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Entry level Chrome OS based commercial and consumer products built on Rockchip RK3288-C SoC

Once you have regular security problems on your Windows 10 PC like me, and you are essentially already close to 100% using web applications only like me, than it is time to move over to the Chrome OS platform. And this could be done now with a rock bottom cost. This is what I’ve found by examining the latest Chrome OS platform information as well as the entry level hardware represented by devices built on Rockchip RK3288-C SoC (a low-end quadcore 64-bit ARM SoC with lowest cost IP inside, so the SoC is the lowest cost too).

There is a “hidden” advantage as well. The “Android apps on Chrome OS” is in Beta now, but when the current Android Framework in Chrome OS will move from support of Android Marshmallow [6.0] to Android Nougat [7.0] Coming to Chrome OS 58 or 59 all Google Play store apps will be available properly on Chrome devices as well. In a companion post I’ve examined the current state-of-the-art of Android security as well, and that is looking much better than that of current Windows 10. So as far as all this information is concerned such a platform change looks like the final solution for my current security issues on Win10.

There is a further impetus from yesterday’s news on Microsoft Edge comes last in browser security battle By 18 hours ago from techradar (more…)

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A year of healthy progress along Microsoft strategic ambitions

Microsoft Stock Price for the last 5 years — July 22, 2016:Microsoft Stock Price for the last 5 years -- 22 July, 2016 My earlier posts related specifically to this 3 years overall transition history:
– Microsoft partners empowered with ‘cloud first’, high-value and next-gen experiences for big data, enterprise social, and mobility on wide variety of Windows devices and Windows Server + Windows Azure + Visual Studio as the platform as of July 10, 2013
– Microsoft reorg for delivering/supporting high-value experiences/activities as of July 11, 2013
– An ARM-focussed Microsoft spin-off could be the only solution to save Microsoft in the crucial next 3-years period as of August 24, 2013
– Opinion Leaders and Lead Opinions: Reflections on Steven Sinofsky’s “Era of Continuous Productivity” vision as of September 1, 2013
– The question mark over Wintel’s future will hang in the air for two more years as of September 15, 2013
– Microsoft could be acquired in years to come by Amazon? The joke of the day, or a certain possibility (among other ones)? as of September 16, 2013
– Sinofsky’s ‘continuous productivity’ idea to be realised first in Box Notes as of September 21, 2013
MS FY15 NEW STRATEGIC SETUPMicrosoft is transitioning to a world with more usage and more software driven value add (rather than the old device driven world) in mobility and the cloud, the latter also helping to grow the server business well above its peers as of April 25, 2014
– Satya Nadella on “Digital Work and Life Experiences” supported by “Cloud OS” and “Device OS and Hardware” platforms–all from Microsoft as of July 23, 2014
– Steve Ballmer on leaving Microsoft, relationship with Bill Gates: “We’ve dusted-up many times”, on His Biggest Regret: “doing hardware earlier [for being] more effective in phone business” AND on Amazon: “They Make No Money.” as October 25, 2014
– The Empire Reboots — Can C.E.O. Satya Nadella Save Microsoft? | Vanity Fair, Oct 27, 2014

WPC Day 1: The Digital Transformation Opportunity from Microsoft Partner Network UK Blog as of July 11, 2016:

“Empower every person and every
organisation on the planet to achieve more”
The Microsoft Mission

At the core of today’s opening Worldwide Partner Conference keynote was ‘Digital Transformation’ aka the desire of CEO’s to use technology to change business outcomes – whether it be how they:

  • Engage their customers,
  • Empower employees to make better decisions,
  • Optimise their operations,
  • Build up the predictive power within their organisations so that every operation is intelligent,
  • Transform their products and services.

Digital Transformation = An Unprecedented Partner Opportunity

Every customer of every size business (startup to Enterprise) is not only looking to use digital technology, but to build digital technology for their own.

Digital-transformatoin-all-partner-types1-1024x530[1]

Businesses are looking to drive greater efficiency – automating processes and enhancing productivity, particularly in those areas where there are operating expenses. This poses an unprecedented opportunity for you no matter what partner type you are.

Digital Transformation Opportunity by Microsoft and Partners -- July 11, 2016Microsoft Ambitions to Drive Digital Transformation

Microsoft has three core ambitions which play a fundamental part in digitally transforming businesses:

  • Re-inventing Productivity and Business process
  • Building the Intelligent Cloud
  • Create more Personal Computing

These will be covered in more detail over the next two days keynotes, however, Satya provided some great examples of what these 3 ambitions entail.

1) Re-inventing Productivity and Business Process

This is all about removing the barriers between productivity tools and business applications. Satya focused on two key areas:

  • ‘Conversations as a Platform’: Using human language understanding personal assistants and Bots (conversational interfaces) which augment our connection with technologies. (Watch the demo 48 minutes into Day 1 Keynote)

2) Building out the intelligent Cloud

To showcase how intelligent cloud is helping transformation, Satya invited General Electric CEO, Jeff Immelt, on stage to discuss how he has digitally transformed the GE business.

Considering GE is over 140 years old, it’s a company that has embraced transformation and digital transformation. You can read more about their story and find out about Microsoft’s new partnership with GE to bring Predix to Azure, accelerating digital transformation for industrial customers.

Satya then went on to talk about ‘The next phase of building the Intelligent cloud’ with ‘Cognitive services’.  We’re seeing the beginnings of a new platform for cognitive services. Microsoft has taken decades of research from Microsoft Research encapsulating speech, computer vision, natural language text understanding, and made these available as API’s. These API’s are being used to infuse perception into apps – the ability for Apps/Bots to understand speech and see i.e. computer vision. These cognitive capabilities are capable of transforming business by bringing productivity gains. A great example of this is how Macdonalds are creating efficiency in their Drive Thru’s with speech/order recognition (Watch the demo 1 hour 10 minutes into the Day 1 keynote).

3) Create More Personal Computing

Create more personal computing was the third and final ambition covered. Satya discussed Windows 10 – an OS system spanning multiple devices from Raspberry PI to Hololens and bringing centralised infrastructure benefits and cost savings to business.

It was on the topic of Hololens, he discussed how personal computing is shaped by category creation moments. Moments where input and output change. ‘Mixed Reality’ is that moment. With Hololens its created an interface changing moment – Mixing real with virtual, enabling us to be anywhere and everywhere – fully untethered and mobile.

What followed was a great demo showcasing how Japan Airlines are using Microsoft HoloLens to change how they train flight crews and mechanics (Watch the demo 1 hour 17 minutes into the Day 1 keynote)

Mixed reality offers huge opportunities for partners with so many applications across so many sectors.

Expect more details on Digital Transformation and Microsoft’s three ambitions in WPC Day 2 and 3 keynotes.

News From WPC2016 Day 1

The three ambitions announced a year ago and the proof-points of healthy progress along them in FY16:

  1. Office 365, Dynamics 365, AppSource, and LinkedIn as all being part of one overarching strategy in Productivity and Business Process:
    – core part of an overarching strategy
    – digital transformation both for us and our partnerships with customers
  2. Significant differentiation vs. Amazon AWS in Intelligent Cloud:
    – enterprise cloud leadership
    – every customer is also an ISV
    – hyperscale-plus-hybrid approach with annuity focus enabling cloud lead conversation with customers
    – meeting cloud needs of customers where they are
  3. Windows strategy to achieve progress in More Personal Computing:
    – deliver more value and innovation, particularly for enterprise customers
    – grow new monetization through services across our unified Windows platform
    – innovate in new device categories in partnership with our OEMs

The Q1FY16 progress was presented in my Microsoft is ready to become a dominant force in cloud computing with superior cloud offerings, a Windows ecosystem under complete renewal, first signs of Surface-Lumia-Xbox successes on the market, and strong interest in technology partnerships by other industry leaders as of October 24, 2015.

Reinvent Productivity and Business Processes“, “Build the Intelligent Cloud” and “Create More Personal Computing” were the original 3 “interlocking ambitions” the Microsoft CEO talked about at Microsoft Iginite held on May 4-8, 2015 in Chicago. The proof-points of FY16 progress are shown along that list, and explained in detail by remarks from Microsoft (MSFT) Satya Nadella on Q4 2016 Results – Earnings Call Transcript as of July 18, 2016.

For more information see also:  Q4 2015 Earning Call Transcript, the 2015 Annual Report or—even better—my earlier posts indicated here under each ambition. For a deeper strategic intent underlying these ambilitions see my earlier post Julia Liuson: “Microsoft must transform from a company that throws a box with software into the market … into a company that offers pure services” published on These ambitions also became reporting segments in FY16. See Earnings Release FY16 Q1 as of October 22, 2015. The major corporate groups were also organised along these line: ASG = Application & Services Group for “Reinvent productivity and business processes” ambition, C&E = Cloud & Enterprise for “Build the intelligent cloud platform” ambition, and OSG= Operating Systems Group for “Create more personal computing” ambition.

Note that the overall strategic approach was developed 2 years ago and it was described in my post Satya Nadella on “Digital Work and Life Experiences” supported by “Cloud OS” and “Device OS and Hardware” platforms–all from Microsoft of July 23, 2014:

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Here are the remarks from Microsoft (MSFT) Satya Nadella on Q4 2016 Results – Earnings Call Transcript as of July 18, 2016. for details

1. Office 365, Dynamics 365, AppSource, and LinkedIn as all being part of one overarching strategy in Productivity and Business Process:

For initial and additional details available earlier see my earlier posts:
– The first “post-Ballmer” offering launched: with Power BI for Office 365 everyone can analyze, visualize and share data in the cloud as of February 10, 2014
– OneNote is available now on every platform (+free!!) and supported by cloud services API for application and device builders as of March 18, 2014
– An upcoming new era: personalised, pro-active search and discovery experiences for Office 365 (Oslo) as of April 2, 2014
– Microsoft Azure: Marketable machine learning components capability for “a new data science economy”, and real-time analytics for Azure HDInsight service as of October 22, 2014

In fact, this last quarter, some of the most strategic announcements were all around our application platform. At our partner conference, there was a significant amount of excitement with the tools that we announced like PowerApps and Power BI, Azure functions and Flow. These are tools that our developers and system integrators and solution partners will use in order to be able to customize applications around Azure. And so to me that’s another huge advantage and a competitive differentiation for us.

1.1 Core part of an overarching strategy

The move to the cloud for our customers and for us is not just about a new way of delivering the same value just as a SaaS service. It’s really the transformation from having applications that are silos to becoming more services in the cloud where you can reason about the activity and the data underneath these services to benefit the customers who are using these services. So that’s what this notion of a graph [by Microsoft Graph] represents.

So when somebody moves to Office 365, their graph [by Microsoft Graph], their people, their relationships with other people inside the organization, their work artifacts all move to the cloud. You can connect them with all the business process data that’s in Dynamics 365, but not just in Dynamics 365 but all the applications in AppSource because business process will always be a much more fragmented market as opposed to just one market share leader by industry, by vertical, by country. And so that’s our strategy there.

And now the professional cloud or the professional network helps usage across all of that professional usage. Whether it’s in Office 365 or whether you’re a salesperson using any application related to sales, you want your professional network there. Of course, it’s relevant in recruiting, it’s relevant in training, it’s relevant in marketing. So that’s really our strategy with LinkedIn as the professional network meeting the professional cloud. And these are all part of one overarching strategy, and ultimately it’s about adding value to customers.

1.2 Digital transformation both for us and our partnerships with customers

This past year was a pivotal one in both our transformation and in our partnerships with customers who are also driving their own digital transformation. Our progress is best captured in the results of our three ambitions, starting with Productivity and Business Process. In a world of infinite information but finite attention and time, we aim to change the nature of work with digital technology. In pursuit of this ambition, we continue to add value to our products, grow usage, and increase our addressable market. Along these lines, let me start with Office 365 and then move to Dynamics 365.

In the last quarter, we advanced our collaboration tools. We launched Microsoft Planner, which helps teams manage operations, as well as Skype Meetings, which is aimed at helping small businesses collaborate. In June, we further strengthened our security value proposition with the release of Advanced Security Management.

Lastly, we continue to add intelligence in machine learning to Office to help people automate their tasks and glean insights from data. These advancements helped to drive increased usage across enterprises, small and medium businesses, and consumers. In the enterprise, Office 365 Commercial seats grew 45% year over year, and revenue grew 59% in constant currency. Also 70% of our Office Enterprise agreement renewals are in the cloud. Innovative companies like Facebook, Hershey’s, Discovery Communications, Cushman Wakefield all adopted Office 365 and now see how transformative this service can be for their own business.

We are enthusiastic about the early feedback and growth opportunity from companies using our newly released Office 365 E5, which includes powerful security controls, advanced analytics, and cloud voice. These customers tell us that they love the simplification that comes with standardizing across all of our productivity workloads.

We will continue to grow our install base and drive premium mix through offers like Office 365 E5, but they’re very, very early days of E5. And E5 value proposition across all three of the areas, whether it’s cloud voice or analytics or security are all three massive areas for us. And I would say if anything, the initial data from our customers around security is gaining a lot of traction. But at the same time, one of the things that customers are looking for is making an enterprise-wide architectural decision across all of the workloads.

We see momentum in small and medium businesses, with a growing number of partners selling Office 365, now up to nearly 90,000, a 25% increase year over year. We continue to grab share and adding over 50,000 customers each month for 28 consecutive months.

We also see momentum amongst consumers, with now more than 23 million Office 365 subscribers. Across segments, customers increasingly experience the power of Office on their iOS and Android mobile devices. In fact, we now have more than 50 million iOS and Android monthly active devices, up more than four times over last year.

Now let’s talk about progress with the other pillar of this ambition, Dynamics 365. We are removing any impedance that exists between productivity, collaboration, and business process. This month we took a major step forward with the introduction of Microsoft Dynamics 365 and Microsoft AppSource. Dynamics 365 provides business users with purpose-built SaaS applications. These applications have intelligence built in. They integrate deeply with communications and collaboration capabilities of Office 365.

Dynamics 365 along with AppSource and our rich application platform introduces a disruptive and customer-centric business model so customers can build what they want and use just the capabilities they need. The launch of Dynamics 365 builds on the momentum we’re already seeing in this business. Customers around the globe are harnessing the power of Dynamics in their own transformation, including 24 Hour Fitness and AccuWeather. Overall, Dynamics now has nearly 10 million monthly paid seats, up more than 20% year over year, and Q4 billings grew more than 20% year over year.

Overall, Business Processes represent an enormous addressable market, projected to be more than $100 billion by 2020. It’s a market we are increasingly focused on, and I believe we are poised with both Dynamics 365 and Microsoft AppSource to grow and drive opportunity for our partners.

Across Office 365 and Dynamics 365, developers increasingly see the opportunity to build innovative apps and experiences with the Microsoft Graph, and we now have over 27,000 apps connected to it. Microsoft AppSource will be a new way for developers to offer their services and reach customers worldwide.

Lastly, with Office 365 and Dynamics 365, we have the opportunity to connect the world’s professional cloud and the world’s professional network with our pending LinkedIn deal. Overall, the Microsoft Cloud is winning significant customer support. With more than $12 billion in Commercial Cloud annualized revenue run rate, we are on track to achieve our goal of $20 billion in fiscal year 2018. Also, nearly 60% of the Fortune 500 companies have at least three of our cloud offerings. And we continue to grow our annuity mix of our business. In fact, commercial annuity mix increased year over year to 83%.

2. Significant differentiation vs. Amazon AWS in Intelligent Cloud 

For initial and additional details available earlier see my earlier posts:
– Windows Azure becoming an unbeatable offering on the cloud computing market as of June 28, 2013
Microsoft partners empowered with ‘cloud first’, high-value and next-gen experiences for big data, enterprise social, and mobility on wide variety of Windows devices and Windows Server + Windows Azure + Visual Studio as the platform as of July 10, 2013

– 4. Microsoft products for the Cloud OS [‘Experiencing the Cloud’, as of Dec 18, 2013, but published only on Feb 14, 2014] (was separated from the next “half bakedness” post because of its length)
– 4.5. Microsoft talking about Cloud OS and private clouds: starting with Ray Ozzie in November, 2009[‘Experiencing the Cloud’, as of Dec 18, 2013, but published only on Feb 14, 2014] (was separated from the next “half bakedness” post because of its length)
Microsoft’s half-baked cloud computing strategy (H1’FY14) as of February 17, 2014 Note that this “half bakedness” ended by the facts published in Microsoft is ready to become a dominant force in cloud computing with superior cloud offerings, a Windows ecosystem under complete renewal, first signs of Surface-Lumia-Xbox successes on the market, and strong interest in technology partnerships by other industry leaders as of October 24, 2014
– Microsoft is transitioning to a world with more usage and more software driven value add (rather than the old device driven world) in mobility and the cloud, the latter also helping to grow the server business well above its peers as of April 25, 2014
– Microsoft BUILD 2014 Day 2: “rebranding” to Microsoft Azure and moving toward a comprehensive set of fully-integrated backend services as of April 27, 2014
– Scott Guthrie about changes under Nadella, the competition with Amazon, and what differentiates Microsoft’s cloud products as of October 2, 2014
– Sam Guckenheimer on Microsoft Developer Division’s Journey to Cloud Cadence as of October 19, 2014
– Microsoft Azure: Marketable machine learning components capability for “a new data science economy”, and real-time analytics for Azure HDInsight service as of October 22, 2014
Microsoft Cloud state-of-the-art: Hyper-scale Azure with host SDN — IaaS 2.0 — Hybrid flexibility and freedom as of July 11, 2015
– Microsoft’s first quarter proving its ability to become a dominant force in cloud computing with superior cloud offerings as of Januar 27, 2015
– DataStax: a fully distributed and highly secure transactional database platform that is “always on” as of February 3, 2016
– Microsoft chairman: The transition to a subscription-based cloud business isn’t fast enough. Revamp the sales force for cloud-based selling as of June 6, 2016

Cloud Growth Helps Microsoft Beat Street in Q4 from TheStreet as of July 19, 2016 

… [0:34] and Microsoft’s Enterprise Mobility [Suite]
customers nearly doubled YoY to 33,000. [0:40] …

Note that the Q1FY16 report was that “Enterprise Mobility [Suite] customers more than doubled year-over-year to over 20,000, and the installed base grew nearly 6x year-over-year“. Enterprise Mobility Suite (EMS) is a service available in the CSP (Cloud Solution Partner program) along with Windows Intune, Office 365, Azure and CRM Online. The reason for that very impressive growth was given by Satya Nadella in the much earlier Q2FY15 report as:

Microsoft Enterprise Mobility Suite is one key of product innovation that I would like to highlight given the growth and uniqueness of our offering. Microsoft offers a comprehensive solution that brings together mobile device management, mobile application management, hybrid identity management and data protection into a unified offering via EMS.

Office 365 now includes new app experiences on all phones and tablets for mobile productivity.  Further, we have released completely new scenarios. This includes Office Sway for visualizing and sharing ideas; Delve, to help search and discover content; Office 365 Groups to make it easier to collaborate; andOffice 365 Video for secure media streaming for businesses.

Finally, we continue to invest in enterprise value by integrating MDM and the Enterprise Mobility Suite into Office 365; new encryption technologies and compliance certifications; and new eDiscovery capabilities in Exchange.

Overall at the highest level, our strategy here is to make sure that the Microsoft Services i.e. cloud services be it Azure, Office 365, CRM Online or Enterprise Mobility Suite are covering all the devices out there in the marketplace. So that, that way we maximize the opportunity we have for each of these subscription and capacity based services.

2.1 Enterprise cloud leadership

Now let’s get into the specifics of the Intelligent Cloud, an area of massive opportunity, as we are clearly one of the two enterprise cloud leaders. Companies looking to digitally transform need a trusted cloud partner and turn to Microsoft. As a result, Azure revenue and usage again grew by more than 100% this quarter. We see customers choose Microsoft for three reasons. They want a cloud provider that offers solutions that reflect the realities of today’s world and their enterprise-grade needs. They want higher level services to drive digital transformation, and they want a cloud open to developers of all types. Let me expand on each.

To start, a wide variety of customers turn to Azure because of their specific real-world needs. Multinationals choose us because we are the only hybrid and hyperscale cloud spanning multiple jurisdictions. We cover more countries and regions than any other cloud provider, from North America to Asia to Europe to Latin America. Our cloud respects data sovereignty and makes it possible for an enterprise application to work across these regions and jurisdictions. More than 80% of the world’s largest banks are Azure customers because of our leadership support for regulatory requirements, advanced security, and commitment to privacy. Large ISVs like SAP and Citrix as well as startups like Sprinklr also choose Azure because of our global reach and a broad set of platform services. Last week GE announced it will adopt our cloud for its IoT approach.

Next, Azure customers also value our unique higher-level services. Now at 33,000, we nearly doubled in one year the number of companies worldwide that have selected our Enterprise Mobility Solutions. The Dow Chemical Company leverages EMS along with Azure, Office 365, and Dynamics to give its thousands of employees secure real-time access to data and apps from anywhere.

Just yesterday, we announced Boeing will use Azure, our IoT suite, and Cortana Intelligence to drive digital transformation in commercial aviation, with connected airline systems optimization, predictive maintenance, and much more. This builds on great momentum in IoT, including our work with Rolls-Royce, Schneider Electric, and others.

This is great progress, but our ambitions are set even higher. Our Intelligent Cloud also enables cognitive services. Cortana Intelligence Suite offers machine learning capabilities and advanced predictive analytics. Customers like Jabil Circuit, Fruit of the Loom, Land O’Lakes, LIBER already realize the benefits of these new capabilities.

Lastly, central to our Intelligent Cloud ambition is providing developers with the tools and capabilities they need to build apps and services for the platforms and devices of their choice. We have the best support for what I would say is the most open platform for all developers. Not only is .NET first class but Linux is first class, Java is first class. The new Azure Container service cuts across both containers running on Windows, running across Linux. So again, it speaks to the enterprise reality. .NET Core 1.0 for open source and our ongoing work with companies such as Red Hat, Docker, and Mesosphere also reflects significant progress on this front. We continue to see traction from open source, with nearly a third of customer virtual machines on Azure running Linux.

So those would be the places where we are fairly differentiated, and that’s what you see us gaining both for enterprise customers and ISVs.

On the server side, premium server revenue grew double digits in constant currency year over year. New SQL Server 2016 helps us expand into new markets with built-in advanced analytics and unparalleled performance. More than 15,000 customers, including over 50% of the Fortune 500, have registered for the private preview of SQL Server for Linux. And we’re not slowing down. We will launch Windows Server 2016 and System Server 2016 later this year.

2.2 Every customer is also an ISV

One of the phenomena now is that pretty much anyone who is a customer of Azure is also in some form an ISV, and that’s no longer just limited to people who are “in the classic tech industry” or the software business. So every customer who starts off consuming Azure is also turning what is their IP in most cases into an ISV solution, which ultimately will even participate in AppSource. So at least the vision that we have is that every customer is a digital company that will have a digital IP component to it, and that we want to be able to partner with them in pretty unique ways.

That’s the same case with GE. It’s the same case with Boeing. It’s the same case with Schneider Electric or ABB or any one of the customers we are working with because they all are taking some of their assets and converting them into SaaS applications on Azure. And that’s something that we will in fact have distribution agreements with.

And AppSource is a pretty major announcement for us because we essentially created for SaaS applications and infrastructure applications a way to distribute their applications through us and our channel. And I think it makes in fact our cloud more attractive to many of them because of that. So we look – I think going forward, you’ll look to see – or you’ll see us do much more of this with many other customers of ours.

2.3 Hyperscale-plus-hybrid approach with annuity focus enabling cloud lead conversation with customers

The focus for us is in what I describe as this hyperscale-plus-hybrid approach when you think about the current approach, which is pretty unique to us. Overall, I believe this hyperscale plus hybrid architecturally helps us a lot with enterprise customers because we meet them where their realities are today and also the digital transformation needs going forward, so that’s one massive advantage we have.

And the way we track progress is to see how is our annuity growth of our server business, and how is our cloud growth. And if you look at this last quarter, our annuity grew double digits and our cloud grew triple digits. And that’s a pretty healthy growth rate, and that’s something that by design both in terms of the technical architecture as well as the traction we have in the marketplace and our sales efforts and so on are playing out well, and we are very bullish about that going forward.

The Transactional business is much more volatile because of the macro environment, IT budgets, and also the secular shift to the cloud. The question again that gets asked is about the cannibalization. But if you look at Boeing or you look at any of the other examples that I talk about when it comes to the cloud, our servers never did what these customers are now doing in our cloud. So at a fundamental long-term secular basis, we have new growth, new workloads, and that’s what we are focused on, and that’s a much bigger addressable market than anything our Transactional Server business had in the past.

[Amy E. Hood – Chief Financial Officer & Executive Vice President:]
The first thing really that I think Satya and I both focus on every quarter, every month, is how much of our business are we continuing to shift to annuity and specifically to the cloud. We structure all of our motions at this company, from how we engineer to how we do our go-to-markets to how we think about sales engagement to how we do our investments, fundamentally toward that long-term structural transition in the market.

In terms of server products and services, I tend to think of it as the all-up growth. It’s really about growing the cloud, growing the hybrid, and then whatever happens in the Transactional business happens.

And so to your question on Transactional performance, there were some deals that didn’t get done in Q3 that got done in Q4, and there were some deals done in Q4 on the Office side with large companies that I’m thrilled by. But at the same time, we still will focus on those deals moving to the cloud over time. And so this volatility that we are going to see because of macro and because of budget constraints, especially on Transactional, we will focus on because we expect excellent execution and have accountability to do that in the field. But our first priority, every time, is to make sure we are focused on annuity growth and digital transformation at our company, which is best done through that motion.

In terms of the sales motion they are absolutely incented more towards cloud versus Transactional going into this year.

I do believe that every conversation that we’re having with customers is cloud-led. That cloud-led conversation and making a plan for customers to best change and transform their own business certainly is a far more in-depth one than on occasion is required by long-time Transactional purchasers, especially in Office, as an example, because what we’re talking about now is really pivoting your business for the long term.

And so I’m sure there are examples where that has elongated the sales cycle, for good reason. But I would generally point back and say most of these are driven at the structural level, which is – structurally over time, on-premises Transactional business will move to the cloud or to a hybrid structure through an annuity revenue stream.
[END BY Amy E. Hood]

2.4 Meeting cloud needs of customers where they are

The position that we have taken is that we want to serve customers where they are and not assume very simplistically that the digital sovereignty needs of customers can be met out of a fewer data center approach. Because right now, given the secular trend to move to the cloud across all of the regulated industries across the globe, we think it’s wiser for us and our investors long term to be able to meet them where they are. And that’s what you see us. We are the only cloud that operates in China under Chinese law, the only cloud that operates in Germany under German law. And these are very critical competitive advantages to us.

And so we will track that, and we will be very demand driven. So in this case we’re not taking these positions of which regions to open and where to open them well in advance of our demand. If anything, I think our cycle times have significantly come down. So it will be demand-driven, but I don’t want to essentially put a cap because if the opportunity arises, and for us it’s a high ROI decision to open a new region, we will do so.

3. Windows strategy to achieve progress in More Personal Computing

For initial and additional details available earlier see my earlier posts:
– Windows Embedded is an enterprise business now, like the whole Windows business, with Handheld and Compact versions to lead in the overall Internet of Things market as well as of June 8, 2013
– How the device play will unfold in the new Microsoft organization? as of July 14, 2013
– With Android and forked Android smartphones as the industry standard Nokia relegated to a niche market status while Apple should radically alter its previous premium strategy for long term as of August 17, 2013
– Windows [inc. Phone] 8.x chances of becoming the alternative platform to iOS and Android: VERY SLIM as it is even more difficult for Microsoft now than any time before as of August 20, 2013
– Leading PC vendors of the past: Go enterprise or die! as of November 7, 2013
– Xamarin: C# developers of native “business” and “mobile workforce” applications now can easily work cross-platform, for Android and iOS clients as well as of November 15, 2013
Microsoft is transitioning to a world with more usage and more software driven value add (rather than the old device driven world) in mobility and the cloud, the latter also helping to grow the server business well above its peers as of April 25, 2014
Microsoft Surface Pro 3 is the ultimate tablet product from Microsoft. What the market response will be? as of May 21, 2014
Windows 10 Technical Preview: Terry Myerson and Joe Belfiore on the future of Windows as of October 1, 2014
– The Era Of Sub-$90 Windows 8.1 Phones in U.S. as of October 3, 2014
– Windows 10 is here to help regain Microsoft’s leading position in ICT as of July 31, 2015
– Microsoft and partners to capitalize on Continuum for Phones instead of the exited Microsoft phone business as of June 5, 2016

We have increased Windows 10 monthly active devices and are now at more than 350 million. This is the fastest adoption rate of any prior Windows release. While we are proud of these results, given changes to our phone plan, we changed how we will assess progress. Going forward, we will track progress by regularly reporting the growth of Windows 10 monthly active devices in addition to progress on three aspects of our Windows strategy:

3.1 Deliver more value and innovation, particularly for enterprise customers

We continue to pursue our goal of moving people from needing Windows to choosing Windows to loving Windows. In two weeks, we will launch Windows 10 Anniversary Update, which takes a significant step forward in security. We are also extending Windows Hello to support apps and websites and delivering a range of new features like Windows Ink and updates to Microsoft Edge. We expect these advances will drive increased adoption of Windows 10, particularly in the enterprise, in the coming year. We already have strong traction, with over 96% of our enterprise customers piloting Windows 10.

3.2 Grow new monetization through services across our unified Windows platform

As we grow our install base and engagement, we generate more opportunity for Microsoft and our ecosystem. Bing profitability continues to grow, with greater than 40% of the search revenue in June from Windows 10 devices. Bing PC query share in the United States approached 22% this quarter, not including volume from AOL and Yahoo!. The Cortana search box has over 100 million monthly active users, with 8 billion questions asked to date.

We continue to drive growth in gaming by connecting fans on Xbox Live across Windows 10, iOS, and Android. Just this quarter we launched our Minecraft Realm subscription on Android and iOS. Overall engagement on Xbox Live is at record levels, with more than 49 million monthly active users, up 33% year over year. At E3 we announced our biggest lineup of exclusive games ever for Xbox One and Windows 10 PCs. And we announced Xbox Play Anywhere titles, where gamers can buy a game once and play it on both their Windows 10 PC and Xbox One. We also announced two new members of the Xbox One console family, the Xbox One S and Project Scorpio.

The Windows Store continues to grow, with new universal Windows apps like Bank of America, Roku, SiriusXM, Instagram, Facebook, Wine, Hulu, and popular PC games like Quantum Break.

3.3 Innovate in new device categories in partnership with our OEMs

Our hardware partners are embracing the new personal computing vision, with over 1,500 new devices designed to take advantage of Windows 10 innovations like Touch, Pen, Hello, and better performance and power efficiency.

Microsoft’s family of Surface devices continues to drive category growth, and we are reaching more commercial customers of all sizes with the support of our channel partners. We recently announced new Surface enterprise initiatives with IBM and Booz Allen Hamilton to enable more customer segments. Also in the past year, we grew our commercial Surface partner channel from over 150 to over 10,000.

Lastly this quarter, more and more developers and enterprise customers got to experience two entirely new device categories from Microsoft Surface Hub and Microsoft HoloLens. While we are still in the early days of both of these devices, we are seeing great traction with both enterprise customers and developers, making us optimistic about future growth.

Microsoft and partners to capitalize on Continuum for Phones instead of the exited Microsoft phone business

With The Nokia phone business is to be relaunched via a $500M private startup with Android smartphones and tablets in addition to the feature phones for which manufacturing, sales and distribution, would be acquired from Microsoft by a subsidiary of Foxconn published on this same ‘Experiencing the Cloud’ blog on May 20, 2016 I now dare to publish this follow-up post to the original message which was already available on October 13, 2015 under the title “Windows 10 enhancements for tablets and phones to achieve a powerful PC experience” (that original content see in the final part of this post) and with a statement for the start:

These are significant capabilities with which (although not only with these but with quite a number of other innovations) Microsoft—first time in its history—was able to beat Apple in its own game. You couldn’t believe it?

Unfortunately I’d felt a growing uncertainty about the future of the Microsoft Device business and therefore decided to wait till the picture gets clear. With the following Terry Myerson video appearing on the HP Business YouTube channel I’ve now felt certain to make the original information available in this curent post:

June 2, 2016HP Elite x3 and Windows 10: Terry Myerson

http://www.hp.com/go/elitex3Terry Myerson, Executive Vice President at Microsoft, talks about the collaboration between HP and Microsoft that brings to life the new HP Elite x3 with Windows 10 for business, pioneer in the 3-in-1 category.

My certainty was also supported by the Microsoft decision to exit the phone business as it had been acquired from Nokia:

May 25, 2016Microsoft announces streamlining of smartphone hardware business

Microsoft Corp. on Wednesday announced plans to streamline the company’s smartphone hardware business, which will impact up to 1,850 jobs. As a result, the company will record an impairment and restructuring charge of approximately $950 million, of which approximately $200 million will relate to severance payments.

“We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same,” said Satya Nadella, chief executive officer of Microsoft. “We will continue to innovate across devices and on our cloud services across all mobile platforms.”

Microsoft anticipates this will result in the reduction of up to 1,350 jobs at Microsoft Mobile Oy in Finland, as well as up to 500 additional jobs globally. Employees working for Microsoft Oy, a separate Microsoft sales subsidiary based in Espoo, are not in scope for the planned reductions.

As a result of the action, Microsoft will record a charge in the fourth quarter of fiscal 2016 for the impairment of assets in its More Personal Computing segment, related to these phone decisions.

The actions associated with today’s announcement are expected to be substantially complete by the end of the calendar year and fully completed by July 2017, the end of the company’s next fiscal year.

More information about these charges will be provided in Microsoft’s fourth-quarter earnings announcement on July 19, 2016, and in the company’s 2016 Annual Report on Form 10-K.

In addition to the following sentence in the previous Microsoft selling feature phone business to FIH Mobile Ltd. and HMD Global, Oy press release on May 18, 2016:

Microsoft will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO.

That last statement was not enough for me at that time, just 3 weeks ago as I had a truly shocking experience with upgrading my wife’s Lumia 640 XL to the Windows 10 Mobile version which had been released for that type of earlier Lumia phones last March. The software was so much buggy that I had’seen in my life any time before. I’d got so much angry that immediately bought an Android based Samsung Galaxy J5 for her. However, I became again confident in the future of Window 10 Mobile based phones after her bad experience with that Android software in terms of functionality (e.g. too many steps needed for some vital functions vs. that needed on Lumia) and the success of restoring the earlier 8.5 release on the 640 XL.

Several other videos which appeared on the same HP Business YouTube channel a little earlier gave me the final assurance:

May 27, 2016: HP Elite x3 turned heads at Mobile World Congress 2016

http://www.hp.com/go/elitex3 -HP Elite x3 made a powerful first impression at Mobile World Congress 2016 in Barcelona, winning 24 awards and positive reviews from industry experts. Meet the new HP Elite x3 the one device that’s every device.

June 2, 2016Reinventing mobility: Dion Weisler 

http://www.hp.com/go/elitex3 -Dion Weisler President and Chief Executive Officer for HP Inc. introduces to the revolution of mobility. Meet the new HP Elite x3 pioneer in the 3-in-1 category; the next generation of computing, designed specifically for business.

June 2, 2016The new HP Elite x3: Michael Park

http://www.hp.com/go/elitex3Michael Park, Vice President for Commercial Mobility & Software division at HP Inc., introduces the new HP Elite x3, pioneer in the 3-in-1 category that will transform business mobility.

June 2, 2016HP Elite x3 and Qualcomm: Steve Mollenkopf

http://www.hp.com/go/elitex3 -Steve Mollenkopf, Chief Executive Officer of Qualcomm Incorporated, presents the power of Snapdragon 820 processor in HP Elite x3, as part of the recent collaboration with HP. Meet the new HP Elite x3, pioneer in the 3-in-1 category; the next generation of computing, designed specifically for business.


Now a brief retrospective for the start:

From the full text of Q&A part of the Transcript of Microsoft Nokia Transaction Conference Call: Steve Ballmer, Stephen Elop, Brad Smith, Terry Myerson, Amy Hood; September 3, 2013 [Microsoft, Sept 3, 2013]

OPERATOR: Walter Pritchard, Citigroup, your line is open.
WALTER PRITCHARD: Great. Thanks for taking the question. Steve Ballmer, on the tablet side, obviously, we could say many of the same things as you’ve put into this slide deck as rationale for doing an acquisition on the phone side as we could say about the tablet side including picking up more gross margin.

I’m wondering how this transaction impacts the strategy going forward in tablets and whether or not you need to, in a sense, double down further on first-party hardware in the tablet market. And then just have one follow up.

STEVE BALLMER: Okay. Terry, do you want to talk a little bit about that? That would be great.

TERRY MYERSON: Well, phones and tablets are definitely a continuum. You know, we see the phone products growing up, the screen sizes and the user experience we have on the phones. We’ve now made that available in our Windows tablets, our application platform spans from phone to tablet. And I think it’s fair to say that our customers are expecting us to offer great tablets that look and feel and act in every way like our phones. We’ll be pursuing a strategy along those lines.

More information: Microsoft answers to the questions about Nokia devices and services acquisition: tablets, Windows downscaling, reorg effects, Windows Phone OEMs, cost rationalization, ‘One Microsoft’ empowerment, and supporting developers for an aggressive growth in market share ‘Experiencing the Cloud’, September 4, 2013

From the Microsoft Q4 2015 Earning Call Transcript by CEO Satya Nadella on July 21, 2015:

I am thrilled we are just days away from the start of Windows 10. It’s the first step towards our goal of 1 billion Windows 10 active devices in the fiscal year 2018. Our aspiration with Windows 10 is to move people from meeting to choosing to loving Windows. Based on feedback from more than 5 million people who have been using Windows 10, we believe people will love the familiarity of Windows 10 and the innovation. It’s safe, secure, and always up to date. Windows 10 is more personal and more productive with Cortana, Office, universal apps, and Continuum. And Windows 10 will deliver innovative new experiences like Inking on Microsoft Edge and gaming across Xbox and PCs, and also opens up entirely new device categories such as Hololens.

From Windows 10 available in 190 countries as a free upgrade Microsoft news release on July 28, 2015:

Windows 10 is more personal and productive, with voice, pen and gesture inputs for natural interaction with PCs. It’s designed to work with Office and Skype and allows you to switch between apps and stay organized with Snap and Task View. Windows 10 offers many innovative experiences and devices, including the following:

  • Cortana, the personal digital assistant, makes it easy to find the right information at the right time.
  • New Microsoft Edge browser lets people quickly browse, read, and mark up and share the Web.
  • The integrated Xbox app delivers the Xbox experience to Windows 10, bringing together friends, games and accomplishments across Xbox One and Windows 10 devices.
  • Continuum optimizes apps and experiences beautifully across touch and desktop modes.
  • Built-in apps including Photos; Maps; Microsoft’s new music app, Groove; and Movies & TV offer entertainment and productivity options. With OneDrive, files can be easily shared and kept up-to-date across all devices.
  • A Microsoft Phone Companion app enables iPhones, Android or Windows phones to work seamlessly with Windows 10 devices.
  • The all new Office Mobile apps for Windows 10 tablets are available today in the Windows Store.4 Built for work on-the-go, the Word, Excel and PowerPoint apps offer a consistent, touch-first experience for small tablets. For digital note-taking needs, the full-featured OneNote app comes pre-installed with Windows 10. The upcoming release of the Office desktop apps (Office 2016) will offer the richest feature set for professional content creation. Designed for the precision of a keyboard and mouse, these apps will be optimized for large-screen PCs, laptops and 2-in-1 devices such as the Surface Pro.

More information around the above 2 excerpts:
Windows 10 is here to help regain Microsoft’s leading position in ICT ‘Experiencing the Cloud’, July 31, 2015

From 2015 Annual Report>The ambitions that drive us on July 31, 2015:

Create more personal computing

Windows 10 is the cornerstone of our ambition to usher in an era of more personal computing. We see the launch of Windows 10 in July 2015 as a critical, transformative moment for the Company because we will move from an operating system that runs on a PC to a service that can power the full spectrum of devices in our customers’ lives. We developed Windows 10 not only to be familiar to our users, but more safe and secure, and always up-to-date. We believe Windows 10 is more personal and productive, working seamlessly with functionality such as Cortana, Office, Continuum, and universal applications. We designed Windows 10 to foster innovation – from us, our partners and developers – through experiences such as our new browser Microsoft Edge, across the range of existing devices, and into entirely new device categories.

Our future opportunity

There are several distinct areas of technology that we aim to drive forward. Our goal is to lead the industry in these areas over the long-term, which we expect will translate to sustained growth. We are investing significant resources in:

  • Delivering new productivity, entertainment, and business processes to improve how people communicate, collaborate, learn, work, play, and interact with one another.
  • Establishing the Windows platform across the PC, tablet, phone, server, other devices, and the cloud to drive a thriving ecosystem of developers,unify the cross-device user experience, and increase agility when bringing new advances to market.
  • Building and running cloud-based services in ways that unleash new experiences and opportunities for businesses and individuals.
  • Developing new devices that have increasingly natural ways to interact with them, including speech, pen, gesture, and augmented reality holograms.
  • Applying machine learning to make technology more intuitive and able to act on our behalf, instead of at our command.

January 14, 2016Continuum for Phones: Making the Phone Work Like a PC by  / Principal Program Manager Lead

Imagine having a phone that works like a PC. Continuum for Phones makes this a reality, enabling Windows customers to get things done like never before.

Check out the ways this capability comes alive. You’ll be able to travel and leave your laptop at home, knowing you’re still equipped to complete your most common tasks. Walk into a meeting with just your smartphone – you’re fully equipped for seamlessly projecting PowerPoint presentations to a larger screen. Or take a seat in a business center where you plug your phone into a monitor and keyboard – you’ve instantly gained PC-like productivity using Office apps and the Microsoft Edge browser.

Continuum for Phones - Making the Phone Work Like a PC -- January 14, 2016

How it all started

The road to Continuum began three years ago with a simple observation: we take our phones everywhere, we depend on them, and we feel lost without them. Yet, when the time comes to do “real work,” we reach for a laptop or desktop PC. So we end up carrying our phones plus our laptops, or we wait until we are at our desks to do the heavy lifting.

The thing is, today’s phones have more than enough processing power to handle our most common tasks and activities. We knew this was especially true in emerging markets where people rely only on their mobile phones to get online.  So — with these thoughts top of mind — we set out on our mission to help people get real work done with just their phone.

Who are we? We are the small team of people who built Continuum for Phones with a passion to change the future of personal productivity.

What people want

We started by talking to customers to understand what they needed. We spoke to people around the globe – from Chicago to Shanghai – and found that most people wanted the same thing: a phone that did more. Here are the main insights from the research:

  • “My most important device”: people universally describe their smartphone as the center of their connected life.
  • Connect to a bigger screen: people rely on their laptops and desktops because their phone lacks a large screen, keyboard and mouse. They want to easily connect to larger screens for both work and entertainment.
  • Tech-savvy people expect more: as the processing power of phones has risen, so has the expectations of the tech-savvy.
  • Many people around the world don’t have PCs: because they can’t afford a PC, people have a TV and a phone and that’s it. So any computing work gets done on their phone.

We realized that people embraced the idea of having a phone that could work like a PC.

Getting it done

So we started building Continuum, and we soon realized that we faced many technical and design challenges.

For example, there were two paradigms for connecting to a second screen: (1) mirroring your phone’s screen to a larger screen or (2) connecting your PC to multiple monitors. We needed to create a new design paradigm with two independent experiences – one on the phone and a separate one on the second screen. This was important because customers wanted to continue to use their phone as a phone, even while having a PC-like experience on the second screen. We spent months iterating with paper and software prototypes to arrive at an experience that was easy to understand and use.

The technical hurdles were just as big. For example, we had to build support for keyboard and mouse into Windows 10 Mobile. And many substantial architecture changes were needed in Windows to make Continuum work.

At the //Build conference in April 2015, we did our first live demo, and at the Windows 10 launch in July, we showed the full power of a phone running Office* apps on a second screen. The response – which exceeded our expectations — motivated us to keep going, working relentlessly with hundreds of colleagues around the world to deliver an integrated solution that required major changes to Windows, new capabilities in the phones, and creation of docks such as the Microsoft Display Dock.

Announcing Continuum

So, with the debut of Continuum for Phones, you really can have something new in your pocket: a smartphone that has the power and ability to work like a PC. In the words of our CEO Satya Nadella: “This is the beginning of how we are going to change what the form and function of a phone is.”

Right now, this means that you can carry a smartphone – like the new Lumia 950 and Lumia 950XL – and use a small dock or wireless dongle to connect it to a keyboard, mouse and monitor for a familiar PC-like experience. Run Office* apps, browse the Web, edit photos, write email, and much more.

Continuum for Phones No 2 - Making the Phone Work Like a PC -- January 14, 2016

While you’re working on the larger screen, you won’t lose your phone’s unique abilities. Continuum multi-tasks flawlessly so you can keep using your phone as a phone for calls, emails, texts, or Candy Crush. Or if you don’t have a mouse, you can use your phone as the trackpad for the apps on the larger screen.

If you share my enthusiasm for Continuum for Phones, please check out all the details, including multiple usage scenarios, at windows.com.

* App experience may vary. Office 365 subscription required for some Office features.

June 4, 2016 snapshot: New features coming soon to Windows 10 Anniversary Update

This year’s Windows 10 Anniversary Update will have great new innovative features including:1

The pen just got even mightier.

Windows 10 Anniversary Edition with a mightier Ink -- June 4, 2016

Turn thoughts into action with Windows Ink – using the pen, your fingertip, or both at once.2 Pair it with Office apps to effortlessly edit documents. With Windows Ink, you’ll be able to access features like Sticky Notes with a simple click of the pen.3 When you start drawing a figure like a chart or graph, it’ll turn into the real thing right before your eyes. And because Windows Ink stays active when your device is locked, you’ll be able to jot down notes even when you don’t have time to enter a password.

Cortana’s got you covered.

No time to enter your password but need some quick help? No problem — just ask. Cortana4 will now be at your service, even before you login. Whether you want to make a note, play music or set a reminder, Cortana will have you covered.

The secret password is: you.

With Windows Hello, unlocking your PC and devices is as quick as looking or touching.But the new Windows Hello will also let you unlock your PC simply by tapping your Windows Hello enabled phone.6 Beyond the hardware, Windows Hello will also give you instant access to paired apps and protected websites on Microsoft Edge – all while maintaining enterprise-level security. Windows Hello lets you say goodbye to cumbersome passwords.

Got game? We’ll deliver.

Windows 10 Anniversary Edition will deliver DirectX 12 games and Xbox Live features -- June 4, 2016Windows 10 will deliver incredible DirectX 12 games and Xbox Live features that will transform what you expect from PC gaming. Now you can play and connect with gamers across Xbox One and Windows 10 devices. From the best casual games to the next generation of PC releases, you’ll have more ways to play new games optimized for Windows.7

And that’s not all: Microsoft Studios is bringing a full portfolio of new games to Windows 10, including the forthcoming Forza Motorsport 6: Apex, which will be freefor Windows 10 users.

Ongoing progress reports (only two latest ones are summarised here):

June 1, 2016Announcing Windows 10 Mobile Insider Preview Build 14356

  • Cortana Improvements:
    – Get notifications from your phone to your PC
    – Send a photo from your phone to PC
    – New listening animation

May 26, 2016Announcing Windows 10 Insider Preview Build 14352

  • Cortana Improvements:
    – Cortana, Your Personal DJ
    – Set a timer
  • Windows Ink:
    – Updated Sticky Notes
    – Compass on the ruler
    – General improvements to the Windows Ink experience
  • Other items of note:
    – Windows Game bar improved with full-screen support
    – Feedback Hub will now show Microsoft responses
    – Updated File Explorer icon
    – Deploying Windows Enterprise edition gets easier
    – Limited Period Scanning
    – Introducing Hyper-V Containers (ADDED 5/31)

For more information see: https://blogs.windows.com/windowsexperience/tag/windows-insider-program/

Particularly relevant recent information from A change in leadership for the Windows Insider Program on June 1, 2016 by  / Corporate Vice President, Engineering Systems Team:

Since we first started the Windows Insider Program back in September 2014, Windows Insiders have helped us ship Windows 10 to over 300 million devices. We have released 35 PC builds and 22 Mobile builds to Insiders to date. This is a huge change from Windows 7 and Windows 8 which only had 2 and 3 public pre-release builds respectively. Windows Insiders have been more directly plugged in to our engineering processes for Windows than ever before, including participating in our first ever public Bug Bash this year. Windows Insiders contribute problem reports and suggestions which help us shape the platform, and are currently helping us get ready to ship the next major update to Windows 10 this summer – the Windows 10 Anniversary Update. This is just the beginning of the journey we’re on though. We really appreciate having such an amazing connection with our customers, and want Windows Insiders to continue to help shape Windows releases for years to come. With that in mind, I want to talk about a change to the Windows Insider Program going forward.

When I was introduced as leader of the Windows Insider Program over 18 months ago, I was responsible for the team that built our feedback and flighting systems for Windows. It made sense for me to be on the front lines talking with customers of the systems that my team was building to get Insider Preview Builds out and hear the feedback rolling in. In August of last year, I changed jobs to work on the Engineering Systems Team in WDG. In this role, I am responsible for the tools our engineers use to build Windows, including our planning and work management systems, source code management, build infrastructure, and test automation systems. …

Meet Dona Sarkar

I have worked with Dona for many years and think she is the perfect person to guide the Windows Insider Program forward. Her technical expertise, passion for customers, and commitment to listening to feedback is unmatched. …

You can follow Dona here on Twitter. Please welcome her as the new leader of the Windows Insider Program!

Get to know more about Dona here from Microsoft Stories!


Finally more as well as historic information on this subject which I’d originally put together on October 13, 2015 and intended to publish under the title:

Windows 10 enhancements for tablets and phones to achieve a powerful PC experience

These are significant capabilities with which (although not only with these but with quite a number of other innovations) Microsoft—first time in its history—was able to beat Apple in its own game. You couldn’t believe it?

First watch these two very short videos from CNNMoney presenting Microsoft’s “ultimate laptop” in terms of its device innovations:
Hands-on with Microsoft Surface Book


See Microsoft’s reversible laptop in :60

Then follow with the below information which is presenting one the most important Windows 10 software innovations, called Continuum (Continuum tablet mode for touch-capable devices) which makes that “ultimate laptop” an “ultimate tablet” as well.

Then get acquainted with a similar Windows 10 software innovation, called Continuum for Phones (it is rather for Mobile devices) which is allowing an entry level tablet or a premium phone to become a true PC with an extension to an external large size display after docking to it.

Note that while the “ultimate laptop/ultimate tablet” hybrid is for the premium client market, the second one is targeted at the entry level emerging markets as well. In that scenario Microsoft is hoping to capitalize on the availability of extremely low-cost tablets which could be enhanced to a PC-like experience with Continuum for Phones. When coupled with a similarly low-priced Windows 10 phone the emerging market user will have 2 devices for around $200 and a consistent Windows 10 experience easily dockable to a large size display, and with that easily achieving a true PC experience.

Suggested other information:
– July 30, 2015: Docking – Windows 10 hardware dev, Microsoft Hardware Dev Center
– March 28, 2015: Display – Windows 10 hardware dev, Microsoft Hardware Dev Center
– March 28, 2015: Graphics – Windows 10 hardware dev, Microsoft Hardware Dev Center

Continuum tablet mode for touch-capable devices

The Continuum feature of Windows 10 desktop edition adapts between tablet and PC modes when docking/undocking. More generally: “Continuum is available on all Windows 10 desktop editions by manually turning “tablet mode” on and off through the Action Center. Tablets and 2-in-1s with GPIO indicators or those that have a laptop and slate indicator will be able to be configured to enter ‘tablet mode’ automatically.” Source: Windows 10 Specifications, Microsoft, June 1, 2015

May 4, 2015Continuum For Windows 10 PCs and Tablets At Microsoft Ignite Event 2015 

June 12, 2015Continuum Overview – Windows 10 hardware dev, Microsoft Hardware Dev Center

Continuum is a new, adaptive user experience offered in Windows 10 that optimizes the look and behavior of apps and the Windows shell for the physical form factor and customer’s usage preferences. This document describes how to implement Continuum on 2-in-1 devices and tablets, specifically how to switch in and out of “tablet mode.”

Tablet Mode is a feature that switches your device experience from tablet mode to desktop mode and back. The primary way for a user to enter and exit “tablet mode” is manually through the Action Center. In addition, OEMs can report hardware transitions (for example, transformation of 2-in-1 device from clamshell to tablet and vice versa), enabling automatic switching between the two modes. However, a key promise of Continuum is that the user remains in control of their experience at all times, so these hardware transitions are surfaced through a toast prompt that must be confirmed by the user. The users also has the option to set the default response.

Target Devices

Dn917883.Continuum_tablet(en-us,VS.85).png Dn917883.Continuum_Detachables(en-us,VS.85).png Dn917883.Continuum_Convertibles(en-us,VS.85).png
Tablets Detachables Convertibles
Pure tablets and devices that can dock to external monitor + keyboard + mouse. Tablet-like devices with custom designed detachable keyboards. Laptop-like devices with keyboards that fold or swivel away.

When the device switches to tablet mode, the following occur:

  • Start resizes across the entire screen, providing an immersive experience.
  • The title bars of Store apps auto-hide to remove unnecessary chrome and let content shine through.
  • Store apps and Win32 apps can optimize their layout to be touch-first when in Tablet Mode.
  • The user can close apps, even Win32 apps, by swiping down from the top edge.
  • The user can snap up to two apps side-by-side, including Win32 apps, and easily resize them simultaneously with their finger.
  • The taskbar transforms into a navigation and status bar that’s more appropriate for tablets.
  • The touch keyboard can be auto-invoked.

Of course, even in “tablet mode”, users can enjoy Windows 10 features such as Snap Assist, Task View and Action Center. On touch-enabled devices, customers have access to touch-friendly invocations for those features: they can swipe in from the left edge to bring up Task View, or swipe in from the right edge to bring up Action Center.

With “tablet mode”, Continuum gives customers the flexibility to use their device in a way that is most comfortable for them. For example, a customer might want to use their 8” tablet in “tablet mode” exclusively until they dock it to an external monitor, mouse, and keyboard. At that point the customer will exit “tablet mode” and use all their apps as traditional windows on the desktop—the same way they have in previous versions of Windows. Similarly, a user of a convertible 2-in-1 device might want enter and exit “tablet mode” as they use their device throughout the day (for example, commuting on a bus, sitting at a desk in their office), using signals from the hardware to suggest appropriate transition moments.

Imagine the overall smoothness of that combined laptop and tablet experience on the brand new Microsoft Surface Book announced just on October 6, 2015. Out of a plethora of videos reporting on that new device with quite an entusiasm I’ve selected the one which—in my view—just right with its judgement and very concise at the same time.

Surface Book hands-on: Microsoft’s first laptop is simply amazing by Mark Hachman, senior editor of the PCWorld: “No one expected the Surface Book, and what they got was a true flagship for the Windows ecosystem.

And if you don’t need the leading edge ultrabook performance provided by the clever, “more power (GPU, longer batery life …) is in the detachable keyboard part” design of the Surface Book, then the 4th generation Surface Pro 4 may be more than sufficient for you to provide a state-of-the-art productivity work capability, including the best of the pen computing available on the market (which is also on the Surface Book, you could notice the same pen in the previous video), in addition to a new type cover for the tablet part. Here again the same source has been the best to present all that.

Surface Pro 4: Hands on with Microsoft’s category-creating productivity tablet by Mark Hachman, senior editor of the PCWorld 

Continuum for phones

With Continuum for phones in Windows 10 Mobile edition, connecting a phone enables a screen to become like a PC. Additionally: “Continuum for phones limited to select premium phones at launch. External monitor must support HDMI input. Continuum-compatible accessories sold separately. App availability and experience varies by device and market. Office 365 subscription required for some features.” Source: Windows 10 Specifications, Microsoft, June 1, 2015

April 29, 2015: As part of the Universal Windows Platform Microsoft shared at Build 2015 how apps can scale using Continuum for phones, enabling people to use their phones like PCs for productivity or entertainment. With that your phone app can start using a full-sized monitor, mouse, and keyboard, giving you even more mileage from your universal app’s shared code and UI.

April 29, 2015Windows Continuum for Phones See how new Windows Continuum functionality for mobile phones tailors the app experience across devices to transform a phone into a full-powered PC, TV or a Smart TV 

May 4, 2015Continuum For Windows 10 For Phones At Microsoft Ignite Event 2015

IC830854[1]7″ Tablet
[Sept 17, 2015]
IC830852[1]Premium Phone
[March 29, 2015]
Key Features
Low cost
Cortana
Continuum for Phones
Cortana
Windows Hello
Continuum for Phones
Operating System
Windows 10 Mobile
Windows 10 Mobile
Recommended Components
CPU
Supported entry SoC
Supported premium SoC
RAM/Storage
1-2GB/8-32GB eMMC w/SD card
2-4GB / 32-64GB with SD slot
Display
7” 480×800 or 1280×720 w/touch
4.5-5.5”+ / FHD-WQHD
Dimensions
<9mm & <.36kg
<7.5mm & <160g
Battery
10+ hours
2500+ mAh ( 1 day active use)
Connectivity
802.11ac+, 1 micro USB 2.0, mini HDMI, BT, LTE option
LTE/Cat 4+ /802.11b/g/n/ac 2×2, USB, 3.5mm jack, BT LE, NFC
Audio/Video/ Camera+
Front camera, speakers, headphones
20MP with OIS/Flash; 5MP FFC

Oct 6, 2015Windows 10 Continuum for Phones demo on Lumia 950 and Lumia 950 XL by Bryan Roper, Microsoft marketing manager, at Microsoft Windows 10 Devices Event 2015 

 

Open Live Writer 0.5 to succeed the Windows Live Writer

To move back to Live Writer was an easy decision for me:
– The Open Live Writer screen on my 15.6 inch notebook Back to [Open] Live Writer - The Open Live Writer screen on my 15.6 inch notebook -- 11-Dec-2015

– The classic WordPress.com editing screen on my 15.6 inch notebook
Back to [Open] Live Writer - The classic WordPress.com editing screen on my 15.6 inch notebook -- 11-Dec-2015
– The improved posting experience WordPress.com editing screen on my 15.6 inch notebookBack to [Open] Live Writer - The improved posting experience WordPress.com editing screen on my 15.6 inch notebook -- 11-Dec-2015

In fact with the last two editing capabilities I was not able to use my 15.6” notebook screen at all. Now with Open Live Writer 0.5 I have a perfect two monitor environment. This is an enormous difference by itself, and then all the Live Writer goodies which I’d been so fun of during the first years of 2010s are just coming on the top of that.

December 9, 2015 on .NET Foundation: Live Writer is now Open Source by Rob Dolin

Today Microsoft announced that Open Live Writer was released and has been contributed to the .NET Foundation. Open Live Writer is an open source application enabling users to author, edit, and publish blog posts. It is based on a fork of the wellloved but not actively developed Windows Live Writer code. Scott Hanselman helped carry the torch at Microsoft on this project, and I’ve been proud to be part of the all-volunteer team to make it happen.

History of Windows Live Writer

The product that became Live Writer was originally created by a small, super-talented team of engineers including Jeremy Allaire, JJ Allaire, Joe Cheng, Charles Teague, and Spike Washburn. The team joined Microsoft through an acquisition in 2006 and organized with the Spaces team where I was working. Becky Pezely joined the team and over time, the team grew and shipped many popular releases of Windows Live Writer.

As Microsoft was planning for the version of Windows Live that would coincide with the Windows 8 operating system release, the teams that built the Windows Live client apps for Windows were encouraged to focus on building a smaller set of Windows 8 apps designed to work well with both traditional PC input mechanisms and touch. The original team concluded their work on Windows Live Writer with Windows Live Writer 2012.

Reviving Live Writer

Even though there was no active development, Windows Live Writer continued to be a favorite tool of a passionate community of Windows PC users for authoring, editing, and publishing blog posts. Data from WordPress.com at the time suggested that Windows Live Writer (even two years after active development ended) was the #1 app for authoring a blog post to WordPress.com on a Windows PC. In fact, some of our technical evangelists were actively using Windows Live Writer for publishing on WordPress-powered blogs. A few team members from my former MS Open Tech team took an early interest in joining Scott Hanselman to revive Live Writer as an open source project.

By January 2015, a group of about a half-dozen engineers interested in spending some of their volunteer time to help release an updated version of Live Writer had found each other. Jon Gallant sent an email to a few large group email lists at Microsoft soliciting volunteers and we collected about 50 people interested in helping. Anne Legato, Ed Essey, and the team at The Garage were most helpful in sharing advice on launching external projects. Scott Guthrie also agreed to be Open Live Writer’s sponsor.

Why v0.5

You might wonder why we’re releasing a version 0.5 now instead of waiting to get to a v0.9 or a v1.0. A few considerations went into this. First, we wanted to get this out as an open source project as quickly as possible so people outside of Microsoft could start participating. Second, we suspect many people may be taking some vacation around the end of December and we wanted to make sure the project was available. Third, Eddie Kessler and the folks on Google’s Blogger team asked us to ship no later than early December 2015 so they could turn-off an old API that Windows Live Writer was dependent on. Eddie and team originally had planned to turn-off the API earlier and we are thankful for their collaboration and partnership in extending its life until we could release Open Live Writer.

Why .NET Foundation

The volunteer team considered a few options for releasing Open Live Writer. Ultimately, we found a great partnership in the .NET Foundation to support our goals around growing community participation for the project. Martin Woodward, Robin Ginn, and the team has been super-helpful in many matters including open source governance and administrative support, to marketing and communications.

And Open Live Writer is many thousands of lines of C# code, so the .NET Foundation is a good technical match too.

December 9, 2015 on Scott Hanselman blog: Announcing Open Live Writer – An Open Source Fork of Windows Live Writer

Meta enough for you?Today is the day. An independent group of volunteers within Microsoft has successfully open sourced and forked Windows Live Writer. The fork is called Open Live Writer (also known as OLW) and it is part of the .NET Foundation and managed by this group of volunteers. Read the fantastic announcement at the .NET Foundation Blog! Download Open Live Writer now!

Windows Live Writer 2012 was the last version Microsoft released and can still be downloaded from http://www.windowslivewriter.com. If you’re not comfortable using Open Source Software, I recommend you stick with classic WLW.

If you’re willing to put up with some bugs, then join us in this brave new world, you can download Open Live Writer from http://www.openlivewriter.org. We’re calling today’s release version 0.5.

Here’s some of the added features, the removed features, the stuff that doesn’t work, and our plans for the future:

  • REMOVED: Spell Checking. The implementation was super old and used a 3rd party spell checker we didn’t have a license to include an open source release. Going forward we will add Spell Check using the built-in spell checker that was added in Windows 8. Open Live Writer on Windows 7 probably won’t have spell check.
  • REMOVED: The Blog This API. It was a plugin to Internet Explorer and Firefox and was a mess of old COM stuff.
  • REMOVED: The “Albums” feature. It uploaded photos to OneDrive but depended on a library that was packaged with Windows Live Mail and Live Messenger and we couldn’t easily get permission to distribute it in an open source project.
  • ADDING VERY SOON: Google runs the excellent Blogger blog service. We’ve worked with the Blogger Team within Google on this project, and they’ve been kind enough to keep an older authentication endpoint running for many months while we work on Open Live Writer. Soon, Google and Blogger will finally shut down this older authentication system. Blogger will use the more modern OAuth 2 and Open Live Writer will be updated to support OAuth 2. Windows Live Writer will never support this new OAuth 2 authentication system, so if you use Blogger, you’ll need to use Open Live Writer.
  • BROKEN/KNOWN ISSUES: We are actively working on supporting Plugins. We have an plan in place and we are looking for your feedback on the most popular plugins that you want brought over from the Windows Live Writer ecosystem.

Our roadmap for the future is published here on GitHub.

NOTE: Open Live Writer is NOT a Microsoft product. It is an open source project under the .NET Foundation and is managed and coded by volunteers. Some of the volunteers work for Microsoft and are doing this work in their spare time.

Android 6.0 Marshmallow (Android M) and its route to OEMs such as Xiaomi

Sept 29, 2015Android 6.0 Marshmallow – Official Announcement of all features (Nexus Event 2015) – GIGA TECH in 8 minutes 

Oct 6, 2015: The Top 3 new features highlighted for the Android 6.0 Marshmallow on the android.com/history

Now On Tap

Get assistance without having to leave what you’re doing—whether you’re in an app or on a website. Just tap and hold the home button.

Permissions

Define what you want to share with apps on your device and when. Turn permissions off at any time, too.

Battery

Enjoy a battery that works smarter, not garder. Marshmallow optimizes your juice for what matters most with features like Doze and App Standby.

Sept 29, 2015: All Features of Android 6.0 Marshmallow from the official Android – Marshmallow page

All about Android 6.0, Marshmallow

  • Contextual Assistance
    • Now on Tap: get assistance without having to leave what you’re doing—whether you’re in an app or on a website. Just touch and hold the home button.
    • Do more with your voice. Now you can have a dialogue with any of your apps that support the new voice interaction service. For example, if a user says “play some music on TuneIn,” TuneIn will respond by asking “What genre?”.
    • Direct Share: a fast and easy way to share to the right person in the right app.
  • Battery
    • Doze: when your device is at rest, Doze automatically puts it into a sleep state to increase your standby battery life.
    • App Standby: no more battery drain from seldom used apps; App Standby limits their impact on battery life so your charge lasts longer.
    • USB Type C support*: Quickly transfer power and data all through the same cable. Lightning fast charging gives you hours of power in just minutes.
  • Privacy & Security
    • On an Android Marshmallow device, apps designed for Android Marshmallow only ask for permission right when it’s needed. You can deny any permission and still continue to use the app.
    • Advanced controls to turn permissions on or off for all your installed apps.
    • Verified boot: when your Android device boots up, it will warn you if the firmware and Android operating system have been modified from the factory version.
    • Use fingerprint sensors* to unlock your device, make purchases in Google Play, authenticate transactions in apps, and pay in stores.
  • Android Runtime (“ART”)
    • Improved application performance and lower memory overhead for faster multi-tasking.
  • Productivity
    • Bluetooth stylus support*, including pressure sensitivity and modifier keys.
    • Improved typesetting and text rendering performance.
    • Smarter text selection, built-in undo/redo, and text actions closer to your fingers.
    • Text selection actions such as a new Translate option that lets you translate text from one language to another right on the spot. (Note: requires Google Translate app installed)
    • Save paper with duplex printing support.
  • System usability improvements
    • App links: enables installed apps to automatically handle their web URLs so you can jump right into the app, rather than the mobile web site, as appropriate.
    • Easily toggle and configure Do Not Disturb from quick settings.
    • If someone calls you twice within 15 minutes, you can choose to allow the call to ring through while Do Not Disturb is enabled.
    • Use automatic rules to enable Do Not Disturb for as many custom time blocks as you like or around events on your calendar.
    • Simplified volume controls allow you to manage notification, music, and alarm volumes easily from anywhere with the touch of your volume keys.
    • Streamlined Settings let you manage an app’s settings all in one place, from battery and memory usage, to notifications and permissions controls.
    • Google Now Launcher app list refreshed with search, fast alphabetic scrolling, and predictive App Suggestions.
  • Connectivity
    • More power efficient Bluetooth Low Energy (“BLE”) scanning for nearby beacons and your accessories.
    • Hotspot 2.0: Connect to compatible Wi-Fi networks seamlessly and securely.
    • Bluetooth SAP: Make calls from your carphone using your phone’s SIM.
    • Portable Wi-Fi hotspot now supports 5GHz frequency bands.
  • Expandable storage
    • Flex Storage: makes using SD cards or external storage devices as encrypted expanded storage for your apps and games on Android Marshmallow a whole lot easier.
  • Device setup and migration
    • Easily transfer your accounts, apps and data to a new device.
    • During setup, you can add an additional personal or corporate email account (e.g., IMAP)
    • Auto backup for Apps: seamless app data backup and restore.
    • Backup/restore of additional system settings such as your Sync settings, preferred apps, Do Not Disturb settings, Accessibility settings and enabled IMEs.
  • Media
    • MIDI support: create, consume, and perform music using your Android device with USB MIDI devices, MIDI over BLE, and software-based MIDI devices.
  • Internationalization
    • Android is now available in 74+ languages with 6 new additions: Azerbaijani, Gujarati, Kazakh, Albanian, Urdu, and Uzbek.
  • Android for Work
    • When receiving calls or viewing past messages, you can now see the full work contact details even if you’re not logged into your work profile.
    • Work status notification: A status bar briefcase icon now appears when you’re using an app from the work profile and if the device is unlocked directly to an app in the work profile, an alert is displayed notifying the user.
    • VPN apps are now visible in Settings > More > VPN. Additionally, the notifications that VPNs use are now specific to whether that VPN is configured for a work profile or the entire device.

Sept 29, 2015: A developer’s overview of Android 6.0 Marshmallow by Android Developers 

Sept 29, 2015: Android 6.0 Marshmallow based lead devices information from S’more to love across all your screens from the Official Google Blog

New Nexus phones
We made Android to be an open platform that anyone can build on, and today there are 4,000+ Android devices in all shapes and sizes. Android’s diversity is why it’s become the most popular mobile platform in the world, and the latest version, Marshmallow, takes Android to a new level of performance.

While we love all the Android devices out there, every year we build Nexus devices to show off the latest and greatest, directly from the people who built Android. Today we’re introducing the latest Nexus treats, both running Marshmallow, sweetened by amazing apps and sandwiched by some cutting-edge hardware (see what we did there?):

  • Nexus 6P is the first all-metal-body Nexus phone. Built in collaboration with Huawei, this 5.7” phone is crafted from aeronautical-grade aluminum, with a USB Type-C port for fast charging, a powerful 64-bit processor, and a 12.3 MP camera sensor with massive 1.55µm pixels (hello, better photos!). The Nexus 6P starts at $499.
  • You’re not the only one who misses your Nexus 5. We’ve joined forces with LG to bring it back with the new Nexus 5X, which gives you great performance in a compact and light package, with a beautiful 5.2” screen and the same 12.3 MP camera and Type-C port as the Nexus 6P. Nexus 5X starts at $379.

Both phones include a new fingerprint sensor, Nexus Imprint, which gives you quick and secure access to your phone, as well as use of Android Pay (in the U.S.). They are available for pre-order on the Google Store from a number of countries, including the U.S., U.K., Ireland and Japan, and come with a free 90-day subscription to Google Play Music. In the U.S., pre-orders include a $50 Play credit to help you stock up your favorite music, apps, games and shows. And, finally, for you Project Fi fans out there, you’ll be happy to know Nexus 6P and Nexus 5X will work on your favorite network. Request an invite to our Early Access Program at fi.google.comAN_BH_Groupshot_JH-150908+_Alt_Crop[1]

Oct 5, 2015Official Android 6.0 Marshmallow Review by Tim Schofield 

Oct 15, 2015: Answer to the question “Will Xiaomi finally step to the conventional way of upgrading to Android?” put to Hugo Barra in Hangout with Mi – Episode 2 from Xiaomi India 


The official release of Android M has just happened. That means that people like us only now have been given what they need to be able to start the porting process. Of course Google has been working with M for the new Nexus devices for a while. That’s exactly the reason why Nexus exists. So we’ve just started the porting work, and it takes some time to make sure that it all super well optimised.

By the way I should mention, if you look a little bit about the process for doing an upgrade. It’s not like just get some code from Google, like start moving into our code base. Actually it’s at least a two-step process. In fact I would argue that it’s a three-step process.

The first thing to happen is: Whoever makes the chipset, the SoC that powers that particular phone. Maybe let’s talk about Mi4i. Mi4i is on Qualcomm MSM8939, Snapdragon 615 v2 [rather Snapdragon 616 MSM8939v2, see Snapdragon 616 on Qualcomm site], it means it’s powered by Qualcomm. So Google Android team provides the build to Qualcomm. Qualcomm—beginning of now, just like happened—then will take a few months to do the work of making sure that the kernel level stuff is optimised, and correctly able to support then the layers above, the BSP [?Board Support Package?] framework, the so one and so forth.

Then Qualcomm takes that codebase, let’s assume it will be ready in January—to give you a hypothetical date here—and then provide that to the different smartphone brands like Xiaomi for example. Then our BSP team, which stands for basement processor—it’s the low level part of the operating system that includes everything under the framework—they will take that codebase from Qualcomm and then putting the extra work [needed to ensure] that it’s very optimised for battery consumption, for performance, so on and so forth, for Mi4i. They have to do the same work for every other device.

Then the System UI team—concerning that most OEMs have done some amount of System UI work—has to do a little bit of work of optimisation obviously to make sure that all the features are there.

At least these 3 steps that have to be taken by not only Xiomi, but every OEM to be able to bring devices to a new version of the operating system. Make sure that it’s optimised. It’ll be unacceptable for us to launch Android M on Mi4i in a way that doesn’t perform at least as well, if not obviously, ideally better, then it performed on [Android 5.0] Lollipop. So it’s like quite a long process.

Smartphone market outlook and the MediaTek Helio X10 based Xiaomi Redmi Note 2/Prime launched for $125, $140 and $156

Let’s start with an extremely good presentation video by Mrwhosetheboss:

And an actual experience video from Chinese sources (finished by comparing to iPhone 6):

Aug 16, 2015, Xiaomi Today: Xiaomi sold 800,000 Redmi Note 2 phones in 12 hours

Note that Xiaomi has already been the top Chinese company tracked here:
Dec 12, 2012UPDATE Aug’13: Xiaomi $130 Hongmi superphone END MediaTek MT6589 quad-core Cortex-A7 SoC with HSPA+ and TD-SCDMA is available for Android smartphones and tablets of Q1 delivery
Aug 1, 2013Xiaomi, OPPO and Meizu–top Chinese brands of smartphone innovation
Aug 30, 2013Assesment of the Xiaomi phenomenon before the global storm is starting on Sept 5
Sept 5, 2013Xiaomi announcements: from Mi3 to Xiaomi TV
June 12, 2014Xiaomi’s global offensive with Hugo Barra in charge is threatening Apple—with 10.4 million smartphones sold in China it had already outsold Apple in Q1’14, having “just” 9 million iPhones sold there from which we must at least understand the market situation in China upto  Q1 2014 as the reference for the Xiaomi’s progress presented here:

With the Q3 2015 Redmi Note 2/Prime advancement Xiaomi will kill the much hoped (by some stock market analysts) incremental opportunities for the $199 Apple iPhone 6 and $299 iPhone 6 Plus in China and throughout the world. And recall that those were announced 11 months ago as “The Biggest Advancements in iPhone History

China smartphone market Q2 2015 by IHS Technology -- 23-July-2015

This report is similar to later Canalys findings: Xiaomi 15.9%, Huawei 15.7%, and Apple #3. But for the rest: #4 Samsung, #5 vivo. Globally Xiaomi became the #2 Chinese smartphone brand in Q2 2015 according to TrendForce with 5.9% market share, the #1 Huawei having 7.6%, but first time surpassing Lenovo, as well as continuing to distance itself from TCL (Alcatel) and OPPO. Similar to data from Counterpoint Research. See Chinese OEMs Rule. Considering Huawei’s aggressive push since 2011, when Xiaomi devices started in China, Xiaomi’s global achievement is a very remarkable feat.  

Why? Because being in the smartphone device business for just 4 years Xiaomi has already been on or around the top in China for the last 12 months, as well as has launched an impressive global march.

That global sales campaign has been going on in Asia, Russia and Turkey so far, but it is now expanding to Latin America with new model launching in Brazil [CCTV America YouTube channel, July 14, 2015]: “The world’s third largest smartphone maker is taking a different approach in its plans for global domination. Instead of looking to expand in the obvious markets like the U.S. and Europe, Xiaomi is looking to South America. CCTV’s Paulo Cabral filed this report from Sao Paulo.”

And it is not difficult to foresee a huge global success for the company as in India Xiaomi became “the 5th biggest seller of phones in the country, a feat accomplished in only 8 months“: Smartphone company Xiaomi expanding to India and beyond [CCTV America YouTube channel, March 20, 2015]
And now 
China’s Xiaomi Begins Making Smartphones in India [Voice of America, Aug 14, 2015]: “Xiaomi’s Redmi2 Prime smartphone [NOT the Note 2 one], priced at about $110, began rolling out from a factory in Sri City in southern Andhra Pradesh state this week. … entered the Indian market just a year ago, but since then price conscious consumers have snapped up 3 million phones.

Also this all happened after “The Chinese smartphone maker, Xiaomi, held a second flash sale of its new 4.7″ Redmi 1S [at $110/699 RMB almost of the same price level as this year’s $125/799 RMB Redmi Note 2on Tuesday [Sept 9, 2014], after selling out in just four seconds a week ago.“: Chinese smartphone Xiaomi competes with Apple [CCTV America YouTube channel, Sept 9, 2014]

from which I will include the following Q2 CY2014 market share slide for China here:
Xiaomi - Q2 CY2014 smartphone market share for China by Canalys -- 9-Sept-2014
as this position of being “on the top or around it” has been kept by Xiaomi ever since. 

Then we should not forget what only 8 months ago was introduced as Xiaomi launches MiNote, a new iPhone competitor [CCTV America YouTube channel, Jan 15, 2015]: “The tech world is abuzz about Chinese tech company Xiaomi’s bid to compete with Apple and Samsung. Xiaomi CEO Lei Jun unveiled the MiNote and MiNote Pro [at $313/1999 RMB and $391/2499 RMB a kind of twice as expensive predecessors to the new Redmi Note 2/Prime] on Thursday, both are cheaper than similar iPhone models. CCTV’s Xia Cheng reported this story from Beijing.

Finally we should look at the new specification comparisons by GSMinsider: Xiaomi - Redmi Note 2 vs iPhone 6 vs iPhone 6 Plus – Specs Comparison -- 14-Aug-2015

With that Xiaomi will kill Samsung high-end opportunities as well.

Let’s look first at the quite drastic decline of the Samsung smartphone business for the last year and a half (data from Strategy Analytics as it’s been represented in the Apple and Huawei move on Samsung article of July 30, 2015 from Telecom.com, with the vendor rankings in the table according to the latest quarter, i.e. Q2 2015): Strategy Analytics - Global Smartphone Share -- Q1 2014 - Q2 2015
Note that Coolpad (Yulong) and ZTE are also globally represented Chinese brands, not mentioned so far in this article.

Which unit-wise looks like as follows (in millions):Strategy Analytics - Global Smartphone Shipments -- Q1 2014 - Q2 2015

Then I can again refer to Samsung-related high-end specification comparisons produced by GSMinsider: Xiaomi - Redmi Note 2 vs Samsung Galaxy Note 4 vs Samsung Galaxy S5 – Specs Comparison -- 14-Aug-2015
And don’t be fooled with the Qualcomm Snadragon 805 and 801 SoCs used by Samsung in these 2014 vintage devices as Samsung itself abandoned Qualcomm as an SoC supplier for its 2015 devices:Xiaomi - Redmi Note 2 vs Samsung Galaxy S6 vs Samsung Galaxy S6 Edge – Specs Comparison -- 14-Aug-2015

CINNO Research - Q1 2015 China Smartphone Rear Camera Pixel Share -- 12-April-2015Note: Such Samsung move of abandoning the Qualcomm Snadragon 805 and 801 SoCs in its latest high-end products is not an accident but a hard-pressed necessity. The octa-core Qualcomm Snadragon 810 replacing the 805/801 had serious thermal throttling problems, and the Chinese brands were starting to use other octa-cores, among them the quite competitive MediaTek Helio X10. See the following Q1 2015 technology landscape presentation composed of the graphical views from the April 12 and April 24 reports by CINNO Research (in addition to the camera related view on the right):CINNO Research - Q1 2015 China Smartphone Display and CPU Technologies -- 12-24-April-2015

And software-wise Xaomi is already 5 years in the smartphone business with a lot of quite enthusiastic supporters for its Android based Mi User Interface throughout the world. The MIUI 5th Anniversary: Greetings From MIUI Fans From All Over The World testimonial video from the MIUI ROM YouTube channel dated August 12, 2015 is stating that: “MIUI is one of the most popular Android ROMs in the world. It is based on Android, featuring a rich user experience and user customizable themes. MIUI is updated every Friday based on feedback from its users. Now with over 100 million users and 34 MIUI fan sites worldwide, MIUI is the choice of many Android users globally.

What kind of “much hoped incremental opportunities (by some stock market analysts) for Apple” I was talking about?

From India Will Overtake US to Become World’s Second Largest Smartphone Market by 2017 [July 1, 2015] by Strategy Analytics the following chart has been produced for Dazeinfo’s Global Smartphone Sales 2015 – 2017: India Will Surpass The US [July 1, 2015] report: Strategy Analytics - Dazinfo - Global Smartphone Sales Forecast 2015 - 2017 -- 1-July-2015That chart has been used by  in his Why Apple’s Growth-Related Fears Are Overblown [Aug 12, 2015] article on Seeking Alpha for its final argument that:

the market sees China as imperative to Apple’s future growth outlook and while true at the moment, there’s a catalyst forming that should lessen the company’s reliance on China and lead to many millions of new iPhone sales.

China is not that “forming catalyst” that I mentioned earlier. Instead, Apple has a prime opportunity to grow in India over the next year or two, a market that’s growing rapidly with middle class consumers and is the world’s second largest economy by population behind only China.


… with India’s help, which includes the growth in middle class consumers through 2020, India might very well one day become just as important as China to Apple.

Before coming to such final argument Nichols is talking about the current market situation in China via a chart from Above Avalon’s China Mobile Is a Game Changer for Apple [April 29, 2015] research note and with the following comments around that:

Above Avalon - Total Customers for Largest Chinese and U.S. Mobile Carriers -- 28-April-2015

I expect Apple to find additional growth in China next year, regardless of what has transpired from a macro perspective over the last few months. The reason is simple: Improved network coverage. Fact of the matter is that most Chinese consumers are still using 2G or 3G networks, which are hardly compatible with the iPhone 6. At the end of the first quarter, China Mobile (NYSE:CHL) had 153 million 4G customers, up from 90 million in December of 2014 and just 1.3 million in February of 2014. However, China Mobile had 815 million total customers. So that means the majority of its subscribers are still on 2G or 3G networks. Given the rate at which China Mobile has added 4G customers during the last 16 months, investors can rest assured that its network and 4G customers will be far larger by this time next year. Notably, most of those 4G customers will need smartphones, and Apple has quickly become the most popular choice in China.

As for China’s second and third largest wireless carriers, China Unicom (NYSE:CHU) and China Telecom (NYSE:CHA), they have nearly 500 million customers collectively. And believe it or not, China Unicom and China Telecom’s 4G network is even more underdeveloped than China Mobile’s network. However, both China Unicom and China Telecom are working just as fast to build their respective 4G networks. Once more, this increases Apple’s market opportunity in China, and is the key reason why I think Apple’s growth in China will continue through next year, probably at a very high double-digit rate.

So these are the speculations which IMHO do not take into account the new product waves from major Apple and Samsung competitors, especially Xiaomi.

Xiaomi’s new 5.5″  Redmi Note 2 launched in China just this week for $125/799 RMB (16GB version supporting TDD-LTE for a China specific 4G version of LTE as well as TD-SCDMA, the China specific 3.5G — targeted at China Mobile subscribers) and $140/899 RMB (16GB version supporting both TDD-LTE and FDD-LTE, i.e. both 4G versions — for the subscribers of any mobile operators, and especially of China Unicom and China Telecom) is the actual case in this regard. Watch the Xiaomi Redmi Note 2 Prime first look miui 7 pre-order video direct from the launch (the QR code at the start and the end has been positioned out of my embedded view): 

Announced: August 13 2015
Network Technology:
GSM / HSPA / LTE
Expected release:
August 16, 2015
Body Dimensions:
152 x 76 x 8.3 mm
Weight: 160 g
SIM: Dual SIM
Display
Type: IPS LCD capacitive touchscreen, 16M colors
Size: 5.5 inches (~72.2% screen-to-body ratio)
Resolution: 1080 x 1920 pixels (~401 ppi pixel density)
Multitouch: Yes
MIUI 7.0
Platform OS: Android OS, v5.0 (Lollipop)
Chipset: Mediatek MT6795
CPU:
– Octa-core 2.0 GHz Cortex-A53
– Octa-core 2.2 GHz Cortex-A53
GPU: PowerVR G6200
Memory Card slot: No
Internal Memory:
– 16 GB, 2 GB RAM – 2 GHz model
– 32 GB, 2 GB RAM – 2.2 GHz model
Camera:
Primary: 13 MP, 4128 x 3096 pixels, phase detection autofocus, LED flash
Features: Geo-tagging, touch focus, face/smile detection, HDR, panorama
Video: 1080p@30fps
Secondary: 5 MP, 720p
Sound Alert Types:
Vibration; MP3, WAV ringtones
Loudspeaker: Yes
3.5mm jack: Yes
Comms:
WLAN Wi-Fi 802.11 a/b/g/n/ac, dual-band, WiFi Direct, hotspot
Bluetooth: v4.0, A2DP, LE
GPS: Yes,
with A-GPS, GLONASS, Beidou
Infrared port: Yes
Radio: FM radio
USB: microUSB v2.0
Features Sensors:
Accelerometer, gyro, proximity, compass
Messaging:
SMS(threaded view), MMS, Email, Push Mail, IM
Browser: HTML5
Java: No
– Fast battery charging: 60% in 30 min (Quick Charge 2.0)
– Active noise cancellation with dedicated mic
– MP4/H.264 player
– MP3/WAV/eAAC+ player
– Photo/video editor
– Document viewer
Battery: Li-Po 3060 mAh battery
Stand-by: Up to 144 h (3G)
Talk time: Up to 11 h 30 min (3G)
Music play: Up to 46 h
Misc Colors:
White, blue, yellow, pink, mint green

The 2.2 GHz Redmi Note 2 Prime version with 32GB storage and support of  TDD-LTE + FDD-LTE will sell at $156 (999 RMB).

More information:
Aug 13, 2015All About Redmi Note 2/Prime: Specifications, Price, Hands-on Pictures! review by Xiaomi MIUI Official Forum
– Aug 13, 2015Xiaomi New Product Launch: MIUI 7(China), Redmi Note 2(Prime), Mi Wi-Fi nano full launch information (not only the Redmi Note 2/Prime)  by Xiaomi MIUI Official Forum, from which the major Redmi Note 2 and 2 Pro Android competition (Huawei P8 and P8max with Hisilicon Kirin 930 and 935 SoCs, and Meizu MX5 (with the same MediaTek Helio X10 @2.2 GHz) on the Chinese market is described as:
Redmi Note 2 and 2 Pro Android competition on the Chinese market -- 13-Aug-2015
Note: regarding the benchmarked performance of each SoC I will recommend the results made available in the Exynos 7420 vs Snapdragon 810 vs MediaTek Helio X10 Turbo MT6795T vs Hisilicon Kirin 935: Benchmark Scores [July 3, 2015] GSMinsider article
For a much broader competitive comparison I will recommend the Redmi Note 2’s comparisons by GSMinsider  which currently contains comparisons (spec-wise):

vs Asus Zenfone 2 vs Asus Zenfone Zoom
vs HTC One M9 vs HTC One M9+
vs Huawei Honor 7 vs Huawei Honor 6 Plus
vs Huawei Ascend Mate 7 vs Huawei Honor 6 Plus
vs Huawei P8 vs Huawei P8 Max
vs iPhone 6 vs iPhone 6 Plus
vs Lenovo Vibe Shot vs Lenovo Vibe Z2 Pro
vs Lenovo ZUK Z1
vs LG G Flex 2
vs LG G4 vs LG G3
vs Meizu M2 Note vs Meizu M1 Note
vs Meizu MX5 vs Meizu MX4 Pro
vs Motorola Moto X Style vs Moto X Play
vs Nexus 6 vs Motorola Moto Maxx
vs OnePlus 2 vs OnePlus One
vs Oppo Find 7 vs Oppo Find 7A
vs Oppo N3
vs Redmi Note
vs Samsung Galaxy Note 4 vs Samsung Galaxy S5
vs Samsung Galaxy S6 vs Samsung Galaxy S6 Edge
vs Vivo X5 Pro vs Vivo X5 Max
vs Xiaomi Mi Note vs Xiaomi Mi Note Pro
vs Xiaomi Mi4
vs ZTE Axon Pro vs ZTE Axon Lux
vs ZTE Nubia Z9 Max vs Nubia Z9 Mini
vs ZTE Nubia Z9

Aug 13, 2015Additional videos from XiaomiHK YouTube channel:

Xiaomi – MIUI Introduction (with English subtitles)

Xiaomi – MIUI V7 Endurance

i.e. MIU 7 on [Xiaomi’s] Mi 4, Huawei Honor 6, Meizu MX4 and Samsung Galaxy S5

Xiaomi – MIUI V7 Performance

Xiaomi – RedmiNote2″>Xiaomi – RedmiNote2

Xiaomi – RedmiNote2 Camera

Important videos available on the Bloomberg Business website only, with 3 most important videos added to them from the CCTV America YouTube channel:

June 5, 2014: Here’s Why Hugo Barra Left Google to Be Xiaomi VP: Xiaomi Early Investor Robin Chan discusses Xiaomi’s hiring of Google’s Hugo Barra on Bloomberg Television’s “Bloomberg West.” Former Xiaomi Board Member Hans Tung also speaks.

July 17, 2015Xiaomi’s Hugo Barra: Studio 1.0 (Full Show 7/16): This week on Studio 1.0: Emily Chang sits down with Hugo Barra, vice president of global operations at Xiaomi. (Source: Bloomberg) 21 minutes from which I will include here the only slide displayed Xiaomi - Global ambition -- 17-July-2015

Plus a lot of other unique information is available in that interview: like the 2015 vintage business model of Xiaomi (investments into non-platform startups to build business partnerships, a whole ecosystem around Xiaomi etc.).

I will add to that the product shown in the Bloomberg interview as an example of such ecosystem generation. This has been documented in Xiaomi launches $13 fitness band [CCTV America YouTube channel, Aug 18, 2014] as: “Chinese Smartphone maker Xiao-mi has started selling an interactive wristband called the Mi Band. The device can measure one’s heart rate and monitor sleep patterns. It’s not the first such device to hit the market, but so far, it’s the cheapest.

I will also add the Xiaomi Buying Spree Gives Apple, Samsung Reason to Worry [Bloomberg Business YouTube channel, Jan 8, 2015] video stating that: “Xiaomi zoomed past Apple Inc. and Samsung in China smartphone sales just three years after releasing its first model. Founder Lei Jun is now on a buying spree to take that momentum beyond handsets. Bloomberg’s Edmond Lococo has more on “On The Move Asia.” (Source: Bloomberg)

Then remember the already known facts mentioned in the second video on the Bloomberg website like: “Xiaomi is not Apple“, “Xiami is an Internet company” (“an Internet platform and services brand” heard in another interview), “services are inherent part of Xiaomi“, “Xiaomi is one of the biggest e-commerce sites in China“, “the Xiaomi platform products are enhanced in functionality on requests from its users by around 50%” etc.

As the latest proof-point of such an Internet platform and service strategy of the company watch the Chinese mobile co. Xiaomi launches wallet app [CCTV America YouTube channel, March 26, 2015] video:

Other videos from Bloomberg Business YouTube channel:

Jan 15, 2015Xiaomi’s Rapid Rise to $45B Valuation Topping Uber: Xiaomi is Apple and Samsung’s rapidly growing threat. Now the world’s third-largest smartphone maker, Xiaomi is releasing its next phone on Thursday at an event in Beijing. Bloomberg’s Cory Johnson looks at how just fast this company is growing. (Source: Bloomberg)

June 5, 2014Meet the Billionaire ‘Steve Jobs of China’ Lei Jun:  Xiaomi co-founder and chief executive officer Lei Jun is known as the Steve Jobs of China, complete with a wardrobe of black shirts and a cult following. But what did he do before starting Xiaomi, and how has his personality helped drive Xiaomi’s success? Bloomberg West’s Emily Chang gives us an overview of this rock star CEO.

Jan 5, 2015Xiaomi Doubles Revenue to $12B as Phone Sales TripleXiaomi, whose investors include billionaire Yuri Milner, more than doubled its revenue in 2014, according to a blog posting by CEO Lei Jun.

Feb 13, 2015Xiaomi’s Barra: U.S. Market Is Important in Many Ways:  Xiaomi’s Hugo Barra discusses the company’s global expansion plans with Bloomberg’s Brad Stone on “Bloomberg West.”

June 4, 2015Xiaomi Grows Wearable Device Market ShareXiaomi is looking to elbow its way into the wearable device market. New figures suggest it took a quarter slice of global sales the first three months of the year. Bloomberg Intelligence’s Jitendra Waral discusses the sales figures on “Trending Business.”

Other videos from the CCTV America YouTube channel:

July 22, 2014Hugo Barra on latest Xiaomi products: Chinese tech firm Xiaomi showed off some of its latest products on Tuesday. The Beijing-based company unveiled its new Mi smartphone and billed it as a challenger to Apple’s iPhone. Analysts say the Mi 4 will be a make or break product for Xiaomi after sales of the older model proved disappointing.The company is also aggressively expanding overseas. Hugo Barra, Xiaomi’s Vice President for overseas business spoke with CCTV’s Xia Cheng.

July 14, 2015Eric Schiffer on Xiaomi’s global strategy: For more on Xiaomi’s global strategy, CCTV’s Michelle Makori spoke to Eric Schiffer, CEO of Patriarch Equity.

Dec 22, 2014
Tech company Xiaomi flourishes in China, India despite patent disputes: China’s Xiaomi tech company is often compared to Apple. Founded in 2010, Xiaomi has quickly surpassed Samsung to become the top smartphone in China and third in the world. Xiaomi phones are currently only sold online and in China and India.

Dec 22, 2014
Ari Zoldan of Quantum Networks discusses Chinese companies, patent troubles: CCTV America’s Sean Callebs interviewed tech industry expert and CEO of Quantum Networks Ari Zoldan about the rise of Xiaomi and it’s legal battles.

 



PC Market Trends

A comment from IDC brought ahead: “Competition from 2-in-1 devices and phones remains an issue“. In the notes to the IDC press release it is mentioned as well that “tablets with detachable keyboards [i.e. 2-in-1 devices] running either Windows or Android are not included in the PC category” by IDC. This approach to the PC category is one of the reasons why the decline of the PC market in Q2 2015 is 11.8% according to IDC, while it is 9.5% according to Gartner.

But most importantly: the PC market has continuously been shrinking for the last 3 years as is shown by the chart below:
Infographic: PC Market Plunge Is Picking Up Pace | Statista

You will find more statistics at Statista
July 14, 2015: After a brief respite throughout last year, the global PC market returned to its pre-2014 slump in the first half of 2015. According to Gartner’s latest estimates, worldwide PC shipments amounted to 68.4 million in the past three months – down 9.5 percent from last year’s June quarter.

The struggling PC industry had received a boost when Microsoft ended official Windows XP support in April 2014, prompting a replacement cycle that has now apparently faded. Despite the sobering results, analysts remain cautiously optimistic about the industry’s mid-term outlook. They argue that the recent decline is no sign of structural weakness but partly a consequence of last year’s unusually positive results and partly an effect of inventory control ahead of the Windows 10 launch scheduled for later this year.

[Gartner’s latest estimates:]
July 9, 2015: Gartner Says Worldwide PC Shipments Declined 9.5 Percent in Second Quarter of 2015

PC Industry Faces Slowdown as Industry Anticipates the Launch of Windows 10

STAMFORD, Conn., July 9, 2015 — Worldwide PC shipments totaled 68.4 million units in the second quarter of 2015, a 9.5 percent decline from the second quarter of 2014, according to preliminary results by Gartner, Inc. This was the steepest PC shipment decline since the third quarter of 2013. PC shipments are projected to decline 4.4 percent in 2015.

There were many contributors to the decline of PC shipments in the second quarter of 2015, and Gartner analysts highlighted three of the major reasons for the drop in shipments. Analysts emphasized that these inhibitors are temporary events, and they are not changing the PC market’s structure. Therefore, while the PC industry is going through a decline, the market is expected to go back to slow and steady growth in 2016.

The price hike of PCs became more apparent in some regions due to a sharp appreciation of the U.S. dollar against local currencies,” Mikako Kitagawa, principal analyst at Gartner. “The price hike could hinder PC demand in these regions. Secondly, the worldwide PC market experienced unusually positive desk-based growth last year due to the end of Windows XP support. After the XP impact was phased out, there have not been any major growth drivers to stimulate a PC refresh. Lastly, the Windows 10 launch scheduled for 3Q15 has created self-regulated inventory control. PC vendors and the channels tried clearing inventory as much as possible before the Windows 10 launch.”

Lenovo maintained the top position in worldwide PC shipments in the second quarter of 2015 (see Table 1), but the company suffered a year-on-year shipment decline for the first time since the second quarter of 2013. EMEA, Latin America and Japan were tough regions for Lenovo, as the company experienced double-digit shipment declines. HP also experienced a shipment decline after five consecutive quarters of PC shipment growth. HP showed a steep decline in EMEA, which was potentially due to the currency impact. The company was also impacted by tight inventory controls in the consumer market before the Windows 10 launch.

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q15 (Thousands of Units)

Gartner - Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q15 -9-July-2015Notes: Data includes desk-based PCs, notebook PCs and ultramobile premium (see “Market Definitions and Methodology: Consumer Devices”). All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels.
Numbers may not add up to totals shown because of rounding.
Source: Gartner (July 2015)

For the second consecutive quarter, Dell experienced a decline in PC shipments. Dell’s decline was relatively moderate in EMEA compared with Lenovo and HP. Analysts said this could be partly attributed to Dell’s lower presence in the consumer market, which created less impact to Dell from the Windows 10 prelaunch inventory control.

In the U.S., PC shipments totaled 15.1 million units in the second quarter of 2015, a 5.8 percent decline from the second quarter of 2014 (see Table 2). The decline was led by a double-digit decline of desk-based shipments, which offset single-digit growth of mobile PCs. Based on preliminary results, the desk-based PC shipment decline was the steepest since 2009 when the market was hit by the economic crisis.

“The weakness of desk-based PC shipments in the second quarter of 2015 is partly due to relatively large shipments in the second quarter last year when the market was driven by the end of XP support,” Ms. Kitagawa said. “Despite inventory controls for the Windows 10 launch, mobile PC shipments grew in the quarter, which resulted in five consecutive quarters of mobile PC growth in the U.S. Affordable thin/light notebooks are attracting more business buyers.”

HP maintained the top position for PC shipments in the U.S. in the second quarter of 2015 despite a 10.1 percent decline (see Table 2). Dell narrowed the gap with HP compared with a year ago. Lenovo was the only vendor showing year-over-year PC shipment growth among the top five vendors in the U.S.

Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 2Q15 (Thousands of Units)

Gartner - Preliminary U.S. PC Vendor Unit Shipment Estimates for 2Q15 -- 9-July-2015Notes: Data includes desk-based PCs, notebook PCs and ultramobile premium (see “Market Definitions and Methodology: Consumer Devices”). All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels.
Numbers may not add up to totals shown because of rounding.
Source: Gartner (July 2015)
[The Ultramobile (Premium) category includes devices such as Microsoft’s Windows 8 Intel x86 products and Apple’s MacBook Air. Source]

PC shipments in EMEA totaled 18.6 million units in the second quarter of 2015, a 15.7 percent decline from the second quarter of 2014. In Europe, vendors spent most of the quarter trying to manage already high inventory levels. They tried clearing that inventory with promotions, having to absorb this with lower margins. In the third quarter of 2015, vendors should see better “sell-in” into the channel with new Windows 10-based devices.

Asia/Pacific PC shipments reached 24.2 million units in the second quarter of 2015, a 2.9 percent decline from the same period last year. Both desk-based and mobile PC shipments declined from the second quarter of 2014. PC shipments in China are estimated to have declined 4 percent in the quarter as demand for consumer PCs remained weak.

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe.

See also
July 16, 2015, Forbes: Why Are IDC And Gartner’s PC Market Stats Different, And Does It Even Matter? by Scott McCutcheon

July 9, 2015PC Market Continues to Decline Ahead of Windows 10 Release, According to IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–Worldwide PC shipments totaled 66.1 million units in the second quarter of 2015 (2Q15), according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. This represented a year-on-year decline of -11.8%, about one percent below projections for the quarter.

The slow PC shipments were largely anticipated as a result of stronger year-ago shipments relating to end of support for windows XP as well as channels reducing inventory ahead of the release of Windows 10. In addition, weaker or changing exchange rates for foreign currencies have effectively increased PC prices in many markets, thereby reducing purchasing power and also complicating investment planning.

“Although the second quarter decline in PC shipments was significant, and slightly more than expected, the overall trend fits with expectations,” said Loren Loverde, Vice President, Worldwide PC Trackers & Forecasting. “We continue to expect low to mid-single digit declines in volume during the second half of the year with volume stabilizing in future years. We’re expecting the Windows 10 launch to go relatively well, though many users will opt for a free OS upgrade rather than buying a new PC. Competition from 2-in-1 devices and phones remains an issue, but the economic environment has had a larger impact lately, and that should stabilize or improve going forward.”

“The U.S. market was in line with forecasts, declining -3.3% from a year ago, after avoiding the global market declines over the past five quarters. Soft retail demand, short term weakness from inventory reductions, some cannibalization from competing devices, and low demand for large commercial refreshes are among the factors that reduced PC shipments,” said Rajani Singh, Senior Research Analyst,Personal Computers. “Nevertheless, moving forward, we expect a healthy second half as inventory and purchase decisions pick up following the launch of Windows 10. Emerging product categories will remain a bright spot as attention shifts to convertibles and Chromebooks in the commercial as well as consumer segments.”

Regional Highlights

United States – With shipments totaling nearly 16.4 million PCs in 2Q15, the U.S. market shrank -3.3% from the same quarter a year ago. Although most vendors saw volume decline, gains from Apple and Lenovo helped limit the overall decline. A tough year-on-year comparison contributed to a decline in desktop shipments, while portable PCs shipments continued to grow.

Europe, Middle East, and Africa (EMEA) – In EMEA, weakening demand and high inventory levels inhibited sell-in, driving results below expectations. Vendors continued to clean stock ahead of the back-to-school season and Windows 10 launch. Moreover, unfavorable exchange rates led to increasing prices and continued to affect demand both in the business and consumer spaces. The commercial market also faced a difficult year-on-year comparison with 2Q14, when the end of support for Windows XP boosted sales.

Asia/Pacific (excluding Japan) – China was impacted by excess commercial notebook inventory from earlier quarters as the anti-corruption campaign continues to suppress commercial spending. Currency fluctuation also remained a key factor in many countries in the region, contributing to lower demand. Nevertheless, volume was close to expectations, reflecting a slight decline in growth from prior quarters.

Japan – continued to see low growth as the weak Yen contributed to a difficult market. The Japanese PC market faced a particularly difficult comparison to year ago shipments that were boosted by the end of support for Windows XP and also changes to Japan’s tax code. As the market responds to these shifts and managing inventory, Yamada Denki (one of Japan’s major electronics stores) announced the closure of unprofitable stores in both urban and rural markets.

Vendor Highlights

Lenovo held onto the top position with shipments of 13.4 million units. Volume was up 1% from the prior quarter, but down -7.5% from the prior year. The vendor continued to aggressively court expansion outside of Asia/Pacific, leading to share gains in the U.S. and EMEA.

HP remained the number 2 vendor, but saw shipments decline -10.4% from a year ago. Slowing business demand and inventory control of entry notebooks contributed to the dip. While most of the slowdown was from outside of the U.S., the vendor also saw its U.S. volume contract nearly -7%.

Dell came in at number 3, shipping more than 9.5 million units and registering a year-over-year decline of -8.7%. Strong results in 2Q14 contributed to a poor year-over-year comparison. Stronger performance in Asia/Pacific and EMEA were offset by slower growth in the U.S.

Apple continued to outperform other vendors, with growth of 16.1% globally. The vendor has largely avoided the price competition affecting other players and may be benefitting from some of the uncertainty around the launch of Windows 10, along with refreshed products like the 12-inch MacBook and a relative concentration of shipments in the U.S.

Acer continued to see growth in Chromebooks with more models introduced. However, the vendor also struggled with the larger pullback in the market, particularly in EMEA where it had seen a rebound in mid-2014. The vendor ended 2Q14 with a volume of 4.33 million, a significant decline from the prior quarter and year ago volumes.

ASUS was statistically tied* with Acer for the number 5 position. ASUS has also been affected by currency factors and inventory management, but strong growth in the U.S. boosted overall results.

IDC - Top 5 Vendors, Worldwide PC Shipments, Market Share, and Year-Over-Year Growth for the Second Quarter of 2015 -- 9-July-2015Source: IDC Worldwide Quarterly PC Tracker, July 9, 2015
* Note: IDC declares a statistical tie in the worldwide PC market when there is less than one tenth of one percent difference in the revenue share of two or more vendors.

In addition to the table above, an interactive graphic showing worldwide PC market share for the top 5 vendors over the previous five quarters is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.

IDC - Top 5 Vendors, United States PC Shipments, Market Share, and Year-Over-Year Growth, Second Quarter of 2015 -- 9-July-2015Source: IDC Worldwide Quarterly PC Tracker, July 9, 2015

Table Notes:

  • Some IDC estimates prior to financial earnings reports.
  • Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
  • PCs include Desktops, Portables, Ultraslim Notebooks, Chromebooks, and Workstations and do not include handhelds, x86 Servers and Tablets (i.e. iPad, or Tablets with detachable keyboards running either Windows or Android). Data for all vendors are reported for calendar periods.

IDC’s Worldwide Quarterly PC Tracker gathers PC market data in over 80 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data.