer time, so camera shake comes into effect), or almost dark otherwise (when the exposure is the “usual” one, so there is insufficient light):

More information: PureView imaging technology white paper 2 [Nokia, Sept 4, 2012] as well as The 41 MP Nokia 808 PureView meeting the vanishing world challenge [this same ‘Experiencing the Cloud’ blog, April 4, 2012] and the PureView related content of the MWC 2012 day 1 news [Feb 27, 2012]: Samsung and Nokia [this same ‘Experiencing the Cloud’ blog, Feb 28 – March 8, 2012]
Note as well that such “professional level” camera functionality is available to everyday users and does not require any specific skills, as the Nokia presenter emphasized at the press conference with this photo just taken by himself in a cloudy environment of Helsinki a couple days ago when he visited an American football match with his two sons with no special cameras just his Lumia 920:
More demos of Nokia Lumia 920 Camera image stabilization and low light [LAPTOP Magazine, Sept 5, 2012]: - Exclusive new apps:
– Nokia City Lens: see your surroundings differently—Augmented Reality using the phone’s camera viewfinder
Looking for a restaurant? Fancy a quick drink? With Nokia City Lens, just holding your phone up reveals the area’s shops, restaurants and businesses. You can then read reviews. Book a table. And find your quickest route.
More information:
Nokia City Lens comes out of beta[Conversations by Nokia official blog, Sept 10, 2012]Nokia City Lens http://nokia.ly/QeAOiK instantly connects you to all of the places you’re looking for—and even more importantly—gets you there exactly when and how you want to. Now available on Windows Phone Marketplace. Just landed in town and looking for a good restaurant? Interested in checking out the local museum or theater? Time to hit the nearest transit station to catch a ride uptown? No longer is finding your chosen destination a hassle—whether you’re in a new city or your hometown. Now you can simply launch Nokia City Lens on your phone to easily find all the places you want to go. Nokia City Lens instantly reveals what you’re looking for on your phone’s camera display, no matter if it’s down the street or just around the corner. You simply tap your chosen destination on your screen to conveniently access walking directions, make a reservation, or learn more detailed information about the locale.Plus the “Nokia City Lens” (Beta) related parts within Less focus on feature phones while extending the smartphones effort: further readjustments at Nokia [this same ‘Experiencing the Cloud’ blog, June 25 – Aug 9, 2012] as well as The Where Platform from Nokia: a company move to taking data as a raw material to build products [this same ‘Experiencing the Cloud’ blog, April 7, 2012] in entirety. Note that with the Where platform Nokia partners will introduce other location based services in the coming weeks (GroupOn was mentioned as an example by Elop). So the augmented reality service of City Lens is just one example (even from Nokia). Note as well that—according to Elop— Nokia City Lens (and the Where platform) will come to Lumia 900 (and others likely) which is not upgradable to Windows Phone 8.
– Nokia Smart Shoot: it’s always better when everyone is smiling—Smart Shoot will take multiple photos with a single click so that you can edit effortlessly to make the perfect shot
With Smart Shoot, just one click of the camera takes a whole series of photos. Then merge them into one, so everyone in the group looks their best. Eyes open, big smiles, perfect shot.
Also a Nokia specific WP8 “lens” (filter) for aiding the picture editing, like used in the removal of unwanted moving figures application demonstrated at the press conference:
– Cinemagraph (based on another Nokia specific WP8 “lens”): a still photograph augmented with minor and repeated movements for additional meaning and fun (see Wikipedia), like making the flag waving and the girl bending to give a kiss on the photo demonstrated as well:
about which the LAPTOP Magazine shot the following explanatory video there:
– Angry Birds Roost, exclusive to Nokia Lumia for 3 months
Launching on the Nokia Lumia 920 and Nokia Lumia 820, the new and exclusive Angry Birds Roost experience for Nokia Lumia will enable fans to dive into the wonderful world of Angry Birds, with access to hundreds of walk-through videos, news, ringtones and more, brought together in one unique and original hub experience. A first for Rovio and the Windows Phone platform, the Angry Birds Roost will offer fans an exclusive ‘Bird Cam’ feature. Users can take a picture on their Nokia Lumia, add their favorite Angry Birds characters to the picture, and then share it on Facebook, Twitter, MMS or via email. Additionally, Angry Birds Roost will have tons of wallpapers and wide Live Tiles on the Lumia start screen.
– and more: Exclusive apps coming to Nokia Lumia [Conversations by Nokia official blog, Sept 10, 2012] – Red Bull app for Nokia Lumia, enhanced Vimeo app experience, new Bloomberg app for Nokia Lumia, enhanced Bloomberg Hub experience for the Nokia Lumia 920 and Nokia Lumia 820, StyleSaint app experience for forward thinking fashion fans, new Groupon app, new YouSendIt app for the Nokia Lumia 920 and Nokia Lumia 820, enhanced MICHELIN app, and WhatsApp Messenger (a cross-platform mobile messaging app)
- 4. Super Sensitive Touch for nail & glove use built on ClearPad Series 3 mobile touch solution for premium high-end smartphones from Synaptics [Synaptics press release, Sept 5, 2012]:
Synaptics Inc. (NASDAQ: SYNA), a leading developer of human interface solutions, today announced that the new Nokia Lumia 920 and Nokia Lumia 820 will be the first smartphones in the world to use a new advanced multi-touch experience based on the Synaptics ClearPad capacitive touchscreen sensing technology. Synaptics ClearPad Series 3, the premier mobile touch solution for premium high end smartphones, has raised the bar for high performance touch on the Lumia 920 and Lumia 820 with the introduction of support for gloves and fingernails. Previously, people were unable to use their smartphone touchscreens with gloved fingers or long fingernails, requiring them to remove their gloves, or awkwardly position their fingers with long nails in order to operate their phones. For the first time ever, ClearPad Series 3 technology instantly optimizes the touch experience by automatically detecting the presence of skin, gloved fingers, or fingernails, giving users a seamless multi-touch experience regardless of input methods. [See more in the press release.] MiniPC Pro recorded this presentation on the press event:
Nokia Super Sensitive Touch Demonstration on the Lumia 920 [minipcproYouTube channel, Sept 5, 2012] -
Nokia Lumia 920 Sensitive Touch – http://www.mobilegeeks.com – We are taking a look at the Nokia Super Sensitive Touch feature of the Lumia 920 which lets you operate your smartphone while wearing gloves.
- 5. Qi wireless charging:
– built into Nokia Lumia 920
– added to Nokia Lumia 820 via a Wireless Charging Shell:
With a Wireless Charging Shell, you can charge your Nokia Lumia 820 using any of our Wireless Chargers. Just rest it on a charging plate or Fatboy Pillow to boost the battery. Magic.Pick a colour. Snap it on. And you’re good to go.
and then supported by a number of accessories:
![]() Nokia Wireless Charging Plate Place your phone on a Charging Plate and watch its battery go up. There’s no need to align it carefully – the charger will work as soon as it senses your Lumia on top. |
![]() Nokia Wireless Charging Pillow by Fatboy When you go to bed, your phone can too. Just rest it on its Fatboy pillow to start charging. They even come in bright colours to match your Lumia. |
![]() Nokia Wireless Charging Stand Want to keep using your Nokia Lumia while it charges? Place it on our Wireless Charging Stand so the screen’s easy to see. You can even pre-set the stand to open apps (via NFC) on your phone – like an alarm, Skype or SkyDrive. |
![]() JBL PowerUp Wireless Charging Speaker for Nokia It has NFC built-in, so one tap is all it takes to connect your phone. Then while you enjoy the music with high-quality sound, just rest your phone on top of the speaker to charge its battery. Simple. |
Introducing Wireless Charging from Nokia [nokia YouTube channel, Sept 5, 2012]
You can click on one of accessory “tiles” towards the end in order to watch a video related to that. There are two additional accessories not shown in the table before the video above:
![]() Nokia Luna Bluetooth Headset with Wireless Charging Comes with Nokia’s Always Ready technology which lets you connect the headset to the phone without any fuss. Just take it out of its cradle and it will take care of the rest: powering up, connecting and call answering. It also comes with wireless charging. Place your headset on a wireless charger and it charges up. Simple and easy, with no need for wires. |
![]() JBL PlayUp Portable Speaker for Nokia Get the music you love wherever you go – and now without the wires. Our new range of portable JBL speakers and Monster headsets don’t just have clear audio and deep bass – they’re also NFC enabled with Bluetooth connectivity. Just tap your phone against them and your phone connects. Then stream your music seamlessly. |
MediaTek’s ‘smart-feature phone’ effort with likely Nokia tie-up
With the new generation single-chip GSM/GPRS/EDGE-RX SoC products, MT6255 (in mass production: late Q1CY12) and its lower priced cousin MT6250 (in mass production: late Q2CY12), the Taiwanese MediaTek is strengthening its “smart feature phone” effort started in June 2011 with the launch of MediaTek’s MAUI Runtime Environment (MRE). MRE is a new middleware technology designed for mobile developers to deploy services and content for such “smart feature phones”. MRE was also launched with the simultaneous announcement that Yahoo! Messenger, News, Finance, Weather, and Mail will be the first Internet services on MRE.
Phuket MRE Demo V0 9 [MediaTek100 YouTube channel, June 19, 2012]
MT6255 and MT6250 are significantly reducing the number of external components and have a strong service/software portfolio now. The popular Yahoo! services have been complemented by Facebook and Twitter clients, as well as the Opera Mini mobile browser and Gameloft mobile games available with MRE all free. There is also an MRE specific App Store developed by MoMagic (India). Therefore everything is ready for the launch of market leading “smart feature phone” products by MediaTek partners in the coming months.
Update: MT6250 Introduction Clip [mediateklab YouTube channel, Sept 3, 2012]
Update: MediaTek Launches the 2nd Generation ULC Mobile Phone Single Chip [MediaTek press release, Aug 31, 2012]
MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions announced today the debut of its MT6250, an ultra-low-cost (ULC) single chip solution catered for GSM/GPRS/EDGE Rx multimedia-rich mobile phones that targets the USD$40 entry market segment.
The MediaTek MT6250 features a 64Mb pSRAM with an optimized software pack and fancy, friendly user interface that allows handset makers to pack more fun features into phones, while keeping the design sleek and slim. With MRE enabled, the MT6250 delivers smartphone-like experience to feature phones, providing users with access to Internet content and social network services, such as Facebook, Twitter and Yahoo. Together with the embedded rich multimedia application support, the MT6250 is also touch enabled for those who have either a touch screen or candy bar phone.
According to market studies and forecasts by consultation organization, Strategy Analytics, “300 million ultra low cost mobile phones will be sold worldwide in 2013. Over one half of these will be sold in emerging markets and China and India will be primary markets driving that growth.” Although the overall market continues to be dominated by the smartphone segment, there is still a strong demand for entry-level and ultra-low-cost mobile handsets in emerging markets.
“Mobile handset is becoming the center of one’s of mobile life, users desire to access to content services and enjoy more fun such gaming, video and music any time any where via their devices. “said Ching-Jiang Hsieh, President of MediaTek. “MediaTek understands that consumer habits and consumption patterns are changing, thus, we strive to smarten up mobile phones and bring smartphone-like experiences to feature phones users. The MT6250 is not only designed to provide the best mobile internet experience at a very competitive price, but it also brings together rich multimedia features and touch experience.
The MT6250 has entered mass production and is shipping in commercially launched handsets.
Important to note that Nokia is far ahead of MediaTek along this kind of strategy with its S40 legacy which has been developed into the market leading Asha mobile phones for the last year and a half. The latest Asha Touch phones are true smartphone-like offerings and are on the market since the first half of July. The Asha phones are also technologically superior to the MRE platform as they have much better Internet optimization and UX (user experience). Finally the Nokia Store (ex Ovi Store) has been well established on the market for years. There are no less than 410 Nokia developers with apps which have achieved more than 1 million downloads! India Games and Pico Brothers just passed 100 million each!
Also Nokia will remain competitive with MediaTek partner offerings in the future as well since many sources pointed in the recent months to the likelihood that Nokia will use the new MediaTek SoCs (or derivatives of them) in its Asha product line.
Finally, one should mention a China-specific development along this direction. China Mobile with its homegrown TD-SCDMA 3G network is opening a quite lucrative opportunity for these “smart feature phone” / smartphone-like feature phone efforts as well. MediaTek’s most ambitious competitor, Spreadtrum already delivered an extremely low-cost solution for the so-called EDGE/TD-SCDMA market, but with the latest Android platforms. According to Spreadtrum’s CEO many of its device partners are targeting a new price in the range of RMB500 to RMB700 [US$ 79 – US$ 110] and the company expects to ship more than 10 million smartphone chipsets in the third quarter alone and at least 25 million units for the whole year.
As MediaTek will not have a competitive EDGE/TD-SCDMA offering this year the whole non-Android “smart feature phone” effort of MediaTek and partners will be limited in its very device launch period, and even Nokia’s Asha effort will be affected, in China at least.
Core Supporting Information
J.P. Morgan Equity Research on MediaTek Inc. [July 31, 2012]
Finer product approach helps drive down chipset cost:
Management is now expecting a native TD smartphone solution to ship in volume in 1Q13 and native EDGE solution to ship in 2Q13. Previously, Mediatek was using WCDMA parts to address TD/ EDGE market – such a move would help reduce die size and thus cost structure. This has probably been made possible thanks to the easing engineer shortage.
EDGE shortage & proliferation may open the door for SPRD:
Management confirms EDGE part shortage – this may open the door for Spreadtrum competition. EDGE/ TD smartphones come with a lower entry barrier than WCDMA due to the lack of global field testing challenge – thus an EDGE proliferation is good for Spreadtrumbut may draw tougher future competition for Mediatek.
See: Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Aug 10, 2012]
We revise estimates:
Given the rise of smartphone shipment once again, the rise in EDGE portion and EDGE shortage makes us more wary of future pricing competition from Spreadtrum, thus lowering ASP estimate and also expecting slower margin improvement.
We are raising feature phone units assumptions in 2013, as there are increasing signs that Mediatek might break into Nokia feature phone (both 2G and TD) by late 2012/ early 2013.
See: Smartphone-like Asha Touch from Nokia: targeting the next billion users with superior UX created for ultra low-cost and full touch S40 devices [July 20 – Aug 13, 2012]
2Q12 earnings call notes
Handset
New generation of feature phone 6250 integrates Bluetooth/ FM/ 200 MHz
MT6250 |
MT6255 |
Single-Chip GSM/GPRS/EDGE-RX entry-multimedia solution
|
Single-Chip GSM/GPRS/EDGE-RX Smart Feature Phone solution
|
• GSM/GPRS/EDGE-RX Class 12, Quad band
|
• GSM/GPRS/EDGE-RX Class 12, Quad band
|
Sector Report by Capital Securities Corp., Taiwan [June 25, 2012]
Shipment of MediaTek’s mainstream handset chip (2G/2.5G) arrived at 530mn units in FY11, accounting for ~60-70% of the overall market share
worldwide. Nevertheless, revenue generated by 2G/2.5G handset chip is forecasted to decline by ~15-20% YoY in FY12 on account of weak demand and ASP cut.…
J.P. Morgan Equity Research on MediaTek Inc. [April 29, 2012]
1Q12 earnings call notes
Feature phone
End market declining at double digit pace, vs. expectation of down 5% previously.
Feature phone pricing down about 25% in last 2 years. This year down probably even more than before.
Mediatek is trying to add more value there – with 400MPx, BT integration. MT6255 already in production – and well received.
MT6250 (for lower price) will go mass production in late 2Q
MediaTek, Spreadtrum reportedly to land large orders for feature phones [DIGITIMES, July 16, 2012]
Despite a slowdown in demand for feature phones, MediaTek and Spreadtrum Communications are expected to land large-volume solution orders for feature phones from international brands soon, according to industry sources.
MediaTek (联发科的) is expected to receive the speculated feature phone solution orders from Nokia, which has announced plans to slash 10,000 jobs worldwide and other cost-reduction measures, the sources noted.
Meanwhile, Samsung Electronics is expected to source 2.5G/2.75G handset solutions from Spreadtrum, the sourced added.
Spreadtrum is also expected to roll out 4G and quad-core smartphone solutions before year-end 2012, ramping up the company’s total handset solution shipments in the second half of the year, the sources added.
MediaTek lands 2.5G handset solution orders from Nokia, say sources [DIGITIMES, May 21, 2012]
MediaTek reportedly has landed orders for 2.5G handset solutions from Nokia with shipments to begin in the third quarter of 2012, according to industry sources. MediaTek declined to comment.
Given that global demand for 2.5G handset solutions still reaches one billion units a year, there is room for MediaTek to further expand sales in the segment although the company’s sales of 2.5G solutions have been turning weak recently, indicated the sources. MediaTek shipped 550 million 2.5G solutions in 2011.
Indeed, MediaTek has been working on its new platform for so called ‘smart-feature phones’ during the last two years at least. The essence of it can summarized via the following quotes (these exerpts are from the closing “More Details” section, therefore no links are provided here):
MediaTek:
‘Smart-Feature phone’ refers to a feature phone device with Internet functionality.
July 11, 2012: for the latest Twitter case
MRE (MAUI* Runtime Environment) is MediaTek’s innovative middleware technology designed for mobile developers and application providers to deploy services and content for ‘Smart-Feature phones’ [put it otherwise: MRE is a phone application development platform similar to JVM and Qualcomm Brew]. MRE-enabled devices will enable many users to access leading Internet services, such as Twitter, in an intuitive way.
*MediaTek Feature Phone Software Framework and Platform
With MRE, smart-feature phones will be able to run Twitter on minimal memory and hardware requirements, allowing manufacturers and brands to offer price-friendly devices with value-added mobile internet services. People with smart-feature phones will be able to experience a rich native application experience of Twitter consistent with smartphone applications like Twitter for iPhone or Twitter for Android.
Key internet service and application provider partners for MediaTek:
July 11, 2012:
“Our new partnership with Twitter further reinforces MediaTek’s focus on providing differentiated services and value for handset brands, giving them the means to offer affordable, compelling and differentiated mobile solutions to consumers in key emerging markets ,” said Cheng-Te Chuang, Corporate Vice President of MediaTek.Jana Messerschmidt, Vice President of Business Development at Twitter, said, “The mobile Internet presents a great opportunity for Twitter to reach every person on the planet. Our partnership with MediaTek will help people in emerging markets enjoy the same rich Twitter experience on their mobile devices as more than 140 million others around the world.”
Earlier global partnerships
June, 2011:
According to Ming-Kai Tsai, Chairman of MediaTek, “MediaTek has redefined the mobile landscape through our partnership with Yahoo!. By integrating Yahoo! services into our mobile platform solutions, we are providing our customers and end users with access to the best experience for hugely popular Yahoo! services like Messenger, Mail, News, Weather and much more.”
Rose Tsou, Senior Vice President of Yahoo! Asia Pacific said, “The mobile Internet presents a wealth of opportunity for Yahoo! and our partnership with MediaTek will further connect us with our audiences in growing markets such as Indonesia, Malaysia, Philippines, Vietnam and India where new to Internet users are coming online for the first time through their mobile devices.”
November, 2011:
“Our new partnership with Facebook further reinforces MediaTek’s focus on providing differentiated services and value for handset brands, giving them the means to offer affordable, compelling and differentiated mobile solutions to consumers in key emerging markets such as India,” said Cheng-Te Chuang, Corporate Vice President of MediaTek.Vaughan Smith, Mobile Partnerships and Corporate Development Vice President of Facebook added, “Every phone should be social and we’re excited to be working with MediaTek to bring Facebook to more devices, in more markets around the world and helping users to connect and share anywhere, anytime.”
May, 2012:
Regarding the new partnership, Ching-Jiang Hsieh, President of MediaTek said, “With the rapid development of mobile Internet applications and services, mobile gaming has become one of the leading value-added service and application in the mobile Internet industry today. I see our new partnership with Gameloft as a major breakthrough for the industry: With MediaTek’s strong platform customization and Gameloft’s cutting-edge game development capabilities, together we will be able to bring even more value to mobile phones, thereby increasing the competitive edge of our customers among mobile phone industry.”“We look forward to leveraging MediaTek’s high performance mobile platforms to deliver our exciting selection of games to even more users worldwide. Gameloft has been present on the Chinese market for over 10 years with strong business and creation teams and we are thrilled to increase our presence to propose our games to the billion phone users in China. In sync with Mediatek’s philosophy, Gameloft’s mission is to provide a good experience to the mass market at a very reasonable price. Together we share the vision of leveraging our mutual technology and experience to serve the needs of the public in the broadest way possible,” said Gonzague de Vallois, senior vice president of Gameloft.
Leading local handset brands partnering with MediaTek on that:
November, 2011:
“With MediaTek’s new MRE solution, we are in a position to redefine the mobile landscape and give our users their first mobile browsing and social networking experience on a handset that costs less than US$50,” shared Dilip Modi, Managing Director of Spice Mobility, India.May, 2012:
George Zhu, CEO of TECNO, leading handset brand in Africa also noted regarding the MediaTek-Gameloft partnership, “As one of MediaTek’s strategic partners, the concept of “entertainment” has always been one of the mainstays of the TECNO brand name. We are very excited about the benefits that this strategic partnership will bring to our users. As these two giants combine their strengths, it will allow us to develop even more competitive products which will bring our customers an even better gaming experience.”
Nokia, however, has already been on that route for some time:
What we offer in the current Nokia Asha products is a nice combo of applications, Internet experience and contemporary services. Through our Store, people all over the world are downloading more than 3.5 million apps per day. We have put lot of emphasis on providing locally relevant apps so that you can find what is meaningful in your part of the world.
However, we also have some of the global phenomenons like Angry Birds available on Asha as well. On the Internet experience side we are very proud of the Nokia Browser. It gives people access to the full web yet doing that in a cost-effective way. The browser can compress data traffic by upto 90% ensuring that your phone bill doesn’t explode. And the specific services we offer like Facebook, Twitter, QQ, Foursquare, Maps, email, etc. give people the tools that most of us are using on a regular basis.
Source: Nokia’s next billion: Antti Vasara looks to the future for Series 40 [Conversations by Nokia, Jan 26, 2012]
And Nokia continues with that approach quite parallel to the MediaTek’s recent effort:
The new, free Twitter for Nokiaapp is now available for Series 40 feature phones. …
This new app brings most of the features you’d expect to see from a Twitter client on a smartphone to hundreds of millions of feature phones around the world.
Twitter for Nokia is available for download today wherever Twitter is accessible around the world. Future built Series 40 phones will have the app preinstalled.
Source: Twitter for Nokia now on Series 40 [Conversations by Nokia blog, July 12, 2012]
Nokia aims to
- further develop its Series 40 and Series 30devices, and
- invest in key feature phone technologies like the Nokia Browser, aiming to be the world’s most data efficient mobile browser. Early results of this innovation can be found in Nokia’s latest Asha feature phones which offer a full-touch screen experience at lower prices.
Source: Nokia sharpens strategy and provides updates to its targets and outlook [Nokia press release, June 14, 2012]
In the area of Mobile Phones, we continue to renew our Series 40 portfolio. … We acquired Smarterphone, a Norwegian company that brings new user interface technology and expertiseto Nokia. We’ve increased download rates from feature phones to more than 4 million a day by improving store access and payment schemes and adding new apps like Whatsapp, Foursquare and EA.
We released a new version of Nokia Life, which delivers education, health, agriculture and entertainment services via SMS. And we delivered a new proxy browser, and we’re now bringing the browser and web apps down to super low-end devices.
… the acquisition of Smarterphone in this space to give us more flexibility and speed as it relates to the user interface elements, for example, of that platform. ..
Source: Nokia’s CEO Discusses Q1 2012 Results – Earnings Call Transcript [Seeking Alpha, April 19, 2012]
Nokia has today announced the availability of Nokia Browser 2.0, a major update dedicated to Nokia Series 40 devices. The new version reduces data consumption by up to 90%, meaning that consumers can enjoy faster and cheaper internet access. Web sites load up to three times fasterin comparison to devices without cloud-accelerated browsing and consumers will also benefit from a number of other enhanced capabilities.
The browser includes a revamped, modern user experience that makes it simple to find, install and use interesting web apps that offer a richer, more desktop-like internet experience. Launched in mid-2011, the Nokia Browser is the first browser of its kind to support web apps, and now boasts a catalogue of more than 10,000 of the latest apps. Several publishers have experienced over a million downloads in a matter of months, demonstrating strong consumer demand.
Nokia makes internet access faster and easier with new browser for Series 40 devices [Nokia press release, April 23, 2012]
Nokia Browser, Life Tools and Maps for Series 40 have become hugely popular, with Nokia Browser becoming the fastest growing Nokia service ever and Series 40 products accounting for a third of downloads from the Nokia Store (up from 13% in January 2011)
Source: There’s something about Mary… [Conversations by Nokia, Jan 3, 2012]
More Details
MediaTek Announces Global Partnership to Bring Twitter to ‘Smart-Feature Phones’ [press release, July 11, 2012]
MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, and leading communications platform Twitter, today announced a global strategic partnership that will see Twitter integrated into MediaTek’s mobile platform solutions, enabling users in emerging markets to access a rich Twitter experience via affordable mobile devices, more easily than ever before.
With this partnership, MediaTek will preload the Twitter application in its MRE middleware as the default feature in its reference design for mobile handsets. Mobile manufacturers and brands can expect to reduce the time-to-market and to develop product differentiation for their consumers. With MRE, smart-feature phones will be able to run Twitter on minimal memory and hardware requirements, allowing manufacturers and brands to offer price-friendly devices with value-added mobile internet services. People with smart-feature phones will be able to experience a rich native application experience of Twitter consistent with smartphone applications like Twitter for iPhone or Twitter for Android.
Mobile internet usage continues to grow every year, more so in emerging markets, innovative products such as the MRE solution helps MediaTek to address the growing demand for mobile internet access. This global partnership underscores the significant potential to present users worldwide with a gateway to access Twitter.
MRE is MediaTek’s innovative middleware technology designed for mobile developers and application providers to deploy services and content for ‘Smart-Feature phones’. The MRE solution provides millions of users in emerging markets with the ability to enjoy rich online experiences previously available only on smartphones. MRE-enabled devices will enable many users to access leading Internet services, such as Twitter, in an intuitive way.
“Our new partnership with Twitter further reinforces MediaTek’s focus on providing differentiated services and value for handset brands, giving them the means to offer affordable, compelling and differentiated mobile solutions to consumers in key emerging markets ,” said Cheng-Te Chuang, Corporate Vice President of MediaTek.
Jana Messerschmidt, Vice President of Business Development at Twitter, said, “The mobile Internet presents a great opportunity for Twitter to reach every person on the planet. Our partnership with MediaTek will help people in emerging markets enjoy the same rich Twitter experience on their mobile devices as more than 140 million others around the world.”
The latest smart-feature phone solution, the MediaTek MT6255, will be the first model to carry Twitter applications. In the near future, twitter service preload will be also expanded to all MediaTek mobile platforms.
Mediatek MT6255 Baseband Chipset Features List [Quazmo blog, Feb 7, 2012]
As you may aware Taiwanese based Mediatek is the top most producer of low cost mobile base band chipset. New to add to their 2G solutions arsenal is the cost down better spec version for MT 6235 platform. Its to be noted that in the recent past Mediatek is facing heavy pressure from Shanghai based Spreadtrum and Taiwan based M-Star also there are speculation that more to come. Let’s have a basic features list review for MT 6255 platform
Mediatek MT 6255 chipset uses ARM9 [1.1 DIMPS/MHz] core processor with clock speed of 416 MHz. Built on System On Chip concept the added specialty is it has both SAW [Surface Acoustic Wave] and RTC [Real-Time Clock] embedded to the chipset which avoids external components. Also they have emphasized on the long battery life which is kind of a common requirement these days. Display can support up to WVGA [800×480] resolution. Cosmos 1.5 UI and Gemini 2.0 for dual sim function are available. Can support both optional 1Gb + 512Mb and 1Gb+256Mb memory options. Support external applications via MRE and Opera Mini v4 is pre installed. Can Play both Mp4 H.264 and H.263 formats at 30 frames per second for both HVGA [480×320] and CIF [352×288]resolutions. On design now, phone running on MT 6255 platform chipset will be available in the market some time around Q2 2012.
From MT6235 Design Notice V2-3 [July 2008]:
MT6235 Main Feature
EDGE Class12, GPRS Class 12
ARM926EJ-S 208MHz with cache
PMU / Touch panel driver integrated
2M / 1.3M / VGA camera (YUV)
Chip UID – 315 bit
FR, EFR, HR, AMR speech codec
Support up to 16.77M color WQVGA LCM
Excellent melody format support
– MIDI, WB AMR, AAC, AAC+, eAAC, digital musicPolyphonic melody, 64-tone wave table, stereo loudspeaker
SBC encoder capability supports BlueTooth A2DP function
Advanced DSP acoustic functionality
– AEC, noise reduction
SD/MMC/MS/MSprocard & SDIO support
USIM support
Built in USB2.0 (High speed/Device), IrDA
QWERTY keypad support
Multi-memory system with more flexibility for phone design
– NOR/pSRAMwith or without AD MUX; burst mode of up to 104 MHz supported
– NAND-boot supported
– NAND data storage supported
– LPSDRAM supported
…
Snapshot of MT6235 Reference Phone
From a MediaTek presentation [June 20, 2011]:
Delivering Value-Added Services (VAS) with MRE now
MRE
MRE (MAUI* Runtime Environment) is a Middleware platform designed for MediaTek’s Feature-phone solution that provides a Content Downloadable Mechanism that enables applications expansion previously reserved for smartphones
*MediaTek Feature Phone Software Framework and Platform
MRE Overview
Seamlessly Integrated into the Software Architecture
Partnership Establishment and MRE Strategy
Partner with key leading service providers and Local Brands to enhance the MRE ecosystem through an integrated platform and open strategy
Open and neutral strategy
- Facilitate and foster the MRE ecosystem with an open attitude to enable more developersto participate in the ecosystem
- Long-term objective: Open MRE SDK to the market
MediaTek as ecosystem facilitator
- We won’t be involved in MRE Service operation
– Still focus on chipset core business
– Won’t compete with Customers/Solution & Content ProvidersEnhance platform value
- Migrate native applications to MRE to reduce maintenance effort & lower cost with more flexibility
- Attract more developersto enrich MRE solutions/contents
- More differentiation possibilities for customers
Integrate key internet services
- Launch MRE applications of key internet services as part of Mediatek solution e.g.: Yahoo, Facebook….
Intensify partnership with local brands
- Provide reliable solutions to local brandsfor VAS business
The Must-Know Mediatek Ecosystem
1. Extreme Price Sensitive:
-Mediatek’s Customers care about every cent..
2. Major Attention Focusing on Emerging Markets
3. Significant Market Size:
-2010 MTK Solution Shipment up to 500M even more than Nokia
4. Low Memory Size/Very Optimized Contents Needed:
-Smartphone development logic/practice not properly applicable to Mediatek’s feature devices
5. A New Blue Ocean Market for VAS:
-Not many well compatible VAS solutions for Mediatek devices especially for non-China emerging marketsWhy Does MRE Matter for Your Biz?
1. An Official Middleware Supported by Mediatek:
> MRE has become a “default component” with the activated status built in MTK feature phone OS/SW architecture
this is a very effective approach to penetrate MRE. As long as our customers take our SW branch (must be needed to operate our chipsets), MRE is as default existing right there.
2. More Strong Stickness/Incentive for Customers to Take
> More original Native MTK apps & Critical Killer Apps will be made by MRE apps in near future….
like fundamental app tools such as Calculator, Clock… Or even some key internet apps will be offered to customers in form of MRE instead of native apps as the default apps on SW branch. Customers must adopt MRE to get those key apps compatible. This strategy will create more strong stickness at our customer side to adopt MRE
3. A Systematic Support Rolling Out….
>“Mediatek Forum” established to promote MRE as key strategic plan since this May
Forum will organize MRE roadshows and technical seminars in SEA and India to joint our identified SP/CPs on launching out MRE solutions. This is the strong commitment made by Mediatek.
4. Mediatek’s Customers Need MRE to Make More Differentiations:
> More flexible & control for customers on developing differentiations
The SW/VAS differentiation for Mediatek’s customers to create is very vital for their survival in homogenous ecosystem. MRE is a technology platform/weapon committed by Mediatek to offer more flexibilities/control for customers to develop the competitive differentiations. SP/CP will take a significant role to facilitate this evolving trend and critical for our customers to rely on
From another MediaTek presentation [June 20, 2011]
Why MRE Rather Than Java?
MRE Competitiveness Summary
- Cost Efficiency:
-Less Memory Required: even MCP 32+32 or 64+32 affordable to run- Higher Performance:
-Light and optimize to perform on Mediatek’s platform- More Flexibility:
-Many possibilities and development room for customers to create the differentiations, which can enhance the attractiveness/ stickiness- More Penetration Space to monetize:
-MRE is able to penetrate to low/mid feature phone segmentations which Java hard to reach, which is a new Ocean Blue market to grasp
-Downloadable:- More Biz Opportunities:
-The emerging markets for VAS/Content demand on feature phone environment have a tremendous space to grow. This is like a Virgin Land for us to cultivate and to benefit
What is MRE? [MRE blog, Jan 21, 2012]
MRE (MAUI Runtime Environment) is a phone application development platform similar to JVM and Brew. On the MRE platform, you can realize solutions for smart feature phones on feature phones. Meanwhile, MediaTek also provides developers and end suppliers with highly efficient development tools (MRE SDK) and compilation environment for applications, allowing developers to develop applications more quickly and effectively.
Use MRE Platform to Easily Construct a Value Chain for Phone Software
All the functions in MRE are designed to reduce the development and deployment cost for application programs. They are the basic for constructing a good environment.
- For phone users, phones with MRE platform allow you to download or install MRE applications and games to experience the fun of smart phones.
- For developers, MRE SDK provides you with high-speed tools and rich APIs, helping you realize various types of applications.
- For end suppliers, the MRE solutions solve the closed-ended [?closedness?] problems of feature phones and provide rich application experiences.
MRE Features
Supports Local Commands:
MRE applications are developed by ANSI C language and support local commands compiled by ADS, RVCT and GCC. The operating speed of applications can reach or approach the speed of static binding commands. DLL is supported to run applications from the external memory card.
Full Package of Development Tools:
The MRE SDK package provides a full set of development tools and documents, including the integrated development environment, simulator, debugger, monitor, API reference files and sample codes.
Bountiful Interfaces:
MRE packages bountiful interfaces from the MAUI platform and provides standard and simple programming concepts which help you develop all kinds of MRE application programs in easier and faster ways.
An Open Platform:
MRE is a platform of full documents open to companies or individuals to develop application programs. You can acquire more development tools and support from this website.
Sandbox and Digital Certification:
The sandbox mechanism protects the phone system and the user’s personal data from being attacked by hackers through MRE API.
The digital certification ensures the completeness of MRE applications and prevents the system from being damaged by hackers through modifying the MRE applications.
MRE Modules
The figure below lilsts the modules in the MRE platform.
MRE is composed of SAL (Software Abstract Layer), Framework and MRE API. SAL and Framework construct a complete operational environment. Framework is established above SAL which realizes the core functions of MRE, e.g. memory management, dynamic link, etc. By MRE API, the MRE applications call the framework API and MTK platform API to achieve various and rich functions.
From arm.com: ADS (ARM Developer Suite)
ADS consists of a suite of applications, together with supporting documentation and examples, that enable you to write and debug applications for the ARM family of RISC processors. You can use ADS to develop, build, and debug C, C++, and ARM assembly language programs.
The ADS toolkit consists of the following major components:
- command-line development tools
- GUI development tools
- utilities
- supporting software.
See Further reading on page ix for a list of the ADS documentation
From arm.com: RVCT (ARM RealView Compilation Tools)
RealView Compilation Tools consists of a suite of applications, together with supporting documentation and examples, that enable you to write applications for the ARM family of processors. You can use RealView Compilation Tools to build C, C++, and ARM assembly language programs.
… If you are new to RealView Compilation Tools, read the RealView Compilation Tools Essentials Guide for an overview of the ARM tools and an introduction to using them as part of your development project. …
From wikipedia: GCC (GNU Compiler Collection)
… The current stable version of GCC is 4.7.1, which was released on June 14, 2012. … The standard compiler release 4.6 includes front ends for C (gcc), C++ (g++), Objective-C (gobjc), Fortran (gfortran), Java(gcj), Ada (GNAT), and Go (gccgo). Also available, but not in standard are Pascal (gpc), Mercury, Modula-2, Modula-3, PL/I, D (gdc), and VHDL (ghdl). A popular parallel language extension, OpenMP, is also supported. …
From answer to “COSMOS platform and Touch Panel phone. Is this two?” question:
COSMOS only support Touch platform. … The COSMOS platform we launched in W11.12MP, full touch platform, the UE, UI design to meet current user needs, giving users a new experience on a feature phone (class smartphone). … COSMOS support from MRE2.0.
MediaTek Gemini solution to open the dual card dual standby new era [press release (Chiese), Jan 16, 2012]
According to the latest report released by the U.S. market research firm Strategy Analytics, in the third quarter of 2011 has surpassed the United States, the world’s largest smart phone market. With the era of 3G smartphones, the freedom to switch between different networks become increasingly important consumers online increasingly urgent demand for voice and data at the same time, all this in mind, Samsung, Nokia, Motorola and other international manufacturers have access to the dual card dual standby market segments, dual card dual standby mobile phone market has great potential.
At present, a lot of dual sim dual standby smart phone terminal market. However, due to frequent 2G/3G gateway into different countries, roaming and load data download service, dual card dual standby mobile phone prone to continued power a short time, dropped calls and download dropped. Part of the program provider is the blind pursuit of multi-card more than to be ignored these consumers are most concerned about the use of the fundamental problems.
As a leading IC design roots in the mobile phone industry for many years, MediaTek has been a user needs as a fundamental starting point, and constantly develop innovative mobile phone solution. MediaTek years ago, leading the industry to launch dual-card dual standby solutions for the Gemini, the solution has been launched by virtue of the high stability of its platform, the industry’s lowest rate of dropped calls, high system integration and industry-unique low-power, in the short within the time had become the standard one of various mobile phone manufacturers to quickly lead the wave of mobile development.
After continuous R & D and innovation, the United Nations Development Technology Gemini solve the program to achieve a cell phone in a set of chips (BB + RF) of the original architecture, almost does not increase any of the BOM cost of the software to achieve more than one SIM card standby function. Users can be more than one SIM card into a mobile phone in the standby mode to answer any one card calls. Continuing escalation of this program to consolidate MediaTek’s leading position in technological innovation, complete solutions (total solutions) is highly integrated and highly optimized mobile phone hardware and software system architecture, the terminal performance not only to the limit, but also the industry’s lowest power consumption level.
MediaTek recently launched a new generation of dual-card dual standby solutions for the Gemini V2, continuation of the advantages of a the MediaTek total solution complete system solutions that can support two SIM cards operate in 2G/3G networks, the solution for mobile households huge demand of the Internet more to do breakthrough software to optimize the industry’s dual card dual standby program to achieve the only one SIM card during data transmission, another SIM card can receive or make calls, while the standby time with the previous performance the same. Other existing dual card dual standby program, data transmission at the same time, another SIM card is completely unable to voice dial-up behavior. MediaTek Technology Gemini V2 to innovative technologies to enhance the ability to support voice and data synchronization, and give full play to the advantages of dual-card users can enjoy download or the Internet, while answering the phone, avoiding the phenomenon of dropped calls, and truly worthy of the name pairs card dual standby.
Years ago, the three operators in China had dual card dual standby become one of the customized standard, the MediaTek launch of the “true dual standby function will greatly operators welcome. Now is able to switch between the GSM, WCDMA network. The user can no longer have to worry about the bobble in the high-speed Internet access when important calls or call application setting, both to ensure call the Internet correct, they do not particularly change, this is a best of both worlds.
The smart phone’s standby time is short, has been plagued by a number of smart phone users, how do low-power enhancements, MediaTek give full play to the advantages of its total solution, Gemini V2 also achieved a major breakthrough in power on hardware, software and system optimization and innovation, its power consumption is half of the other dual card dual standby solutions can be found: when tested with other programs, Gemini V2 mobile phone standby time is twice that of other programs , but not because of the dual-card feature caused by the wear and tear of standby time. Data upload and download speeds, Gemini V2 to achieve the same industry-leading level in the protocol stack to achieve a great deal of optimization, the program’s data upload and download speed of response is about two to three times faster than competing solutions. become the fastest dual card dual standby solution, which can provide users with an excellent online experience.
In addition, MediaTek uphold from the consumers’ experience starting in Gemini V2 dual-card switching, and choice of Internet user interface (UI) has done a lot more intuitive, more user-friendly design, for example, the user can specify which a card for Internet access, so Internet access will give priority to use this card, which help users to achieve tariff optimization, while ensuring the quality of voice and data to achieve the best.
With a high degree of stability and excellent performance, MediaTek dual card dual standby solution has become the leading fashion benchmark, widely recognized by the major operators, handset manufacturers and users. I believe in the future development, together Technologies R & D and introduced more chip products that meet market and consumer needs, work with partners to promote the Chinese mobile phone industry continue to move toward prosperity.
MediaTek Brings Yahoo! Services Around The World [June 1, 2011]
MediaTek Inc, a leading manufacturer of semiconductors for wireless communications and Yahoo! Inc. (NASDAQ: YHOO), the premier digital media company, today announced a global partnership that will embed Yahoo!’s services into MediaTek’s mobile platform solutions. MediaTek is the world’s largest mobile chipset maker and in 2010, the company shipped over 500 million units for assembly into a wide range of mobile phones distributed worldwide.
Yahoo! will be MediaTek’s first global mobile service partner to deliver mobile Internet services including Yahoo! Messenger, News, Finance, Weather, Mail and other Yahoo! popular services on MediaTek’s MAUI Runtime Environment (MRE). MRE is MediaTek’s new middleware technology designed for mobile developers to deploy services and content for ‘Smart-Feature phones.’
With the launch of the MRE technology and the partnership with Yahoo! and MediaTek, the market can expect more ‘Smart-Feature phones’ to be available at an affordable price. This partnership will also allow users of handsets powered by MediaTek’s System on Chips to easily discover and connect with Yahoo! through its best-in-class products, content, tools and services and help them get the most of the digital world. MediaTek has been working closely with leading handset brands such as Cherry Mobile, Spice Group, Spice CSL and Nexian to develop products based on the MRE technology and it is in ongoing discussions with other brands.
According to Ming-Kai Tsai, Chairman of MediaTek, “MediaTek has redefined the mobile landscape through our partnership with Yahoo!. By integrating Yahoo! services into our mobile platform solutions, we are providing our customers and end users with access to the best experience for hugely popular Yahoo! services like Messenger, Mail, News, Weather and much more. ”
“Our collaboration with Yahoo! makes it more convenient for handset manufacturers to accelerate their speed to market and to reduce their deployment cost of those popular services. This is a significant milestone and a win-win for all parties who can now capitalize on the high growth rate of feature phones happening around the world.”
Rose Tsou, Senior Vice President of Yahoo! Asia Pacific said, “The mobile Internet presents a wealth of opportunity for Yahoo! and our partnership with MediaTek will further connect us with our audiences in growing markets such as Indonesia, Malaysia, Philippines, Vietnam and India where new to Internet users are coming online for the first time through their mobile devices.”
The MediaTek and Yahoo! product development roadmap covers MRE, widget capable ‘Smart Feature phones’ and the Android platform. Services included in the roadmap are Yahoo! Messenger, Mail, News, Weather, Finance, Cricket, Flickr and Answers. More services will be added in the future.
Yahoo Licensed MRE Clients [MRE blog, Jan 3, 2012]
With MRE technology, Mediatek mobile device end user can enjoy powerful and high-performance Yahoo services in low-end feature phone. These Yahoo services include Yahoo Messenger, Yahoo News, Yahoo Weather and Yahoo Finance.
Yahoo Messenger
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- Y!M (Yahoo Messenger) is Yahoo chat client for MRE (formerly VRE) enabled MTK platform phones.
- This version of Yahoo Messenger supports basic features that enables users to do text chat with friends, manage friends, updating profile status, search, Profile picture display, emotion icons, links in chat etc.
Yahoo Weather
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- This is Yahoo Weather mobile client application for MRE (MAUI Runtime Environment) enabled MTK handsets.
- Application provides weather information for cities. Information provided will be either in Celsius or Fahrenheit units. Application provides weather forecast for five days. User can search cities for which he desires to get the weather information or he can also set a city as his favorite by adding it in My locations list. The weather information of favorite cities is displayed in home screen by default.
Yahoo News
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- This is Yahoo News mobile client application for MRE (MAUI Runtime Environment) enabled MTK handsets.
- Application helps to fetch news of various countries. User can make any country as his home country after which news categories of that country will get displayed. User can fetch list of headlines for particular selected category and can view summary of news for any listed headline. If user wants to read full news then application will open yahoo news link for that particular news in browser.
Yahoo Finance
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- This is Yahoo Finance mobile client application for MRE (MAUI Runtime Environment) enabled MTK handsets.
- Application provides information for stocks of various companies by using ticker symbol or searching company’s stock by name. Yahoo Finance application provides graphical representation of ups and downs of stocks of company for different time periods.
MediaTek Announces Global Partnership to Bring Facebook to ‘Smart-Feature Phones’ [press release, Nov 8, 2011]
MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, and Facebook today announced a global partnership that will see Facebook embedded into MediaTek’s mobile platform solutions, enabling users in emerging markets to access Facebook, many for the first time, via affordable mobile devices.
MediaTek is the world’s largest mobile chipset platform provider, shipping over 500 million units in 2010, for assembly into a wide range of mobile phones distributed worldwide. This partnership will allow users of handsets powered by MediaTek’s Runtime Environment (MRE), to better connect with their friends, family and coworkers.
MRE is MediaTek’s innovative middleware technology designed for mobile developers and application providers to deploy services and content for ‘Smart-Feature phones’*. The MRE solution provides millions of users in emerging markets with the ability to enjoy rich online experiences previously available only on smartphones. MRE-enabled devices will enable many users to access leading Internet services, such as Facebook, for the first time.
This global partnership underscores the significant potential to present users worldwide with a gateway to access Facebook. Last year, phones powered by MediaTek chipsets represent over 40% of the overall Indian handset market. With the launch of this global partnership, MediaTek is expecting more than half of its customers in India to adopt its MRE solution.
“Our new partnership with Facebook further reinforces MediaTek’s focus on providing differentiated services and value for handset brands, giving them the means to offer affordable, compelling and differentiated mobile solutions to consumers in key emerging markets such as India,” said Cheng-Te Chuang, Corporate Vice President of MediaTek.
Vaughan Smith, Mobile Partnerships and Corporate Development Vice President of Facebook added, “Every phone should be social and we’re excited to be working with MediaTek to bring Facebook to more devices, in more markets around the world and helping users to connect and share anywhere, anytime.”
MediaTek is currently working with leading handset brands, including Spice Group and Micromax in India, Cherry Mobile in the Philippines, and Nexian in Indonesia to roll out their mobile solutions in these key markets.
MediaTek’s chips have been a powerful force behind the worldwide mobile telephony revolution. In emerging markets such as India, the ability to offer features such as color interfaces, cameras, video recorders, QWERTY keypads and dual SIM capability at a compelling price point has driven the uptake of MediaTek-powered ‘Smart-Feature phones’.
“With MediaTek’s new MRE solution, we are in a position to redefine the mobile landscape and give our users their first mobile browsing and social networking experience on a handset that costs less than US$50,” shared Dilip Modi, Managing Director of Spice Mobility.
“This is a true breakthrough for the industry, and we are very proud to be working with a leader in innovation like MediaTek to create unprecedented value for our users across India, many of whom will access popular internet services such as Facebook for the first time via their mobile device,” added Vikas Jain, Business Director of Micromax Mobile.
*‘Smart-Feature phone’ refers to a feature phone device with Internet functionality
MRE Facebook Client [MRE blog, March 8, 2012]
Facebook helps you connect and share with the people in your life. Now it is available on MRE!
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Boost Up Web Browsing On Smart-Feature Phones [Dec 2, 2011]
Opera Mini mobile browsers to ship worldwide on MediaTek’s MRE Platform
Opera Software and MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced that Opera Mini, the world’s most popular mobile browser, will be included into MediaTek’s Runtime Environment (MRE).
MRE is MediaTek’s innovative middleware technology designed for mobile developers and application providers to deploy services and content for “smart-feature-phones”. The MRE solution provides millions of users in emerging markets with the ability to enjoy rich mobile Internet experiences previously available only on smartphones. This partnership will allow users of handsets powered by MediaTek’s MRE platform to enjoy the best and most affordable Internet experience.
Opera Mini has an impressive user base, with more than 140 million users each month and growing. It offers cloud-assisted browsing, where its renowned compression technology reduces data load by up to 90% before sending it to phones. This results in a much faster page-loading speed on a limited bandwidth connection, as well as lower data costs.
“MediaTek and Opera Software share the same vision. We both want people to access the Web on their own terms,” said Lars Boilesen, CEO of Opera Software. “The MRE solution makes the traditional feature phone smarter and, at the same time, delivers the best user experience. Opera Mini makes the Web an enjoyable experience regardless of bandwidth. We look forward to seeing the next billion people to surf with Opera Mini on MRE-powered phones.”
MediaTek is the world’s largest mobile chipset platform provider, shipping over 500 million units in 2010, for assembly into a wide range of mobile phones distributed worldwide.
MediaTek Announces Global Partnership with Mobile Gaming Giant Gameloft [press release, May 11, 2012]
MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions and mobile gaming giant Gameloft, today jointly announced a global strategic partnership. Through this global partnership, Gameloft is committed to fully support a wide range of gaming applications available on MediaTek’s feature and smartphone platform solutions. Gameloft has also begun to allocate dedicated R&D team and resource for the development of games that will run on MediaTek’s mobile phone platforms.
To meet the rapid growth of the mobile gaming market, MediaTek and Gameloft have come together to offer high quality games supported by MediaTek’s high performance mobile platforms that can meet the increasing demands of gamers regarding speed and multimedia features. MediaTek announced that its newest single chip solution, the MT6255, which will come pre-loaded with Asphalt 6: Adrenaline™, Gameloft’s most popular racing game to date, as well as trial versions of three other best selling games, Block Breaker 3™, Assassin’s Creed Revelations™, and Brain Challenge 3 : Think Again!™—all at no extra cost to manufacturers. Besides, Gameloft has already begun to funnel resources and game development teams in France, Vietnam, and China to create games that will run on MediaTek powered mobile platforms.
According to a recently released market survey carried out by IT research firm SuperData, mobile gaming will be a $7.5 billion market by 2015E, more than triple the $2.7 billion that it is today. The survey also showed that Asia is currently the largest market for mobile gaming, with revenues forecasted to total $3.2 billion by 2015E, accounting for 40% of the total market. Since anywhere between 3.5% and 10% of mobile free-to-play game audiences will convert to paying users, this market segment offers a large potential for growth.
Regarding the new partnership, Ching-Jiang Hsieh, President of MediaTek said, “With the rapid development of mobile Internet applications and services, mobile gaming has become one of the leading value-added service and application in the mobile Internet industry today. I see our new partnership with Gameloft as a major breakthrough for the industry: With MediaTek’s strong platform customization and Gameloft’s cutting-edge game development capabilities, together we will be able to bring even more value to mobile phones, thereby increasing the competitive edge of our customers among mobile phone industry.”
“We look forward to leveraging MediaTek’s high performance mobile platforms to deliver our exciting selection of games to even more users worldwide. Gameloft has been present on the Chinese market for over 10 years with strong business and creation teams and we are thrilled to increase our presence to propose our games to the billion phone users in China. In sync with Mediatek’s philosophy, Gameloft’s mission is to provide a good experience to the mass market at a very reasonable price. Together we share the vision of leveraging our mutual technology and experience to serve the needs of the public in the broadest way possible,” said Gonzague de Vallois, senior vice president of Gameloft.
George Zhu, CEO of TECNO, leading handset brand in Africa also noted, “As one of MediaTek’s strategic partners, the concept of “entertainment” has always been one of the mainstays of the TECNO brand name. We are very excited about the benefits that this strategic partnership will bring to our users. As these two giants combine their strengths, it will allow us to develop even more competitive products which will bring our customers an even better gaming experience.”
MRE Gameloft Games [April 11, 2012]
Gameloft is the leading mobile game provider in the world. Now end user can enjoy the high quality Gameloft games on MRE devices!
Asphalt 6
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Assassin Creed
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Block Breaker 3
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Brain Challenge 3
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See also:
– App Review [list of posts on the MRE blog], currently 20
– MRE Eco-System Introduction [MRE blog, Feb 3, 2012]
– MRE Version Number Unveiled [MRE blog, Jan 16, 2012]
MoMagic develops App Store solution on MRE platform for application users [MoMagic press release, March 29, 2012]
MediaTek Inc, a leading fables semiconductor company for wireless communications and digital multimedia solutions and MoMagic Technologies which focuses on mobile platform operation and mobile Internet service for India and other emerging markets have tied up for an application development platform called Maui Runtime Environment (MRE).
Developed by MediaTek MRE allows developers to realize smart phone solutions for feature phones. MRE provides application developers high speed tools and rich API set to provide users a rich experience. Phones with MRE Platform are closing the gap with smart phones.
MoMagic has developed App Store solution on MRE platform to help application developers an efficient way to distribute and monetize their application. The App Store will be first launched with a large number of MRE Applications in all areas like Utility, SNS, Games, Entertainment and others. Solutions provided are of a wide variety for the huge feature phone customer base.
“MoMagic Technologies is always focused to work on middle and low end of the phone user. The App Store has been developed keeping in mind the feature phone users”, said Mr. Arun Gupta, CEO, MoMagic Technologies.
“The App Store is very easy to use and navigate around. Store allows users to view newest MRE Applications, most downloaded ones, highest rated ones and also the ones downloaded for future reference”, he added.
Using this App Store user can view the Application details like description, user rating, download, etc. A number of Applications and games can be downloaded with the ease of the download manager and one can pause/resume downloads as preferred. All these features seem to take feature phone one step closer to smart phones in terms of application experience.
It seems in a very short span of time the difference between smart and feature phones would fade awayand it’s all because of platforms like MRE and solutions like MoMagic’s App Store.
“For the past few years we have seen multiple new entries in the mobile platform and hence development of Applications and App Store as a result. All this seems great but the development of Applications has been mostly directed towards smart phones and feature phones have been left out. We should not forget that worldwide feature phones market share is close to 70%, and in Asia and Africa it is still close to 80%”, Mr. Arun Gupta further said.
MediaTek Announces Investment into Spice Digital [press release, July 29, 2011]
MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced that it has invested into Spice Digital Limited, one of the largest Mobile Value Added Services ( mVAS ) player in India with presence in close to 20 countries. In connection with this agreement, MediaTek will invest US$ 20 million.
According to a recent study of Standard Chartered, India is set to become the fastest growing major economy in the world by 2012. It is also estimated to have more than 700M mobile subscribers, with that number still increasing. In addition, market research states that the mVAS (mobile value added service) market in India will enjoy over 100% growth over 5 yearsand will constitute about 10% of total telecom revenue for Indian operators. It is no surprise then that an increasing number of Indian operators are putting attention and resources into mVAS, which represents a huge market potential.
Spice Digital Limited was incorporated in 2000 and has become one of India’s top VAS companies with over 30M subscribers. It offers innovative solutions for telecom operators, enterprises, and government agencies using different mobile connectivity mediums of Voice, IVR, SMS, USSD, WAP, 3G & Mobile Applications. The company is well connected with all major operators in India including Bharti Airtel, Vodafone, Reliance Communication and also enjoys accelerated penetration into Africa and SE Asia.
During the signing ceremony held in MediaTek headquarters this morning, Mr. Ming-Kai Tsai, Chairman of MediaTek said, “The mobile Internet presents a wealth of opportunity for MediaTek and we believe India’s IVR and mVAS market, where Spice Digital’s core business lies, will continue to grow. Through this investment in Spice Digital, we are hoping to capitalize on its market potential and reinforce its strong operator relationship and leading position in India, SEA, Africa and Middle East.”
Dr. Bhupendra Kumar Modi, Chairman of SPICE Global stated, “India is already one of the fastest growing large economies in the world and has the potential to become the world’s largest economy. Mobile Internet can help India achieve double digit GDP growth rate and our businesses continue to lead the country’s move on the digital highway with mobile Internet. MediaTek is well known as a leading Mobile IC solutions provider. We are very excited to have signed this definitive agreement with MediaTek. Through this investment, we can together offer more advanced and innovative services and enrich the digital mobile life of the future.”
Oversea MRE Devices ! [MRE blog, April 6, 2012] [$73, 2.8”, 320×240]
With MRE technology, Mediatek worldwide customers can easily to introduce the local applications for product differentiation. So more and more MRE enabled low-end feature phone devices appear in the market with rich mobile games and mobile internet services today.
Thailand:
GNET G818 GNET G817 i-Mobile U3502 I-Mobile S501T India:
Lava C51 [$42] Micromax MX434I Micromax X55 [$55] Spice M-5225 [$32] Wynncom O-888 Wynncom O-777 Wynncom O-799 Karbonn K55 [$51] LAVA KKT 36 [$64] FLY DS123 FLY E141 TV Micromax X288 [$36] Lemon Duo 339 Super [$45] Spice M-5885 [$60] HT Mobile I9 HT Mobile 404 Micromax X368 [$38] FLY Q100 [$43] Micromax MX151 [$23] iBall i225 [$22] Philippines:
Cherry Mobile W2 Star Mobile T501 Star Mobile B501 Star Mobile B302 Indonesia:
Nexian G963
[$74, 3.5”, 480×320]Nexian G965
[$85, 3.5”, 480×320]Nexian G790
[$58, 2.8”, 320×240]IMO M306 Nexian G855 Nexian G967 Venera AKTIV215 IMO M180 [$45, 2.6”, 320×240] Malaysia:
Spice CSL BB 7500 Spice CSL DS 720 Africa:
Tecno T77 [$54] Tecno HD70 Mi-Fone MI-400 G-PLUS L300 G-PLUS S20 G-PLUS L300 Tecno T50 Tecno T281 iTel E7
[$73, 2.8”, 320×240]LaTAM:
Verykool I605 BLU Deco Pro BLU Deco Other:
MegaGate W750
[$99, 3.5”, 480×320]F-Mobile B8300 [$67, 3.2”, 400×240] Pakistan Vietnam
Nokia Design direction
Update: Marko Ahtisaari, Head of Design at Nokia on the Lumia 920 & Working with Microsoft [minipcpro YouTube channel, Oct 31, 2012]
People Made: Conversations with Nokia Designers [published on nokia YouTube channel, July 31, 2012] prepared for and shown on “People Made – An Exhibition on Nokia Design” held between June 8 and September 2 in Helsinki (see the background information below)
Views/opinions/answers by Marko Ahtisaari, Executive Vice President, Design; member of the Nokia Leadership Team, leading both the industrial design and user experience design activities in Nokia.
Part 1 – PT1 [7:27] What is the biggest motivation in your role?
… [8:23] I think for me it’s that moment when you see the impact of something that you and the team have been working on, in the hands of people and then inventing ways to use it, or take it further that you haven’t anticipated. And I think that power to cross things that spread imagination and empower people. That’s for me, and recently that’s been with N9 getting feedbacks in how the imagination races when you start using it. And us of course making it better. [8:57] …
Part 2 – PT2 [3:30] Where will Nokia Design have its biggest impact in the future?
… [4:12] Further to what Pete’s said one particular topic of the studio, the scale is what we can do to impact change at extremely affordable price points. And that’s something that our industry as a whole does not get excited about, innovations in that area. They care more about something very expensive parts of the portfolio like get N9 and innovating then. What we can do under 10 Euros, under 5 Euros that changes everything, in a way from bottom up? That’s very unique and exciting. [4:51] …
Regarding the design aspects of N9 see:
– Nokia to enter design pattern competition for 2011 smartphones with MeeGo [this same Experiencing the Cloud, Dec 9, 2010 – Jan 31, 2012]
– Nokia N9 UX [?Swipe?] on MeeGo 1.2 Harmattan [this same Experiencing the Cloud, June 24 – Oct 27, 2011]
[12:40] What are the foundations Nokia Design is laying for the future?
… [13:20] I think if continue on that, real challenges: we make things that are combinations of hardware and software, how do we make the business more sustainable in value in the sense that we can give you a phone and it has a longer life. May be one phone is enough, and then you can upgrade it, even in our industry where the cycle is so fast, and constantly the engines and technologies are changing. How do we get to a path that isn’t built on selling you one every year. [13:47] … [15:01] I think one area where we have huge opportunities: we are just at the beginning. If you look at the physicality of the object, how natural we can make the interaction? I think the N9 shows a bit, it’s like a hint. It’s the first glimpse of how you can make something so direct. Peter and I were last summer in the garden of alvaraldos (??), experimental summer house muratsava (??). In the garden walking with Nato Fukasawa (??), and we were asking “Do you think that your view of just discovering the most natural way that a person relates to an object, is that already applied to software?” He said: “Oh, maybe now with this directness .. I’m coming to see you next year.” [response] “Oh, we have something to show you.” We are just at the beginning, so how do we make common technology to recede to the background, so feel even more natural, it becomes even more invisible? [15:58]
Part 4 – PT4 [8:28] How will our industry change in the next decade?
… [10:29] I think an important angle to that which Peter you raise as we have to develop ways of moving very quickly in five to ten months, not just five to ten years, and catch the small things that change. Couple of the things that are certainly happening: one is this drive to lower and lower cost, then almost anyone can manufacture, and how is that changing? Everything sort of democratization of making things, not only effecting our industry. And then the other one, which is I think good all around us, more democratization of information, so we are getting to a point where there will be a website for that. And this period of having apps as a way to structure our relationship with these devices probably [will end]. It’s difficult to see from the inside, because this is all moving so fast, but I think we’ll see more of the open web again, then we’ll have the Internet back. [11:22] … [12:02] We are very sensitive to small beautiful ideas [12:05]
[15:25] What will the Nokia Design legacy be in the future?
… [16:00] Potential. [16:07]
Important presentation video (you should click on the image to go to a video page):
see at: http://www.dmi.org/dmi/html/conference/europe12/CE12AHT.htm
More information:
– Nokia Lumia (Windows Phone 7) value proposition [this same Experiencing the Cloud, Oct 26 – Nov 2, 2011]
– Designing smarter phones–Marko Ahtisaari (Nokia) and Albert Shum (Microsoft) [this same Experiencing the Cloud, Nov 23, 2011]
– Best practice industrial and user experience design – Nokia and Microsoft [this same Experiencing the Cloud, Dec 17, 2011 – Jan 31, 2012]
– Less focus on feature phones while extending the smartphones effort: further readjustments at Nokia [this same Experiencing the Cloud, June 25, 2012]
Simplifying core use of phones is the focus of innovation at Nokia [The Hindu, July 24, 2012]
Nokia recently launched Lumia 610 in India, adding to the Lumia 800 and 710 ranges it already has in the market. It plans to launch the Lumia 900 here soon.
Marko Ahtisaari, Executive Vice-President (Design) of Nokia, spoke to M. Soundariya Preetha on the “heads up” design principle the company is adopting for its products. The correspondent was at Nokia’s design studio in Helsinki recently at the invitation of the company. Excerpts:
How does Nokia plan to take forward its “heads up” principle in the design of its products?
It is about designing products in a way that allows people to have heads up. It means the user interface is planned simple, is easy to quickly look at and does not demand more of your attention. I am interested in the 50 to 100 everyday things that people do with the phone that can be designed better. It involves combining innovation in hardware and software, an innovation that helps simplify the core use of the phone. One example is what we already have in the market for some time: on the screen of your phone you see the time and some view of what notifications you would have on the screen even when the phone is taking almost no power.
Why is design an important factor in a product?
We are ahead in a trend towards purity and we are focusing the product on essentials. People appreciate attention to detail. Our key challenge and opportunity is how do we apply the same level of attention to detail to all ranges of our products. Another challenge and opportunity is material innovation. We are meaningfully different because of quality and attention to details.
Apart from design, the other key areas that make the difference include photography features, continuous innovation, and features related to location and motionon our products (maps, drive, and public transport).
Can you elaborate on the plans to extend some features of the smart phone to all ranges?
Nokia recently launched Asha touch products, introducing full touch experience at new price points. We can do these kinds of hardware and software combinations, and can innovate in all price points. We cannot restrict innovation to a category of products.
Moving forward, how would you like Nokia products to be?
It is designing phones that feel human yet extremely advanced, phones that feel very organic and beautiful. Design is the soul of a product. It plays a key role in building products better, and it means consequent attention to details.
Design also stands out by re-imagining and improving what people do every day with phone and designing the product is such a way that people can use it heads up. It allows people to be connected to each other.
More information: Smartphone-like Asha Touch from Nokia: targeting the next billion users with superior UX created for ultra low-cost and full touch S40 devices [this same Experiencing the Cloud, July 20, 2012]
‘Heads up’ urges Nokia design chief [Yle News, March 15, April 27, 2012]
Nokia’s Executive Vice President of Design Marko Ahtisaari says in an interview with the Finnish business magazine Optio that he is looking for the next big leap in mobile user interfaces. It is likely to involve a radically different way of using mobiles.
His vision for the mobile phone in 2020 can be summarised in two words: ’heads up’, meaning that users should be able to use their phones without hunching over a screen.
He refused to give further details, beyond saying that it is a breakthrough, and that it involves speech commands.
In a word association exercise, Ahtisaari said that Google’s Android operating system was a ‘business innovation’, and had ‘nothing to do with design’. He also described Apple’s iPad as ‘significant’, and the iPhone as ‘five years old’.
Nokia’s forthcoming Lumia 900, meanwhile, was described as pure, clean-cut and simplified.
Ahtisaari also said that work on developing tablets takes up around a third of his time at Nokia.
On Windows Phone and Nokia’s ability to change its preferred smartphone platform, Ahtisaari told Optio that he believes the premise of the question is wrong.
”First you have to ask, how much Windows Phone should change,” said Ahtisaari. If the operating system is modern and holistic, it is pointless to change it. The most important thing is to get it into the market quickly, because the life cycle of operating systems is not eternal. Evolution always goes in 7-8 year leaps.”
Nokia’s Lumia 800 and 900: Seamlessly Simple [Industrial Designers Society of America (IDSA), July 10, 2012]
Q & A with Marko Ahtisaari, EVP, Nokia Design
The smartphone market is highly competitive with two operating systems currently taking a large share. With the Lumia project, Nokia set out to establish the Windows Phone operating system as the third ecosystem, building awareness of its superior capabilities and simplicity and to establish Nokia as the leader of this ecosystem. Designed to be singularly beautiful, and as the lead product in Nokia’s brand renewal, the Lumia line also expresses the company’s strategy to stand out in a crowded marketplace.Which came first the device or the OS? Which side (Nokia or Microsoft) initiated this unique collaboration?
The Nokia Lumia 800 and Nokia Lumia 900 were both born out of work that was ongoing at Nokia and Microsoft before the two companies came together.
Early on, we discovered that the design principles that inspired us were closely aligned. These are phones that aspire to be human and advanced and authentically digital. The design approach is one of rich reduction: on-screen and off this required taking away the unnecessary to make a simpler more beautiful phone. It’s a phone that puts your stuff front and center, where you want it and can find it fast. These phones are designed to be unobtrusive when in use, with the boundary between physical and digital interaction blending seamlessly at the curved edge of the screen. The result, we think, is a very natural fit.
Did the Nokia ID team have strong UI competency? What challenges did you face designing within Microsoft’s OS constraints?
Yes, our Lumia team comprises ID and UX designers. One of the biggest challenges was controlling the screen temperature of the colors. Nokia Lumia smartphones are colorful to the core; color is inherent in the polymer of the polycarbonate and central to the digital experience with the live tiles. The bold and simple look of these matching colors belies the amount of work that went in to achieving them, but the results we ultimately achieved on the Nokia Lumia 800 and Nokia Lumia 900 really make the Windows Phone interface pop.
How was research divided among the two teams? Did Nokia focus on materials? How did the Nokia team contribute to user research?
Yes, we started with materials; it’s the material that determines the form and function of the phone. Polycarbonate is RF transparent, so it offers great antennae performance and, as we mentioned, it allowed us to ingrain the color in the monobody. It’s a material that Nokia has mastered, and we continue to innovate with. For the Nokia Lumia 800 and Nokia Lumia 900, we used post-processing techniques more commonly reserved for metals, such as machining to tight tolerances and removing part lines, ensuring there is high definition in every detail to create a premium look and feel for the phone.
What was the biggest obstacle to getting the monobody to flow seamlessly into the glass display?
We had immense challenges in manufacturing and assembly. We had to rethink the entire construction concept and design of the phone from the inside out. We had made the body out of a single piece of polycarbonate, and so we needed to assemble the internals and chassis in sections through the screen aperture, locking them together with a puzzle joint. It was a bit like putting a ship inside a bottle.
We minimized flaws by using as few parts as possible, simple split lines, tight tolerances and relentless attention to detail. All of the openings on the body were machined after the injection moulding and then coated to achieve the most precise geometry possible. In this way we were able to produce the part with a level of craftsmanship normally associated with materials like metal.
How did you arrive at using cyan, light magenta and lime as the colors for the body?
We wanted to create a timeless device, not follow a trend. The colors of our Lumia range are inspired by the CMYK color palette, traditionally used in the print industry. These colors are distinctive modern design icons, people recognize them instantly. As primary colors they contrast with each other, and when you put them together with a black glass screen they produce a bold confident look that really stands out.
This line has a strong heritage including the N9. Which design element was most difficult to leave behind or omit in iterating from the N9 to the Lumia 800 (or Lumia 900)?
The Nokia Lumia 800 was a continuation of the Nokia N9 approach, iterated to get the best of Windows Phone. We brought back the camera key to better integrate the camera experience and utilized 64 pixels of screen real estate to position the soft keys.
With a less but better design attitude, everything has to earn its place. We took the same approach with the inbox accessories. Starting with the USB cable, we designed the USB plugs with aluminium caps to make the plugs as compact as possible. We created the European charger as a pure cylinder, matching the 38mm diameter socket. The high gloss white finish from the tool meant we could avoid the use of protective coatings while allowing tight draft angles and masking visual imperfections.
What do you hope will be the design legacy of these devices?People want phones that look great and work brilliantly. The best legacy for Nokia Lumia 800 and Nokia Lumia 900 would be to continue to give people exactly that.
Background
Helsinki is World Design Capital 2012 [Conversations by Nokia, Jan 5, 2012]
Marko Ahtisaari, Nokia SVP Design, said: “WDC Helsinki 2012 is a natural way for us to talk about our latest design innovations such as the Nokia N9, in which the physical form, materials, user interface and services – such as Nokia Maps – are combined into one seamless whole.”
One of the many activities Nokia will organize during WDC Helsinki 2012 is a design exhibition. The exhibition provides people with a unique chance to learn the stories behind some of the Nokia devices that changed the world. In addition to looking at the past 20 years, the exhibit will also give insights into the future design of mobile products.
People Made: An exhibition designed and curated by Nokia Design [nokia YouTube channel, June 11, 2012]
People Made: Nokia’s role in shaping the industry and changing lives [page on the Nokia website, June 8, 2012]
People Made, an exhibition as part of World Design Capital Helsinki, looks across more than 20 years of Nokia product making, and explores how Nokia has been instrumental in changing the lives of millions of people around the world.
Life-changing design innovations
The exhibition charts some of Nokia’s most significant design innovations, starting with the first mass-market digital handset (Nokia 1011) through to Nokia’s latest game-changing products (Nokia Lumia 800 and 900). The exhibition also offers a compelling human dimension. A new film installation called ‘Changing Lives’ shares personal, and often emotional, perspectives on Nokia and the influence of its products as told by the people who have had their lives changed by mobile technology.
Nokia designers on the future of the mobile industry
A further aspect to the exhibition is a film documenting a series of conversations between Nokia designers on the role they and design have in shaping the future. Taking a speculative look at the coming decade, the designers explore where the industry is headed, the challenges and opportunities that will exist, and they share their thoughts on advancing design and the Nokia legacy.
Innovations in colour
A special addition to the exhibition during its stay in Helsinki is a studio called the Colour Space. The Colour Space explores and celebrates the process of design. At the centre of the space is a permanent showcase of Nokia’s latest innovative experiments with colour.
Showcasing the brilliance of the Finnish design community
The Colour Space will also host ongoing workshops, seminars and ‘live’ projects where experts from the Finnish design community show some of the practices and methods behind the brilliant design work that permeates our lives.People Made — Nokia Products That Changed The World will be at the Cable Factory in Helsinki from June 8.
People Made at WDC Helsinki [Brand Book Nokia blog, June 13, 2012]
People Made, the exhibition which premiered last year at London’s Design Museum, has just re-opened its doors at World Design Capital Helsinki. As part of the Hi Design expo at Kaapeli, People Made looks across more than 20 years of Nokia product making, and explores how Nokia Design has been instrumental in changing the lives of millions of people around the world.
“The exhibition charts some of Nokia’s most significant design innovations, starting with the first mass-market digital handset, the Nokia 1011, through to Nokia’s latest game-changing products such as the Nokia Lumia 800 and 900.” says Stephen White, who curated People Made. “But the exhibition also takes a speculative look forward in a film with Nokia designers discussing their role in shaping the future.”
New elements for this run of the exhibition include a film installation exploring the influence of Nokia and its products as told by Nokia customers. The second new element is a space celebrating the process of design through ongoing workshops and seminars where experts from the Finnish design community share some of the practices and methods behind the brilliant design work that permeates our lives.
People Made – Nokia Products That Changed The World
8 June – 2 September 2012
Merikaapelihalli, Kaapelitehdas, Helsinki
Entrance freeDesign and curation: Nokia Design
Exhibition build: Eastway, Fair Factory
Photography: Angel Gil
Working harder: How industrial design influences Nokia [Nokia Connects, June 30, 2012]
If there’s one thing that practically everyone agrees on when it comes to Nokia phones, it’s that they’re beautifully designed and as hard as nails.
In fact, there’s an entire genre of memes dedicated to their amazingly indestructible nature. While these are loads of fun, what they show is how the principals of industrial design underpin everything Nokia does. But what exactly is industrial design and why has it been so central to Nokia’s evolution, and reputation?
What is industrial design?
Industrial design has its roots in early 20th century Germany. Eager to catch up with the industrial dominance of Great Britain and the USA, the state began to sponsor efforts to integrate traditional craftsmanship with industrial mass production. This eventually led to the creation of the Bauhaus, a school which was a to have a huge effect on not just industrial design, but everything from typography to architecture. Rather a group of like-minded creatives, than an explicit design philosophy, Bauhaus inspired designers embraced the new era of mass production as an opportunity to create art for living. You don’t have to look far to see their influence.
The World Capital of Industrial Design
In fact, if you happen to be anywhere near Helsinki, this year’s World Design Capital, you can just jump on a tram to the Cable Factory. Here you’ll find Hi Design 2012, an exhibition dedicated, to showcasing Finland’s amazing wealth of industrially designed products. Finland, as well as the other Nordic countries, industrialized a lot later than most of Western Europe. As a result, the Nordic countries were better able to preserve their traditions of craftsmanship and integrate them into commercial production. Today, the Finns produce a huge selection of carefully constructed mechanical masterpieces, everything from stunning lifts by Kone to kick ass snowmobiles from BRP Finland. Then, of course, there’s Nokia.
People Made
Nokia helped put Finnish Industrial design craftsmanship on the map, so it’s no surprise an entire floor is dedicated to mobile tech. The exhibition, People Made, which first kicked off at the London Design Museum, looks back over 20 illustrious years. From classics like the first mass-market digital handset, the Nokia 1011, right up to the Nokia Lumia 800 and 900, you get a real sense of Nokia’s design heritage. The beauty of these devices, as well as accessories like the Nokia Play 360 and Nokia Luna, are great examples of how industrial design has evolved over the decades. We’re sure that those early German design pioneers, from almost a century ago, would have approved.
See also: Nokia Products That Changed The World: Stephen White [Nokia Connects, Dec 7, 2011]
Qualcomm’s critical reliance on supply constrained 28nm foundry capacity
KEY UPDATES: TSMC Board of Directors Meeting Resolutions [TSMC press release, Nov 13, 2012]
Hsinchu, Taiwan, R.O.C. – November 13, 2012 – TSMC (NYSE: TSM) today held a meeting of the Board of Directors, which passed the following resolutions:
1. Approved capital appropriations totaling approximately US$2.975 billion for the purpose of expanding advanced process capacity, construction of 12-inch GigaFabstm, and installation of facilities systems.
2. Approved R&D capital appropriations and 2013 sustaining capital appropriations totaling approximately US$209.5 million.
3. Approved the issuance of no more than NT$45 billion (approximately US$1.53 billion) in unsecured corporate bonds in Taiwan to finance TSMC’s capacity expansion.
4. Approved the subscription of NT$1.24 billion (approximately US$42.28 million) in new shares to be issued by TSMC Solid State Lighting Ltd. in 2013.
5. Approved the subscription of NT$636 million (approximately US$21.63 million) in new shares to be issued by TSMC Solar Ltd. in 2013.
TSMC sees orders returning for its 28nm process [DIGITIMES, Nov 8, 2012]
In first-half 2012, Taiwan Semiconductor Manufacturing Company (TSMC) saw its 28nm process lacking enough capacity, forcing customers such as Qualcomm to shift orders to United Microelectronics (UMC), Globalfoundries, and Samsung.
However, TSMC has been seeing orders returning from tier-one customers such as Qualcomm as it solves the capacity issues.
According to TSMC’s financial forecast for the fourth quarter, revenues will show a single digit decrease compared to the third quarter. Market observers expected TSMC to see an on-quarter decrease of 15% in its fourth-quarter revenues. But due to sufficient 28nm capacity, orders have been returning and revenues are likely to be higher than expected. TSMC forecasts revenues from the 28nm process will exceed 20% in the fourth quarter.
UMC recently announced its 28nm process progress, which has been delayed due to lower than expected yield ramps. UMC noted that 28nm process gross margin has been lower than its average gross margin, and the firm originally planned to increase revenues from the 28nm process to 5% of total revenues by the end of 2012. But the firm has become conservative about the progress, and hopes that among total revenues in December, 5% will be from the 28nm process. Revenues from other processes such as 40nm will likely reach 15% of total revenues before the end of 2012, ahead of schedule, according to UMC.
China-based Semiconductor Manufacturing International Corporation (SMIC) plans to put 28nm process into volume production at the end of 2012. Despite the relatively slow pace on expanding 28nm capacity, the China government has been subsidizing local IC design firms. If local IC design firms enter the 45nm and 28nm process market, the government reportedly will subsidize up to 50% of reticle costs.
Note from the Reticle article of the Wikipedia: Photomask – plate with holes or transparencies used in photolithography integrated circuit fabrication also called a “reticle”
QUALCOMM Incorporated Management Discusses Q4 2012 Results – Earnings Call Transcript [Seeking Alpha, Nov 7, 20]
…
QCT had another strong year, with record revenues up 37% year-over-year, driven by record shipments of 590 million MSM chipsets, which were up 22% year-over-year. In the fiscal fourth quarter, we shipped approximately 141 million MSM chipsets, above the midpoint of our prior guidance.
Revenue per MSM was up approximately 9% sequentially, driven by a greater mix of multimode 3G LTE devices, which more than doubled quarter-over-quarter and made up approximately 1/3 of our shipments exiting the quarter as expected. Similarly, shipments of our new dual-core MSM8960 tripled quarter-over-quarter as demand for our integrated application processors continues to grow.
Demand for our 28-nanometer products remained strong, including significant design activity on our follow-on chipsets. As expected, we ramped our 28-nanometer supply significantly in the fiscal fourth quarter, and we remain on track to match our current 28-nanometer demand profile exiting the December quarter.
…
We believe our first 28-nanometer Snapdragon product, the dual-core MSM8960 with integrated 3G/LTE has become the global standard for combined performance and battery life, powering recent flagship devices such as the Samsung Galaxy S III, the HTC 8X, the Motorola RAZR M and the new Nokia Lumia phones.
As carriers deploy LTE networks, they are looking to Qualcomm as the leader in multimode LTE for smartphones. For example, KDDI, NTT DOCOMO and SoftBank announced 27 new smartphones in Japan in October, and 24 of those were powered by Qualcomm Snapdragon processors.
Since releasing the MSM8960, 15 OEMs have launched devices with this chipset across 19 carriers around the globe. The 8960 was our fastest integrated product to ship
10010 [as later corrected in the discussion] million units.Our OEM customers have also moved quickly to adopt the Snapdragon S4 Pro, which includes our latest Adreno 320 GPU, 4 Krait CPU cores and is paired with an MDM9x15 multimode LTE modem. Early reviews show that this product has set a new bar for multitasking and graphics performance. The first OEM devices based on this platform include the Google Nexus 4, LG Optimus G and Xiaomi MI2, and we expect more leading devices on this platform to be announced soon.
Smartphone demand in emerging regions is growing rapidly, and we continue to invest in our Qualcomm Reference Design program to help service a new group of emerging customer accounts. The program now has over 40 OEM customers and 100 commercially launched devices. And this quarter we expanded our road map to include the new Snapdragon quad-core MSM8x25Q and our new 28-nanometer based MSM8930 with an integrated global modem.
…
As we mentioned on the last call, we expect a strong December quarter for QCT as our supply of 28-nanometer chipsets continues to ramp and our partners launch a broad lineup of handsets for the holiday quarter. We are expecting record MSM shipments of between 168 million and 178 million units in the first fiscal quarter, up approximately 19% to 26% sequentially, with revenue per MSM also up sequentially.
… Question-and-Answer Session …
Q: … could you talk a little bit about what’s going on with ASP at the lower end? Obviously, MediaTek is starting to do a little bit better. Are you seeing more price pressure there? …
… On the low end, it’s pretty much playing out the way that we’ve discussed and/or described over the last year or so, which is pretty competitive market at the low end. It’s very crowded a bit competitively, and people are really pricing aggressively in order to get share or to maintain share. So we expect that to continue to some degree as we talked about for some time. …
…
Q: You’re upping estimates for emerging market devices in 2012 by $15 million. Could you talk about that? And do you have thoughts on how much of the China market can actually migrate to 3G and 4G? There is a bit of a negative case out there that EDGE plus WiFi is a sufficient smartphone experience for some, given the density of WiFi hotspots in China, and even like iPhones already on the China Mobile network.
… If we look at the EDGE smartphone market, I mean, we believe that‘s a transitional step. Obviously, people aren’t going to be satisfied with the EDGE experience when it comes to the kind of content that many people are consuming on their smartphones, high-bandwidth content like video. The other thing is WiFi is going to tap out because it’s going to be interference limited. And the nice thing about the licensed band technologies that you can cause the base stations to manage interference among themselves. And that’s the kind of technologies that we’re going to be bringing to the market over the next few years. And those, I think, will drive the kind of capacities of the network at very, very much decreased cost points. So the wireless operators are going to be in a position to really supply a lot better data experience, lot better quality of service over the 3G and 4G networks. And so while we love WiFi and we sell an awful lot of WiFi through Atheros, we believe in it for offload, it’s not going to be the solution for the mass of smartphones and tablets going forward.
Q: … You had said earlier that you would expect supply to only match demand later in the second half of the December quarter. Does that mean that you will still be working off demand in the March quarter? Is that the implication of that statement?
…
With respect to seasonality, let me clarify my comments. For the fourth quarter, we have been talking about how we thought that exiting the fourth quarter we thought supply and demand of 28-nanometer would be matched. By implication, the starting point or the beginning part of the quarter, meaning the October and September time frame, we are still burning off excess or not enough supply. And by the way, these are calendar quarters. So I’m talking about the December quarter. Now going into March, we feel that we have supply and demand imbalance. And we think that, that will be the case, really, exiting the December month. So hopefully that clarifies it.
Q: … I wanted to follow up on an earlier question related to device ASPs. I think Mike Walkley has asked about when we might expect to see the growth in emerging market start to have downward pressure on ASPs. At least, how we should think about that qualitatively? …
[William E. Keitel – Chief Financial Officer, Principal Accounting Officer and Executive Vice President] … On the device ASP, emerging markets having a larger effect on the total average. The — although emerging market units are growing faster than the developed markets are, the total dollar value of the developed TRDS [Total Reported Device Sales] is far greater than the emerging market TRDS. And so we’re ways away from that crossing over where emerging market dollar value is equal to or greater than the developed market. But I think we’re planning a little more color on this next week. So I’ll leave that point there. …
Q: And just to follow up on ASPs, my understanding is that the strong smartphone adoption that’s happening in the emerging markets has been driven in part because the smartphone ASPs have come down. I think, Paul [Jacobs, the CEO], you were talking recently about the price points getting to $100 and, at some point, maybe going down as low as $50. And I’m just trying to reconcile that with the comments around ASPs at the low end running up, and hence, supporting the outlook of flat to up ASPs in 2013.
[Derek K. Aberle – Executive Vice President and Group President] Let me just try to take part of that, and then if Paul wants to add on. I think there’s still — even though the pricing from smartphone is coming down tier, which obviously is a positive for driving growth, there still is a meaningful gap between sort of the lower-end smartphone and the low-end 2G or 3G feature phones that have been sold before those became available. So as we look out and we see the trends, I think we do continue to expect, even as the prices come down, a combination of more people buying at a higher price than they were historically on a feature phone as well as people migrating to even the higher-tier devices will provide some stability there.
…
END OF KEY UPDATES
Rumors came yesterday that Apple to postpone iPhone 5 amid undersupply of 28nm chips [Want China Times, July 26, 2012]. And the reason:
Apple’s leading chip supplier, Qualcomm, will be able to tackle the 28nm chip undersupply only by the end of this year, said Qi Fei, a spokesman for Qualcomm China. The problem arose during the second quarter of this year, as demand for 28nm chips has been growing alongside the popularity of smartphones.
QUALCOMM Incorporated Management Discusses Q3 2012 Results – Earnings Call Transcript [Seeking Alpha, July 18, 2012]
Paul E. Jacobs – Chairman and Chief Executive Officer:
In QCT, we’re continuing to see strong demand for our new Snapdragon S4, and other 28 nanometer chipsets, and that demand continues to exceed our available supply. We will continue to ramp capacity in the upcoming quarters consistent with our prior expectation. However, the constraints on 28 nanometer supply are continuing to limit our potential revenue upside this fiscal year.…
Steven M. Mollenkopf – President and Chief Operating Officer:
We continue to be supplies constrained on our 28 nanometer products but are ramping supply with multiple foundries in the September quarter and again into the December quarter consistent with our prior expectations. We currently project that we’ll be able to closely match supply with demand as we exit the calendar year.The reduced demand profile and ongoing 28 nanometer supply constraints, as well as our increased efforts to bring additional 28 nanometer capacity online and continue investments in our QRD and mobile computing programs in advance of the opportunities ahead are driving lower operating margins in the fiscal third and fourth quartersversus historical norms.
Looking ahead, we anticipate a strong lineup of device launches leading into the holiday season and believe QCT is well positioned for the December quarter, particularly with the increasing supply of industry-leading chipsets for high-tier devices.
Over 15 devices based on our S4 MSM8960 28 nanometer chipsets have launched to date, including the Samsung GALAXY S III, the HTC One S and One X, LG Optimus LTE2, Pantech Vega Racer 2 and Sony Xperia SX. There are now more than 420 announced Snapdragon-based devices with over 400 more in design, including 175 S4 designs. Third-party reviews and benchmarks again reinforced our product leadership this quarter, confirming that the Snapdragon MSM8960 outperforms quad-core CPUs-based handsets by using a complete multi-core system with our custom GPU, DSP and dual-Krait CPU cores. We also sampled 3 new S4 chips this quarter, including the APQ8064 and the MSM8x30. The APQ8064 includes 4 Krait CPUs. It is the first to use our new Adreno 320 GPU and will extend the performance expectations we recently established with the MSM8960. The MSM8x30 integrates a multi-mode LG or 3G LTE and is designed to enable 3G/4G smartphones at high-volume price points globally.
Our modem leadership also continues to be a differentiator for design wins in modem plus AP smartphones, in tablets, modules and WiFi personal hotspots, including over 90 designs in process based on our 28 nanometer 3G/4G LTE MDM9x15 modem. While many companies are still commercializing their first LTE products, we have already announced our third-generation LTE chipsetsand will continue investing in our modem road map to maintain our leadership.
In emerging regions, our QRD program, which provides turnkey designs for affordable smartphones, continues to expand rapidly. We continue to grow our QRD road map with differentiated technology, including our new [45nm] Snapdragon 8×25 1.2 gigahertz dual-core chipset, which began shipping commercially in July, only 2 months after first sampling. We are engaged with over 40 OEMs, many of which are now transitioning their platforms from 2G to 3G, and these OEMs have announced approximately 50 devices based on our chipsets for China and other emerging countries. In addition to the announced devices, we currently have 100 new QRD-based smartphone designs in the pipeline.
We also continue to invest in mobile computing and are pleased to see the momentum building around the new ARM-based Windows platform. As the only chipset provider supporting Windows on both PCs and phones sold commercially, we look forward to the availability of both Windows 8 and Windows Phone 8 this fall.
Looking ahead, while we are forecasting sequentially lower MSM shipments based on midpoints in the September quarter consistent with the pause and re-profiling of demand, we expect a strong December quarter as new high-tier smartphone devices launch for the holidays and we have an improved supply of 28 nanometer products.
…
Brian T. Modoff – Deutsche Bank AG, Research Division
Steve, on the 28 nanometer, can you talk a little bit about how you see demand in the current quarter? You’ve talked about hitting 1/3 of volume by September. Is that still feasible? In terms of the guide down sequentially, is this — a lot of this — have you seen cuts in the 45-nanometer demand trends as well? And then are you bringing a second source on for — in terms of meeting the demand as you get into the fourth quarter? And are you happy with the yields that you’re seeing on that second source at this point?
Steven M. Mollenkopf
Brian, yes, it’s Steve. The 28 nanometer right now, as I said, we’re supply limited. So it’s — and it’s going quite well in terms of bringing up additional sources. We actually have 4 sources that we’re now bringing up. If you track through the calendar year, we’re engaged with all of them now. And it’s going the way that we had thought. You had — you talked a little bit about the 45-nanometer products and such, and I think what you’re seeing a bit of is a little less of the backfill that we would have expected. And I think that’s consistent with what we were talking about, the re-profiling of demand. That’s really a little bit less of the backfill and a little bit more waiting for the new products to come out. So we’re just working very hard to try to get those products out the door.
Brian T. Modoff – Deutsche Bank AG, Research Division
So in terms of talking through the — just talking about a more positive December quarter, some of this is you’re getting demand. People want the 28 nanometer. So the push in demand is to that quarter is what you’re saying?
Steven M. Mollenkopf
That’s right. You — at the same time, you’re — we have a significant demand for the 28-nanometer products. And as you get into the December quarter, you now have a tier of products on 28 nanometer, which, I think, is a big advantage for our portfolio. And they’re moving forward. And you’re essentially in a situation where demand is increasing and supply is increasing, and we’re trying to match those 2 ramps. And it’s — we’re just in execution mode getting through that right now and engaged with 4 fabs in order to do that.
…
Simona Jankowski – Goldman Sachs Group Inc., Research Division
Just a couple of questions. First, to clarify. With your comments on the 28 nanometer, suffice to say it’s alleviating in the December quarter, was that referring to the entirety of the December quarter? Or is it just for the exit run rate? In other words, would you still see inability to meet some of the demand in the entirety of that quarter? And then as it pertains to your chipset margin, is there any reason to think that in December, chipset margins should not be above your typical average margin given the volumes you’re expecting?
Steven M. Mollenkopf
Simona, it’s — this is Steve. The supply really exits the quarter on a matched situation. It doesn’t end — enter the quarter that way. So at the beginning of the quarter, we still have a gap that we need to deal with, but it improves throughout the quarter. We think it matches up toward the end.
…
Simona Jankowski – Goldman Sachs Group Inc., Research Division
So then maybe just a question for Paul. In terms of looking strategically longer at some of your big customers who are becoming more vertically integrated, and obviously, we had the announcement yesterday from Samsung are buying some of the technology and connectivity from CSR, now how should we think about customers like that longer termfor fall coming in terms of your potential share of their silicon business?
Paul E. Jacobs
Yes. So we’ve had these same issues throughout the history of the company where internal efforts — people try to build the silicon for their own chipsets. And I think the key way to combat that, as we’ve done all along, is to continue to drive the technology hard. Obviously, we’re driving it very rapidly in a number of areas now, not just the radio. It used to be just the radio. But now it’s also processor and graphics technology. And we’ve seen — I’m sure you’ve seen a number of the benchmarks coming out talking about how, I think the latest one I saw was on graphics, how we were really winning on the graphics side but, obviously also, on the computing side, we’ve had great comparisons. So the key, as I said, is drive the technology hard. Do people for their internal uses have enough scale to invest at the same rate that we do? And the answer is generally no. And plus, we have just a level of experience that we can bring to bear, and I think that, that strategy will continue to work as it has in the past.
- [from a later part]
Jeffrey T. Kvaal – Barclays Capital, Research Divisio
… first is to follow up on the internal production. I think we’ve seen the pendulum shift back and forth between internal and outsourced a bit over the years. Where are we in the current swing? Should we expect production to go a little bit more internal perhaps over the course of the next few quarters or years? - Steven M. Mollenkopf
… I’m assuming the first question is really more about the vertical customers. I would say that it’s really consistent with what Paul said. I think it’s getting harder and harder to create chipsets moving forward. It’s primarily because in order to create particularly high-end products, you need to innovate across so many different technology vectors. And unless you’re fairly large and you have a fairly broad technology portfolio and you’re at the leading nodes, I think you’re going to have a difficult time producing the type of products that you need. So in our view, it’s actually getting harder to do chipsets and so, therefore, probably more favoring of our model. - [It is also worth to look at this video published just a day before the earnings call]
Rod B. Hall – JP Morgan Chase & Co, Research Division
… on 28 nanometer, just one more thing. Can you quantify at all what kind of 28-nanometer shortfall you’re assuming in the fiscal Q4 guidance?
…
William E. Keitel- Chief Financial Officer, Principal Accounting Officer and Executive Vice President
Oh, in the shortfall. Well, let me say this. First of all, 28 nanometer, our shipment estimates both for the fourth fiscal quarter and what we expect for the first fiscal quarter, we’re essentially in line with where we were 3 months ago. So the QCT team is executing well on that aggressive ramp that we had talked about last time. But going out of this quarter, if we could ship all the demand that’s in front of us for this quarter, I would just say that our revenue and operating margin would be materially higher.…
James E. Faucette – Pacific Crest Securities, Inc., Research Division
Just a few follow-up questions. First, back to Steve or Paul related to your partnerships with your foundries. I think, Steve, you said that you’re now sourcing 28 nanometer from 4 different partners. Going forward as we look at future geometry and process improvements, should we expect you to continue to be diversified at the outset across multiple partners? Or should we expect you to return to concentrating on 1 or 2 key partners for future transitions, firstly? …
Steven M. Mollenkopf
James, this is Steve. Our product portfolio at the high tier, we tend to be on the leading node; on the lower tiers or the mass-market tiers, we may be one node behind. So we tend to have a broad sourcing strategy to take account of the fact that we’re on leading node. And also, following nodes, we tend to engage with a lot of fab partners by necessity. On the leading nodes, I think you’re not going to see a big change in our strategy moving forward with the exception that we do, obviously, a much better job of matching our ramps, capacity ramps and demand ramps, as we drive leading nodes. For us, you’re going to continue to see us really taking advantage of the fact that you can play the integration game at the leading nodes. And there’s a number of different good road maps that we’re seeing from the industry through the fab — through fab partners, and we’re going to continue to drive the best ones that we can find.
…
QUALCOMM Incorporated’s CEO Discusses Q2 2012 Results – Earnings Call Transcript [Seeking Alpha, April 18, 2012]
Steven M. Mollenkopf – President and Chief Operating Officer:
Our QCT business delivered another strong quarter. We shipped 152 million MSMs, up 29% year-over-year driven by increased demand for our integrated smartphone solutions and advanced modems.
Smart — Snapdragon shipments increased by more than 70% year-over-year, driven by growth across all price tiers from Snapdragon S1 products to our latest generation of Snapdragon S4 processors. There are now more than 370 announced Snapdragon-based devices with over 400 more in design, of which over 150 are S4 designs.
As you know, we have made significant investments in recent years to establish a leadership position in LTE chipsets, and we believe we are succeeding. In parallel, industry adoption of LTE technology is growing rapidly. And with our strong portfolio of products, we are at the forefront of this technology transition.
As a result of these trends and as Paul mentioned, demand for our 28-nanometer chipsets continues to exceed available supply. To address 28-nanometer demand, we are increasing our related operating expenses and are working closely with our fab partners to bring up additional capacity.
Within this environment, it is worth noting that our current estimates for total 28-nanometer shipments this fiscal year are largely in line with our prior guidance, though our forecast for the June quarter is a bit lower. Our increased investment to bring up additional 28-nanometer capacity is expected to show results in fiscal 2013.
Across the rest of the business, demand trends are very strong, and we continue to drive our technology leadership. At Mobile World Congress in Barcelona, several leading OEMs announced their first Snapdragon S4 dual-core devices, including ASUS, HTC, Huawei, Lenovo and Panasonic. We also demonstrated our new S4 quad-core processor, the APQ8064 running 4 separate HD video streams; and we announced our S4 Snapdragon MSM8960 Pro, which integrates our new high performance programmable Adreno 320 GPU for higher-end mobile computing devices.
We announced and demonstrated our new 802.11ac Wi-Fi solution and announced a broad family of 11 AC chipsets for mobile, computing, consumer electronics, as well as home and enterprise networking. Also, our new integrated connectivity solution, which includes digital Wi-Fi, GPS, Bluetooth and FM, continues to be designed in by our customers in the vast majority of our growing S4 pipeline.
We continue to invest in our Qualcomm reference design program to support growth of lower-tier smartphones in emerging regions. Shipments into Chinese emerging accounts are expected to grow at a strong double-digit rate quarter-over-quarter while we transition customers to 7x27A. There have been 10 OEM designs launched on our reference programs over the last quarter with more to follow. We are on track to expand the reference design programs to include a new dual-core Snapdragon processor the MSM8x25. We will do this before the end of the June quarter.
We are increasing our investments to address incremental opportunities beyond traditional cellular, including mobile computing and Windows on Snapdragon. And looking ahead, our leadership position across multiple technologies, delivered to our customers with a tiered and expanding chipset road map, positions us well for smartphone and computing trends in both emerging and developed regions.
…
T. Michael Walkley – Canaccord Genuity, Research Division
Steve, I wonder if you could just elaborate a little more on the 8960 ramp. Obviously, some of your customers are worried about your ability to supply, given the demand’s greater than the ability to supply. So how do you manage maybe losing some share in the short term? And then also how do you manage maybe some double ordering that might come from customers trying to get that supply?
Steven M. Mollenkopf
Mike, it’s Steve here. A couple of things, one is we have taken approach to spread the supply across all of the customers as best we can, and so I think everybody is dealing with this issue. And obviously, it’s a pretty difficult issue to deal with. But in the near term, some of the OEMs have been looking at alternative chipsets, in particular our Fusion 2 lineup, which can be substituted in some cases. But other than that, it’s really a question where we are accelerating as best we can the supply, consistent with what I was saying and what Paul was saying. We’re really focused very much on getting additional supply throughout the year.
…
Parag Agarwal – UBS Investment Bank, Research Division
Steve, can you please explain the alternative your customer have, given that the supply is constrained? And then what has been the reaction so far? I mean what — I mean are these customers willing to go to older Snapdragon designs? Are they looking at alternatives? Are they trying to use their own set [ph] of solutions?
Steven M. Mollenkopf
Well, I think you see a combination of people. In any constrained environment, people look for any alternative they can in order to solve the problem. Now what you have, particularly in this case, is these are devices that primarily are using LTE type of chipsets, and so the alternatives are a little bit smaller than they would be, let’s say, in a general allocation scenario, maybe in another industry. And we’ve been helping customers to see how they can swap in our Fusion 2 chipset, which is the chipset that we have been ramping over the last 8 months in production. Now in some cases also, our OEM partners are, of course, working with us very closely to try to help us accelerate our own supply, and that is primarily what we’re seeing. And we do expect to see some alternative non-Qualcomm chipsets being used to solve that issue as well. But I will remind you that in addition to the 8960, right on its heels is the 8×30, as well as the APQ8064. So we’re continuing to drive our tiered road map throughout the year on the same schedule, again, gated by the supply here in the near term. But I think that’s a pretty attractive road map that people are interested in doing. So we need to solve the supply issues, and then we’ll move the business on.
Qualcomm chip shortage to continue [The Korea Times, June 21, 2012]
Qualcomm said Thursday that its chip supply will not likely meet high demand from its major clients, including Samsung Electronics, LG Electronics and Pantech, dampening their hopes that chip supply would improve in the latter half of this year.
“We are still struggling to meet an explosive demand for the latest MSM8960 chipsets and other chip variants using a 28-nanometer processing technology, though the production yields of our chip products have steadily been improving,” said Kim Jong-ha, a senior executive at Qualcomm CDMA Technology Korea, Thursday.
Industry sources said Qualcomm has been in negotiations with three and four chip foundries other than Taiwan’s TSMC to increase supply of the chips and stressed “visible results” to follow shortly. Kim was at the sidelines in the press conference to unveil Qualcomm’s updated business strategies at the Plaza Hotel, downtown Seoul.
Qualcomm had warned in April that it will have trouble meeting demand for some of its advance cellphone chips for the rest of the year due to manufacturing constraints and operating expenses will increase faster than expected.
The MSM8960 chipsets, which sport Long-Term Evolution (LTE) functionality, are currently being used in Samsung, LG and Pantech’s premium smartphones. Samsung’s Galaxy SIII LTE smartphone is also using the Qualcomm chipset.
But the Qualcomm executive said the chip shortage problem should soon ease, though he declined to say exactly when.
Qualcomm has attempted to appease its clients by offering an alternative in the form of the “Fusion 2” chipset; however the manufacturer is conceding; “We do expect to see some alternative non-Qualcomm chipsets being used to solve that issue as well.”
The executive said it will commercialize its quad-core one chip solutions from the latter half of next year and a smartphone that uses the latest chip solution will be released in July next year.
Qualcomm plans to put the VoLTE functionality on its upgraded MSM8960 chipsets in a goodwill gesture to help local carriers smoothly push their VoLTE services from September this year.
Qualcomm sources said the existing MSM8960 chipsets don’t support the VoLTE functionalities, which is impossible for consumers using Samsung’s Galaxy R Style, LG’s Optimus LTE2 and Pantech’s VegaRacer2 models to experience the VoLTE service.
During the conference, Qualcomm pledged business expansion to Internet-connected TVs, PCs and tablets and reiterated its bullish plan to support Microsoft’s Windows 8 software.
Globalfoundries to the “rescue”:
Globalfoundries to fab 28nm chips for Qualcomm, says paper [DIGITIMES, July 13, 2012]
Qualcomm has contracted Globalfoundries’ Dresden fab to manufacture 28nm chips, the Chinese-language Commercial Times cited unnamed equipment makers as saying in a recent report. The foundry chipmaker will start shipping the orders to Qualcomm in the fourth quarter of 2012, the paper said.
Commercial Timespreviously reported that UMC had secured orders for 28nm Snapdragon S4 chips from Qualcomm with volume production slated for the last quarter of 2012.
Rumors circulated earlier in the year that TSMC’s supply shortfalls at 28nm would likely drive its longtime partners toward other foundries. In addition to Qualcomm, Nvidia was identified as another TSMC customer considering a second-source supplier.
In fact, Globalfoundries has already entered into a non-binding MoU with Qualcomm to collaborate on leading-edge technologies. Globalfoundries said in a January 2010 company release that initially the firm intends to provide Qualcomm with access to 45nm LP and 28nm LP technologies, with an intended collaboration on future advanced process nodes.
In other news, IC design service company Socle Technology recently disclosed that the firm has developed and taped out its first ARM Cortex-A9 based 28nm ASIC design using Globalfoundries’ 28nm super low power technology (SLP) with HKMG. The ASIC design will soon be mass produced at Globalfoundries, Socle said.
Formerly a IC design service subsidiary of Chartered Semiconductor Manufacturing, Socle now works closely with Globalfoundries.
GlobalFoundries Interview with Subramani (Subi) Kengeri [BrightSideofNews YouTube channel, May 22, 2012]
GLOBALFOUNDRIES Extending Fab 8 to Meet Strong Customer Demand [GLOBALFOUNDRIES press release, July 24, 2012]
Cleanroom extension to add hundreds of new jobs and 90,000 square feet of manufacturing capacity
GLOBALFOUNDRIES today announced it is moving forward with the final construction for the extension of Module 1 at the Fab 8 campus in New York. The project will add 90,000 square feet of manufacturing capacity, bringing the total capacity for Fab 8 Module 1 to 300,000 square feet. Construction activities are scheduled to begin in August and work is expected to be completed in December 2013.
“During the construction of Fab 8, we extended the shell of the Module 1 building with the expectation that our business would continue to grow. Today we see increasingly strong demand from our customers, especially at the 28nm node, and we are excited to be moving forward with this next phase in the development of the Fab 8 campus,” said Eric Choh, vice president and general manager, Fab 8, GLOBALFOUNDRIES. “By continuing to expand our investment in the project, GLOBALFOUNDRIES is delivering more options to our global customers, while helping to redefine upstate New York as a premier hub of the global semiconductor industry, creating thousands of new advanced manufacturing jobs, and contributing billions of dollars to the regional economy.”
Consisting of approximately two million square feet, Fab 8 is being developed as the world’s most advanced semiconductor foundry manufacturing facility and is consistently hitting all major development milestones. GLOBALFOUNDRIES began construction on Fab 8 in July 2009 and began moving people and equipment into the facility in mid-2011. Initial wafer starts began earlier this year and the facility is on track to begin risk production by the end of the year, with volume production in early 2013.
Extending the Fab 8 cleanroom is expected to increase the Fab 8 capacity to approximately 60,000 wafers per month and increase the capital budget by approximately $2.3 billion, taking the total capital budget from $4.6 billion to approximately $6.9 billion, once tools and equipment are installed.
Since breaking ground on Fab 8 in 2009, GLOBALFOUNDRIES has created more than 1,500 new direct jobs, developing a unique and diverse workforce drawn from local talent in the region as well as experienced professionals from across the United States and more than 30 countries.
In addition, the project has created an additional 4,300 construction-related jobs and established the largest private Project Labor Agreement in history, generating hundreds of millions of dollars of economic development throughout upstate New York during the worst economic downturn since the Great Depression.
GLOBALFOUNDRIES has a total of about 1,800 employees across New York, including research teams at the IBM facilities in East Fishkill and at CNSE at the University of Albany, and more than 12,000 employees worldwide with additional manufacturing campuses in Germany and Singapore.
Execution, Innovation, Location: 3 Reasons to Choose GLOBALFOUNDRIES at 28nm [thefoundryfiles.com blog by Michael Noonen, Executive Vice President, Worldwide Marketing and Sales, for GLOBALFOUNDRIES, July 5, 2012]
We recently attended the Design Automation Conference in San Francisco, where we showcased our wide array of foundry offerings and met with customers, partners, and industry influencers. All of them asked how GLOBALFOUNDRIES can address the increased demand for 28nm. We answered that we have three major reasons why our customers can depend upon GLOBALFOUNDRIES for their 28nm needs: execution, innovation and location.
Execution
GLOBALFOUNDRIES has a tradition of rapidly ramping leading-edge technologies to volume production. We delivered the fastest time-to-volume for the 45/40nm production ramp, and we are leading the foundry ramp at 32/28nm in volumes well ahead of others foundries. In fact, earlier this year we reached a major milestone by shipping our 250,000th HKMG wafer, and we have shipped many thousands more since. Overall, we have shipped more HKMG wafers than all the other foundries combined.
Not convinced? Just ask our customers. For example, AMD CEO Rory Read said, “In just one quarter, we were able to see more than a doubling of yields on 32nm, allowing us to exit 2011 having exceeded our 32nm product shipment requirements. Based on this successful ramp of 32nm HKMG, we are committed to moving ahead on 28nm with GLOBALFOUNDRIES.”
Innovation
Everyone knows our industry faces huge challenges as we move to more advanced technology nodes. At 28nm, we worked tirelessly to maintain true scaling and deliver an industry-leading technology in a System-on-Chip (SoC) design platform based on our production-proven HKMG technology. Here are a few highlights of our 28nm technology in comparison to the previous generation:
- ~100 percent density increase.
- Up to 50 percent increased speed and 50 percent reduction in energy/switch.
- Sustains 40nm layout style advantages: Bi-directional Poly, Poly Jogs, Large Caps.
- ~20% smaller die relative to 28nm “Gate Last.”
Here again, our customers are seeing the benefits. Thucydides Xanthopoulos, distinguished engineer at Cavium, says with GLOBALFOUNDRIES, his company received outstanding levels of in-depth technical support: “This was essential in addressing the new technical challenges of the 28nm process technology to meet our stringent power requirements and demanding frequency goals. This ensured our product design timeliness and success.”
Location
Not only is GLOBALFOUNDRIES now the second largest semiconductor foundry in the world, but with manufacturing plants located in Europe, Asia and North America, we are the only truly global foundry.
Designed for 32/28nm and beyond, our newest location, Fab 8 in New York, is one of the most advanced semiconductor facilities in the world. Fab 8 is the largest public-private sector industrial investment in state history and a cornerstone of New York’s burgeoning “Tech Valley.” Forbes magazine recently said the Capital Region could become the “Silicon Valley of Nanotech and even surpass it in economic importance.”
To paint a clearer picture of how advanced the nearly 2 million square foot campus is, here are a few more facts:
- The clean room is larger than 6 football fields and has 7 miles of track for overhead transport vehicles.
- Fab 8 took over six million man hours to complete – that’s more man hours than it took to construct the Empire State Building in New York City.
- Fab 8 has over 60,000 cubic yards of concrete, enough to build a 105 mile-long sidewalk.
- 75 miles of pipe total square footage exceeds the Chrysler building in NYC.
Fab 8 is fully operational, ramping ahead of schedule, and shipping products for revenue in early 2013. Once fully ramped, the first fab module will be capable of 60,000 wafer starts per month.
These are just a few of the reasons why customers should work with GLOBALFOUNDRIES on 28nm—and they are. We taped out our first 28nm product in Q4 2011 and we have dozens in the pipeline. To learn more about our complete value proposition at 28nm, check out this video we created for DAC.
More information: Globalfoundries Vows to Ramp Up 28nm Production Quickly. [X-bit labs, July 5, 2012]
ChipEstimate.TV interview with Mike Noonen, GLOBALFOUNDRIES at Common Platform Tech Forum [chipestimate YouTube channel, March 21, 2012]
GLOBALFOUNDRIES Dresden Fab Ships 250,000th 32nm HKMG Wafer [GLOBALFOUNDRIES press release, March 21, 2012]
… based on 32nm High-k Metal Gate (HKMG) technology …
On a unit basis, cumulative 32nm shipments for the first five quarters of wafer production are more than double that achieved during the same period of the 45nm technology ramp, demonstrating that the overall 32nm ramp has significantly outpaced the 45nm ramp, despite the integration of a number of new and complex elements in both design and process technologies.
“AMD and GLOBALFOUNDRIES worked in close partnership during 2011, and today’s announcement is a testament to the progress we have made together,” said AMD president and CEO Rory Read. “In just one quarter, we were able to see more than a doubling of yields on 32nm, allowing us to exit 2011 having exceeded our 32nm product shipment requirements. Based on this successful ramp of 32nm HKMG, we are committed to moving ahead on 28nm with GLOBALFOUNDRIES.”
…
At Fab 1 in Dresden, GLOBALFOUNDRIES recently completed construction of an additional wafer manufacturing facility designed to add capacity at 45nm and below, which has the potential to increase the overall output of the Fab 1 campus to 80,000 wafers per month once fully ramped. The expansion project is adding more than 110,000 square feet of cleanroom space to the site, making Fab 1 the largest wafer fab in Europe for leading-edge technology. More than 50 percent of Fab 1’s production is now on HKMG technology. In addition to the 32nm technology, the company’s 28nm HKMG offerings are qualified and ready for design-in today.
28nm Ramp Starts At Globalfoundries. [Manerisms blog on ElectronicsWeekly.com, April 17, 2012]: “We’re starting the volume production ramp on 28nm. With our experience at 32nm we expect less issues on the 28nm,” Rutger Wijburg, vice president and general manager GLOBALFOUNDRIES Fab 1, told EW.
Globalfoundries opens up 28nm, 20nm FD-SOI process to all-comers[ElectronicsWeekly.com, June 20, 2012]:
Globalfoundries is to manufacture FD-SOI chips for STMicroelectronics and ST-Ericsson at both 28nm and 20nm process generations which will be made avaialble to anyone wanting to use them. ST has a limited availability of FD-SOI from its line at Crolles. “This arrangement ensures our customers will have a secure source of supply, says ST vp Joel Hartmann. 28nm FD-SOI, is currently in the ‘industrialisation phase’, says ST and is scheduled to be available for prototyping by July 2012.
The Rambus experience with GLOBALFOUNDRIES 28nm Super Low Power (28nm-SLP) technology see in the collaborative whitepaper: Designing into a Foundry Low Power High-k Metal Gate 28nm CMOS Solution for High-Performance Analog Mixed Signal and Mobile Applications [June 26, 2012]
Background video on GLOBALFOUNDRIES’ leadership in 28nm capacity:
Background video on Sand to Silicon [globalfoundries YouTube channel, May 9, 2012]
Collaborative partner Samsung Electronics also joining the “rescue” effort:
Common Platform Technology Forum 2012, Ana Hunter, VP Foundry Services, Samsung interview on ChipEstimate.TV [chipestimate YouTube channel, Feb 13, 2012]
GLOBALFOUNDRIES and Samsung Extend Fab Sync to New High-Performance 28nm Technology for Mobile Applications [GLOBALFOUNDRIES press release, Aug 31, 2011]
GLOBALFOUNDRIES and Samsung Electronics, Co., Ltd. broadened their collaboration, announcing plans to synchronize global semiconductor fabrication facilities to produce chips based on a new high-performance and low-leakage 28nm High-K Metal Gate (HKMG) technology. The technology has been specifically developed for mobile device applications, offering 60 percent of active power reduction at the same frequency or 55 percent of performance boost at the same leakage over 45nm low power (LP) SoC designs.
In 2010, GLOBALFOUNDRIES and Samsung announced a fab synchronization on low-power 28nm HKMG technology in collaboration with IBM and STMicroelectronics. This low-power technology is qualified and fully design enabled with standard cell libraries, memory compilers, and additional complex IP blocks. The high-performance offering announced today complements the low-power technology, extending the frequency of operation for high-performance smartphones, tablets, and notebook computers, while retaining ultra-low leakage transistors and memories to enable the long battery life needed for mobile environments.
The companies are proving the collaborative value of a synchronized platform by working with several customers to optimize processes and tooling for both the low-power and high-performance 28nm HKMG technologies. The synchronization process helps ensure consistent production worldwide, enabling customer chip designs to be produced at multiple sources with no redesign required, leveraging the customers’ design investments.
By virtue of the synchronization, the collaboration presents a “virtual fab” that derives manufacturing capacity from four geographically diverse fabs. Each company has two 300mm fabs that will qualify the technology: GLOBALFOUNDRIES Fab 1 in Dresden, Germany and Fab 8 in Saratoga County, New York; and Samsung S1 in Giheung, Korea and the company’s recently expanded fab, S2 in Austin, Texas. The four fabs represent a global footprint estimated to be the largest in the foundry industry for leading-edge capacity, offering customer choice enabled by close collaboration and an unparalleled de-risking of supply chain uncertainties.
…
The new high performance process is based on the 28nm “Gate First” HKMG technology utilized for the low power process announced in 2010. As with the low power 28nm technology that is fully design-enabled today, a comprehensive System-on-a-Chip (SoC) design platform will be implemented for the high performance offering to enable seamless customer design-in to the multiple global manufacturing sites.
Ana Hunter – Vice President of Foundry for Samsung Semiconductor Inc. [globalfoundries YouTube channel, May 29, 2012]
Qualcomm, Samsung to team up for chip [The Korea Times, July 5, 2012]
As part of efforts to solve a supply shortage Qualcomm will soon sign a deal with Samsung Electronics to produce chips used in the Korean firm’s smartphones, according to industry sources.
Industry and Samsung officials said Thursday that Samsung Electronics has “tentatively agreed” with Qualcomm to produce the latter’s Snapdragon S4 chipsets using Samsung’s 28-nanometer technology from the first half of 2013.
“The two companies have agreed in principle on chip production and are now trying to iron out details, including production volume,” an industry source said.
Samsung expects that the latest partnership will help the company strengthen its capabilities for non-memory chip management. The Korean technology giant plans to invest more in non-memory chips this year than in conventional memory chips for the first time since it started its chip-making business.
Qualcomm CEO Paul Jacobs has said his firm is seeing “very strong demand” for the S4 chipsets amid the rising popularity of data-intensive and speedier phones that also use advanced long-term evolution (LTE) networks.
Qualcomm’s MSM8960 chipsets are currently being used in the latest smartphones by Samsung, LG Electronics, Motorola and Taiwan’s HTC.
”Because Samsung is a long-time partner with Qualcomm for modem chips, it’s no surprise that the partnership has expanded to real chipsets,” said another industry source.With the Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung producing the Qualcomm chipsets, analysts expect the supply will improve from early next year.
Qualcomm has also designated United Microelectronics Corp. (UMC) as another supplier with the capacity to help cope with tight supply of the leading-edge process at TSMC.
”The contract with Samsung, as well as UMC, means that Qualcomm plans to lower its heavy dependence on TSMC. It also means that Samsung’s foundry chip-making has reached a competitive level to guarantee the capacity that Qualcomm wants,” said an analyst at Semiconductor Equipment and Materials International (SEMI).
Samsung, which controls near 50 percent of the global memory chip market, is busy transferring its conventional chip lines to profitable non-memory lines such as foundry facilities.
Samsung’s global share for the foundry chip-making business was less than 2 percent as of the end of last year. However, market experts say Samsung is one of the few players that can threaten TSMC’s leadership as Samsung has abundant cash and top-class memory chip-making technology.
“It’s probable for Samsung to win more deals from Texas Instruments and Nvidia – which are key partners of TSMC. In the near future, Samsung will become a top-tier foundry chipmaker that could compete with TSMC,” said the SEMI analyst.
See also: Proven Track Record at 32/28nm [Samsung Foundry presentation, July 3, 2012]
A New Foundry Business Model [by Ana Hunter Voices@SamsungSemiconductor, June 26, 2012]
As we hit the half way mark of 2012, it’s been an eventful year so far. Conversations swirl around:
The need for more 28nm capacity
Is 450mm wafer manufacturing really going to happen?
When will FinFET transistors become standard?
Will the foundry/fabless industry continue to thrive?
There’s no doubt we’re at a crossroads at the most advanced process technology nodes. In order to take positive steps forward, significant monetary and collaborative investments and resources are required from both the manufacturing and design sides of the equation.
The foundry/fabless semiconductor industry is not going to collapse or disappear as some have recently predicted. See the recent report from SEMI.org on equipment spending. But, a new approach to doing business is in order to stay competitive with pure IDMs [Integrated Device Manufacturer, like once Gobalfoundries was under AMD]. The foundry industry has taken huge strides on the ecosystem side to ensure that physical IP, libraries and design flows are all in place as a new process node comes online. That tight working relationship needs to be pushed beyond the partner ecosystem to include the customer’s design teams.
There is a lot to be said for mimicking a more IDM-like relationship between a foundry and its fabless customers. For faster product rollout and ramp to high-volume manufacturing at the most advanced process nodes, integrated relationships between the foundry and its strategic customers where quasi-IDM operating procedures are established is key to the health and growth of the foundry industry. Fabless companies and foundries need to collaborate on the factors that allow products to be manufacturable, crossing traditional customer and vendor barriers. This is already happening as leading fabless companies learn from experience that closer integration with foundry design flows and kits, starting very early in the development cycle, enables faster feedback and improvement to both the product design and the manufacturing process.
The industry is at an inflection point and the model is changing. A more simulated IDM environment will allow fabless semiconductor companies to be more competitive at the advanced process nodes. As an IDM foundry, Samsung is keenly aware of the advantages that can be gained by this approach. We strive to deliver these benefits to our foundry customers.
UMC is coming to the “rescue” as well:
Chip industry undergoing structural shift, says UMC CEO [DIGITIMES, July 27, 2012]
The semiconductor industry is in the process of structural change, and United Microelectronics (UMC) has a big growth opportunity in the advanced chip segment, according to Shih-Wei Sun, CEO for the IC foundry.
Sun said that he has observed some form of evolution in the IC sector which will likely lead to gradual changes in market leadership. UMC’s high-end foundry business has entered its next stage of growth, which will help strengthen its foundation for future growth, Sun claimed.
Sales generated from advanced process technologies are set to climb substantially and drive sales growth for the company in the second half of 2012, Sun noted. Growth momentum will continue into next year, when the fifth and sixth phase (P5 and P6) factories of its 12-inch plant in southern Taiwan are ready to come online, according to Sun.
UMC’s planned capex budget for 2012 of US$2 billion remains unchanged, said Sun, adding that the expenditure will be mainly used to expand 28nm manufacturing capacity and develop 20nm and more advanced technologies.
Sun indicated that 28nm process technology will account for about 5% of UMC’s revenues by the end of 2012. Moving forward, the foundry expects to start making small volume chips using 20nm process sometime in the second half of 2013, Sun said.
UMC also set a goal of moving 20nm FinFET process to volume production in the second half of 2014, according to Sun. The company has signed a licensing agreement with IBM to expedite the development of its 20nm CMOS process with FinFET 3D transistors.
UMC has long been ranked the world’s second-largest pure-play foundry, trailing only Taiwan Semiconductor Manufacturing Company (TSMC). However, it now faces tougher competition from Globalfoundries, and has been aggressively ramping up its foundry business. Globalfoundries recently claimed that the firm narrowed its gap with UMC in the foundry rankings in 2011, and moved up to second in the first quarter of 2012.
In other news, UMC has reported better-than-expected results for the second quarter of 2012. The firm estimated third-quarter sales will grow only slightly on quarter, but did not provide its guidance for the fourth quarter of 2012 citing uncertainty in end-market demand.
UMC 2Q12 results beat guidance [DIGITIMES, July 25, 2012]
… UMC CEO Shih-Wei Sun, said in a statement. “For the upcoming quarter, we expect mild revenue growth, with 40nm percentage contribution increasing significantly as volume production begins for several new products.”…. UMC saw 40nm and more advanced processes account for 9% of revenues in the second quarter, compared to 9% in the first quarter and 6% in second-quarter 2011. …
UMC reportedly seeking investment from Qualcomm [DIGITIMES, July 13, 2012]
UMC has approached Qualcomm to participate its upcoming private placement with an aim to establish a strategic partnership with the chip vendor, according to industry sources.
In response, UMC said it has no specific target investors for the fundraiser.
UMC’s board of directors in April approved plans to issue up to 1.292 billion new shares in a private placement, which is aimed at bringing in new strategic partners as well as strengthening its capital structure. The resolution later received the nod from the company’s shareholders.
UMC reportedly to start building 28nm chips for Qualcomm in 4Q12, says report [DIGITIMES, July 2, 2012]
United Microelectronics (UMC) reportedly has secured orders for 28nm Snapdragon S4 chips from Qualcomm with volume production slated for the fourth quarter of 2012, according to a Chinese-language Commercial Timesreport.
UMC’s monthly output for Qualcomm’s 28nm chips is initially estimated at 3,000-5,000 wafers, equivalent to 20-30% of Qualcomm’s total orders placed with Taiwan Semiconductor Manufacturing Company (TSMC)for the fourth quarter, the report indicated.
The report comes on the heels of a Bloomberg report citing Qualcomm CEO Paul Jacobs as saying that the firm would not rule out owning a manufacturing plat or consider “writing big checks” to its contract partners to ensure sufficient supply.
Previous reports cited industry sources saying that the tight supply of chips built using TSMC’s 28nm process technology would likely drive Qualcomm and TSMC’s other major client Nvidia toward other foundries as a second source.
TSMC has reiterated that supply of 28nm chips will come close to meeting demand in the fourth quarter of 2012, and satisfy demand completely by the first quarter of 2013.
UMC Aligns With IBM on 20nm Process with FinFET 3D Transistors [UMC press release, June 29, 2012]
Engagement will expedite the development of UMC’s next generation technologies
Hsinchu, Taiwan, June 29, 2012 – United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), a leading global semiconductor foundry, today announced that it has licensed IBM technology to expedite the development of the foundry’s next generation 20nm CMOS process with FinFET 3D transistors. Under the terms of the agreement, IBM will license its 20nm process design kit and FinFET technology to UMC so the foundry can use these technologies in order to accelerate the availability of these processes for UMC customers.
Dr. IC Chen, vice president of Advanced Technology Development at UMC, said, “We are happy to engage with a recognized technology leader such as IBM for this technology advancement effort. UMC’s position as a world-leading foundry involves timely introduction of leading-edge processes to enable next generation customer chip designs. Leveraging IBM’s technology expertise to shorten our 20nm and FinFET R&D cycle will create a win-win situation for UMC and our customers.”
This agreement between UMC and IBM is only inclusive of IBM’s 20nm CMOS and FinFET. UMC’s internally developed 20nm planar process will be aligned to IBM’s design rules and process/device targets, while UMC’s FinFET will be offered as a low-power technology enhancement option for mobile computing and communication products. Implementation will take place at the company’s Tainan, Taiwan R&D site.
About UMC
UMC (NYSE: UMC, TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC’s customer-driven foundry solutions allow chip designers to leverage the strength of the company’s leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 14,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com.
Comment on that by X-bit labs [July 3, 2012]
It is necessary to note that UMC does not currently enter the so-called “IBM fab club”, or Common Platform alliance between IBM, Globalfoundries and Samsung Semiconductor that develops common process technologies for all three companies’ semiconductor manufacturing facilities. As a result, UMC will not be able to align its manufacturing processes with CP members.
Nonetheless, licensing technologies from IBM demonstrates inability of UMC to design competitive process technologies fully on its own. Potentially, it means that going forward UMC may either join the Common Platform alliance or to continue licensing fabrication processes from others.
Comment on that by EE Times [June 29, 2012]
Though he declined to disclose the specific cost of the license deal, the spokesman described the terms as “reasonable and insignificant to our financial statements after expense amortization.” The deal will enable UMC to save the considerable costs that would have been involved in developing 20-nm and FinFETs on its own, the spokesman.
…
FinFETs are three-dimensional, fin-based multi-gate transistors. Intel Corp. is currently in production of 22-nm devices featuring FinFETs—known by Intel as tri-gate transistors. Taiwan Semiconductor Manufacturing Co. Ltd., UMC’s biggest rival in the foundry business, is not planning to implement FinFETs until the 14-nm node. Globalfoundries and Samsung are also planning to implement FinFETs at the 14-nm node.
While Qualcomm’s long supplier TSMC is declaring:
TSMC reiterates supply of 28nm chips to come close to demand in 4Q12 [DIGITIMES, June 13, 2012]
Taiwan Semiconductor Manufacturing Company (TSMC) has reiterated its previous remarks that supply of 28nm chips would come close to meeting demand in the fourth quarter of 2012, in response to speculation that companies lining up for the foundry’s 28nm process capacity had dispersed.
At its most-recent investors meeting, TSMC also suggested that demand for the foundry’s 28nm manufacturing capacity would be completely satisfied by the first quarter of 2013.
TSMC chairman and CEO Morris Chang remarked at the company’s annual shareholders meeting yesterday (June 12) that the foundry’s 28nm foundry capacity will remain tight through the third quarter of 2012. Company efforts in production expansion will help supply catch up and come near the total market demand in the last quarter of the year, according to Chang.
Chang admitted that TSMC had failed to make a precise estimate of demand for 28nm chips this yearand therefore, the foundry could not immediately provide the needed additional capacity.
In order to accelerate its pace of 28nm capacity expansion, TSMC has revised upward its 2012 capex to US$8-8.5 billion. The foundry also unveiled plans to ramp up 20nm production ahead of schedule.
TSMC Reports Second Quarter EPS of NT$1.61 [TSMC press release, July 19, 2012]
…
28-nanometer process technology accounted for 7% of total wafer revenues, meeting our internal plan. 40-nanometer accounted for 28% of total wafer revenues, and 65-nanometer was 26%. These advanced technologies accounted for 61% of totalwafer revenues.
“Due to continuing strong demand for our 28-nanometer technology, we expect to double the shipments of 28-nanometer in the third quarter. This increase in 28nm business will account for more than 80% of revenue growth in the third quarter,” said Lora Ho, SVP and Chief Financial Officer of TSMC.
…
TSMC Reports First Quarter EPS of NT$1.29 [TSMC press release, April 26, 2012]
… 28-nanometer process technology accounted for 5% of total wafer revenues, 40-nanometer was 32%, and 65-nanometer accounted for 26%. These advanced technologies accounted for 63% of total wafer revenues. …
TSMC Reports Fourth Quarter EPS of NT$1.22 [TSMC press release, Jan 18, 2012]
… 28-nanometer process technology accounted for 2% of total wafer revenues, 40-nanometer was 27%, and 65-nanometer accounted for 30%. These advanced technologies accounted for 59% of total wafer revenues. …
TSMC Reports Third Quarter EPS of NT$1.17 [TSMC press release, Oct 27, 2011]
… 40-nanometer and 28-nanometer process technologies accounted for 27% of total wafer revenues, and 65-nanometer accounted for 27%. These advanced technologies accounted for 54% of total revenues. …
Taiwan Semiconductor Manufacturing Company Limited, 2012 Annual General Shareholders’ Meeting Minutes [June 12, 2012]
… We became the first foundry to offer volume production of 28-nanometer, with the first-to-market 28-nanometer high-k/metal gate (HKMG) technology portfolio. …
… Based on a record number of customer product tape-outs, TSMC entered volume production of superior 28-nanometer Gate-Last HKMG logic technology. Revenue from the 28-nanometer node contributed 2% of fourth quarter 2011 wafer revenue, and is expected to contribute approximately 10% wafer revenue in 2012. …
TSMC plans to make as small as 7nm processors, 28nm is now in volume production [Charbax YouTube channel, Oct 25, 2011]
More background information: ChipEstimate.com DAC 2012 IP Talks presenter Dan Kochpatcharin [chipestimate YouTube channel, June 26, 2012]
There are 41 IP partners in TSMC IP alliance program and also have 20-25 IP partners directly supported but not part of the IP alliance program.
And here are the number of titles in TSMC IP portfolio also vs. other foundries:
After that the whole discussion is about the IP quality, which is also discussed in the following video: IP Quality — It’s Imperative! – Voices of DAC 2012 [synopsys YouTube channel, June 11, 2012]
In this video TSMC 9000 IP library is mentioned as critical to the TSMC’s foundry operation. See additional information on extension of that as well, the so called Soft-IP alliance program: A Comprehensive Soft IP Qualification System (Atrenta) [TSMC page, Nov 3, 2011]
Abstract:
Knowing the quality, completeness and integration risks associated with soft, or synthesizable semiconductor IP is critical to meeting power, performance, area and schedule targets for complex system on chip (SoC) designs. In many cases, over 80% of the SoC design is composed of reused IP, much of it synthesizable.Atrenta has collaborated with TSMC to create a comprehensive system to automate the process of soft IP qualification. Based on the popular SpyGlass® platform, the system programmatically analyzes soft IP using an IP handoff methodology consisting of TSMC’s Golden Rule Set covering various design aspects (risk analysis, integration readiness, implementation readiness, reusability etc.) for an IP. These Golden Rules can help to detect various types of design issues such as simulation-synthesis mismatches, unsynchronized clock domain crossing paths, electrical/connectivity related issues, testability bottlenecks and timing constraints not fully aligned with the design topology/configuration. This approach also provides in-depth analysis reports on various design parameters such as power consumption and optimization, stuck-at and at-speed fault coverage, clock-reset propagation and timing constraints coverage. The results of all tests are summarized in a concise, portable, easy to read HTML-based Atrenta DashBoard report. Once all errors are addressed, the IP is further profiled through an Atrenta DataSheet report that summarizes many aspects of the IP, including estimated power consumption, IO profile, clock and reset trees, gate count, testability and timing constraints. These reports are then posted on TSMC’s online IP databases for customer review as part of the TSMC 9000 IP library.
In this presentation, we will describe the process used to develop the qualification flow. We will provide details regarding what aspects of the IP are checked and how the information is used to assess IP completeness, readiness and integration risks. We’ll review the process to install, setup and run the software and share some results of its application on production soft IP.
Also: Atrenta and TSMC IP Quality Initiative Gains Broad Industry Acceptance [Atrenta press release, March 5, 2012]
Atrenta Inc., a leading provider of SoC Realization solutions for the semiconductor and electronic systems industries, today announced that 10 intellectual property (IP) providers have qualified their soft IP for inclusion in the TSMC 9000 IP library using the Atrenta IP Handoff Kit.
Those companies, part of TSMC’s Soft-IP Alliance Program, include Arteris, Inc.; CEVA; Chips&Media, Inc.; Digital Media Professionals Inc. (DMP); Imagination Technologies; Intrinsic-ID; MIPS Technologies, Inc.; Sonics, Inc.; Tensilica, Inc.; and Vivante Corporation. The participating companies are able to provide quantitative information to TSMC’s customers regarding the robustness and completeness of their soft or synthesizable semiconductor IP that is part of the TSMC 9000 IP library.
In May 2011, TSMC and Atrenta announced the Soft-IP Alliance Program, which uses Atrenta’s SpyGlass® platform and a targeted subset of its GuideWare reference methodology to implement TSMC’s IP quality assessment program. TSMC requires all soft IP providers to reach a minimum level of completeness, as documented by Atrenta DashBoard and DataSheet reports, before their IP is listed on TSMC online.
Atrenta integrated all the software and methodologies needed to implement TSMC’s IP qualification requirements to form the IP Handoff Kit, which uses the SpyGlass register transfer level (RTL) analysis and optimization product suite. To qualify for inclusion in TSMC Online, soft IP must be verified for language syntax and semantic correctness, simulation-synthesis mismatches, electrical and connectivity rules, power consumption, synchronization of clock domain crossing paths, stuck-at and at-speed test coverage and timing constraints. All results are summarized in Atrenta DashBoard and DataSheet reports that capture the results of these SpyGlass tests in an easy-to-read and track HTML format.
“Given the complexity inherent in today’s system on chip (SoC) designs, TSMC is proactively helping our customers mitigate risk and meet their time-to-market goals,” said Suk Lee, director, Design Infrastructure Marketing Division, TSMC. “The IP qualification flow with Atrenta addresses many of the quality challenges inherent in re-using third-party IP. We are pleased with the number of IP providers that are participating in this program and the measurable improvement in delivered IP quality available for TSMC’s end customers.”
“As designers face the challenge of finding quality third-party IP, this program – a collaboration between TSMC, Atrenta and IP providers – is a powerful example of what teamwork in the supply chain can accomplish,” said Mike Gianfagna, vice president of marketing at Atrenta. “TSMC customers can now make more informed decisions that improve the handoff of IP between members of the semiconductor supply chain. This is one way to drive more effective SoC Realization.”
About Atrenta
Atrenta is a leading provider of SoC Realization solutions for the semiconductor and electronic systems industries. As one of the largest private electronic design automation companies, Atrenta provides a comprehensive SoC Realization solution that delivers higher quality semiconductor IP, predictable design coherence, automated chip assembly and improved implementation readiness. Its SpyGlass® and GenSys™ products and GuideWare reference methodologies open the way for broader deployment of system on chip (SoC) devices in the marketplace, improving time to market, reducing implementation costs and lowering risk. With nearly 200 customers, including 19 of the top 20 semiconductor and consumer electronics companies, Atrenta enables the most complex SoC designs in the world. Atrenta, the SoC Realization Company. http://www.atrenta.com.
Atrenta and TSMC IP Quality Initiative Gains Broad Industry Acceptance
Partner Quotes
Arteris
“Based on our long-standing relationship with TSMC, Arteris is pleased to participate in TSMC’s Soft-IP Alliance Program and TSMC Reference Flows 11 and 12. By validating Arteris’ configurable NoC interconnect IP with the SpyGlass platform, customers can choose our IP and handoff their design to TSMC with even greater confidence.”
K. Charles Janac, President and CEO, Arteris
CEVA
“CEVA is committed to streamlining the SoC design process and supply chain through a robust ecosystem that improves the efficiency of how customers use our DSP-based solutions. The link to the manufacturing process is critical as we move into the realm of 28 nanometer and beyond. We are pleased to be able to work with Atrenta and TSMC to certify our IP using TSMC’s soft IP validation kit. This will result in faster and more reliable manufacturability for our customers.”
Moshe Sheier, Director of Product Marketing, CEVA, Inc.
Chips & Media
“As consumers demand a better experience from their multimedia devices, SoC designs are becoming more complex. By working closely with TSMC and Atrenta, Chips&Media is capable of delivering its leading-edge video processing technologies to customers more efficiently and effectively.”
Steve Kim, CEO, Chips&Media,Inc.
Digital Media Professionals
“In support of our advanced graphics IP technology based on industry-standard OpenGL ES and DMP’s proprietary Maestro extension, we are able to leverage excellent semiconductor process technology from TSMC and comprehensive assessment metrics from Atrenta. With a wide-range of leading-edge technologies and eco-system support, DMP will provide highly optimized and validated graphics IPs for embedded markets.”
Tatsuo Yamamoto, President & CEO, Digital Media Professionals Inc.
Intrinsic-ID
“As SoC devices become more prevalent and customer needs become increasingly more complex, Intrinsic-ID offers a wide-ranging portfolio of IP available in the TSMC 9000 IP library. Working with TSMC and Atrenta, the quality of our IP is demonstrated and customers will be more informed when using it in their designs, reducing the risk in the handoff to other members of the supply chain.”
Pim Tuyls, CEO, Intrinsic-ID
MIPS
“The Atrenta IP Handoff Kit can help assure customers of quality and consistency across the variety of IP available for use at TSMC. As a member of the TSMC Soft IP Alliance Program, MIPS Technologies is committed to working closely with TSMC to speed our customers’ time-to-market. Starting with our superscalar multicore MIPS32® 1074K™ coherent processing system, MIPS is leveraging the IP Handoff Kit to validate that our IP meets and surpasses TSMC’s expectations of quality for soft IP.”
Gideon Intrater, Vice President of Marketing, MIPS Technologies, Inc.
Sonics
“As the number of unique IP cores increase with each process node, the need for a reliable, high-performance on-chip network is critical for successful SoC execution. As a partner in the Atrenta and TSMC IP Quality Initiative, and a TSMC Soft IP Alliance member, Sonics gives customers complete assurance and support from the initial design to TSMC hand-off. Our partnership with Atrenta continues to help semiconductor leaders realize their broad range of SoC designs, and the SpyGlass product suite will continue to play an integral part of Sonics’ RTL flow.”
Frank Ferro, Director of Marketing, Sonics
Tensilica
“Tensilica is pleased to participate in TSMC’s Soft-IP Alliance Program after many years of producing successful tapeouts for mutual customers. By validating our IP against quality metrics established by TSMC and measured using the SpyGlass platform, our customers can choose Xtensa processors and deliver their designs to TSMC with even greater confidence.”
Chris Jones, Director, Product Marketing, Tensilica, Inc.
Vivante
“Vivante is pleased to be part of TSMC’s Soft-IP Alliance Program, offering customers our full line of high performance, power efficient GPU/GPGPU cores. By going through extensive validation of our IP on the SpyGlass platform to ensure reliability and quality, customers can be confident that selecting Vivante products will reduce their risk and expedite time to market of their designs.”
Wei-Jin Dai, President and CEO, Vivante Corporation
And here is a video with Atrenta CTO Bernard Murphy about the current changes:
DAC Retrospective [SperlingMediaGroup YouTube channel, June 13, 2012]
Qualcomm and TSMC Collaborating on 28nm Process Technology [joint TSMC and Qualcomm press release, Jan 8, 2010]
Cutting-edge Semiconductor Technology Enables Mobile Devices to Offer Greater Functionality and Lower Power Consumption
Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced that the Company is working closely with foundry partner Taiwan Semiconductor Manufacturing Company (TWSE: 2330, NYSE: TSM) on 28 nanometer (nm) process technology. The advanced process node enables more features to be integrated into smaller chips with a high level of cost efficiency, accelerating the expansion of wireless into new market segments.
Small form factor and low power consumption are important features of Qualcomm’s next generation of system-on-a-chip (SoC) solutions, including the Snapdragon™ chipset platform. The two companies are capitalizing on their long-term relationshipas Qualcomm works on migrating directly from the 45nm to the 28nm node.
“TSMC prides itself on its ability to deliver cutting-edge technology platforms, including the related design ecosystems. Our 28nm platform supports the high-performance, low-power products that deliver next-generation experiences,” said Jason Chen, vice president of Worldwide Sales and Marketing. “We are pleased to be working with Qualcomm, a market leader in wireless technology, on bringing these new experiences to reality.”
“Qualcomm’s close collaboration with TSMC has always been a key part of our ability to deliver significant advantages to our customers through the industry-leading integration, power efficiency and cost efficiency of our products – enabling them to do more with less,” said Jim Clifford, senior vice president and general manager of Qualcomm CDMA Technologies. “Qualcomm’s integrated fabless manufacturing model and migration to smaller geometries will allow us to continue enabling the best mobile user experience possible on handsets, smartphones and smartbook devices.”
Qualcomm and TSMC worked closely on 65nm and 45nm technologies. They are continuing their relationship into low-power, low-leakage 28nm designs for high-volume manufacturing. Delivering up to twice the density of previous manufacturing nodes, 28nm technology allows semiconductors that power mobile devices to do far more with less power. Qualcomm and TSMC are working on both high-k metal gate (HKMG) 28HP and silicon oxynitride (SiON) 28LP technologies. Qualcomm expects to tape out its first commercial 28nm products in mid-2010.
Close collaboration with strategic technology and foundry partners is a key part of Qualcomm’s Integrated Fabless Manufacturing (IFM) business model, which delivers greater efficiencies and accelerated technology advancement to the industry.
Background video on Semiconductor Technology at TSMC, 2011 [AndrewatEML YouTube channel, March 26, 2011]
![6204.image_09BDDF73[1]](https://lazure2.files.wordpress.com/2012/09/6204-image_09bddf731.png?w=960)

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