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Leading edge Nokia phablets for both entertainment and productivity: Lumia 1320 targeting the masses at $339, and Lumia 1520 the imaging conscious business users and individuals at $749
This is my conclusion after carefully analyzing the announced products in all of their details. Only “imaging consciousness” needs a little explanation in the very beginning because otherwise the substantial $410 pricing difference would be hard to understand. To illustrate the rationale for that I copied here an image currently available at http://refocus.nokia.com/ which shows that you can make everything in focus. By going to that address you will also be able to experience with the image there (likely a different one) and change the focus as you like. And this is only one aspect of all the benefits for “imaging conscious” business users and individuals willing to pay that $410 extra.
Another aspect is the Screen Test: Nokia Lumia 1520 versus Galaxy Note 3 [TheHandheldBlog YouTube channel, Oct 22, 2013] which is showing particularly well the Lumia 1520 advantage over the phablet market leader Samsung Galaxy Note 3:
The Nokia World Nokia Lumia 1520 daylight visibility demo [WMPowerUser YouTube channel, Oct 22, 2013] is showing the advantage against the smartphone market leaders:
To understand how “a very bright screen with much reduced glare” is uniquely achieved by Nokia, please read The leading ClearBlack display technology from Nokia [‘Experiencing the Cloud’, Dec 18, 2011 – May 8, 2012] post of mine.
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Now consider what one gets for a much lesser amount ($339) with Nokia Lumia 1320 unveiled at Nokia World Abu Dhabi [Maurizio Pesce YouTube channel, Oct 22, 2013]:
While the latest innovations in functionality are shown quite well in the above video the most important quote from Nokia (because of its implication) is:
Similar to the Lumia 1520 – and building on the affordability of the Lumia 520 – the new Nokia Lumia 1320 also features a 6-inch screen and a wealth of features at a lower price.
And here is the Nokia Lumia 1520 first hands-on [Nokia YouTube channel, Oct 22, 2013] video for a kind of comparison (from Nokia itself):
Technical similarities/differences between the two Nokia phablets could be seen in the below table of mine, which was compiled from Lumia 1320 & 1520 spec data + dev specs.
Regarding the similarity between the two devices the most important thing is the functionality which is 90% the same. The Lumia 1520 is just different with:
– Multimicrophone uplink noise cancellation
– HERE Drive+
– Secure NFC (although in developer specs it is indicated for Lumia 1320 as well)
– Public transportation routing guidance
– HERE Transit
– Panorama (That is get the bigger picture with Nokia’s easy-to-use Panorama app. Simply take your pictures and the app automatically stitches them into a picture-perfect view. Once you’re done, share your panorama directly to Twitter and Facebook.)
– Additional light sensitivities: ISO 1600, ISO 3200, ISO 4000
+ Nokia Refocus (as an application on top of that) illustrated in the very beginning of this post already
The Nokia World Abu Dhabi 2013 [Red Robot – Intelligent Distribution YouTube channel,
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In order to understand the substantially higher price positioning for the Lumia 1520 please note that the Samsung Galaxy Note 3 LTE 32GB unlocked offering (which has nothing like the imaging functionality of Lumia 1520) has a U.S. retail price of $735.00-789.95+ on Amazon (not to speak of the 32GB Apple iPhone 5s with its $850-950+ price as a minimum). Here is a very recent, brief comparison:
Nokia Lumia 1520 vs Samsung Galaxy Note 3 [Recombu YouTube channel, Oct 22, 2013]
More Note 3 related information could be found in The new Air Command S Pen User Experience making the Samsung Galaxy Note 3 phablet, and Galaxy Note 10.1, 2014 Edition tablet next-generation devices [‘Experiencing the Cloud’, Sept 12, 2013] post of mine.
Now The Nokia Lumia 1520 and the Arabian Peninsula [Nokia Conversations, Oct 23, 2013] post is describing quite clearly the ultimate advantage of Lumia 1520 as:
The Nokia Lumia 1520 is very much the bigger brother of the Lumia 1020, sporting a 6-inch display.
Although it only packs 20 megapixels against the 1020′s 41 megapixels, the results are no less stunning. “The image quality is fantastic” is [National Geographic photographer Stephen] Alvarez’s instant feedback, “every bit of the Lumia 1020′s”. The larger screen makes a difference, too.
“It’s easier to frame because you can see the image much larger,” Alvarez says of the device’s size, “but it isn’t so large that it’s cumbersome”. When doing really careful compositions, Stephen believes the Lumia 1520 makes short work of such tasks, citing the screen as being “remarkable”.
For a professional photographer, the ability to extract DNG (Digital Negative) image files from a device is crucial. Whether it’s to work further on the image in post-production, or whether to prove you have an un-tainted image (if you’re a journalist or gathering evidence, for example). With the Lumia 1520 comes support for DNG files, much to Stephen’s delight when he found out.
Amateur and professional photographers alike benefit from the fact there is zero compression in the file. Pulling more detail out of a shadow is just one example Alvarez offers before pointing out that the file size is comparable to what he sees from his DSLR.
Some additional advantages from Standing tall: The Nokia Lumia 1520 and Lumia 1320 [Nokia Conversations, Oct 22, 2013] are described as:
Lumia 1520 features Nokia Rich Recording with four microphones, providing directional stereo recording capability to capture distortion free audio from the preferred direction for clear, accurate sound. (We will have more information to share with you about the Lumia 1520’s audio capabilities soon.)
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The Lumia 1520 is a genuine workhorse, too. It comes with Microsoft Office built in, so you can have the flexibility to work when you need to; and it includes a massive battery with integrated wireless charging (Qi compatible). This powerful combination means you can manage to easily log a whole day of work and enjoy entertainment like movies without worrying about finding a place to charge up.
The ability to show a third column on the Start screen isn’t just about scaling the experience of Windows Phone 8. It really is about getting to you favorite apps faster with less scrolling. For instance, the email app now shows one additional row of content in the Live tile, right on the Start screen.
Do you do a lot of video conferencing? The front-facing camera on the Lumia 1520 offers 1.2 HD 720p wide angle video so you’ll always look your best.
And, with the new Papyrus app coming to Windows Phone for the first time, you can easily take handwritten notes on your Nokia Lumia 1520.
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The Lumia 1520 features all the latest in display technology to make the beautiful six inch screen stand out, even in the brightest sunlight. With ClearBlack display technology, High Brightness Mode and assertive display technology by Apical, the screen offers a viewing experience to enjoy no matter what the light conditions are. And when winter rolls in, wearing gloves won’t prevent you from using the screen just as easily as before thanks to the super sensitive touch screen with Gorilla Glass 2.
No wonder that in this Nokia Lumia 1520 Hands on and tour of Nokia’s latest phablet [funviz YouTube channel, Oct 24, 2013] 3d party video the display is touted as the big selling point of the device: “[0:19] That display is probably the best display I’ve ever seen on any digital device. [0:23]”
And don’t forget that there is the quite rich common Lumia 1320/1520 functionality (except Nokia Refocus ?for time being?) which is touted by Nokia in the following way:
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In Nokia brings new innovations to design and imaging with six new devices, applications and experiences [press release, Oct 22, 2012]
Continuing to redefine smartphone innovation, Nokia introduces its first ever large screen Lumia smartphones, the Lumia 1520 and Lumia 1320. With a six inch screen and the latest software advancements for Windows Phone, the Lu.mia 1320 and Lumia 1520 are perfectly suited for entertainment and productivity. A new third column of tiles on the home screen means people can see and do more on a larger screen. Bringing larger displays to the award-winning Lumia design, the new format is coupled with some of the most advanced camera innovations so people can capture and share the world around them. … With Microsoft Office built in, documents can be edited and shared easily for maximum productivity.
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In Standing tall: The Nokia Lumia 1520 and Lumia 1320 [Nokia Conversations, Oct 22, 2013]:
It includes Nokia Music and HERE Maps for great music and location experiences, and welcomes both Nokia Camera and Nokia Storyteller apps, available in the Windows Phone Store. With the latest apps, the best from Nokia, and the best from Microsoft supported by LTE connections you can make the most out of the bright large screen on the Lumia 1320. Sit back and relax while you play the latest Xbox games, read web content, or watch movies on the six inch screen. A wealth of content can be stored using the free 7GB of SkyDrive storage or with the addition of a micro SD card adding up to 64GB more space.
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In the Innovation reinvented at Nokia World [Nokia Conversations, Oct 22, 2013]:
HERE experiences get an update too! Now with LiveSight in HERE Drive and HERE Drive+ you can easily locate your parked car, while in HERE Transit it will be easier to find nearby transit stations. … The third-party apps line-up for Lumia is significantly boosted with the arrival of … the Instagram photo editing and sharing network, Papyrus and InNote, which both offer handwritten note-taking solutions, and the Vine short-form video service from Twitter – available soon!
From: Papyrus – Use your finger or a stylus to take notes on your Lumia. The vector graphics engine keeps your notes beautiful at any zoom level.
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Nokia’s latest family of products accelerates application innovation [press release, Oct 22, 2012] elaborates on that as:
Windows Phone Store is stocked with a full range of certified applications and games, with hundreds more titles added every day. Starting today, Windows Phone owners can download a number of new applications including: CamScanner, Goal Live Scores, InNote, phriz.be, Rail Rush, SophieLensHD and an updated TuneIn Radio application with radio stations live on the Start screen.
Over the coming weeks, Windows Phone owners can experience many more new applications including: ESPN F1, EA SPORTS(TM) FIFA 14, Instagram, My Talking Tom, Papyrus, Temple Run 2, Vine, Vyclone Pro and Xbox Video among others**.
The screen real estate afforded by the larger full HD display screens on the Nokia Lumia 1520 (6″) … has already inspired developers to create unique experiences for consumers. … Flipboard, a personal magazine, allows people to read and collect all the news they care about, curating their favorite stories into their own magazines. With Live Tiles … people can digest news faster and easier than ever before. Flipboard will be available … for Lumia smartphones in the coming months.
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So far Flipboard is On Nokia Lumia 2520 tablet only [Christopher Jager YouTube channel, Oct 23, 2013]
More information:
– Replay Nokia World Abu Dhabi – (the 2nd embedded webcast:) Breakout Sessions [Nokia Conversations, Oct 22, 2013]
Eric Feng (CTO, Flipboard): [42:15] Quick overview of Flipboard:
— World’s first personal personal magazine (curated, personalized and displayed)
— ~8000 content partnerships (The New York Times, BBC, AlJazeera, ESPN etc.)
— Partnering with world’s 14 leading social networks
— A community of a couple of million users who are curating magazines every day
— About 4 million magazines curated already on every single day
— ~100 million items can be consumed on Flipboard every single day
— presented in a beautiful magazine layout
— ~90 million people and growing
— ~200 countries worldwide
[47:10]
– Flipboard’s Mike McCue | Disrupt NYC 2013 [TechCrunch YouTube channel, April 29, 2019]
Flipboard is a digital social magazine that aggregates web links from your social circle, i.e. Twitter and Facebook, and displays the content in magazine form on an iPad. Here, watch Co-Founder and CEO Mike McCue onstage at Disrupt NY 2013 talk about Flipboard.
– Flipboard and Pandora, gamechangers in mobile [This Week In Startups YouTube channel, Oct 15, 2013]
Flipboard was one of the first iPad apps that made clear exactly how powerful the experience could be. Blending the best of RSS content with beautiful print-style layout, the app has only gotten better. Now Flipboard’s 85m users can create their own magazines tailored to specific interests. When cofounder and CEO Mike McCue sat down with Jason at LAUNCH Mobile, they dug into how the app has become publisher and platform, changing how we think about and interact with content. Then, a conversation with Tom Conrad, longtime CTO of Pandora. The publicly-traded company has long held sway in the mobile space, transforming how we think about radio by identifying exactly what makes a genre or mood, through its music genome project. Then, putting that tailored-just-for-you radio station into the pockets of its 175m users. Don’t miss these great conversations that point to the future of media in the mobile space.
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In New Nokia apps from Nokia World 2013 [Nokia Conversations, Oct 22, 2013]:
Today, let’s take a look at our homegrown apps right from the Nokia app factory.
Nokia Camera App demo on Lumia 1520. Nokia Camera is available now to download for all Nokia Lumia PureView smartphones, and coming to the rest of the WP8 Lumia range along with the Lumia Black update early next year. Nokia Camera also has raw file support (DNG format) on Nokia Lumia 1520, and this will be coming to the Lumia 1020 when the Lumia Black update rolls out.Nokia Camera
Two glorious apps combined into one. Nokia Pro Camera and Nokia Smart Camera have been merged to simplify your photo-taking experience, and ensure you get the perfect shot every time.The Nokia Camera integrates easy automatic mode, but you can also take control of your camera and become a pro by manually altering focus settings, shutter speed, and ISO as well as using Smart Burst, Remove Moving Objects or create an Action Shot features.
Nokia has a new Refocus app which put Lytro cameras to shame, allowing users to focus on any element of the picture after the factNokia Refocus
Rather than worry about getting the focus perfect first time, Nokia Refocus takes a photo and lets you choose the focus point after you’ve taken the shot.[AS AN ALTERNATIVE—to the above one—PRESENTATION] Nokia Refocus lets you readjust the focus after taking the photos. It will be available ON THE LUMIA 1520 AND ALL OTHER PUREVIEW LUMIA DEVICES in mid-november.This means you can create different expressions of a single photo, changing the same scene in a number of ways by refocusing on the area you want to highlight most. You can also choose to make everything in focus, or magically add colour pop to the focused area for more impact.
[You can experience the effect of Nokia Refocus on an image captured with Nokia Refocus placed at http://refocus.nokia.com/]
Nokia Storyteller
One of the (many) announcements from Nokia World 2013 in Abu Dhabi is Nokia’s new Storyteller app, coming first with the Lumia 1520. We go hands on for a video tour of the new app.A single app that combines your photographs and videos with HERE location information to create a picture journey. When you take a photo or record a video, you can see precisely where it was taken on a familiar HERE map.
See clusters of photos scattered across the globe and zoom in to an exact location. Plus, zoom out of any photo within the gallery to see where it was shot. You will also notice that your photos truly come live, the videos are played in-line, the action shots are beautifully animated, and the refocus effect is subtly played back to give the immersive feeling when browsing between the images.
Nokia Beamer wins our award for the zaniest thing we’ve seen at Nokia World. The app allows you to share your display, live, to another Windows Phone (or really any device). Just watch the video and expect the app in the coming weeks.Nokia Beamer
Nokia Beamer is the ideal way to share what’s on your Lumia display to any internet-enabled screen.PowerPoint presentations, photos, videos, absolutely anything that you see on your Lumia can be shared, remotely, to anywhere in the world.
It’s like magic, there’s no hassle with connections, and it just works. You beam the screen to a nearby HTML enabled screen, or SMS it to a friend on the other side of the globe. You can even tweet it and let your followers see your screen in real time!
Nokia World 2013 Dubai Keynote: Apps for 6” screen demonstrated on Lumia 1520, Lumia 1320 announced and roll-out plans for both [TechMobileNews YouTube channel, Oct 22, 2013]
It is quite remarkable that how much the “building on the affordability of the Lumia 520” claim (quoted in the beginning) is true for Lumia 1320. When comparing the two in devspecs (functionality comparison I will omit here) there are quite significant improvements (over Lumia 520) on one hand, such as:
– 720 x 1280 pixels, 6 inches
– Corning® Gorilla® Glass 3
– ClearBlack, IPS LCD
– High brightness mode
– Lumia Color Profile
– LTE with upto 100 Mbps uplink / 50 Mbps downlink speeds
– 1.7 GHz Qualcomm Snapdragon S4 processor
– 1 GB RAM, possibility to have 64 GB Micro SD cards
– HERE Maps and HERE Drive
– Magnetometer sensor (compass)
– Auto and Manual Exposure, Face recognition, LED Flash and Video Light for the main camera
– Full HD (1920 x 1080) video recording resolution
– Video call, Video sharing and Video stabilizaion
– Secondary camera
– Dolby headphone
– Bluetooth 4.0
– Maximum standby time: 28 day
– Maximum talk time (2G): 25 h
– Maximum talk time (3G): 21 h
– Maximum music playback time: 98 h
– Maximum video playback time: 9 h
– Maximum Wi-Fi browsing time: 11.5 h
On the other hand—however—the list price of the Lumia 1320 is just $339 vs. the initial list price of the Lumia 520 around $200 when it was released to the market by end March this year. Considering that since then the street price of Lumia 520 went down to as low as $125 (corresponding to Rs.7,714 in India) we may expect that in half year after its Q1 2014 planned release (i.e. in Q3 2014) the street price of Lumia 1320 could become as low as $212 too (iff the sales go as well as for Lumia 520).
In that case the higher by $410 price of Lumia 1520 ($749) will be even less lucrative for an average phablet buyer as it is now (IMHO already not lucrative at all). Look at the list functionality copied here from Lumia 1320 and 1520 spec data, and you will easily understand that (functionality denoted in bold is for Lumia 1520 only):
Software and applications
Productivity features
- Personal information management features: Calculator, Clock, Calendar, Phonebook, Alarm clock, Reminders, To-do list, Social networks in Phonebook, OneNote, Wallet, Family Room, Kid’s Corner
- Business apps: Adobe acrobat reader free download, Lync (Corporate IM) free download, SkyDrive storage for documents and notes, Company Hub for enterprise applications, Office apps: Excel, Word, Powerpoint, OneNote
- Document formats supported: Excel, PDF, Word, OneNote, Powerpoint
- Sync type: Exchange ActiveSync, Windows companion app, 1320: Mac companion app, Nokia Photo Transfer for Mac
- Sync content: Calendar, Video, Pictures, Music, Contacts
Other Applications
- Game features: DirectX 11, Touch UI, XBox-Live Hub
Software platform & User Interface
- SW Platform: Windows Phone
- Software release: Windows Phone 8 with Lumia Black
Communications
Email and Messaging5
- Email clients: Yahoo! Mail, Outlook Mobile, Gmail, Office 365, Nokia Mail, Windows Live / Hotmail / Outlook.com, MS Exchange Active Sync
- Email protocols: SMTP, IMAP4, POP3
- Email features: Viewing and editing of email attachments, Always up to date, Multiple simultaneous email accounts, Text-to-speech message reader, Email attachments, Conversational view on email, Linking multiple inboxes to one, Inbox filtering, HTML viewer
- Supported instant messaging services: Google Talk, Twitter, Windows Live Messenger, WhatsApp, Yahoo! Messenger, Skype IM, Facebook
- Messaging features: Integrated text messaging and chat, Instant messaging, Concatenated SMS for long messages, Multiple SMS deletion, List of recently used numbers, Audio messaging, Text-to-speech message reader, Text messaging, Number screening for messaging, Unified MMS/SMS editor, Automatic resizing of images for MMS, Distribution lists for messaging, Multimedia messaging, Conversational chat style SMS, Unified inbox for SMS and MMS
Call management
- Call management features: Voice commands, Call waiting, Voice mail, Integrated hands-free speakers, Call forwarding, Call logs: dialled, received and missed, Call history, Voice dial, Conference call, Skype voice call
- Video call features: Skype video call
- Supported amount of phonebooks: One integrated phonebook
- Supports amount of contacts: Unlimited
- Ringtones: Downloadable ringtones, MP3 ringtones
- Noise cancellation: Yes –> Multimicrophone uplink noise cancellation
- Speech codecs: AMR-WB, GSM FR, AMR-NB, GSM HR, EFR, GSM EFR
Device security
Security
- Enterprise security features: Remote security policy enforcement
- General Security features: Remote device locking via Internet, Secure NFC, Track and Protect via internet, Firmware update, Remote wipe of user data via Internet, Device lock, Device passcode, PIN code, Firmware and OS integrity check, Secure device start-up, Online back-up and restore, Application sandboxing and integrity check
- Advance security features: Lost device tracking, Browser integrated anti-phishing
- Data encryption: User data encryption for device
Sharing and Internet
Browsing and Internet
- Internet browser capabilities: Internet Explorer 10
- Social apps: Facebook, LinkedIn, Twitter, LINE, WeChat
- Photo sharing: Share over Bluetooth, Facebook, Picasa, Flickr, Send as email attachment, SkyDrive, Nokia Beamer
- Video sharing: YouTube, Flickr, Picasa, Video sharing to social network and internet, Facebook, SkyDrive, Joyn video call sharing
- Location sharing: WP location sharing, Foursquare
- Wi-Fi hotspot: Up to 8 Wi-Fi-enabled devices
- Nokia Beamer: Nokia Beamer lets you share your screen with family, colleagues and friends by simply pointing your Nokia Lumia at any screen displaying the web address http://beam.nokia.com. Or share your live Lumia screen by sending a link by email, sms or social networks.
Navigation
GPS and navigation6
- Location and navigation apps: HERE Maps, HERE Drive –> HERE Drive+
- Navigation features: (Pin places to Start screen, Reveal the surrounding places, Reviews, info and photos for places, Routing options, Save favourite destinations, Call, share and get directions to places,) –> Public transportation routing guidance, Free maps, (Live traffic information,) Automatic day/night view switching, (Venue maps – shopping and transport centers,) Offline maps, (Online and offline favourites), Speed limit warnings, LiveSight, Download the latest maps with Wi-Fi, Free turn-by-turn walk navigation, (Save and sync favs with HERE.com,) Free global voice guided turn-by-turn drive navigation
- Location technologies: Magnetometer, A-GPS, Cellular and Wi-Fi network positioning, A-GLONASS
Location and navigation apps
- HERE Maps: Discover the best places in any neighbourhood with HERE Maps. New LiveSight technology reveals interesting places in your display. Explore malls, stations and more with venue maps. Access your favourite places on any HERE app and on here.com.
- HERE Drive –> HERE Drive+: Navigate safely with (free regional voice-guided directions) –> global free turn-by-turn navigation and true offline support. (HERE Drive) –> HERE Drive+ features audible speed limit warnings, dedicated dashboard and commute assistance. Save and access favourite places on any HERE app and on here.com.
- HERE Transit: Get around by bus, train and subway all in one easy-to-use app. Compare route options, arrival and departure times and walking distances in over 700 cities and 50 countries. Over-the-air updates ensure you always have the latest routes and schedules.
Photography
Photography apps
- Nokia Camera7: Nokia Camera brings together the features from Nokia Pro Cam and Nokia Smart Cam modes into one application. It gives you the whole exclusive Nokia camera experience with fast access to editing and sharing.
- Creative Studio: Get more out of your pictures with this quick and easy photo editor. Creative Studio’s editing tools let you quickly adjust color balance, remove red eye and apply filters. Then, share your pictures directly on Facebook and Twitter.
- Cinemagraph: A magical blend of photo and movie-like animation, creating pictures that seem almost alive. Helpful on-screen assistance lets you select the animated area of your picture and easily create and edit a cinemagraph. You can share your cinemagraph with friends via social media, email and messaging.
- Panorama: Get the bigger picture with Nokia’s easy-to-use Panorama app. Simply take your pictures and the app automatically stitches them into a picture-perfect view. Once you’re done, share your panorama directly to Twitter and Facebook.
- Nokia Storyteller: Nokia Storyteller organizes your photos into stories on an interactive HERE map by time and place. Cinemagraphs and smart photos play automatically. See points of interest around the photos taken and pull up contact info, call or email directly from Storyteller, enabling you to authentically re-experience your entire journey when the time comes.
Image capturing
- Capture modes: Video, Still
- Scene modes: Automatic, Sports, Night
- White balance modes: Cloudy, Incandescent, Fluorescent, Daylight, Automatic
- Light sensitivity: Automatic, ISO 100, ISO 200, ISO 400, ISO 800, ISO 1600, ISO 3200, ISO 4000
- Photos viewed by: Camera Roll, Month, Timeline, Photo editor, Favorites, Album, Photos from social networks, Nokia Storyteller
Music and Audio
Music apps
- Nokia Music: Unlimited streaming of music for free with Nokia Music. Discover great new music wherever you go. Create your own artist inspired mix or enjoy the mixes from our music experts and celebrity friends. You can listen to your favourite mixes offline and discover live music around you with Nokia Music Gig Finder.
Accessibility
Accessibility features
- Hearing: Vibrating alerts, TTY support, Video call, BT neckloop compatible
- Vision: Screen reader compatible, Voice recognition, Vibrating alerts, Zoom, Voice commands, Font magnification, High contrast mode, Customizable home screen
- Physical skills: Speakerphone, Voice recognition, Voice commands, Customizable home screen
6Downloading of maps over-the-air may involve transferring large amounts of data. Your service provider may charge for the data transmission. The availability of products, services and features may vary by region. Please check with your local Nokia dealer for further details and availability of language options. These specifications are subject to change without notice.
7Nokia Camera comes as an update to Nokia Pro Camera. Available now from Store.
Why Intel is pressed to go as far down as to $99 with its Android tablet prices (but not with Windows 8.1)?
There is a typical misunderstanding from reports like Intel says get ready for $99 tablets, $299 Haswell notebooks, $349 2-in-1 hybrids [ZDNet, Oct 16, 2013] that those rock bottom prices ($99+) will apply to Windows 8.1 tablets as well. This is very far from the truth both from possibilities and business rationale point of view for the company.
From: Intel’s CEO Discusses Q3 2013 Results – Earnings Call Transcript [Seeking Alpha, Oct 15, 2013]
During the holiday selling season, you will see Atom SoCs and tablets as low as $99, and in 2-in-1 systems as low as $349.
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David Wong – Wells FargoThanks very much. Bay Trail. If I’m not mistaken there are Android tablets using Clover Trail+ the currently available, when might we expect Android tablets using Bay Trail in the market?
Brian Krzanich – Chief Executive Officer, Director
You are absolutely right there, several tablets out there currently today with Clover Trail+ using Android. What I told you was, there are about 50 designs on Bay Trail, about 20 of those are 2-in-1s, probably 25, 20 of them are Bay Trail tablets on Android, there is going to be about eight systems on shelf, eight to 10 systems on shelf, we believe, by the say Black Friday timeframe. Most of those will be Android tablets.
Intel plans cheap Bay Trail CPUs for 2Q14 [DIGITIMES, Oct 14, 2013]
Intel is planning to release entry-level Bay Trail-based processors for the Android platform in the second quarter of 2014, according to sources from tablet players.
The sources expect the CPUs to be priced between US$15-20, about US$12 lower than the current models.
Although Intel has already offered subsidies for its Bay Trail-T processors including Atom Z3740 and Z3770 at US$32 and US$37 and another 10% off for bulk purchase, they are still less competitive in pricing compared to ARM-based quad-core processors.
With the new entry-level processors, the sources expect Intel to gain an equal footing against players such as Mediatek, Qualcomm and Nvidia.
AND WHY “This [$99+ Windows 8.1 tablet] is very far from the truth both from possibilities and business rationale point of view for the company”?
Here are the clues from Intel’s CEO Discusses Q3 2013 Results – Earnings Call Transcript [Seeking Alpha, Oct 15, 2013]
During the third quarter, our revenue grew 5% sequentially and was flat versus the third quarter of 2012. Year-over-year PC CPU volumes declined slow and were offset by solid growth in the data center and enterprise. While consumer demand in emerging markets was sluggish, we started to see early signs of improvements in North America and Western Europe. I see our performance in this environment as evidence of an increasingly broad and diverse product portfolio. I would like to highlight a few of the most important results from the quarter.
Following the launch of Ivy Bridge EP and the Atom-based Avoton SoCs, the data center group, delivered all-time record revenue. DCG saw strength across its lines of business in geographies. Cloud revenue was up 40% year-over-year. Storage was up 20% and high performance computing was up 27%. Even traditional enterprise servers were up a bit over the last year on the strength of our MP product line.
While the data center group’s results demonstrate some of Intel’s core capabilities, we saw strong performance beyond DCG. Our embedded business grew 21% year-over-year, reaching an all-time record for revenue driven by communications infrastructure, transportation, the internet [of] and retail. Embedded revenue is well on its way to a double-digit growth year.
Just a few weeks ago, we announced our newest product family, Quark, an ultra low power and low cost architecture. And while any significant revenue impact is some time away, the architect and the speed with which we are bringing it to market are evidence of the changes we are making to ensure we are in a better position to lead and define technology trends moving forward.
Finally, our NAND business grew 20% over last year. As enterprise and data center customers increasing use of high-performance SoCs have put this segment on a path to double-digit growth for the year.
(See also The long awaited Windows 8.1 breakthrough opportunity with the new Intel “Bay Trail-T”, “Bay Trail-M” and “Bay Trail-D” SoCs? [‘Experiencing the Cloud’, Sept 14-26, 2013] for how much the current Bay Trail is priced for the overall Windows market (not only tablets) where prices are much higher than on the Android market).
The current Android tablet offers from Intel based on Clover Trail +:
You will see that with current Clover Trail + Android tablets there is a clear performance disadvantage against the ongoing quad-core ARM Cortex-A9 Android tablets which are also priced much lower than the upcoming $149.99 and $179.99 Android tablets from Dell. From pricing point of view compare that even with that of Amazon’s move into overall leadership: Kindle Fire HDX with Snapdragon 800, “revolutionary on-device tech support” (Mayday), enterprise and productivity capable Fire OS 3.0 forked from Android 4.2.2 etc. PLUS a significantly enhanced, new Kindle Fire HD for a much lower, $139 price [‘Experiencing the Cloud’, Sept 27, 2013], not to speak of the Chinese whitebox tablets costing even less than the new Kindle Fire HD at around $100.
Android tablet user experience [ARMflix YouTube channel, Oct 10, 2013]
ARM Quad core Cortex-A9 @1.4GHz vs. Intel Dual core Clovertrail+ @1.6GHz
So there are Dell Venue 7 and 8 Tablets [Dell YouTube channel, Oct 15, 2013] to capitalise on the well know and aceepted Dell brand name with higher prices:
for which Dell says on its Coming Soon: New Dell Venue Tablets [Oct 2, 2013] campaign page:
Dell Venue 7 & Venue 8: The tablets that draw a crowd.
Dell Android tablets combine the power of Intel® with compact connectivity, featuring a 7″ or 8″ HD screen with wide-angle viewing and both front and back cameras. Available in October.High-def details:
Enjoy every detail in high resolution on a 7″ or 8″ HD display screen for sharing your favorite photos, playing games and more.All-access apps:
Whether you’re looking to relax or be productive, the Android-based platform means you have access to thousands of Android apps.High-performance processor:
Expect speed with 4th Gen Intel® Atom™ processors for maximum performance.
From Dell Introduces New Line of Tablets and Updated XPS Laptops: Create, Share and Access Content from Virtually Anywhere [press release, Oct 2, 2013]
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The Dell Venue 7 and Dell Venue 8 feature Intel AtomZ2760 (“Clover Trail”)[Z2560/Z2780 Clover Trail+ – see below] processors
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Availability and Pricing
The Dell Venue 7, Venue 8, … will be available from October 18 on www.dell.com in the United States and select countries around the world.
…
- Venue 7: $149.99
- Venue 8: $179.99
…
Links to click: Venue™ 7 – Venue™ 8 – Z2560 – Z2580 – Clover Trail +
Dell’s all Intel tablets and laptops targeting the evolving mobile workforce even with their most consumer specific Android tablets
Dell is 100% committed to Intel (“for speed, responsiveness, and battery efficiency”) from now on which was, nevertheless, not discovered by the media. Otherwise the essence was well expressed by these Oct 2, 2013 media reports (being similar to others):
Read also: The long awaited Windows 8.1 breakthrough opportunity with the new Intel “Bay Trail-T”, “Bay Trail-M” and “Bay Trail-D” SoCs? [‘Experiencing the Cloud’, Sept 14-26, 2013]
- BBC News: Dell‘s latest Venue tablets shun Windows RT system
- PCWorld: With new Venue tablets, Dell signals its PC division is alive and kicking
- TechCrunch: Dell Tries To Crack The Android Tablet Code (Again) With The Venue 7 & 8
- GigaOM: New Dell Venue Pro tablets run Windows 8.1; no Windows RT in sight
- CNET: Dell gives up on Windows RT “Neil Hand [VP Consumer Marketing], head of tablets at the PC maker, says Dell won’t be releasing follow-up Windows RT products because they didn’t sell well.”
- VentureBeat: Dell gets serious about stealing market share with new consumer laptops and tablets “… ‘A year ago, Dell had two tablets,’ Hand said. ‘Now we have seven or eight, depending on how you count them. That shows our commitment.’ … Android is a force in tablets. With multiple Android tablets and even a modular, Windows 8-based convertible, Dell appears more like the Dell of yesterday, who was prepared to take share from its competitors.’ …”
- The Verge: Dell unveils first four Venue tablets, including a Microsoft Surface competitor
Conspicuously missing from Dell’s lineup is any trace of Windows RT, the stripped-down version of Windows designed for ARM processors. Dell was the last remaining Windows RT supporter outside of Microsoft, at least until the company discontinued its XPS 10 last month. When we asked Dell’s director of tablets, Bill Gorden, he said the company’s still considering its options. “We’re very happy with the direction of Windows 8.1, and we have multiple screen sizes and capabilities there,” he said. “We’re not sure what our plans are for Windows RT at the moment.”
However, Gorden suggests that we should take the Venue launch as a sign that Dell isn’t planning to abandon the consumer market after it goes private. “I think the introduction of all these devices is really a signal of how important end-user computing is to Dell,” he toldThe Verge. “I think you’re going to start seeing Dell start being prominent in the consumer space.”
What was announced (according to Dell’s press release, available here at the very end):
The Dell Venue 7, Venue 8, Venue 8 Pro, and new XPS 15 will be available from October 18 on www.dell.com in the United States and select countries around the world. The Venue 11 Pro, XPS 11 and the updated XPS 13 with touch will be available in November. Starting prices are as follows:
- Venue 7 [Android]: $149.99
- Venue 8 [Android]: $179.99
- Venue 8 Pro: $299.99
- Venue 11 Pro: $499.99
- New XPS 15: $1,499.99
- XPS 11: $999.99
- New XPS 13: $999.99
…
All Dell Venue tablets are based on Intel processing power for speed, responsiveness, and battery efficiency. The Dell Venue 7 and Dell Venue 8 [Android tablets] feature Intel Atom Z2760 (“Clover Trail”) processors, while the Dell Venue 8 Pro and Dell Venue 11 Pro [Windows 8.1 tablets] feature the new Intel Atom quad-core processors, code named “Bay Trail.” The Venue 11 Pro offers up to 4th Generation Intel Core [”Haswell”] i3 and i5 processor options and Intel vPro for manageability.
Dell messages:
From the press release:
- New Dell Venue tablets offer the ability to connect, share, and access content with ease
- XPS 11 is the world’s thinnest, lightest and most compact 2-in-1 in the world with the world’s first Quad HD display on an 11.6-inch 2-in-1
- XPS 15 powerhouse laptop offers the world’s first 15.6-inch Quad HD+ display for jaw-dropping visuals and the ultimate experience
…
Dell Venue tablets are designed to give people on-the-go a wide-selection of sizes and options to meet their varying needs. From 8 and 11-inch Windows-based tablets complete with keyboard and stylus options, to the 7 and 8-inch Android tablets, Dell has created a dedicated brand of tablets to meet the needs of customers who are the epitome of the evolving workforce.
For New Dell Venue 7 and 8 Tablets [DellVlog YouTube channel, Oct 2, 2013]
Stay connected with Venue 7 and 8 tablets featuring fast Intel processors and easy to use Android OS.
For New Dell Venue 8 Pro Tablet [DellVlog YouTube channel, Oct 2, 2013]
Connect to what you need easily, quickly and securely with the Dell Venue 8 Pro tablet [powered by Intel quad-core processor].
For New Dell Venue 11 Pro Tablet [DellVlog YouTube channel, Oct 2, 2013]
http://www.dell.com/tablets
The no compromise tablet for those that expect more and do more [featuring Intel Core processors].
For Enabling the mobile workforce with Dell [DellVlog YouTube channel, Oct 2, 2013]
Learn more about the evolving mobile workforce, bring your own device (BYOD) trends and the opportunity they present you as a Dell partner.
For Dell Venue 11 Pro Tablet for Work and Home [DellVlog YouTube channel, Oct 2, 2013]
See how the Venue 11 Pro goes from your home life to work life, with no compromises.
Only here, and only inside there is a Microsoft related message (while Intel is everywhere here and especially in the above videos):
- Stay connected with the Intel Core based Dell Venue 11 Pro tablet.
- Keep in touch with loved ones across the globe.
- Portability and performance in one device.
- Chair projects with the stunning Full HD wide angle screen.
- Run Windows 8.1 and Microsoft Office powered by Intel processors.
- Interact like never before with near-field communication.
- Present new ideas with Miracast technology.
- Designed for on the go or on the couch.
- Do more with the do it all Dell Venue 11 Pro tablet.
While at least one media source, CNET was much more Microsoft/Windows focussed:
The Dell Venue 8 Pro delivers full Windows 8.1 in a $299 package [CNETTV YouTube channel, Oct 2, 2013]
http://cnet.co/19ZguLY
Dell’s Venue 8 Pro is a full Windows 8.1 tablet with an 8-inch screen.
The Dell Venue 7 and 8 mark Dell’s return to Android tablets [CNETTV YouTube channel, Oct 2, 2013]
http://cnet.co/1bw0Mdk
Dell finally moves beyond the Streak with two new Android tablets.
Get accessorized with the Dell Venue 11 Pro [CNETTV YouTube channel, Oct 2, 2013]
http://cnet.co/173mhOm
The 11-inch Venue 11 Pro from Dell features a removable battery and plenty of accessory options.
The Dell XPS 11 and 12 feature unique hybrid designs [CNETTV YouTube channel, Oct 2, 2013]
http://cnet.co/1fJpImK
Both the Dell XPS 11 and 12 are take traditional hybrid design and throws it on its ear.
The Dell XPS 13 and 15 feature high-end specs and thin designs [CNETTV YouTube channel, Oct 2, 2013]
http://cnet.co/1brtC1U
Dell goes ultra high-end with its XPS 13 and 15 laptops.
Press release from the company:
Dell Introduces New Line of Tablets and Updated XPS Laptops: Create, Share and Access Content from Virtually Anywhere [Oct 2, 2013]
- New Dell Venue tablets offer the ability to connect, share, and access content with ease
- XPS 11 is the world’s thinnest, lightest and most compact 2-in-1 in the world with the world’s first Quad HD display on an 11.6-inch 2-in-1
- XPS 15 powerhouse laptop offers the world’s first 15.6-inch Quad HD+ display for jaw-dropping visuals and the ultimate experience
Dell today took a bold step in unveiling a new family of tablets and new laptops, including a 2-in-1 Ultrabook. The Dell Venue line of tablets is comprised of four new ultrathin models designed to address the changing way people live and work today. Dell’s “damned sexy” tablets, as described by leading Enderle Group analyst, Rob Enderle, deliver leading performance and quality, backed by Intel processing technology. With compact designs that make it easy to stay connected on the go, the Dell Venue tablets have an exquisite fit and finish.
In addition to the versatile new Dell Venue tablets, Dell is introducing new XPS laptops, each with breakthrough displays for a phenomenal viewing experience with vibrant, crisp images in any available screen size. The new XPS 11, the thinnest, most compact 2-in-1 in the world, also features the first Quad HD (2560 x 1440) display on an 11.6-inch 2-in-1. The XPS 15 multimedia powerhouse boasts a stunningly thin design, and offers as an option the first 15.6-inch Quad HD+ (3200 x 1800) display in the world, which is the highest resolution available on a laptop of that size. Dell is also refreshing its award-winning XPS 13 Ultrabook with faster processors, touch Full HD (1920 x 1080) display and improved battery life. With these three laptops, Dell is leading the industry with the highest resolution displays possible.
“People today expect the best experience possible from their technology – they are counting on it to keep them connected and move with them, wherever they are,” said Sam Burd, vice president Dell Personal Computing Group. “The new Dell Venue tablets and XPS laptops give customers the stellar experience they expect from us, with performance that allows them to work how they want, when they want, in a design they’ll be proud to show off and own.”
Dell Venue Tablets: Connect, Share and Access Content with Ease
Dell Venue tablets are designed to give people on-the-go a wide-selection of sizes and options to meet their varying needs. From 8 and 11-inch Windows-based tablets complete with keyboard and stylus options, to the 7 and 8-inch Android tablets, Dell has created a dedicated brand of tablets to meet the needs of customers who are the epitome of the evolving workforce.
- The Dell Venue 8 Pro and Dell Venue 11 Pro Windows 8.1-based tablets combine the level of performance, design and responsiveness end-users love while giving IT departments what they need – the ability to integrate into an existing corporate environment with full compatibility with current Windows applications and Microsoft Office integration. Both tablets feature optional advanced security features and services such as TPM and Dell Enterprise Services.
- The lightweight Dell Venue 8 Pro runs Windows 8.1, has a bright HD IPS display, advanced connectivity options and provides long battery life so range anxiety is no longer an issue. People can also stay productive with Office 2013 Home & Student, included with the device, and the optional Dell Active Stylus.
- The Dell Venue 11 Pro, also based on Windows 8.1, provides ultimate 2-in-1 flexibility with the power of an Ultrabook, convenience of a detachable keyboard and experience of a desktop. Unlike competitive tablets, it has a user removable/replaceable battery, and its large, Full HD display with wide viewing angles makes it easy to read and create content while staying mobile. It is also available with a variety of keyboard and stylus options:
- Dell Active Stylus makes it easy to annotate, draw or take notes.
- Dell Slim Keyboard, designed for travel, also serves as a cover for the screen when folded up.
- Dell Mobile Keyboard with integrated battery provides all day productivity with a full-sized keyboard while extending the battery life.
- Dell Tablet Desktop Dock delivers full productivity on a desk with USB 3.0 ports, and dual display out ports for display extension.
- The Dell Venue 7 and Dell Venue 8 Android-based tablets are affordable, feature-rich tablets for people who want to be constantly connected wherever they are. Both tablets have an upscale fit and finish, and are designed with longevity in mind with the right components so that customers will be just as delighted with their tablet one year from now, as they are on the day they take it out of the box.
All Dell Venue tablets are based on Intel processing power for speed, responsiveness, and battery efficiency. The Dell Venue 7 and Dell Venue 8 feature Intel Atom Z2760 (“Clover Trail”) processors, while the Dell Venue 8 Pro and Dell Venue 11 Pro feature the new Intel Atom quad-core processors, code named “Bay Trail.” The Venue 11 Pro offers up to 4th Generation Intel Core i3 and i5 processor options and Intel vPro for manageability.
Dell XPS Laptops and 2-in-1: The Ultimate Experience with Gorgeous Displays
Dell’s award-winning XPS laptop line just got even better with the new XPS 15 powerhouse laptop, the introduction of the XPS 11 2-in-1, and an update to the flagship XPS 13 Ultrabook. In keeping with the XPS tradition of offering the best computing experience in any product category, the XPS laptops and 2-in-1 feature machined aluminum, carbon fiber, vibrant displays, and Corning Gorilla Glass NBT for performance, durability and the ultimate experience.
- Starting at 2.5lbs[i] and just 11-15mm thin, the XPS 11 is the world’s thinnest, lightest and most compact 2-in-1 Ultrabook available today, offering a tablet-first design with laptop functionality. It easily transitions from tablet to laptop with a 360 degree rotating hinge design, and an innovative solid surface backlit touch keyboard that provides a superb experience from lap to bag. With a Quad HD (2560 x 1440) display, the highest resolution display in an 11.6-inch 2-in-1 today, the XPS 11 has a bright, crisp viewing experience. The display also features True Color viewing powered by eeColor, which enables customers to enjoy true, rich consistent color in nearly any lighting environment.
- The XPS 15 continues to be a multimedia powerhouse delivering the highest resolution in its class, and incredible power in an ultra-thin, light wedge design, starting at 4.44lbsi. The XPS 15 is the first 15.6-inch laptop in the world to feature a Quad HD+ display, and also available with a touch option, boasts over 5.7 million pixels – five times the amount of standard HD – for jaw-dropping resolution. Designed for creative enthusiasts, the XPS 15 packs 4th Generation Intel Core i5 and i7 quad core processor options and NVIDIA discrete graphics options. Every XPS 15 boots and resumes within seconds with hard drive configuration options from 500GB to 1TB[ii], both with a 32GB mSATA SSD, to a 512GB solid state drive, all including Intel Rapid Start Technology[iii].
- The award-winning XPS 13, with its 13.3-inch, edge-to-edge display that innovatively fits into a footprint similar to an 11-inch laptop, is razor thin and light, starting at under 3lbsi. It is now even faster with 4thgeneration Intel Core processors, Intel HD 4400 graphics, and has longer battery life for the mobile professional who values a sleek design, responsiveness and ultimate mobility. Its Full HD display provides a brilliant viewing experience and is now even more versatile with a touch option.
“Dell appears to have its innovative mojo back,” said Tim Bajarin, President of Creative Strategies. “These new products clearly emphasize Dell’s commitment to create innovative mobile solutions for businesses and consumers and I believe represent some of the best products they have made in many years.”
Personal and Professional Content Anytime, Anywhere
The Dell PocketCloud application is pre-installed on all XPS and Venue products, helping users build their own “personal cloud” and remotely manage personal and professional content. By combining PocketCloud with the portability of the new Venue tablets and XPS laptops, mobile workers will be able to enjoy an easy and connected experience with access to all of their apps and content from virtually anywhere.Get the Most Out of Your Technology with Dell Services
Dell customers can get the most out of their technology with Dell Services, dedicated to keeping them connected and productive, whether they’re using their Dell Venue tablet or XPS purchase for work or home. In addition to the Dell Limited Hardware Warranty, consumers can elect to include additional protection such as Accidental Damage Service[iv], Premium Phone Support and Rapid Return for Repair after Remote Diagnosis[v], which means that their system will be repaired and returned to them within 3-5 business days after remote diagnosis. Likewise, business customers can be rest assured that their devices will fit seamlessly and securely into their corporate IT environment with Dell Enterprise Services like ProSupport[vi] on the Dell Venue 8 Pro and Venue 11 Pro tablets.Availability and Pricing
The Dell Venue 7, Venue 8, Venue 8 Pro, and new XPS 15 will be available from October 18 on www.dell.com in the United States and select countries around the world. The Venue 11 Pro, XPS 11 and the updated XPS 13 with touch will be available in November. Starting prices are as follows:
- Venue 7: $149.99
- Venue 8: $179.99
- Venue 8 Pro: $299.99
- Venue 11 Pro: $499.99
- New XPS 15: $1,499.99
- XPS 11: $999.99
- New XPS 13: $999.99
About Dell
Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology and services that give them the power to do more. For more information, visit www.dell.com.Dell World
Join us at Dell World 2013, Dell’s premier customer event exploring how technology solutions and services are driving business innovation. Learn more at www.dellworld.com and follow #DellWorldon Twitter.Dell, Dell Venue and XPS are trademarks of Dell Inc. Dell disclaims any proprietary interest in the marks and names of others.
[i] Weights vary depending on configuration and manufacturing variability.
[ii] Hard drives: GB means 1 billion bytes and TB equals 1 trillion bytes; actual capacity varies with preloaded material and operating environment and will be less.
[iii] Intel Rapid Start Technology: Requires a Solid-State Drive (SSD) or properly configured HDD + SSD.
For copy of Limited Hardware Warranty, write Dell USA LP, Attn: Warranties, One Dell Way, Round Rock, TX 78682 or see http://www.dell.com/warranty
[iv] Accidental Damage Service excludes theft, loss and damage due to fire, flood or other acts of nature, or intentional damage. Customer may be required to return unit to Dell. For complete details, visitwww.dell.com/servicecontracts
[v] Remote Diagnosis is determination by online/phone technician of cause of issue, which may take multiple extended sessions. If issue is covered by Limited Hardware Warranty and not resolved remotely, shipping instructions will be provided. Next Business Day shipping not available in all areas, which may delay repair and return times. Other conditions apply. For complete details about Rapid Return for Repair after Remote Diagnosis Service, visit Dell.com/servicecontracts.
[vi] Availability and terms of Dell Services vary by region. For more information, visitwww.dell.com/servicedescriptions.
Amazon’s move into overall leadership: Kindle Fire HDX with Snapdragon 800, “revolutionary on-device tech support” (Mayday), enterprise and productivity capable Fire OS 3.0 forked from Android 4.2.2 etc. PLUS a significantly enhanced, new Kindle Fire HD for a much lower, $139 price
Update about the overall strategy of Amazon: 
From: Amazon’s Jeff Bezos Is Like King Midas in Reverse [Slate, Oct 25, 2013]
Which is—nevertheless—missing the major point of Amazon strategy: smart investors continue to accelerate buying Amazon shares (from not so smart investors), and thus increasing the share price, because they recognize that Amazon is investing all of its profits into buying market share in commerce (generally) in a maximally possible way:
Source: https://www.google.com/finance?q=NASDAQ:AMZN
Regarding Amazon’s devices only strategy (as a part of the overall one) there is a great quote on another picture there:
We want to make money when people use our devices,
not when they buy our devices.
End of the update.
Note that the previous (2nd gen) high-end has been available in more than 170 countries since June 13 this year! This also coincided with opening the curated Amazon Appstore for Android to 193 countries/territories! So Amazon is a global leader now in all respects, and the more it moves its overall e-commerce business to more countries/territories the more dominant it becomes against a whole range of current players! The “devices and services” players as well as all other e-commerce players!
Quite a progress even in hardware and platform terms (source: Amazon, click to enlarge)
1st gen announcement: Sept 28, 2011 …. 2nd gen announcement: Sept 6, 2012. See also:
– Qualcomm Snapdragon 800 Product Brief [May 16, 2013]
– OMAP4430, OMAP4460 and OMAP4470 Application Processors [Texas Instruments]
– TI’s OMAP4460 in Samsung GALAXY Nexus with Android 4.0 [‘Experiencing the Cloud’, Oct 21, 2011]
Important notes regarding pricing and global availability (including Amazon Appstore for Android):
-
On March 13, 2013 there was a Kindle Fire HD 8.9” availability announcement for UK, Germany, France, Italy, Spain and Japan. At the same time the U.S. price for Kindle Fire HD 8.9” was reduced to $269 (not shown in the above table). Then there was a Kindle Fire HD availability announcement to over 170 countries and territories through Amazon.com on May 23, 2013 with new prices there: $284 for 8.9” and $214 for 7” (this was shown in the above table). ??? Also the price of the 2nd gen Kindle Fire HD 8.9” was reduced to $269 when the 3d gen was announced this week. ???
-
As of Sept 27, 2013 there are 159 countries/territories (with additional 34 countries/territories not available, or available via country/language-specific Amazon sites) where you can buy Kindle Fire HD 8.9” on Amazon.com and get shipped to your country, PLUS a curated* Amazon Appstore for Android with over 100,000 apps (up 187 percent year over year) is available in 193 countries/territories. You can see the list for both towards the end of this post. And BTW this is only available since June 13, 2013 in over 170 new countries.
*Apps are tested for the Amazon Appstore and Kindle Fire. -
As of Sept 27, 2013 the All-New Kindle Fire HDX 7″ Tablet, All-New Kindle Fire HDX 8.9″ Tablet and the All-New Kindle Fire HD 7″ Tablet seem to be not available globally (?because pre-order?)
Major messages from Amazon: The New Kindle Fires in 14 Tweets [Sept 25, 2013]
www.amazon.com/maydaytv – www.amazon.com/fireos – www.amazon.com/origami – www.amazon.com/quickpic
i.e. the links from the above slide (created by me) in order to be able to click from here as well
But this is “just” part of a much broader strategy and approach:
Amazon CEO: Focus on customer is key [CNN YouTube channel, Sept 25, 2013]
Competitive messages from Amazon:
Source: Compare Kindle Fire tablets on the Amazon site
Source
Source: Amazon Announces new Kindle Fire Tablets and Fire OS 3.0 [Amazon Mobile App Distribution Blog, Sept 24, 2013]
NOTE THAT FOR Fire HDX THE PROCESSOR IS QUAD-CORE KRAIT 400 AND NOT A15. See Qualcomm Snapdragon 800 Product Brief [May 16, 2013].
Source: Compare Small Tablets on the Amazon site
Source: Compare Large Tablets on the Amazon site
First an independent review of the announcements from The Verge on Sept 24, 2013:
And an interview by the same 3d party source Jeff Bezos wants to delight you [The Verge, Sept 25, 2013] from which I will quote here:
Back up in the room, Jeff Bezos sits in front of a blank whiteboard. After pleasantries are exchanged, he leaps to his feet and begins writing. He starts in on the mantras of Amazon’s e-reader and tablet business. Mantra one: premium products at non-premium prices. Mantra two: “We make money when people use our devices.” Jeff jots them down quickly on the board. “Some of this you knew already because you’ve been following us, but I’m going to lay out what a third part of our vision and strategy.”
…
Bezos draws a Venn diagram on the board. On the left side it reads “customer delight,” on the right, “deep integration throughout entire stack.” “This intersection, here, is some of the hardest to do,” he smiles, “and [where the] coolest customer delight features live.”…
Jaw-dropping isn’t exactly how I would describe Mayday, the halo feature of the new Fire HDX — but it is impressive in many ways, particularly because of how much energy has been put into simply helping people use the device. Remember, Amazon makes money when people use the devices. But Bezos seems genuinely bummed at the idea that people wouldn’t be able to get the most out of their Fire.
“The context for this is that there’s a degree to which for many, many people these devices have become complex enough that sometimes we get them set up the way we want and then we don’t mess with them.” He swings the device around so that I can see the screen. “The settings, even features you only use once every couple of months, you forget how to. So tech support for these devices is important.” Bezos taps a Mayday button which is now part of the Quick Settings menu on the Fire. A small window pops over screen, and an Amazon-shirted tech support staffer named Dylan appears in a tiny video box. “Thanks for using Amazon Assist, I see you’ve hit the Mayday button. I’ll be your tech advisor.”
…
“This is one of the things that I think Amazon is uniquely suited for, which is that marriage of high-tech and heavy lifting. So throughout our entire corporate history, we’ve happily lived by marrying those two things together. It’s in service of customer delight, but you can only do it if you integrate that entire stack.” Okay, yes. But, should I be worried about my privacy here?Bezos doesn’t get into details on the technical aspects of the security for Mayday, but tells me you can disable the service if it makes you uncomfortable. “Yeah, you can say you don’t want it, and set a setting to take it off your device, but you’d be disabling the greatest feature we’ve ever made!” But Mayday gives an Amazon rep unfettered access to my device, no? “It’s not unfettered,” he says, “it has to be initiated by the customer.” And it’s true. This isn’t an open node just sitting there — you have to want to use it. Needless to say, the company doesn’t sound worried about privacy and security — and maybe I’m being paranoid — but in the cold light of PRISM revelations, complete control over your tablet by a third-party may not be something every consumer feels bullish about.
Bezos has a different view — a long view. “Everything we’ve ever done people have said this. People said customer reviews were a bad idea, third-party selling is a bad idea, personalization is a bad idea,” and he does have a point. “In 1994, typing your credit card [info] on the internet is a bad idea. Every single thing that’s new is a bad idea.” And then Bezos repeats one his best rehearsed and most convincing soundbites. “Willingness to be misunderstood is one of our greatest strengths.”
Now decide for yourself regarding this Mayday innovation Jeff Bezos is so keen on:
- New Amazon TV spot for Kindle Fire HDX featuring Mayday button [kindle YouTube channel, Sept 24, 2013]
- From: Introducing the Mayday Button—Revolutionary On-Device Tech Support [Amazon press release, Sept 25, 2013]
The Mayday button on the new Kindle Fire HDX brings your own personal tech advisor directly to your sofa or desk
Free, 24×7, 365 days a year
The National Retail Federation rated Amazon #1 in its Customer’s Choice Awards, JD Power and Associatesnamed Amazon a Customer Service Champion, and MSN Money has ranked Amazon #1 in its Customer Service Hall of Fame for four years running. Now, Amazon introduces the Mayday button, extending this world-class customer service to live, on-device tech support, right from your Kindle Fire HDX. The Mayday button is available exclusively on the new Kindle Fire HDX tablets, available for pre-order at: www.amazon.com/hdx.
“With the Mayday button, our goal is to revolutionize tech support,” said Jeff Bezos, Amazon.com Founder and CEO. “With a single tap, an Amazon expert will appear on your Fire HDX and can co-pilot you through any feature by drawing on your screen, walking you through how to do something yourself, or doing it for you—whatever works best. Mayday is available 24×7, 365 days a year, and it’s free. See it for yourself—preview our upcoming TV commercials: www.amazon.com/maydaytv.”
Details of the Mayday button:
– It’s free.
– Available 24×7, 365 days a year.
– 15 seconds or less is the Mayday response time goal.
– You can see the tech advisor, they can’t see you.
– Simple and deeply integrated—the Mayday button lives in the Quick Settings menu, one tap away.
Some customers got a sneak peek—here’s what they had to say:
– “It’s so easy, you just press connect and boom you get hooked right up with a representative. I’ve never had a customer experience be so painless and so easy to do. I’ve never had an experience like this before. I wish all customer service experiences could be like that.” –Travis
– “With the agent on the video feed, it’s like having a teacher right in front of you. It makes a big difference.” – Ron
– “That was smooth and comfortable rather than calling on the phone or typing something in. I really was impressed with how well that went. I remember setting up my first e-mail account and always having to call friends or tech support and it would take so much longer, where this was comfortable and directed me to the right place immediately.” – Pete
– “[This] is more personable…it is nice to see his face, for him to actually be there talking to you one-on-one, it seems like you are getting personal treatment.” – Rose
– “I really hate when you have to talk to a computer for like 10 minutes before you get to a human being. So the fact that you just click and there’s a human being is much preferable.” – Nicole
– “The fact that he [Tech Advisor] can control the screen made the process very simple and I wasn’t struggling to find what he was talking about. The one-on-one experience is very positive!” – Tracy
The Mayday button is available exclusively on the new Fire HDX tablets—read the press release: www.amazon.com/kindle-pr.
And the whole high-end tablet value proposition according to:
- Amazon Kindle Fire HDX review 7 and 8.9 inch [amazon store YouTube channel, Sept 26, 2013]:
- Introducing Kindle Fire HDX—Powerhouse Tablets Built for Work and Play [Amazon press release, Sept 25, 2013]
All-new Kindle Fire HDX—stunning new 7″ or 8.9″ HDX display, quad-core 2.2 GHz processor with 3x the processing power, 2x more memory, 11 hours of battery life, and dual stereo speakers with Dolby Digital Plus audio
New HDX display goes beyond HD—exceptional pixel density, perfect 100% sRGB color accuracy, reduced glare, dynamic image contrast, and improved brightness for the best viewing experience indoors or out
Lightest large-screen tablet—Kindle Fire HDX 8.9″ is startlingly light at 13.2 ounces, 34% lighter than the previous generation
Introducing the Mayday Button—revolutionary on-device tech support—free, 24×7, 365 days a year
Prime Instant Video movies and TV shows now available for downloading—watch anywhere, even when offline—available exclusively on Kindle Fire HDX
Stay connected and productive with updated email, calendar and Silk browser, plus seamless integration with Facebook and Twitter
Enterprise-ready with support for encryption, Kerberos Intranet, secure Wi-Fi connections and VPN integration
SEATTLE—September 25, 2013—(NASDAQ: AMZN)—Amazon today introduced the third generation of Kindle Fire—the all-new Kindle Fire HDX. The new Kindle Fire HDX tablets combine groundbreaking hardware, the latest version of Fire OS, and exclusive new features and services like X-Ray for Music, Second Screen, Prime Instant Video downloads, and the revolutionary new Mayday button. Learn more about the new Kindle Fire HDX family at www.amazon.com/hdx.
The new Kindle Fire HDX family features:
Stunning exclusive HDX display—beyond HD with exceptional pixel density ([1920×1200 resolution at] 323 ppi for 7″, [2560×1600 resolution at] 339 ppi for 8.9″), perfect 100% sRGB color accuracy, reduced glare, dynamic image contrast,and improved brightness for better viewing in any lighting conditions.
Powerful quad-core Snapdragon 800 processor running at 2.2 GHz provides over 3x the processing power compared to the previous generation, plus the latest graphics engine and 2x more memory for fast and fluid performance. These are the only tablets with a processor over 2 GHz.
Startlingly light design—at just 13.2 ounces [374g], the 8.9″ Kindle Fire HDX is the lightest large-screen tablet, 34% lighter than the previous generation.
Powered by the latest version of Fire OS—Fire OS 3.0 “Mojito”—with hundreds of new and upgraded features, platform updates, and Amazon-exclusive services like X-Ray for Music, Cloud Collections, Goodreads, and more.
New Mayday button delivers revolutionary live tech support—one touch connects you to an Amazon expert who can guide you remotely through any feature—24×7, 365 days a year, and it’s free. 15 seconds or less is the Mayday response time goal.
All-day battery life—up to 11 hours of mixed use and 17 hours of reading.
Updated email, calendar, and Silk browser to stay connected and productive.
New enterprise features including hardware and software-encryption, Kerberos Intranet, secure Wi-Fi connections, VPN integration, and wireless printing.
Both HDX 7″ and 8.9″ available with ultra-fast 4G LTE wireless. Available on the AT&T network, and for the first time on the Verizon Wireless network.
Dual stereo speakers with Dolby Digital Plus audio and virtual 5.1 multi-channel surround sound—the standard in high-end audio.
Front-facing HD camera makes it easy to stay in touch with Skype, plus a new 8 megapixel wide- aperture rear-facing camera on the 8.9″ Fire HDX offers crisp photos and 1080p HD video.
Best video experience on a tablet with new Amazon-exclusive features like Prime Instant Video downloads, Second Screen, and expanded X-Ray for Movies and TV.
Deep integration with the world’s best content ecosystem—over 27 million movies, TV shows, songs, apps, games, books, audiobooks and magazines.
New Origami covers feature an innovative design that allows you to position Fire HDX in both portrait and landscape.
“It’s been just two years since we introduced the first Kindle Fire, and the team is innovating at an unbelievable speed,” said Jeff Bezos, Amazon.com Founder and CEO. “2.2 GHz processor, 339 ppi display, new 34% lighter design, Fire OS 3.0, and new exclusive features like the Mayday button, X-Ray for Music, Second Screen, and Prime Instant Video downloads. We’ve worked hard to pack this much hardware, innovation, and customer obsession into these prices.”
World-Class Hardware
First-Ever, Exclusive HDX Display—Beyond HD
Amazon’s exclusive HDX display brings together exceptional pixel density (1920×1200 at 323 ppi for 7″, 2560×1600 at 339 ppi for 8.9″) and perfect color accuracy (100% sRGB), resulting in images and videos that display as the photographer or videographer intended. The new display also features dynamic image contrast, a unique algorithm that adjusts the color of each pixel depending on the ambient brightness in order to maximize contrast. This makes images and videos even easier to see in any lighting conditions, including outdoors. See a video: www.amazon.com/display.2.2 GHz, Quad-Core Processor and 2x the RAM
Kindle Fire HDX tablets are the first tablets powered by the most advanced quad-core Snapdragon 800 processor. These are the only tablets with a processor over 2 GHz—the four cores can each run at 2.2GHz, providing 28 billion instructions per second—over 3x the processing power of the previous generation Kindle Fire HD. Fire HDX also doubles the RAM to 2GB, resulting in faster app launch times, faster website load times, smoother multi-tasking, and better overall performance.New Graphics Engine Perfect for Gaming
The new Adreno 330 graphics engine on Kindle Fire HDX delivers 4x the graphics performance of the previous generation Kindle Fire HD. This combination of a new graphics engine, HDX display, quad-core processor, and 2x the memory creates a more immersive, high-frame rate HD gaming experience.Lightest Large-Screen Tablet—13.2 ounces, 34% Lighter
Amazon integrated the capacitive touch layer directly into the glass display on Fire HDX, leaving a lighter single layer instead of the typical 2-layer display stack. The Kindle Fire HDX 8.9″ frame is a single-piece of machined magnesium with a blend of glass and nylon molded onto the unibody to create openings for the antennas and maximize signal strength without sacrificing sturdiness. The result is the lightest large-screen tablet—at just 13.2 ounces, it is 34% lighter than the previous generation large-screen Fire HD tablet.11 Hours of Battery, Up to 17 Hours for Reading
Even with all this additional power, Fire HDX still delivers 11 hours of mixed use battery life. When you are reading, Fire HDX automatically powers down the CPU and any unnecessary system components and stores the displayed text in dedicated, low-power memory—the result is up to 17 hours of battery life for reading.8MP Rear-Facing Camera for Kindle Fire HDX 8.9″
Both the 7″ and 8.9″ Kindle Fire HDX feature a front-facing HD camera to help you stay in touch with friends and family with Skype. Fire HDX 8.9″ features an 8 megapixel rear-facing camera that allows for high-resolution photos and 1080p HD video, plus an LED flash, Electronic Image Stabilization, and a wide-aperture 5P f2.2 lens that lets in more light, reducing exposure times and producing sharper images. See a video: www.amazon.com/fire-camera.New Origami Covers
New origami-style cover design provides a simple stand for both portrait and landscape positions, and attaches magnetically so it’s easy to take on and off. The cover for the 8.9″ Fire HDX features a custom slide feature that quickly exposes the rear-facing camera and automatically launches the camera application so you won’t miss a great photo opportunity. See a video: www.amazon.com/quickpic.The Mayday Button
Revolutionary On-Device Tech Support from Amazon’s Tech Advisors
Having trouble or want to learn how to use a new feature? Simply tap the Mayday button in Quick Settings, and an Amazon expert will appear on your Fire HDX and can co-pilot you through any feature by drawing on your screen, walking you through how to do something yourself, or doing it for you—whatever works best. 15 seconds or less is the Mayday response time goal. Mayday is available 24×7, 365 days a year, and it’s free. See the separate press release on the Mayday button and preview three upcoming TV ads that show how the Mayday button works: www.amazon.com/mayday.New Amazon-Exclusive Features and Services
Fire OS 3.0 “Mojito”
Kindle Fire HDX is powered by the newest version of Fire OS – Fire OS 3.0 “Mojito”, which introduces hundreds of new and upgraded features, Amazon-exclusive services, platform updates and more. Fire OS starts with Android and adds cloud services, a content-first user interface, built-in media libraries, productivity apps and low-level platform enhancements to integrate Amazon’s digital content and improve performance for Kindle Fire tablets. If an app runs on Android, it can run on Fire OS. Read more: www.amazon.com/fireos.Download Prime Instant Videos on Kindle Fire HDX to Watch Anywhere
Prime Instant Video is the only U.S. online subscription streaming service that enables offline viewing—on a plane, on vacation, and anywhere else where you may not have Wi-Fi. Tens of thousands of Prime Instant Videos are now available for download on Fire HDX. If you are new to Prime, you get one free month of Amazon Prime when you purchase Fire HDX.All-New X-Ray for Music
Amazon is expanding X-Ray to music by adding lyrics that let you follow along with songs. Lyrics display and scroll automatically line-by-line as the song plays. See a screenshot: www.amazon.com/x-ray.X-Ray for Movies and TV—Now Even Better
Customer-favorite X-Ray for Movies and TV now shows the names of songs as they play as well as a list of all music in the movie or TV show, and lets you jump to the scene in which a particular song is playing. X-Ray also shows trivia items in context with the action on the screen. For example, in The Godfather when Clemenza tells his henchman to “leave the gun, take the cannoli”, X-Ray alerts you that actor Richard Castellano ad-libbed that famous line of dialog. X-Ray for TV also provides character backstories so you can easily remind yourself of the character’s history. X-Ray is offered only by Amazon and is powered by IMDb.Second Screen Lets Others Join In
Fling TV shows and movies from your tablet to your big-screen TV using Second Screen, which turns your TV into the primary screen and frees up your Fire HDX to provide playback controls, a customized display for X-Ray, or simply a place to email, browse the web, and more while you watch a movie. Second Screen will be available starting next month for PlayStation 3 and Samsung TVs, and later this year for PlayStation 4. You can also wirelessly mirror movies, TV shows and photos from your tablets to your big-screen TV with Miracast-enabled accessories or TVs.Stay Connected with Expanded Email, Docs, and Printing
With the new email on Fire HDX, it is easier than ever to set up your accounts, group conversations by subject, sync your email and more. Reading and managing documents on Fire HDX is simple: email them, sync them from a computer with Cloud Drive, clip them from the web with Send to Kindle, or transfer them via USB. Coming mid-November as part of the free, over-the-air Fire OS 3.1 update—print documents, photos, emails, and calendar events directly from Kindle Fire to compatible wireless printers.Complete Enterprise Support
Fire HDX is ready for work, with support for encryption of the user partition of the device to secure data; support for Kerberos authentication so corporate users can browse secure intranet websites; the ability to connect to secure enterprise Wi-Fi networks as well as corporate networks via a native or a 3rd party VPN client; and Mobile Device Management solutions ranging from Amazon’s Whispercast service to 3rd party vendors like AirWatch, Citrix, Fiberlink, Good Technology, and SOTI. Some of these features will be delivered as part of the Fire OS 3.1 update. See the separate press release on enterprise features: www.amazon.com/kindle-enterprise.Cloud Collections
Organize your books, newspapers, magazines, and apps in customized collections for easy reference, and Amazon’s Whispersync technology synchronizes the collections across your Kindle devices and reading apps so they’re available on all of your devices. Cloud Collections will be available as part of the Fire OS 3.1 update.Goodreads on Kindle Fire
Join over 20 million other readers and see what your friends are reading, share highlights, and rate the books you read with Goodreads on Kindle, available exclusively from Amazon. Goodreads will be available as part of the Fire OS 3.1 update. See screenshots:www.amazon.com/goodreads.Accessibility Features
Blind and visually impaired customers will discover new and improved accessibility tools such as Screen Reader, Explore by Touch, and Screen Magnifier, enabling access to the vast majority of Kindle Fire features. Screen Reader features IVONA’s award-winning natural language text-to-speech voice.New Exclusive Deals for Kindle Fire Owners
Kindle Fire’s Special Offers are better than ever with exclusive limited-time, limited-quantity deals available directly from the lock screen. These deals are similar to Lightning Deals that run on Amazon.com, but with even greater savings. The first deal, available in the coming weeks, will be the Madden NFL 25 video game for $5 (92% off). See screenshots: www.amazon.com/offers.All the Content
The Kindle Fire family offers the best selection of digital content—over 27 million movies, TV shows, songs, apps, games, books, audiobooks and magazines—including hundreds of thousands of exclusives:
– Over 150,000 movies and TV episodes—stream or download, purchase or rent.
– Tens of thousands of popular movies and TV episodes are available at no additional cost for Prime members with Prime Instant Video, the exclusive subscription streaming home to shows like Downton Abbey, Under the Dome, Justified, Dora the Explorer, Blues Clues and many more.
– The most popular apps and games. Apps are tested for the Amazon Appstore and Kindle Fire.
– Millions of songs—stream, download, and store purchases for free in the cloud for access anytime, anywhere.
– Hundreds of magazines and newspapers.
– Millions of books, including hundreds of thousands of titles that are exclusive to the Kindle Store. Over a million titles are $4.99 or less, over 1.7 million are $9.99 or less.
– Over 400,000 titles available for Prime members who own a Kindle to borrow for free as part of Kindle Owners’ Lending Library.
– Over 150,000 professionally-narrated audiobook titles, with free samples to listen to before buying.
“Buy Once, Enjoy Everywhere” with the Best Cross-Platform Interoperability
With apps available on the largest number of devices and platforms, Amazon makes it easier than ever to access your content anytime, anywhere. Use the Kindle, Amazon Instant Video, Amazon MP3 and Amazon Appstore for Android apps to “Buy Once, Enjoy Everywhere.” No other company offers the same level of flexibility with your content.Pricing & Availability
The 7″ Kindle Fire HDX is $229. It is available for pre-order starting today at www.amazon.com/hdx-7 and it will begin shipping October 18. The 4G version is $329—you can pre-order today to reserve your place in line at www.amazon.com/4g-hdx-7 and it will begin shipping November 14.
The 8.9″ Kindle Fire HDX is $379. It is available for pre-order starting today at www.amazon.com/hdx and it will begin shipping on November 7. The 4G version is $479—you can pre-order today to reserve your place in line at www.amazon.com/4g-hdx and it will begin shipping December 10.
- Amazon Kindle Fire HDX 8.9″ Standing Leather Origami Case
Slim, form-fitting cases designed by Amazon to perfectly fit the all new Kindle Fire HD and Kindle Fire HDX tablets. All Origami cases feature magnetized panels to securely stand the device in either landscape or portrait orientation and are available in either a premium natural leather or durable polyurethane. The cases for Kindle Fire HDX and Kindle Fire HDX 8.9″ tablets attach to the devices magnetically, making it easy to attach and remove. Furthermore, the cases redirect the sound from your Kindle Fire HDX speakers towards you, immersing you in the rich cinematic Dolby Digital Plus sound experience. Finally, an exclusive Camera-Ready feature for the Kindle Fire HDX 8.9″ case makes it quick and easy to take pictures so you can capture all your precious moments – simply slide the device up in the case and the camera automatically starts, allowing you to quickly snap a picture.
- Kindle Fire HD and Kindle Fire HDX are Enterprise-Ready [Amazon press release, Sept 25, 2013]
New features include device encryption, secure Wi-Fi connections, native VPN, Kerberos authentication for Intranet access, and integration with leading MDM providers
Today, Amazon is introducing new enterprise and productivity features in Fire OS 3.0 “Mojito,” the software platform that powers the new Kindle Fire HD and Kindle Fire HDX tablets. The new Fire HD and Fire HDX are available for pre-order starting today atwww.amazon.com/hdx.
“Kindle Fire is already the second most popular tablet at work in the U.S.,” said Raghu Murthi, Vice President of Enterprise and Education,Amazon. “As employees increasingly bring their own devices to work, the new Kindle Fire tablets can be easily integrated into the workplace with the new enterprise features, including encryption, secure Wi-Fi, a native VPN client, integration with leading MDM solutions, and Kerberos support for Intranet access.”
Features that make the new Kindle Fire tablets enterprise-ready include:
– Wi-Fi networks with WPA2 support for secure access to corporate apps, documents and resources like SharePoint.
– Email that makes it even easier for business customers to set up their accounts, group conversations by subject, sync their email and more.
– Print documents and emails directly from Kindle Fire to a wireless printer.
– Built-in OfficeSuite to read documents, spreadsheets, and presentations.
– Native VPN client, for instant access to corporate networks while on the road or at home.
– Secure hardware data encryption on Kindle Fire HDX.
– Kerberos authentication for single sign-on and the ability to browse secure Intranet websites from the Silk browser on Kindle Fire.
– Native SCEP (Simple Certificate Exchange Protocol) client to retrieve digital certificates for secure resources.
– Kindle-specific device management APIs that integrate with existing mobile device management (MDM) systems to make it easy for IT departments to manage Kindle Fire. Kindle Fire supports a wide range of MDM solutions including Amazon’s Whispercast service as well as third-party vendors like AirWatch, Citrix, Fiberlink, Good Technology, and SOTI.Business customers can also take advantage of Android enterprise and productivity apps available in the Amazon Appstore. Examples of top productivity apps available for Kindle Fire include GoToMeeting, Evernote, Cisco AnyConnect, and Documents To Go.
“We work with our clients to distribute Kindle Fire to their new employees because Kindle Fire allows companies to distribute information quickly and efficiently so their employees can easily share course materials, reference documents, and their individual notes with their colleagues,” said Caroline Brant, Director, Learning Solutions at ROI Training, Inc. “Our global clients include leading technology and financial services firms and Kindle Fire has proven to make it easier for our employees to stay productive whether at work or at home.”
Some of these features will be delivered as part of the free, over-the-air Fire OS 3.1 update in mid-November. For additional details, visit www.amazon.com/fireos.
[From which I will copy here the most important part:]
To read the separate press release for the new Kindle Fire HDX tablets visit: www.amazon.com/kindle-pr.
For additional information about the new enterprise features visit:amazon.com/kindle/business.
More information about Introducing Fire OS 3.0 “Mojito” [Amazon press release, Sept 25, 2013]
Brings hundreds of platform updates and exclusive new features, including the Mayday button, X-Ray for Music, Second Screen, 1-Tap Archive, Cloud Collections, Quiet Time, Optimizing Download Manager, and Social Integration with Goodreads and Facebook
New enterprise and productivity features—including printing, email conversation view, enterprise encryption and mobile device management—BYOD support
Apps and games built for Android are compatible with Fire OS
Fire OS 3.0 available exclusively on the all-new Kindle Fire HD & Kindle Fire HDX tablets
Amazon.com today introduced Fire OS 3.0 “Mojito,” the next generation of software and services that powers the best-selling Kindle Fire tablets, with hundreds of updates and exclusive new features to give customers a simple OS experience with Android app compatibility. Fire OS starts with Android and adds:
- Low-level platform enhancements, including: the Optimizing Download Manager, re-designed graphics pipeline, Reading Mode, and improvements to touch latency for better performance.
- Productivity apps with enhanced email, documents, and enterprise support with hardware and software data encryption.
- Deep integration of the hardware, software and services to deliver features like X-Ray, the Mayday button, Second Screen, and more.
- Built-in media libraries for instant access to music, movies, apps, and games both stored on the device or in the cloud, and automatically syncs between them.
- Content-first user interface with both Carousel and Grid views.
- Cloud services like Whispersync, 1-Tap Archive and Cloud Collections.
Fire OS 3.0 is available exclusively on the all-new Kindle Fire HD and Kindle Fire HDX—read a separate press release at:www.amazon.com/kindle-pr.
“Fire OS includes the core email and productivity apps, but we take a different approach when it comes to content,” said Dave Limp, Vice President, Amazon Kindle. “Our content-first approach shapes the design of Fire OS—the home screen makes the most recent content items available instantly on the Carousel or Grid and customers can move between their media libraries both on the device and in the cloud with a simple tap. We’ve also deeply integrated Amazon services directly into Mojito, such as the Mayday button, Second Screen, X-Ray for Movies & TV shows, and now X-Ray for Music.”
“Fire OS lets developers offer their Android apps on Kindle Fire with little to no work,” said Mike George, Vice President, Amazon Appstore. “Developers can integrate services like Whispersync for Games, GameCircle, In-App Purchasing, and Amazon’s Mobile Associates into their apps to take advantage of the Amazon Appstore’s increased monetization and customer engagement.”
Fire OS features for Android apps and games:
- Native Android App Compatibility is supported by Fire OS, so if an app runs on Android it can run on Fire OS with little to no work. Fire OS is built from the Android open source kernel and runtime libraries and is consistently tested for Android app compatibility. Amazon also offers developers an integrated ecosystem for building, monetizing and marketing their apps and games for Fire OS, which results in better customer engagement.
- Support for HTML5 Apps allows developers to offer their web apps and mobile websites on Kindle Fire tablets to customers in the same, convenient way as mobile apps. As one of the only platforms to offer this level of HTML5 support, developers can submit and distribute mobile web content without using third-party software or any mobile development.
- GameCircle and Whispersync for Games give developers the opportunity to allow customers to sync their game progress and scores across devices, and to quickly integrate Achievements and Leaderboards into their games.
- In-App Purchasing and Mobile Associates lets developers give customers the opportunity to buy digital and physical items, such as toys, upgrades and game pieces fromAmazon.com and use their Amazon accounts to make the purchase directly from within an app.
- Amazon Device Messaging gives customers a single messaging platform for all their apps built on Amazon Web Services, which developers can take advantage of to send notifications to Kindle Fire tablets.
- Amazon Coins offers every new Kindle Fire customer 500 coins ($5) of virtual currency to use for purchasing apps, games, or in-app items on Kindle Fire. Amazon Coins is an easy way for customers to spend money on developers’ apps and offers another opportunity to drive traffic and app downloads increasing monetization even further.
- Accessibility Tools including Screen Reader, Explore by Touch and Screen Magnifier enable access to the vast majority of Fire OS features. Text-to-Speech for book reading features natural-sounding IVONA voices for the following languages: US, British and Australian English, German, French, Italian, Spanish, Brazilian Portuguese and French Canadian. Fire OS 3.0 supports standard Android Text-to-Speech APIs, so developers can take advantage of IVONA voices for third-party apps.
Cloud services and user interface improvements:
- Carousel and Grid views let customers choose how they want to navigate their content. With a swipe, the redesigned Fire OS home screen easily switches between viewing their recent content on the Carousel or their favorites in Grid view.
- Cloud Collections organizes apps, books, newspapers, and magazines, making them easier to find. Collections are automatically stored in the cloud and Amazon’s Whispersync technology synchronizes collections across Kindle devices and apps.
- 1-Tap Archive frees up space on Kindle Fire tablets by identifying items that have not been used recently and provides a 1-tap option to store them in the Cloud for later retrieval.
- Kindle FreeTime gives parents the ability to more easily whitelist movies, books, apps and games appropriate for their kids’ enjoyment with the new “For Kids” suggestions.
- Social Integration gives customers OS-level sharing capabilities for Facebook and Twitter. With Facebook, customers also get contacts, events and photos integration.
Revolutionary Mayday Button:
- The Mayday Button delivers revolutionary on-device tech support and is available 24×7, 365 days a year, for free. 15 seconds or less is the Mayday response time goal. The Mayday button is built into Quick Settings and an Amazon expert will appear on the Fire HDX and can co-pilot a customer through any feature by drawing on the screen, walking them through how to do something themselves or doing it for them. See the separate press release and preview three upcoming TV ads that show how the Mayday button works: www.amazon.com/mayday.
Deeply-integrated content features:
- Goodreads is built into the reading experience, so customers can see what friends are reading, get recommendations, share quotes, and write reviews from within the book.
- X-Ray for Movies and TV now shows the names of TV theme or movie soundtrack songs as they play as well as trivia and goofs while watching a movie or TV show. Powered by IMDb, X-Ray for TV will also provide character backstories as the actor appears on screen.
- X-Ray Expands to Music with synchronized lyrics that lets customers follow along line-by-line with a song. Lyrics are available even when Kindle Fire is not connected to Wi-Fi or 4G.
- Second Screen allows customers to fling content from their Fire to their TV, turning the TV into the primary screen and freeing up their Fire as a second screen to email, browse the web, play a game, or follow along scene-by-scene with X-Ray. The Fire screen is not just a mirror image of the TV. Instead, when the customer flings the video to the TV, Fire syncs the video and the X-Ray data in the cloud and streams the video directly to the TV, so the quality of the video is not dependent the tablet’s processor or networking. The customer can even take their tablet to another room and leave the video playing on the TV.
- Quiet Time, directly accessed from the quick settings menu, lets you mute all incoming notifications or calendar reminders. In addition, Quiet Time can be tied to a particular activity such as reading.
- Quick Switch uses a global swipe gesture from anywhere in the system to go between multiple apps, and unlike standard Android, works with individual content items like different textbooks without navigating home.
Low-level platform enhancements:
- Optimizing Download Manager enables parallel content downloads. Unlike standard Android, Fire OS adjusts the number of simultaneous downloads per device, so that foreground app performance is not impacted by background download activity. In addition, the Optimizing Download Manager automatically pauses ongoing content downloads when the customer starts streaming an Amazon Instant Video to maximize video quality. Customers can prioritize individual items to download first, and with progressive download they can open videos, Audible audiobooks, or magazines and start enjoying them while the download is still ongoing.
- Graphics Direct Texture replaces the standard Android graphics pipeline. The Fire OS graphics system is customized to quickly load large graphical assets like the high-resolution cover art in the Fire OS home screen. Graphics Direct Texture enables the Carousel and the Fire OS media libraries to include large, detailed images and still load quickly and scroll smoothly.
- Touch Responsiveness is improved by low-level changes to the way Fire OS 3.0 handles taps and swipes. For example, the system dynamically increases the CPU speed after the customer lifts their finger off the screen, to minimize touch latency in games and apps. And when a customer taps an app in the Carousel or Grid views, the system removes unnecessary OS overhead activities and drives the app start animation directly to the GPU, so that the app starts to open immediately.
- Reading Mode gives customers up to 17 hours of battery life when reading. Fire OS automatically powers down unnecessary system components when customers are reading static pages, storing the text in a dedicated, low-power memory, and powering down the CPU.
New enterprise and productivity features:
- Enhanced Email makes it easier to set up email accounts, and groups conversations by subject with threaded messaging and sync.
- Printing support for wireless printers is now available for documents.
- Enterprise Support with software data encryption on Kindle Fire HD and hardware data encryption on Kindle Fire HDX; the ability to connect to secure enterprise Wi-Fi networks and access corporate apps, documents and resources like SharePoint; native VPN client for instant access to corporate networks; a native SCEP (Simple Certificate Exchange Protocol) client to retrieve digital certificates for secure resources; and a rich set of Kindle-specific device management APIs that integrate with a wide range of existing mobile device management (MDM) systems, including Amazon’s Whispercast service and 3rd party vendors like AirWatch, Citrix, Fiberlink, Good Technology and SOTI. Fire OS 3.0 also supports Kerberos authentication, which enables seamless enterprise single sign-on and the ability to browse secure Intranet websites from the Silk browser on Kindle Fire.
Developers:
Developers consistently report how simple it is to bring their Android apps to the Fire OS platform and how they see increased monetization and engagement with their apps and games on Kindle Fire. Here’s what they have to say:
Imangi Studios is the creator of the popular game Temple Run. “We’ve integrated with Amazon’s In-App Purchasing and GameCircle APIs, which was a breeze,” says Keith Shephard, CEO of Imangi Studios. “We’ve seen significantly higher customer engagement withTemple Run since the integration, making the few, short steps worth it.”
“Since the launch of the very first Kindle Fire, Gameloft has been a strong believer in Amazon’s ability to bring a great user experience to digital gamers,” said Baudouin Corman, VP of Publishing for theAmericas, Gameloft, developers of Asphalt 8 & Despicable Me: Minon Rush. “From recommendations and reviews to GameCircle, Amazonis building the kind of strong ecosystem we want for our products.”
“Amazon continues to monetize incredibly well for us,” said Mike Sandwick, Manager of Strategic Partnerships, TinyCo, the mobile gaming developers behind Tiny Village. “Kindle Fire devices consistently deliver high LTVs across all of our titles.”
“We’re extremely happy with the per-user monetization we’ve achieved on Amazon with our games,” said Arlin Schaffel at Noodlecake Studios, publisher of Super Stickman Golf. “We regularly see more than double the per-user spend on Amazon compared to other app stores. As Amazon continues to expand worldwide, we’re excited to see our revenue grow along with them.”
Fire OS 3.0 is available exclusively on the all-new Kindle Fire HD and Kindle Fire HDX tablets. Some of these features will be available mid-November as part of the free, over-the-air Fire OS 3.1 update www.amazon.com/fireos.
Developers can learn more about Fire OS 3.0 at http://developer.amazon.com/sdk/fireos.html.
- See also Amazon Announces new Kindle Fire Tablets and Fire OS 3.0 [Amazon Mobile App Distribution Blog, Sept 24, 2013] from which I will quote here only:
Fire OS is based on Android 4.2.2 (API level 17), so Android compatibility is high, often requiring no additional development work. In fact, 75% of the Android tablet apps that we’ve tested run on Fire OS with no code changes.
Fire OS also includes a newly optimized, high-performance Chromium-based HTML stack, so your web apps deliver a native user experience using open web technologies such as HTML5, JavaScript, and CSS3.
Other APIs now available include Bluetooth gamepads and joysticks as Human Interface Devices (HID), and multiple user support. Allowing multiple users makes family use easier, especially in conjunction with child-friendly Free Time.
In addition, this release opens Fire OS to a whole new class of Enterprise applications. With user partition encryption and secure connections to enterprise Wi-Fi networks, your application can better protect user data on-device and during transfer. Kerberos authentication and a native IPSec VPN client allow you to connect securely to corporate intranet websites from your app.
New customer-facing features and UI improvements enhance the user experience overall and better position your content with consumers. A redesigned Home Screen with Carousel and Grid views, for example, allows users to customize the display, while QuickSwitch gives them the ability to move between apps with a single swipe.
With Whisperplay, users can fling content from their tablet to their TV, and new download prioritization ensures data transfers in the background don’t compromise device performance, degrade playback, or interfere with the foreground application. X-Ray for Music, Movies, and TV lets customers explore their media in new ways, while Reading Mode makes books on the Kindle Fire even more enjoyable.
- While from Jeff Bezos wants to delight you [The Verge, Sept 25, 2013] I will quote:
And the company’s relationship with Google? It’s a strange symbiosis, since the Fire line is based on Android and plugs deeply into the OS that Google has built — yet there are no Google services to speak of. Is there potential for a better relationship? A Google and Amazon partnership has always seemed like a union with incredible potential, but it hasn’t broken that way. “It’s the kind of thing that we’d always be extremely open to, but I don’t want to speculate on the future.” I ask if that’s something customers have asked for.
“People tend to focus on the ecosystem overall, and so when customers think about the ecosystem, they’re thinking about Prime Instant Videos, and Kindle ebooks. We have over 100,000 apps, it’s up 187 percent year over year. The platform monetizes really well for developers; [with] Fire OS, we work extremely hard to keep it compatible from a developer point of view, [it requires] almost zero work. That’s what’s making our ecosystem work.”
See also:
- Developers Can Now Distribute Apps in Nearly 200 Countries Worldwide on Amazon [Amazon Mobile App Distribution Blog, May 23, 2013]
As of today, customers can buy your apps on Amazon in nearly 200 countries worldwide using online and mobile stores in the US, Canada, Germany, France, Spain, and Italy. It was also announced that Kindle Fire HD is available for pre-order starting today, shipping to over 170 countries on June 13. This is a great opportunity for you to reach millions of new customers who can now discover your apps and games online through the Amazon website and on Android and Kindle Fire HD devices. This launch expands developer reach and monetization potential to Amazon customers around the world. For more information see the press release here.
It’s easy to make your apps available in all of these countries. If you are creating a new app, it will be available in all countries by default. You can select country and territory availability for each of your apps if you want to limit their availability. First, go to the Availability and Pricing tab in the distribution portal then select “Only in the following countries…” at the top of the page. You’ll see a list of continents that you can expand to make your selection. The number of countries you have selected in this manner will show up in parenthesis at the continent level. You can set the list price for your apps for each marketplace where Amazon sells apps, or you can have Amazon calculate a list price for you automatically using your base list price. Finally, to help report on all of this international goodness, your sales reporting now reflects your sales by country.
Please be sure to check that your existing apps are for sale in the countries in which you wish them to be sold, and have fun in all the new countries!
(See the International Program Overview FAQ here for more details.)
- Amazon Appstore for Android Now Open in Nearly 200 Countries Worldwide [press release, May 23, 2013]
Millions of Amazon customers can now discover their favorite apps and games online, from their Android mobile devices and Kindle Fires with Amazon Appstore
Amazon.com announced today that the Amazon Appstore is now available to millions of customers in nearly 200 countries, giving them access to apps and games from top brands like Disney andElectronic Arts, new releases including “Angry Birds Friends” and “Iron Man 3,” all-time favorites like “Temple Run 2” and “Plants vs. Zombies,” and indie titles like “The Room” and “Beach Buggy Blitz.” Customers around the world can now buy apps and games directly from the Amazon Appstore on Macs, PCs or Android phones and tablets (including Kindle Fire). Amazon also announced that Kindle Fire will be available in over 170 new countries on June 13.
To celebrate the launch, the Amazon Appstore is bringing back one of its most popular Free Apps of the Day, “Fruit Ninja,” along with “Cut the Rope: Experiments.” These will be available, for free, on May 23 and May 24, respectively. With the Amazon Appstore, customers will have access to popular features like the “Free App of the Day,” which offers a paid app for free every day. In addition, the Amazon Appstore includes popular Amazon features like personalized recommendations, customer reviews and 1-Click payments. One of the important benefits of the Amazon Appstore is that Amazon tests apps and games to make sure they function and perform properly before they are made available to customers. In addition, Amazon backs its apps and games with its own world-class Customer Service. Apps and games purchased from Amazon can be used across any compatible Android device, enabling customers to buy an app or game once and enjoy it everywhere. For a limited time, consumers will also find great promotions and discounts on popular games from leading brands such as Ubisoft, Sega and Rovio, including Angry Birds Space for free through June 3. Customers can visit www.amazon.com/appstore to start browsing apps.
“We are thrilled to be expanding the reach of our global app distribution to nearly 200 countries. We think our customers will love the app selection we have to offer and also find features such as Free App of the Day and personalized recommendations very helpful as they discover and explore new apps and games,” said Mike George, Vice President of Apps and Games at Amazon. “By further expanding the distribution of apps to millions of customers around the world, we are continuing to make it easy for customers to enjoy their Amazon apps on Kindle Fire and any Android device.”
This announcement is the latest in a series of global expansions, including the UK, Germany, France, Italy, Spain, China and Japan.Amazon Appstore will come to Brazil in the coming months.
- There are 193 countries and territories currently according to Countries Eligible to Shop for Apps on Amazon.com: 34 of them marked in bold with “*” are not listed in Countries Eligible to Buy Kindle Fire HD 8.9″ [excerpted on Sep 26, 2013] as “you can buy Kindle Fire HD 8.9 from Amazon.com and ship it to your country” also indicating:
If you’re registered to an Amazon.com account, but live outside the United States, we’re pleased to offer the following Amazon services to you:
- Audiobooks from Audible.com
- Books, newspapers, and magazines from the Kindle Store
- Apps and games from the Amazon Appstore for Android
- Kindle FreeTime
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Finally 1 Million Pixels for a Breakthrough Price—Introducing the New $139 Kindle Fire HD [Amazon press release, Sept 25, 2013]
New slimmer and lighter design, HD display, high-performance processor, dual speakers with Dolby Digital Plus audio, and Fire OS 3.0 “Mojito”
Kindle Fire HD comes with access to the exclusive benefits of theAmazon ecosystem—Prime Instant Video, Kindle Owners’ Lending Library, Kindle MatchBook, AutoRip, and the world’s leading digital catalog with over 27 million movies, TV shows, songs, apps, games, books, audiobooks, and magazines
Two years ago, Amazon revolutionized the tablet industry with the$199 Kindle Fire. Today, Amazon is doing it again: introducing the new $139 Kindle Fire HD. Kindle Fire HD is available for pre-order starting today at www.amazon.com/fire-hd.
“Two years ago, we revolutionized the tablet industry with the breakthrough $199 price point for tablets—now we’re doing it again with the $139 price point,” said Jeff Bezos, Amazon.com Founder and CEO. “$139 now gets you a 1280×800 216 ppi HD display, a dual-core 1.5 GHz processor, Fire OS 3.0, dual speakers with Dolby audio, vast selection and Amazon-exclusive features like Prime Instant Video downloads, Second Screen, Kindle FreeTime, X-Ray and more.”
Here’s what you get for $139:
- High-definition display with 1280×800 resolution and 216 pixels per inch, making movies, TV shows, books and games vivid and detailed. 66% more pixels than the previous generation Kindle Fire.
- Powerful, dual-core 1.5 GHz processor, 60% faster than the previous generation Kindle Fire.
- Dual stereo speakers with Dolby Digital Plus audio—the standard in high-end audio.
- All-new slim design that matches the look and feel of the new Kindle Fire HDX.
- Fast streaming, downloads, and web browsing with built-in dual-band Wi-Fi.
- Powered by the latest version of Fire OS—Fire OS 3.0 “Mojito”—with hundreds of new and upgraded features, platform updates, and Amazon-exclusive services.
- Kindle FreeTime extends parental controls to give parents a simple, engaging way to manage the way kids use Kindle Fire—parents select content and set time limits by content type.
- Exclusive new features such as X-Ray for Music, Prime Instant Video downloads, Second Screen, expanded X-Ray for Movies and TV, and more.
- Stay connected and productive with all-new email, calendar, and Silk web browser.
- World’s best content ecosystem—over 27 million movies, TV shows, songs, apps, games, books, audiobooks, and magazines.
The new Origami covers feature an innovative design that allows you to stand Fire HD in both portrait and landscape.
In addition to the new Kindle Fire HD, Amazon also today introduced the new Kindle Fire HDX tablets—to learn more about these new tablets and many of the features listed above, visit www.amazon.com/kindle-pr.
The new Kindle Fire HD is available for pre-order starting today and will begin shipping October 2. Visit www.amazon.com/fire-hd to learn more.
Multi-tasking and multi-window view used together for high performance productivity scenarios in the state-of-the-art UX environment of Microsoft Windows 8.1 – the ultimate solution not available with Apple and Android devices
The versions of multi-tasking and multi-window view in Windows 8.1 are already the second generations of the concept which first appeared during the preview of Windows 8 in September, 2011. Properly designed applications relying on them can not only be run simultaneously but also can manifest themselves at the same time on up to 4 independent parts of a single screen, as well as extended by using any number screens where there are additional monitors connected to the system. That capability not only enables much higher performance productivity scenarios than before with the first version (i.e. in Windows 8), but the number of possible scenarios can be significantly higher and more complex.
This is especially important as – unlike the current iPad and Android system – application developers could plan their individual apps as part of a growing society of apps (delivered usually by 3d parties) which can be used together with some companion apps simultaneously, constituting together a given scenario actually created by the user himself or herself. This is very much a workstation like environment already found in classic GUI based workstations, but now inside such a state-of-the-art UX environment as that of Microsoft Windows 8.1.
Acknowledgement: I should thank Zsolt Bátorfi from the DPE (Developer and Platform Evangelism) unit of Microsoft Hungary for his invaluable input to this post.
The quite simplistic iPad and Android environments are mainly satisfying the entertainment scenarios only. So the 2nd generation Microsoft Surface family of productivity tablets priced upto $2420 (when for an All-in-One configuration) [‘Experiencing the Cloud’, Sept 24, 2013] was rightfully positioned against them as there is a growing demand on the market which is not served by any other platform. The same applies to the upcoming Windows 8.1 devices from the 3d party vendors.
There will be entry level products like the $349 ASUS Transformer Book T100 which was already shown as part of The long awaited Windows 8.1 breakthrough opportunity with the new Intel “Bay Trail-T”, “Bay Trail-M” and “Bay Trail-D” SoCs? [‘Experiencing the Cloud’, Sept 14, 2013] delivered by Intel. With that the growing but still unsatisfied demands could be fulfilled by starting at sufficiently competitive levels in terms of Android entertainments devices from major global vendors, even more so in terms of Samsung devices.
I put together this post in order to understand this additional (to Intel Bay Trail and Haswell SoCs) breakthrough opportunity as clearly as only possible.
Details
Windows From Continuing the Windows 8 vision with Windows 8.1 [by Antoine Leblond on Blogging Windows, May 30, 2013]
We’re also making improvements for using multiple apps at once in Windows 8.1.
Windows 8.1 brings variable, continuous size of snap views. You will have more ways to see multiple apps on the screen at the same time. You can resize apps to any size you want, share the screen between two apps, or have up to four apps on screen. If you have multiple displays connected, you can have different Windows Store apps running on all the displays at the same time and the Start Screen can stay open on one monitor. This makes multi-tasking even easier. Also in Windows 8.1, you can have multiple windows of the same app snapped together – such as two Internet Explorer windows.
Microsoft started to run this TV ad in May 2013 to communicate the concept of Windows 8: Multitasking [Windows YouTube channel, May 9, 2013] most widely
And it was showcased last time with Windows 8.1 as Microsoft Surface 2 Halo Spartan Assault Gaming and Office Suite Multitasking Demo [HotHardware YouTube channel, Sept 25, 2013]
At the same time people are even discovering undocumented (so far) capabilities like in this Modern App Multitasking in Windows 8.1 RTM [WindowsObserver YouTube channel, Sept 11, 2013]
Compare this to the previous generation hardware and software Microsoft Surface RT – True Multitasking Demo [MyWorldOfIT YouTube channel, Nov 2, 2012] with Windows 8.0 which a common Android tablet or iPad still cannot do (except some Samsung GALAXY devices still in a limited split screen fashion, as noted a little later)
which was described in Design case study: iPad to Windows Store app [MSDN, March 21, 2012] as
Use snap view to engage your users
Windows 8 lets users multitask by “snapping” an app next to another app. The snapped view is a great way to increase the app’s time on screen and engage users for longer periods. It’s easy for a user to change the main app and the snapped app by manipulating the splitter between the two, so it is important to maintain context across resizes. We don’t want users to lose app state as a result of resizing their app.
Example: home screen snap view
Windows Store app
The snap view of the home screen is just a different view of the home page where a user can still access the same content.
In snap view, a user pans vertically to get to more content because it is more comfortable to pan along the long edge. This is different than the horizontal panning in full view, which is also optimized to pan along the long edge.
Or in a somewhat different early presentation of Windows 8 Multitasking Experience [Vectorform YouTube channel, Sept 27, 2011]
Note that Samsung was quick to employ this single concept in its forked Android solution, first in Multiscreen – GALAXY Note 10.1 – Samsung [SAMSUNGMOBILEUK YouTube channel, Oct 12, 2012] and then later in GALAXY Note II and Note 3 phablets, and in the Note 8.0 tablet and GALAXY S4 smartphone, where it was called Multi Window (also for Note 10.1), but just for two applications at the same time for which the device screen is split into two parts. See also Samsung GALAXY Note 10.1 Has Arrived Game-Changing Device Hits U.S. Store Shelves Tomorrow [Samsung Mobile Press, Aug 15, 2012]. Not for all GALAXY devices!
And here is a rare recognition of the fact that Yes, the Microsoft Surface RT tablet is much better than Android or iPad Tablets [GodGunsGutsGlory4KJV YouTube channel, Aug 21, 2013]
I held off from buying a Microsoft Tablet and bought an Android Tablet after listening to some flawed and rather biased reviews a while back.
But after being frustrated once again that Android STILL CAN’T MULTITASK while playing videos I went and looked further into the Microsoft Surface RT and bought one.
There are several popular youtube videos comparing the Surface RT to Androids and iPad tablets but evidently either those people don’t know how to run a REAL tablet or they are deliberately skewing the comparisons. Because face it, the Surface RT is much more capable than the Android. And the Surface Pro of course is a full powered laptop but with less battery life and cost a pretty penny/ So for what I want in a tablet I got a Surface RT and it is great!
As I said, the most of the reviews that came up in search were flawed.
I was watching this pathetic one and should have known better when I saw the username… http://www.youtube.com/watch?v=sYbCfL…
But check out the comments now. LOL! The comments were more helpful than the video.
They talked about some honest review by some Lisa woman so I found this video and it was great… http://www.youtube.com/watch?v=lIOG2V…
So after that I bought one and the Surface RT did what I needed and then some. Like built in Remote Desktop that works just like it did on my Windows 7 laptop so I can log into my home pc while away.
And while most reviews just showed the Surface running the active tiles home screen and launched apps from there they did not demonstrate the Desktop mode which operates it in the more native Windows screen that people are used to which is where you can open windows and navigate the machine or use full Internet Explorer 10.
Anyway I am ranting again… and that’s what this video is. It is more of a RANT and a warning to others to be careful with the biased reviews. I give a two thumbs up to this tablet!
No wonder that Microsoft started to highlight the multitasking advantage in this recent video about Surface RT vs. iPad [Windows YouTube channel, Aug 7, 2013], see the part starting at [0:43] under the title “Multitask” and noting that:
One app at a time [on iPad] vs. Do multiple things at once [on Surface RT]
Design, technology and business background for the above differentiation
Microsoft design principles (Windows) [MSDN, March 8, 2013]
Here are five principles for building great Windows Store apps. Use these principles when you plan your app, and always ensure that your design and development choices live up to them.
Pride in craftsmanship Be fast and fluid Authentically digital Do more with less Win as one
- Use the UI model.
- Work with other apps to complete scenarios by participating in app contracts.
- Use our tools and templates to promote consistency.
Work with other apps, devices, and the system to complete scenarios for people. For example, let people get content from one app and share it with another. Take advantage of what people already know, like standard touch gestures and charms, to provide a sense of familiarity, control, and confidence.
Following these five Microsoft design principles will help you make the best choices when you design your app.
See also: Modern Design at Microsoft [by Steve Clayton on Microsoft News Center, June 7, 2013] – Going beyond flat design
A very important example of “Work with other apps to complete scenarios“ is the multitasking which became available in the first version of Windows 8, and had been significantly enhanced in the recent second version:
Jensen Harris on productivity and multitasking from Tami Reller: Worldwide Partner Conference 2013 Keynote [transcript provided by Microsoft, July 8, 2013]
The desktop in Windows is the single most powerful platform in the world. It is the only platform in which you can run Photoshop and Lightroom and AutoCAD and Visual Studio and Office all in one platform. And we really wanted to bring together the best of the modern UI and the best of the desktop UI and harmonize them in Windows 8.1.
So the first thing that you’ll notice is that we’ve made it really easy to get to the Start screen in 8.1 with the addition of the Start button. (Laughter, applause.)
So when I click this, this is not just your father’s Start button, this actually floats in the tiles on top of the desktop. So you get this beautiful look of your desktop. You don’t lose context of what you’re working on. It just comes in over top and then floats away.
And you can see we’ve done a lot of work here to make your Start screen be ultra-efficient. We’ve got the small tiles, we’ve got the groups, we’ve got the large tiles that allow you to create, together with new enterprise custom ability and control that we’re giving over the Start screen in Windows 8.1 for you to create an awesome, enterprise consumer dashboard that has all the things that you love in one place.
And of course, one other thing that you can do by default in Windows 8.1 is boot to the desktop if you want as well. And so the whole experience comes together where you have control over the PC.
So we love the desktop and we have made it a lot better. But productivity isn’t just defined by the desktop. The desktop is one way of working. Productivity is defined by robust multitasking, flexibility, efficiency, and having all the apps that you need. And what we’ve done in 8.1 is taken productivity to the next level and brought what was great about the desktop and the things that you could do there and made it even better in the modern UI and optimized it for not just 8-inch tablets, but also large screens, desktops, powerful laptops.
Let me show you some of what we’ve done. So one of the most important apps that exists is mail. This is the new version of the mail app that we have not yet made available publicly, but will be available with Windows 8.1 RTM.
And I’m going to use my mouse here. The first thing you’re going to notice is this power pane here on the left that shows me my folders, it shows me people. I can flag mails very quickly just here in the view — boom, boom, boom, boom, boom — and they’ll show up here in my flag view.
We have my favorite people, all of the mail here, and I also have them split out. Of course I control this. So if I want to put Panos in my list of favorite people, I can do that. If I want to take some people out, I can do that as well.
We’ve also integrated some awesome features to help keep your mail under control. Of course something like drag and drop is really important, and we have all your folders here that you can just directly drag and drop into using your mouse or touch.
We have brought together all of your social updates. So things from Foursquare and Facebook and LinkedIn, these sort of pseudo-spammy, but kind of interesting things and put them in one place so they’re out of your way without needing to set anything up.
And then probably my favorite view here is the newsletter view. And these are also things that sometimes you want to see. Like I love that I have these Living Social deals, but I don’t need to get eight of them a day, I really only need to see the most recent one. And so we’ve integrated a feature called Sweep into the mail app. And what this allows me to do is I can delete all of my Living Social deals. But what’s even cooler is I can say, just delete all of them except for the latest ones. I’m going to hit Sweep, and it’s going to set this up on the server. You’re going to see all of the Living Social deals have disappeared except for the top ones, and it’s always going to make sure that I only have one of these in my inbox from now on. These are some of the ways in which mail makes you more efficient. (Applause.) Thank you.
Another thing, though, that’s really important if you’re being efficient is the keyboard because I don’t know about you, but I do an awful lot with keyboard shortcuts just typing. And I showed you the new search feature, but I haven’t shown you how well it works with the keyboard and how it makes you more efficient.
This new search feature is really the command line for Windows. So I’m just going to type a single — I type “Windows plus S” to bring up search. I’m going to type a single character, “K.” And in doing so, it has brought back apps like Kindle and In the Kitchen, it’s brought back Music, it’s brought back settings like keyboard settings, it’s brought back files, local and in the cloud, it’s brought back Web suggestions, it’s brought back people on my PC. And it’s very, very powerful.
For instance, if I’m just here in mail and I just want to start playing a song, I can just type “K” it brings up the name of the song. I’m just going to hit enter, and it starts playing without even taking me out of the app. Just immediate music playback. So this is one of the examples of how the new Search box makes it possible to do things very, very fast. You will find that this becomes the stickiest feature in Windows 8.1, and you can’t imagine ever living without it.
Another thing that defines productivity is multitasking. And one of the things that I think is really cool about 8.1 is the multi-window view that we have.
So here are a few photos that are attached to a mail. And when I click one of these, notice that it opened up photos side by side with mail. This isn’t some weird preview app that only shows a few file formats or something like this. This is the actual app that is associated with the file extension. And so this could be photos, PDFs, it could be Office, it could be anything. And this happened just automatically.
Another example of this, let me pull this off the screen, and I’m going to show you a link. And when I click this, it’s going to open up IE side by side with mail. You can see that there’s no restriction anymore on just one very small snapped app and then a huge app. We can now use the window 50/50. I can move the snap point so I can make one a little bigger, I can make the other one a little bigger if I want. And it’s not just limited to two apps side by side.
So here in IE, I’m going to right click and do open link in new window. And suddenly, what I have here is two IE windows side by side. (Applause.) Yeah. Suddenly, I have something that is starting to look like a very productive work station. And I can move these windows around, I can put them where I want. We have maximize, we have resize, and all of a sudden you start to realize that there’s more than one way of doing awesome productivity. This uses all the pixels on my PC.
And on this sort of smallish monitor, I can fit three. But if I had something like a 2550 x 1440 monitor, I could show four apps on the screen at once. And all of a sudden, now you’re way more productive than you could have been on the desktop. You’ve got your Twitter feed, you’ve got your full running mail app, you’ve got multiple browser windows or multiple mails up at once.
And it gets even better. If I attach a second monitor, then suddenly I can do the same thing on multiple monitors at once. So I have any collection of apps across my monitors in any configuration I want, any size I want, blending desktop and modern apps across my screens. I can bring the Start screen up on one and just leave it, and this doesn’t just work for two monitors, it works for three, four, five, six, seven, as many as I have. And so this sort of shows the power of Windows 8.1 and the modern UI even on a desktop engineering workstation making you more productive.
And then we think about Windows starting on —
TAMI RELLER: A phone?
JENSEN HARRIS: A phone. On 8-inch tablets, also doing the same multitasking and running all the way up across all of these devices, integrated with Xbox and out to any kind of workstation. And it is pretty fantastic.
You can watch the full Tami Reller keynote about Windows 8.1 Product Enhancements [msPartner YouTube channel, July 9, 2013] presenting the complete high-end differentiation vs. the iPad and Android devices which contains the whole demo by Jensen Harris starting at [21:10] while the above part at [53:10], and the end of the demo is at [1:02:10]:
And here is an overall First look at Windows 8.1 [Windows YouTube channel, June 5, 2013] video by Jensen Harris worth to watch as well:
The long awaited Windows 8.1 breakthrough opportunity with the new Intel “Bay Trail-T”, “Bay Trail-M” and “Bay Trail-D” SoCs?
“Bay Trail” was, and still is a highly secretive project inside Intel as you could see from this latest video Update: New Atom Chip, Bay Trail: Great User Experience and Battery Life [channelintel YouTube channel, Sept 26, 2013]
Coming back to the title of the post: could be very much so. Look at the first tablet:
ASUS Transformer Book T100 [the Official ASUS Facebook page, Sept 11, 2013]
The announcements just keep coming! Introducing the ASUS Transformer Book T100, the 2-in-1 Ultraportable laptop with a 10″ tablet powered by Intel’s latest Bay Trail-T quad-core [Atom] processor. Available in the US starting October 18th from only $349.
ASUS Transformer Book T100 Press Event [ASUS North America YouTube channel, Sept 12, 2013]
From ASUS Transforms Expectations for Mobile Computing with New Transformer Books at IDF 2013 [press release, Sept 12, 2013]:
“The ASUS Transformer Book T100 is the perfect transformation of the Eee PC with full compatibility, detachable touch screen, immersive entertainment and enough battery for all-day computing,” said ASUS Chairman Jonney Shih. “It is truly a game-changer for our mobile lifestyle.”
Transformer Book T100— high-mobility notebook and tablet combined
ASUS Transformer Book T100 is a 10.1-inch ultraportable with an Intel® Atom™ ‘Bay Trail’ quad-core processor and detachable HD display than can be used as a standalone Windows 8.1 tablet. Featuring a sleek design and durable finish, Transformer Book T100 is not only one of the lightest ultraportables currently available at just 1.07kg, but also one of the lightest 10-inch tablets around, at 550g.
Transformer Book T100 features the new Intel® Atom™ Bay Trail-T Z3740 [2M Cache, 1.33 GHz, up to 1.86 GHz] quad-core processor for smooth multi-tasking performance and incredible energy efficiency that can last up to 11 hours on battery power. The lightweight keyboard dock features precision-engineered keys designed for comfortable extended use, a multi-touch touchpad with full Windows 8.1 gesture support and USB 3.0. Just 10.5mm thin, Transformer Book T100 features a brilliant HD 10.1-inch tablet IPS multi-touch display with wide 178-degree viewing angles and razor-sharp images. Transformer Book T100 is also pre-installed with Microsoft Office Home & Student 2013 with full versions of Word, Excel, PowerPoint and OneNote, the perfect productivity solution for both school and work.
In retrospective:
ASUS: We are the real transformers, not Microsoft [‘Experiencing the Cloud’, Oct 17, 2012]
ASUS Transformer Book T100 – Intel Bay Trail Quad-Core Tablet / Notebook 2-in-1 Hands On Preview [TechnologyGuide YouTube channel, Sept 12, 2013]
From Intel we learned the same day that smaller 8” or even 7” tablets without detachable keyboards will come for as low as $199. There will be certainly higher priced versions as well, with higher resolution than that of the T100’s 1366×768 (which has an IPS screen nevertheless), 11” screen instead of the 10” T100, and most importantly using the higher-end Z3770 SoC with up to 2.4 GHz in burst mode (when thermal and other conditions allow it) instead of T100’s Z3740 SoC with up to 1.8 GHz only. In fact there will be notebook and desktop SoC products as well, code named Bay-Trail-M and Bay-Trail-D, respectively.
#5 slide of SPCS004 – Technology Insight: Intel® Platform for Tablets, Code Name Bay Trail-T
by Shreekant (Ticky) Thakkar – Intel Fellow, Director, Platform Architecture,
Mobile & Communications Group, Intel Corporation
#47 slide of the same SPCS004 presentation as above
This is pretty good as the Qualcomm Snapdragon 800 and NVIDIA Tegra 4 are the current leaders among quad-core ARM SoCs. And a very important point here is that Intel went down very significantly with the recommended customer price of just $37 in volume (1K TRAY) for Z3770. Its “little brother” the Z3740 has even lower $32 price in volume (1K TRAY) while the same clock frequency Clover Trail Z2760 launched a year ago had $41 price (1K TRAY) but significantly less performance as you will see below. And remember that the non-tablet but netbook Atoms, the N470 and N475, launched 2 and a half year ago had even $75 (1K TRAY) price, and were inferior in all regards even to the Z2760. Intel has definitely decided to compete with ARM quadcores not only in performance but in price as well.
UPDATE as of Sept 20, 2013: By the time of publishing my analysis of The manufacturing side of the “Race to the Bottom” Ecosystem [‘USD 99 Allwinner’, Sept 19, 2013] the pricing information for the announced Bay Trail-T SoCs as well as the earlier generation Clover Trail (Z3770, Z3740 and Z2760) disappeared from subsequent ark.intel.com specification pages. I cannot think any other reason than the indicative pricing information became a public blunder for Intel when people were asking questions similar to the two opening ones in my above indicated post:
Update as of Oct 14, 2013:
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Let’s see then the great video decoding capability of Z3770:
Bay Trail playing 4K video 100Mb/s on a 2560×1440 sreen [of Intel Z3770 based Reference Design] [Francois Piednoel YouTube channel, Sept 11, 2013]
then a recent game with 3D graphics: Torchlight II on Intel’s Bay Trail Tablet at IDF13 [HardwareZoneMY YouTube channel, Sept 11, 2013]
No wonder as relative to the previous generation Clover Trail Atom Z2760 introduced last September, which had the Imagination PowerVR SGX545 GPU @533 MHz, the Bay Trail Atom Z3770 has the Intel HD Graphics (Gen 7 with 4EU) @313 MHz. Measured at the same 13×7 resolution the improvement is not less than 6.42 times according to benchmarking run by Intel. It is also significantly better than the contemporary (Sept’12) leaders of quad-core ARM SoCs from NVIDIA and Qualcomm, by 4.4 and 3 times, respectively:
#52 slide of SPCS004 – Technology Insight: Intel® Platform for Tablets, Code Name Bay Trail-T
by Shreekant (Ticky) Thakkar – Intel Fellow, Director, Platform Architecture,
Mobile & Communications Group, Intel Corporation
This comparison is speaking for itself:
Intel Bay Trail demo (tablet on the right) vs. Clover Trail (tablet on the left) [zzopmusic YouTube channel, Sept 11, 2013] i.e. the previous generation Atom
Note that relative to the current quadcore SoC leaders from ARM the GPU performance of Bay Trail Z3770 is still lagging somewhat:
#49 slide of SPCS004 – Technology Insight: Intel® Platform for Tablets, Code Name Bay Trail-T
by Shreekant (Ticky) Thakkar – Intel Fellow, Director, Platform Architecture,
Mobile & Communications Group, Intel Corporation
It is important here to compare the Bay Trail Z3770 with Qualcomm Snapdragon 800 only because only they are at the same 19×10 resolution while NVIDIA Tegra 4 is at the much higher 25×16 resolution.
This current lag in GPU performance may be overcome in the future as the Bay Trail-T GPU had been announced by much higher clock frequency possibilities, as given on #15 slide of the above presentation:
Intel HD Graphics architecture
– Graphics turbo supported with CPU-GPU power sharing
– DirextX 11, OpenGL ES 3.0 graphics core
– Support for high-resolution displays (up to 25×16)
– Programmable in-order multi-threaded
– 4EUs, 8 threads each, SIMD32
– >= 667MHzHigh-quality, high-performance, low power HD H.264 encoder
– High profile support, fast transcode
– Separate 3D and media power wells
– Video and display post-processing supportPower
– Autonomously hardware detects Idle condition, save state and power gate
– Dynamic voltage and frequency scaling
No wonder why at IDF 2013: Intel demos Bay Trail tablet with virtual shopping app [Computerworld YouTube channel, Sept 12, 2013]
That was meant to be the supposedly most convincing demo at the full IDF 2013 San Francisco Dr. Hermann Eul Keynote [karan YouTube channel, Sept 12, 2013]
Also read the relevant part of the from IDF Day 2 Keynote Transcript, from which I will quote here just the following:
[4:14] The platform from soups to nuts. What does that mean? First, we start with a fantastic CPU, then we add the gorgeous imaging processing, and we have a stunning graphics coming to this. And around this, of course we will always be connected. We want to have fast, robust, reliable connectivity, cellular connectivity, short range connectivity. We put this on this platform as well, and then we add much more stuff: I/Os, audio, display, and so on and so forth.
Last but not least, we dovetail very sophisticated security into this and a highly specialized, optimized power management. That is the crown jewel of the platform. On this, we put software, a protocol stack, hardened in more than 100 countries and operators around the globe, a very proven stack around all the connectivity connections, and of course a highly optimized software operating system load that runs best on our architecture. And this we call the platform, from A to Z. All these elements are important. They form this platform.
For the user-facing part, the application system, it all starts with a great CPU. A leadership CPU is necessary to do this. And we all know, all cores are not created equal. That compares very much to our brains. So to speak, the analogy is that the core is the brain of that system. And so, our brains are all not equal.
And for our platform, it just starts with an extraordinary brain. The Silvermont core. It’s a flexible, multi-core architecture, has 64 bits, it is leading in performance per watt efficiency. And the good thing is, it spans an ultra-wide dynamic range from very low power to extremely high performance that we need. And we are supporting with this the broadest range of devices and market segments. And needless to say, it comes with the advanced 22-nanometer tri-gate transistor technology.
#9 slide of SPCS004 – Technology Insight: Intel® Platform for Tablets, Code Name Bay Trail-T
by Shreekant (Ticky) Thakkar – Intel Fellow, Director, Platform Architecture,
Mobile & Communications Group, Intel Corporation
And having said this, we have the capabilities, and we know the secret sauce on matchmaking: this stunning architecture and this very advanced process technology manufacturing. That is what I call in that slide here magic. This is our secret sauce. And this is what, exactly what we have done.
And all that leads me to today’s announcement, the introduction of the Bay Trail platform.
Bay Trail is architected for the best mobile computing experience. In more detail, it has leading performance and outstanding battery life. It comes with the next generation of Intel multi-core technology. It provides immersive experiences with Intel HD graphics, and it has ample performance on demand, with the Intel Burst technology 2.0. And of course, it comes with advanced imaging capabilities, and with our next-gen programmable ISP. [8:54]
Intel Bay Trail the Newest Intel Atom Processor, Tech News Interview [Santa Barbara Arts TV YouTube Partner Global News YouTube channel, Sept 12, 2013]
Intel Executives and Developers talk about Bay Trail, the Newest Intel Atom Processor 22 nanometer, quad-core system-on-a-chip technology Intel Bay Trail the Newest Intel Atom Processor Tech News Interviews.
Dr. Hermann Eul, Vice President & General Manager for Intel’s Mobile and Communications Group: [1:33] “If you look at the Windows tablets I think it is amazing to see what you can do on these lightweight tablets. What you did years back with a heavy weight computer everything now works on those tablets: from office applications, from productivity work to what’s gaming, everything runs on it. They are just compatible PERIOD.” [1:57] – says
“Bay Trail is an amazing platform we’ve developed for tablets,” says Ticky Thakkar, Chief Platform Architect for Intel’s Mobile and Communication’s Group. [2:46] “Well, Bay Trail will give you the same performance as the previous generation of our core at about 5x less power. So that gives you some perspective of how much hard work we did on power.” [3:03] “You’re going to get awesome performance delivered in the thinnest, lightest tablet.” Thakkar led the development of the latest Atom processor, which is based on 22 nanometer, quad-core system-on-a-chip technology. Essentially, the technological achievement has resulted in a chip that outperforms laptops of just a few years ago.
Tami Reller from Microsoft talks Windows 8.1 at IDF 2013 Keynote [camwilmot YouTube channel, Sept 12, 2013]
Intel Launches New Multicore, Low-Power SoCs for Tablets, 2 in 1s and Other Computing Devices [press release, Sept 11, 2013]
Scalable 22nm Silvermont Microarchitecture Delivers Flexibility for a Range of Designs, Price Points
NEWS HIGHLIGHTS
- Built on its leading 22nm tri-gate technology and the new “Silvermont” microarchitecture, Intel launched three new multicore SoCs, formerly codenamed “Bay Trail,” for tablets, 2 in 1 devices, all-in-ones, laptops and desktops.
- The multi-core Intel® Atom™ Z3000 Series, Intel’s most powerful SoC for tablets to-date, delivers an ideal balance of performance, battery life, graphics and features for consumers and businesses, on both Android* and full Windows 8* operating systems.
- Leading OEMs will offer a wide range of Bay Trail-powered devices at a variety of prices starting in the fourth quarter of 2013.
INTEL DEVELOPER FORUM, San Francisco, Sept. 11, 2013 –Intel Corporation today launched its latest family of low-power systems-on-a-chip (SoC), codenamed “Bay Trail,” that will fuel a wave of highly powerful and energy efficient tablets, 2 in 1s and other mobile devices to market for consumers and business users in the fourth quarter of this year from leading OEMs including AAVA*, Acer*, ASUS*, Dell*, Lenovo* and Toshiba*.
The “Bay Trail” family of processors is based on Intel’s low-power, high-performance microarchitecture “Silvermont,” announced in May 2013. The Intel® Atom™ Z3000 Processor Series (“Bay Trail-T“) is the company’s first mobile multi-core SoC and its most powerful offering1 to date for tablets and other sleek mobile designs. It delivers a fast and fluid experience and a powerful balance of performance, battery life, graphics and rich features.
The flexibility of the new microarchitecture allows for variants of the SoC to serve multiple market segments, including new Intel® Pentium® and Celeron® processors (“Bay Trail”-M and -D) for entry 2 in 1s, laptops, desktops and all-in-one systems.
The family of “Bay Trail” SoCs provides a wide range of options for Intel’s customers by enabling one hardware configuration that supports both Windows 8* and Android*, ultimately offering people broader choice of form factors at a range of price points that meet the varied needs of consumers and business users.
“What we have delivered with our Bay Trail platform is an incredibly powerful SoC that delivers outstanding performance, long battery life, and a great experience for the way people use these devices today. It’s an incredible leap forward,” said Hermann Eul, corporate vice president and general manager of Intel’s Mobile and Communications Group. “With Bay Trail as the foundation, our OEM partners are bringing a wide variety of designs at a range of prices to delight consumers, business users and IT managers.”
To bring this level of performance to a processor aimed at mobile devices, Intel developed a new platform that solves the contemporary technology challenges people have today, including the ability to multitask, the need for prolonged battery life and enhanced graphics, and the ability to have a more productive, enjoyable mobile experience. Video content and B-roll featuring Intel executives and developers on the making of Bay Trail and supporting images are available at intel.synapticdigital.com.
More Powerful Tablets, 2 in 1s with Intel Atom Z3000 Processor Series
The Intel Atom Z3000 Processor series delivers leading performance with all-day battery life. It is Intel’s most capable, best-performing platform to-date for tablets and other sleek mobile devices. It offers a smaller footprint and lower power usage while also enabling double the compute performance and triple the graphics performance compared to the previous-generation Intel Atom processor. The low-power SoC platform enables over 10 hours of active battery life2 and three weeks of standby with an always-connected mobile experience.
The Intel Atom Z3000 Processor series also includes Intel® Burst Technology 2.0 with four cores, four threads and 2MB L2 cache. This performance allows users to multi-task, consume and create content, and enjoy a rich experience across either Android or Windows 8. People will also have a choice of form factors between tablets and 2 in 1s, with thin-and-light devices ranging from 8mm to 1 pound, and screen sizes ranging from 7-11.6 inches.* Tablets based on this latest Intel Atom SoC will be available at prices starting as low as $199.
The Intel Atom Z3000 series also enables business-ready tablets that deliver the experiences and designs people want with the protection for the enterprise that IT requires. With robust security features, including McAfee® DeepSAFE* Technology, AES hardware full disk encryption, Intel® Platform Trust Technology, Intel® Identity Protection Technology and Intel Data Protection Technology, the platform offers a more secure computing environment. It also supports Microsoft Windows 8 Pro Domain Join and Group Policy, and delivers full application and peripheral compatibility.
Intel has been working with top application developers to ensure the best experience is available for Intel® architecture platforms on both Windows and Android. Work with Cyberlink, Skype-HD and Netflix-HD, PhiSix, Arcsoft, Tieto, Gameloft, and many line of business apps are a few examples where Intel has focused on optimizing imaging, graphics, and overall performance that will ultimately improve the experience for consumers. Intel has a long history of optimizations for Windows and Andorid operating systems.
Intel will introduce 64-bit support for tablets in early 2014, delivering even greater value to IT managers. Devices built on this version of the SoC will offer enterprise-class applications and security, and with Intel® Identity Protection Technology (IPT) with PKI, will not require a VPN password when used with systems optimized for IPT and PKI.
Bay Trail Processors to Power Entry 2 in 1s, Notebooks, Desktops and All-in-Ones
The “Bay Trail M” line will be available in four SKUs: Intel Pentium N3510 and Intel Celeron N2910, N2810 and N2805 processors. This series will power a number of innovative 2 in 1 devices in addition to notebooks enabled with touch capabilities, bringing them to new audiences at lower price points.
With the microarchitecture flexibility and graphics improvements across all of the “Bay Trail” SKUs, the Pentium N3000 Processor and Celeron N2000 Processor series also boast two times faster performance in productivity applications and up to three times improvement in graphics compared to 2-year-old Intel-based value notebooks3. Designs powered by these processors can be fanless, can measure less than 11 mm thick and weigh just 2.2 lbs. Intel expects the systems to start at $199 for a clamshell device, $250 for a notebook with touch and $349 for a 2 in 1 device.
The “Bay Trail D” line will be available in three SKUs: Intel Pentium J2850, Intel Celeron J1850 and Intel Celeron J1750. These offerings are Intel’s smallest-ever packages for desktop processors, making them ideal for fanless and smaller form factor systems for entry level desktop computing. The processors are also ideal for vertical uses, including intelligent digital displays, with the power savings and up to three times faster performance than similar products from Intel just three years ago3. Full systems based on these SKUs are expected to start at $199.
Intel® Atom™ Z3000 Processor Series (“Bay Trail-T“) … its most powerful offering1 to date for tablets and other sleek mobile designs
1 Based on the geometric mean of a variety of power and performance measurements across various benchmarks. Benchmarks included in this geomean are measurements on browsing benchmarks and workloads including SunSpider* and page load tests on Internet Explorer*, FireFox*, & Chrome*; Dhrystone*; EEMBC* workloads including CoreMark*; Android* workloads including CaffineMark*, AnTutu*, Linpack* and Quadrant* as well as measured estimates on SPECint* rate_base2000 & SPECfp* rate_base2000; on Silvermont preproduction systems compared to Atom processor Z2580. Individual results will vary. SPEC* CPU2000* is a retired benchmark. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go to: www.intel.com/performanceIntel® Atom™ Z3000 Processor Series (“Bay Trail-T“) … over 10 hours of active battery life2
2 Battery life is measured 1080p,10″, 31Whr 13×7 OEM System; FFRD on 38.5 Whr 25×14, 10Mbps h.264 Elephants Dream video. Windows 8 only.The “Bay Trail M” line … two times faster performance in productivity applications and up to three times improvement in graphics compared to 2-year-old Intel-based value notebooks3
The “Bay Trail D” line … up to three times faster performance than similar products from Intel just three years ago3
3 Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go to www.intel.com/performance
Intel Baytrail SOC Explained [minipcpro YouTube channel, Sept 11, 2013]
More information: Intel’s Bay Trail Fact Sheet (PDF) [Intel, Sept 11, 2013]
as well as from: http://ark.intel.com/products/codename/55844/Bay-Trail
……………………….………………….. Z3740 ……… Z3770 ……. Z3770D ….. Z3740D
UPDATE as of Sept 20, 2013: By the time of publishing my analysis of The manufacturing side of the “Race to the Bottom” Ecosystem [‘USD 99 Allwinner’, Sept 19, 2013] the pricing information for the announced Bay Trail-T SoCs as well as the earlier generation Clover Trail (Z3770, Z3740 and Z2760) disappeared from subsequent ark.intel.com specification pages. I cannot think any other reason than the indicative pricing information became a public blunder for Intel when people were asking questions similar to the two opening ones in my above indicated post:
|
The complete set of Z3000 Series SKUs from here (with all other Bay Trail SKUs as well):
According to #5 slide of SPCS004 – Technology Insight: Intel® Platform for Tablets, Code Name Bay Trail-T by Shreekant (Ticky) Thakkar – Intel Fellow, Director, Platform Architecture, Mobile & Communications Group, Intel Corporation the 2-core Z3600 Series (Z3680, Z3680D) is targeting only the Android tablets:
4th Generation Intel® Atom™ Processor-Based Tablet Overview [Intel Developer Zone article, Sept 11, 2013]
Introducing the next generation Intel® Atom™ Processor
(Code named “Bay Trail”)Abstract
Intel has launched its latest Intel® Atom™ processor, code named “Bay Trail”. It is the first Intel Atom processor based on 22-nm technology. This article discusses the key features of the platform like extended battery life, Intel® Gen7 graphics architecture, advanced imaging and video, improved performance, security, and more.
Platform Overview
The new processor offers Intel level performance for apps, games, photos, videos, and web browsing in the new thinnest/lightest/coolest form factors. The Intel Atom processor is optimized for tablets and 2 in 1 devices. Tablets based on the new Intel Atom processor support multiple cameras with excellent camera quality and feature integrated image signal processing for both still and video image capture. The table below shows the “Bay Trail” improvements.
Comparison of Clover Trail vs Bay Trail features
Intel Atom processor feature highlights
First-ever 22-nm Intel Atom processor
The new first-ever, 22-nm Intel Atom processor is a quad-core system on chip (SOC) with 4 cores/4 threads. With the CPU, graphics, and memory in one package, this modular design provides the flexibility to package a high-performance processor and graphics solution for multiple form factors.
Enhanced battery life
The new processor offers active battery life of more than 10 hours and standby performance of approximately 30 days3.
Graphics and Media Performance
The latest Intel Atom processor includes a 7th generation Intel® GPU with burst technology to provide a stunning graphics and media experience. The new processor supports high resolution displays up to 2560X1600 @ 60HZ and supports Intel® Wireless (Intel® WiDi) technology through Miracast. Seamless video playback is supported by a high performance and low power hardware acceleration of media encode and decode. The table below compares the two processors’ graphics features.
Intel Burst Technology 2.0
Automatically allows processor cores to run faster than the base operating frequency if they’re operating below power, current, and temperature specification limits.
Graphics Feature ComparisonAdvanced Imaging and video
The new Intel Atom processor comes with an integrated image signal processor and supports excellent camera quality. It supports video capture at 1080p with full HD playback. Superior multi axis Document Image Solution (DIS) and image alignment extend High Dynamic Range (HDR) to moving devices hence removing the moving blur. Ghost removal is also extended from HDR to moving scenes.
Security Features
With people carrying their devices with them almost everywhere they go, they are more likely to lose their tablet or laptop. And even if they don’t lose them, devices are susceptible to the growing number of viruses and malware threats. Intel® Identity Protection Technology (Intel® IPT)4 can help businesses keep their critical information secure and protect against malware. Intel® IPT helps prevent unauthorized access to personal and business accounts by using hardware-based authentication.
New business-class tablets built with the Intel Atom processor Z3700 Series are specifically designed for the needs of business and the enterprise. Hardware-enhanced Intel® security technologies and support for software from McAfee offer robust security capabilities.
Intel® Wireless Display benefits on Intel Atom processor
Intel® WiDi enables content-protected HD streaming and interactive usages between tablets and TVs. It supports full 1080p video and low latency gaming, and is Miracast compliant Intel® WiDi can be used to link health indicators as well. A few of the capabilities of Miracast-enabled apps are:
– Share & Enjoy: use a big screen HDTV to enjoy and share media with family and friends
– Wireless: quickly and securely connect with standard Wi-Fi to a TV without cables
– Easy Set-up: simple user interface makes it easy to connect; no additional remote controls
– Portable: adapter is small and light, so solution can move with youResources for Developers
Below are links to some resources for programming on Windows 8 that can help you take advantage of the new Intel Atom processor features.
1: Optimize apps for touch: The latest devices with Intel Atom processors include touch screens. To learn more on how about UX/UI guidelines and how optimize app design for touch, see:
– Ultrabook™ Device and Tablet Windows* Touch Developer Guide
– Handling touch input in Windows* 8 Applications
2: Optimize apps with sensors: Intel Atom processor-based platforms come with several sensors: GPS, Compass, Gyroscope, Accelerometer, and Ambient Light. These sensor recommendations are aligned with the Microsoft standard for Windows 8. Use the Windows sensor APIs, and your code will run on all Ultrabook™ and tablet systems running Windows 8. For more information, see:
– Ultrabook™ and Tablet Windows* 8 Sensors Development Guide
– Detecting Ultrabook sensors on Windows 8
3: Optimize apps with Intel platform features: Take advantage of the security features such as Intel Anti-Theft Technology4 and Intel Identity Protection Technology with HD Graphics. Please refer to resources below for more information on each. For more information, see:
– Intel® Anti-Theft Technology
– Intel® Identity Protection Technology
4: Optimize for visible performance differentiation: Intel® Quick Sync Video encode and post-processing for media and visual intensive applications. For more information, see:
– Intel® Media SDK
– Intel® Advanced Vector Extensions
– Intel® 64 and IA-32 Architectures Software Developer Manuals
– Graphics Developers Guide
5: Optimize app performance with Intel® tools: Check out the Intel® Composer XE 2013 and Intel® VTune™ Amplifier XE 2013 for Windows. These suites provide compilers, Intel® Performance Primitives, and Intel® Threaded Building Blocks that help boost application performance. You can also optimize and future-proof media and graphics workloads on all IA platforms with the Intel® Graphics Performance Analyzers 2013 and Intel Media SDK. For more information, see:
– intel.com/software/products
– http://software.intel.com/en-us/windows-tool-suites/
– http://software.intel.com/en-us/vcsource/tools
1 Claims for Intel® Atom™ Processor Z3770 (up to 2.40GHz, 4T4C Silvermont, 2MB L2 Cache) are based on an internal Intel® Reference design tablet which is not available for purchase: 10” screen with 25×14 resolution, Intel Gen 7 HD Graphics, pre-production graphics driver, 2GB (2x1GB) LPDDR3-1067, 64GB eMMC solid state storage, 38.5 Whr battery. Based on TouchXPRT, WebXPRT and SYSmark* 2012 Lite compared to Intel Atom Processor Z2760. Individual results will vary. Commercial systems may be available after future Windows updates. Consult your system manufacturer for more details. Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go to http://www.intel.com/performance.
2 Claims for Intel® Atom™ Processor Z3770 (up to 2.40GHz, 4T4C Silvermont, 2MB L2 Cache) are based on an internal Intel® Reference design tablet which is not available for purchase: 10” screen with 25×14 resolution, Intel Gen 7 HD Graphics, pre-production graphics driver, 2GB (2x1GB) LPDDR3-1067, 64GB eMMC solid state storage, 38.5 Whr battery. Measured using 3DMark* Ice Storm—a 3D graphics benchmark that measures 3D gaming performance compared to Intel Atom Processor Z2760. Find out more at http://www.futuremark.com. Individual results will vary. Commercial systems may be available after future Windows updates. Consult your system manufacturer for more details. Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go tohttp://www.intel.com/performance.
3 Based on a 30W Hour battery on 19×10 resolution on 10.1” display. Higher resolution will require larger battery. Active use measured as 1080/30 fps local video playback. Battery life may differ based on SKU and SoC performance.
4 No computer system can provide absolute security. Requires an Intel® Identity Protection Technology-enabled system, including an enabled Intel® processor, enabled chipset, firmware, software, and Intel integrated graphics (in some cases) and participating website/service. Intel assumes no liability for lost or stolen data and/or systems or any resulting damages. For more information, visit http://ipt.intel.com/. Consult your system manufacturer and/or software vendor for more information.
Tablet Performance: Intel® Atom™ Processor Z3770 [Intel Infographic]
System Configurations – Performance
- Latest Generation: Intel® Atom™ Processor Z3770 (4T4C, up to 2.4 GHz, 2 MB L2 Cache) measured on Intel® Reference Design 1.4.1: Memory: 2 GB; OS: Microsoft* Windows* 8.1 RTM; Browser: Chrome* 29.0.1547.57; Graphics driver 10.18.10.3266; Display size: 10”; Display Resolution: 2560×1440; Battery size: 38.5 WHr; Storage: 64 GB
- Prior generation / existing tablet: Intel® Atom™ Processor Z2760 (4T2C, up to 1.8 GHz, 1 MB L2 Cache) measured on Acer* Iconia* W510: Memory: 2 GB; OS Microsoft* Windows* 8; Browser: Chrome* 29.0.1547.57; Graphics driver: 9.14.3.1082; Display size: 10.1”; Display Resolution: 1366×768; Battery size: 26.6 WHr; Storage: 64 GB
System Configurations – Battery life
- Intel® Atom™ Processor Z3770 (4T4C, up to 2.4 GHz, 2 MB L2 Cache) measured on Intel® Reference Design 1.4.1: Memory: 2 GB; OS: Microsoft* Windows* 8.1 RTM; Browser: Chrome* 29.0.1547.57; Graphics driver 10.18.10.3266; Display size: 10”; Display Resolution: 2560×1440; Battery size: 38.5 WHr; Storage: 64 GB
- Intel® Atom™ Processor Z3740 (4T4C, up to 1.86 GHz, 2 MB L2 Cache) measured on OEM pre-production system: Memory: 2 GB; OS: Microsoft* Windows* 8.1 RTM; Browser: Chrome* 29.0.1547.57; Graphics driver 10.18.10.3266; Display size: 10”; Display Resolution: 1366×768; Battery size: 31 WHr; Storage: 64 GB
Product and Performance Information
1. Based on TouchXPRT*, WebXPRT*, and SYSmark* 2012 Lite compared to Intel® Atom™ processor Z2560. Individual results will vary.
2. Measured by TouchXPRT* 2013 overall score and Convert video for sharing sub score. TouchXPRT 2013 is a benchmark for evaluating the capabilities of your Windows* 8 and Windows RT devices. TouchXPRT 2013 runs tests based on five user scenarios (beautify photo album, prepare photos for sharing, convert videos for sharing, export podcast to MP3, and create slideshow from photos) and produces results for each of the five test scenarios plus an overall score. Find out more at http://www.principledtechnologies.com/benchmarkxprt/touchxprt/.
3. Measured by WebXPRT* 2013. WebXPRT 2013 uses scenarios created to mirror the tasks you do every day to compare the performance of almost any Web-enabled device. It contains four HTML5- and JavaScript-based workloads: Photo Effects, Face Detect, Stocks Dashboard, and Offline Notes. Find out more at http://www.principledtechnologies.com/benchmarkxprt/webxprt/. File transfer workload measures time transferring a 423 MB playlist from a PC to a tablet.
4. Measured by SYSmark* 2012 Lite overall score and TabletMark*. SYSmark 2012 Lite is an application-based benchmark that reflects usage patterns of business users in the areas of office productivity, data/financial analysis, system management, and web development. SYSmark 2012 Lite features popular applications from each of their respective fields. Find out more at http://bapco.com/products/sysmark-2012-lite. TabletMark is targeted specifically for touch-enabled devices. With support for Windows* 8 and Windows 8 RT, TabletMark measures performance for two different usage scenarios: Web & Email and Photo & Video sharing. Find out more at http://bapco.com/products/tabletmark.
5. Measured using 3DMark* Ice Storm, a 3-D graphics benchmark that measures 3-D gaming performance. Find out more at http://www.futuremark.com.
6. Display resolution is an OEM feature selection. Consult your system manufacturer for more details.
7. Battery life is measured using a 1080p 10Mbps h.264 Elephants Dream video. Configuration: In the device settings, disable all radios except Wi-Fi. Disable Intel® Display Power Saving Technology (Intel® DPST), set up the system to ~200 nits screen brightness using a full screen white background, and re-enable Intel DPST. Turn OFF the adaptive brightness setting under Power Options in Control Panel. Set “Dim the display” to never on both battery and AC. Set “Put the computer to sleep” to never on both battery and AC. Wait 15 minutes after boot. Launch the default Windows* 8.1 Style UI video player, start the workload video in a loop, and disconnect the AC plug to start the test. Measure the time until battery is exhausted.
8. Requires an Intel® Wireless Display-enabled system, compatible adapter, and TV with 1080p and Blu-ray* or other protected content playback, a compatible adapter and media player supporting Intel® WiDi software, and graphics driver installed. Consult your tablet manufacturer. For more information, see http://www.intel.com/content/www/us/en/architecture-and-technology/intel-wireless-display.html.
9. Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations, and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information, go to http://www.intel.com/performance.
ASUS Transformer Book T100 [the Official ASUS Facebook page, Sept 11, 2013]
The announcements just keep coming! Introducing the ASUS Transformer Book T100, the 2-in-1 Ultraportable laptop with a 10″ tablet powered by Intel’s latest Bay Trail-T quad-core processor. Available in the US starting October 18th from only $349.
ASUS Transformer Book T100 Press Event [ASUS North America YouTube channel, Sept 12, 2013]
In retrospective:
ASUS: We are the real transformers, not Microsoft [‘Experiencing the Cloud’, Oct 17, 2012]
Jerry Shen, CEO, ASUS (from IDF Day 2 Keynote Transcript):
The machine in my hand, T100, which features the incredible Bay Trail quad-core processor, and incredible 11 hours of battery life. With SD IPS display and stereo audios. And the detachable keyboard back features precisely keyboard and touchpad. It’s perfect for productivity. We are very proud of this machine, and very excited about the Bay Trail quad-core promise. It’s perfect, it’s a perfect two-in-one device in the market.
Dell shows off new Venue tablet during IDF 2013 Keynote [camwilmot YouTube channel, Sept 12, 2013]
Neil Hand, VP Product Marketing, Dell (from IDF Day 2 Keynote Transcript):
I am really excited to be here at the Bay Trail launch to talk about some of the new platforms that Dell can actually innovate from some of the Bay Trail technologies that Intel is bringing out.
And what I want to show you today is, firstly, one of our new Windows 8 eight-inch tablets we’ll be introducing very soon. This system is part of a new family that we’re introducing that are going to really innovate and drive new capabilities into very small new form factors.
The whole family will offer several key benefits.
Firstly, quality, quality Dell is renowned for, products that last a long time but have great performance on the screen and usability. Secondly, battery life. Anybody worry about range anxiety? Am I going to be able to turn it on and be able to use it? This really fixes that.
Security, making sure you’re connecting to a business, or you’re connecting to your home. That data is secure in transit and on the device.
And lastly, to make sure that there is connectivity, a range of 4G and LTE connectivity, so wherever you happen to be, you’ll be able to connect to the wells.
So great features in the products. But more importantly, we think, is actually being able to have fun and easy to-use products.
So with this introduction, I’m actually pleased to announce here at IDF that we’ll be branding our new family of tablets, Venue, the Dell Venue family. Venue means the place where things happen. And to us, this really is the place that things happen and becomes the center of the universe.
So you can actually carry your entire life with you, connect back, use Dell pocket clouds to be able to access content, be able to use your files and applications wherever you happen to be, really excited about them.
And October 2 in New York City, we’ll be announcing the entire range of products.
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
Preceding analysis of the announcement materials on this blog:
Unique Nokia assets (from factories to global device distribution & sales, and the Asha sub $100 smartphone platform etc.) will now empower the One Microsoft devices and services strategy [‘Experiencing the Cloud’, Sept 3, 2013]
Other views are given here as well, after the Q&A excerpts coming immediately below. From a Reuters’ editor, an IHS senior analyst, an investment bank executive, and a business news presenter on France24 – in the form of 4 embedded videos. Those views could be summarized as “Nokia did a good deal while the success of Microsoft with this acqusition is uncertain and needs a lot of further investment”.
Let’s see how much the answers to the questions on the Microsoft Nokia Transaction Conference Call (Sept 3, 2013 ) were able to clarify the analyses and critical views:
Tablets?
STEVE BALLMER: Tablets is an area where we absolutely have our own first-party hardware, as you know, and see opportunities to continue to build and strengthen. And it’s an area where we have very strong programs in place with our OEMs, particularly on the Intel Atom-processor-based product lines that people will really get a lot of value on, and you’ll see a range of new products coming for the holiday season.
Scaling Windows down?
TERRY MYERSON: It’s definitely a priority for us to bring Windows to as many customers as we can around the world. Lower-price phones is a strategic initiative for the next Windows Phone release, but we have nothing more really to say now.
Acquisition effect on the reorg?
STEVE BALLMER: No [effect], the reorg is absolutely intact. Obviously, the devices business has a broader scale and new capability. Julie Larson-Green, who is running devices and studios is flat out. We’ve got a lot of work we’re doing here over the next several months. And Julie and her team will work on a planning and integration phase. Julie will continue. She’s excited about working on devices, but absolutely, the critical mass of the group with that acquisition is in the phone space, and Stephen Elop will run the group and will take the appropriate steps with Julie working with Stephen to figure out appropriate integrations.
Windows Phones coming from OEMs in the future?
STEVE BALLMER: Today, Nokia, as I said, is well over 80 percent of all of our phones, and I don’t foresee that changing dramatically in the short run, but as the market grows, I expect to see additional percentages, if you will, go to our OEMs, but it’s premature to predict today. We definitely have interest from OEMs in the Windows Phone opportunity given that people understand we’re going to blaze the trails here with our own first-party hardware.
Cost rationalization over time?
STEVE BALLMER: Amy will take it. I do want to highlight that in many hardware companies, manufacturing labor is primarily outsourced. And Amy can remind us the numbers, but in Nokia, there is more in-sourced manufacturing. Nokia has had a strategy about that that, obviously, they’ve executed very well. But you kind of have apples and oranges a little bit between the 32,000 and our almost 100,000. But Amy, why don’t you provide some context and detail?
AMY HOOD: Sure. Thanks, Brent. About 18,000 of those 32,000 employees are really directly a part of the manufacturing business. And so I think a better way as you think about the scale and opportunity is to really focus on the percentage of Nokia outside of that.
I think both Steve and Stephen did a thoughtful job in the execution slide about talking about the philosophy we’re using as we go through the integration process around the benefits of the incremental sales force that we’re getting with Chris and his team, as well as really going through and being thoughtful about the rationalization so that we get to one voice, one brand, one team that can best execute and be efficient.
What was not possible that the acquisition enables now, or is it only ensuring a presence in the smartphone market for a long-term basis, i.e. ‘One Microsoft’ empowerment?
STEVE BALLMER: Well, the latter is certainly true. We see at least three distinct opportunities to do better as one company than as two.
Number one, we talk about one brand and the unified voice to the market. I will say that I think we can probably do better for consumer name than the Nokia Lumia Windows Phone 1020. And yet, because of where both companies are and the independent nature of the businesses, we haven’t been able to shorten that. Just take that as a proxy for a range of improvements that we feel we can make, we can simplify, the way in which we work with operators and the overall consumer branding and messaging gets much simpler. That is an efficiency of being one company.
On the innovation front, we’ve done a lot of great work together, and yet as two companies, there’s always some lines along which it’s hard to innovate. The Lumia 1020 is awesome in terms of what it has for camera and imaging, and yet I think as one company we would have doubled down on that bet and made an even greater range of software and services investments around the core hardware platform.
Third, I think we get business agility. As two companies, we’re making two independent sets of decisions about where and when and how to invest by country, by operator, by price point, and there is, let me say, an inefficiency financially as well as a lack of agility that comes with that.
So in all three of those areas, despite the fact that I think we’ve done a really good job, we can improve and accelerate quite noticeably.
How the much needed developer support for the fairly aggressive market share assumption will be ensured?
Note: the “fairly aggressive market share assumption” was presented by Microsoft as:
To which I added the following calculation and judgment in my analysis post:
15% of the 1.7B units in 2018 is 255M units. The ~$45 billion estimated revenue at that time means ~$176 ASP. Considering the latest Q2’13 EUR 157 [$207] ASP of Lumia it seems feasible, but in 5 years timeframe it needs a strong premium strategy to achieve that. … NPV – Net Present Value.
TERRY MYERSON: Well, for developers today, Windows offers an incredible opportunity with the installed base of PCs, phones, and tablets, and soon the new Xbox One. We want to offer them this opportunity to build either HTML5 applications or native applications that span all of those devices, enabling them to reach segments of users on those devices, users in an enterprise, users on a gaming console, and just provide them very unique opportunities to monetize their application investments.
So we’re pretty excited about the platforms we’re bringing to market. Developer reception in some areas is certainly better than others, but overall we’re making progress, and we know we’ve got a lot more work to do.
STEVE BALLMER: One of the keys, of course, is driving volume. We think we have differentiated products. We can tell the story a little bit better. We can get the volume up, and we have over 160,000 applications in the store. We know we have a long way to go, and the key is really offering with our own first-party applications and first-party hardware, enough reasons to buy to drive volumes and then attract the broader developer ecosystem.
Obviously, HTML5 would be kind of a neutral thing. I would expect all the major platforms to embrace it to some extent. And in some senses, it takes away a little bit of the apps barrier to entry, which we know we need to work hard on right now.
See also Microsoft Nokia Transaction Conference Call with slides from Microsoft Strategic Rationale inserted- ebook – 3-Sept-2013
edited by Sándor Nacsa from those two sources into an ebook format PDF
The real question around the web is: Can Microsoft do a better job as in Breakingviews: Nokia’s smart to take money & run [Reuters TV YouTube channel, Sept 3, 2013]
The view of an expert from IHS, a big business analysis firm, for comparison:
Microsoft & Nokia still face huge ‘brand and cool’ challenge – Gleeson [4-traders.com, 09/03/2013 | 12:30pm US/Eastern]
Microsoft buys Nokia’s handset business for $7.2 bln. Both companies will be hoping it heralds a new era, but overcoming brand weakness will be a huge challenge. For them both, says IHS Senior Mobile Analyst, Daniel Gleeson.
SHOWS: LONDON, ENGLAND, UK (REUTERS – ACCESS ALL) (SEPTEMBER 3, 2013)
1. IHS, SENIOR MOBILE ANALYST, DANIEL GLEESON, SAYING:
JOURNALIST ASKING DANIEL GLEESON: ‘Well is this a good deal for Nokia and is it enough to drag it into the 21st century?’
DANIEL GLEESON: ‘It is a big deal. Whether it’s not- I don’t think it is enough really. You’ve got two titans of the past really kind of clashing together. It does provide Microsoft with the ability to merge the handset and the software side of the mobile businesses together which gives it a better chance of breaking through. However I think Microsoft are probably being overambitious. Microsoft has stated that they’re aiming to get 15% of the smartphone market by 2018 which will be equivalent to somewhere in the region of more than 200 million smartphones. Given that the current Nokia smartphone run rate is somewhere in the region of 30 million units, that’s quite a lot of growth that they’re looking for and practically I don’t think that’s possible.
JOURNALIST: ‘So you don’t think that Apple and Samsung and the like will be quaking in their boots?’
DANIEL GLEESON: ‘Not at the moment. Microsoft had been very slow in developing the Windows Phone platform over the past few years. There’s been very little development on the software side. Most of the innovation on it has actually come from Nokia. So obviously the hope is that Nokia will be able to bring this innovation to Microsoft and spur on the software development. However, with the current reorganization that Microsoft is going through and the fact that Ballmer is going to be stepping aside at the end of the year or within the next 12 months, that is very uncertain. So it remains to be seen about how Microsoft can evolve and adapt to taking in the hardware unit.’
JOURNALIST: ‘Sorry, just going to say, Nokia’s shares rose almost 50% this morning. But the company as we all know is still a shadow of its former self.’
DANIEL GLEESON: ‘Yeah, it very much is. It used- obviously a couple of years ago Nokia was the largest smartphone and handset vendor in the world. It is now I think like behind the many Chinese, smaller Chinese companies in terms of smartphone shipments and dropping rapidly in terms of the handset market. What we see though is that Nokia does have a good future with its NSN business, its network vendoring business. That’s after going through major turnaround over the past while and then past four quarters it’s managed to turn a profit on that. So that’s going to be the future that Nokia’s looking at and that part of the business is looking bright.’
JOURNALIST: ‘Does this deal do anything to address I suppose what is fundamental certainly in the public’s perception of both companies, the fundamental premise that neither brand is cool in anyway whatsoever. I mean the brands are very, very weak. Does this do anything to address that?’
DANIEL GLEESON: ‘Fundamentally it doesn’t because as you said this is just simply the uniting of two uncool brands. This doesn’t make it any better. It’s going to take a lot of investment from Microsoft to try to turn that brand around. Of course the upside of it is Microsoft has much deeper pockets to do this than Nokia on its own would have. So you are in the situation where Microsoft was funneling a lot of cash into Nokia anyway to try to support the smartphone unit. So Microsoft presumably just by taking it in-house is just absorbing that cost and it’s going to be able to push even more money into it to try to build that brand and to make it better in the future.’
And here is a similar view of an executive from a Danish online investment bank, Saxo Bank: The Nokia deal: What’s Microsoft thinking? [TradingFloorCom YouTube channel, Sept 3, 2013]
Why has Microsoft agreed to buy Nokia’s moible phone business for more than five billion euros? It’s somewhat perplexing to Saxo Bank’s Head of Equity Strategy, Peter Garnry. It’s a great deal for the struggling Finish handset maker, he says. But he has real concerns about how good it will be for Microsoft, one of the world’s leading technology players. Nokia shares rose by around 45% on the open on Tuesday. Peter says it’s also really good news for the company’s bond holders as the company was hemorrhaging cash. However, Peter says Microsoft have paid a lot of money in this deal, which is due to be finalised next year. He says they’re still not as good a hardware company as Samsung or Apple and he adds that nine out of ten acquisitions do not fulfill synergy expectations. He says it’ll be very difficult for Microsoft to integrate Nokia into its business and move it foreward. So where does this leave rival Blackberry, which is already struggling to compete on the smartphone market? Peter says the company should start focusing on what they are good; mobile security and increase shareholder value that way. Nokia’s phone business marks the exit of a 150-year-old company that once dominated the global cellphone market.
The stock market reaction is discussed further in Investors cautious over Microsoft move on Nokia and how one man got his lost bags delivered [FRANCE 24 English YouTube channel, Sept 4, 2013]
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] to have the full Q&A context
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.
STEVE BALLMER: Tablets is an area where we absolutely have our own first-party hardware, as you know, and see opportunities to continue to build and strengthen. And it’s an area where we have very strong programs in place with our OEMs, particularly on the Intel Atom-processor-based product lines that people will really get a lot of value on, and you’ll see a range of new products coming for the holiday season.
WALTER PRITCHARD: And then, Terry, can you talk about just the ability to scale Windows down? Obviously, Nokia has a large base of very low-price feature phones. That base may be sort of dwindling over time, but you’ve been cost-reducing Windows, the specs and so forth, to be able to get Windows down to low-price devices. Can you talk about any efforts to accelerate that process given potentially access to a much bigger pool of low-cost phones that are out there already?
TERRY MYERSON: It’s definitely a priority for us to bring Windows to as many customers as we can around the world. Lower-price phones is a strategic initiative for the next Windows Phone release, but we have nothing more really to say now.
STEVE BALLMER: Operator, we’ll move to the next question please, thanks, Walter.
(Break for direction.)
OPERATOR: Our next question is from Mark Moerdler from Sanford Bernstein, your line is open.
MARK MOERDLER: Thank you. Steve Ballmer, two questions: The first one is how does this affect the reorg? Given hardware was in one group and operating systems in another, software in another, does the Nokia device — does the merger affect that? Does it merge into the hardware business, and hardware/content device group? Or does this now change that? And then I have a follow up.
STEVE BALLMER: No, the reorg is absolutely intact. Obviously, the devices business has a broader scale and new capability. Julie Larson-Green, who is running devices and studios is flat out. We’ve got a lot of work we’re doing here over the next several months. And Julie and her team will work on a planning and integration phase. Julie will continue. She’s excited about working on devices, but absolutely, the critical mass of the group with that acquisition is in the phone space, and Stephen Elop will run the group and will take the appropriate steps with Julie working with Stephen to figure out appropriate integrations.
MARK MOERDLER: Excellent. And then as follow up on it, what’s your expectation going forward in terms of — I just want to clarify this — the percentage of Windows Phones that will be from OEMs?
STEVE BALLMER: Today, Nokia, as I said, is well over 80 percent of all of our phones, and I don’t foresee that changing dramatically in the short run, but as the market grows, I expect to see additional percentages, if you will, go to our OEMs, but it’s premature to predict today. We definitely have interest from OEMs in the Windows Phone opportunity given that people understand we’re going to blaze the trails here with our own first-party hardware.
MARK MOERDLER: Thank you very much, appreciate it.
CHRIS SUH: Thanks, Mark. I just want to remind you, we do want to get to as many questions from as many of you as we can. So I do ask that you please just stick to one question and avoid long, or multi-part questions, please. Operator, next question, please.
OPERATOR: Brent Thill, UBS, your line is open.
BRENT THILL: Thanks. Just on the cost rationalization. Nokia has 32,000 employees versus Microsoft at 99,000. A considerable bulk of employees. Can you just talk about the rationalization over time and your view how that plays out?
STEVE BALLMER: Amy will take it. I do want to highlight that in many hardware companies, manufacturing labor is primarily outsourced. And Amy can remind us the numbers, but in Nokia, there is more in-sourced manufacturing. Nokia has had a strategy about that that, obviously, they’ve executed very well. But you kind of have apples and oranges a little bit between the 32,000 and our almost 100,000. But Amy, why don’t you provide some context and detail?
AMY HOOD: Sure. Thanks, Brent. About 18,000 of those 32,000 employees are really directly a part of the manufacturing business. And so I think a better way as you think about the scale and opportunity is to really focus on the percentage of Nokia outside of that.
I think both Steve and Stephen did a thoughtful job in the execution slide about talking about the philosophy we’re using as we go through the integration process around the benefits of the incremental sales force that we’re getting with Chris and his team, as well as really going through and being thoughtful about the rationalization so that we get to one voice, one brand, one team that can best execute and be efficient.
CHRIS SUH: Thanks, Amy. Next question, please, operator.
OPERATOR: Keith Weiss, Morgan Stanley, your line is open.
KEITH WEISS: Thank you guys for taking the question. You guys have talked about the success and the partnership to date in putting out some really good products. I was wondering, Steve, perhaps you could give us some concrete example of what does the acquisition enable you to do that you guys couldn’t do through the partnership? And maybe give us some more concrete examples there. Or is that maybe not the point? Maybe the point is more so that this really solidifies Microsoft’s presence in the smart phone market, and this is more about ensuring that you guys are going to be a presence here for a long-term basis.
STEVE BALLMER: Well, the latter is certainly true. We see at least three distinct opportunities to do better as one company than as two.
Number one, we talk about one brand and the unified voice to the market. I will say that I think we can probably do better for consumer name than the Nokia Lumia Windows Phone 1020. And yet, because of where both companies are and the independent nature of the businesses, we haven’t been able to shorten that. Just take that as a proxy for a range of improvements that we feel we can make, we can simplify, the way in which we work with operators and the overall consumer branding and messaging gets much simpler. That is an efficiency of being one company.
On the innovation front, we’ve done a lot of great work together, and yet as two companies, there’s always some lines along which it’s hard to innovate. The Lumia 1020 is awesome in terms of what it has for camera and imaging, and yet I think as one company we would have doubled down on that bet and made an even greater range of software and services investments around the core hardware platform.
Third, I think we get business agility. As two companies, we’re making two independent sets of decisions about where and when and how to invest by country, by operator, by price point, and there is, let me say, an inefficiency financially as well as a lack of agility that comes with that.
So in all three of those areas, despite the fact that I think we’ve done a really good job, we can improve and accelerate quite noticeably.
KEITH WEISS: Excellent, thank you.
CHRIS SUH: Thanks, Keith. Operator, I think we have time for two more questions, next question, please.
OPERATOR: Rolfe Winkler, Wall Street Journal, your line is open.
ROLFE WINKLER: Hi, you guys have 15 percent, a fairly aggressive market share assumption for where you guys are going to go in a few years. I guess I’m wondering, to get there, one thing you’re going to need is a lot of developer support. Developers already have IOS, Android — you can make an argument that HTML5 over the next few years will grow, that will give them a third development platform. How will you guys convince them to develop for Windows Phone?
STEVE BALLMER: Terry, why don’t you talk a little bit about developers, if you don’t mind?
TERRY MYERSON: Well, for developers today, Windows offers an incredible opportunity with the installed base of PCs, phones, and tablets, and soon the new Xbox One. We want to offer them this opportunity to build either HTML5 applications or native applications that span all of those devices, enabling them to reach segments of users on those devices, users in an enterprise, users on a gaming console, and just provide them very unique opportunities to monetize their application investments.
So we’re pretty excited about the platforms we’re bringing to market. Developer reception in some areas is certainly better than others, but overall we’re making progress, and we know we’ve got a lot more work to do.
STEVE BALLMER: One of the keys, of course, is driving volume. We think we have differentiated products. We can tell the story a little bit better. We can get the volume up, and we have over 160,000 applications in the store. We know we have a long way to go, and the key is really offering with our own first-party applications and first-party hardware, enough reasons to buy to drive volumes and then attract the broader developer ecosystem.
Obviously, HTML5 would be kind of a neutral thing. I would expect all the major platforms to embrace it to some extent. And in some senses, it takes away a little bit of the apps barrier to entry, which we know we need to work hard on right now.
CHRIS SUH: Thanks. Operator, let’s move to the last question, please.
OPERATOR: Our last question comes from Rick Sherlund.
RICK SHERLUND: Thanks. I wonder if you could just share with us whether ValueAct was made aware of this before they entered their cooperation and standstill agreement.
STEVE BALLMER: Brad, do you want to take that?
BRAD SMITH: The answer is no. You would not expect the company to disclose material, non-public information to an entity that doesn’t have an appropriate non-disclosure agreement. So the answer is no.
RICK SHERLUND: Okay, thank you.
CHRIS SUH: Okay, so that will wrap up our call today. Thank you, again, for joining us. We look forward to seeing many of you at our financial analyst meeting, which will be held on September 19th. Thanks again.
END
Assesment of the Xiaomi phenomenon before the global storm is starting on Sept 5
Follow-up: Xiaomi announcements: from Mi3 to Xiaomi TV [‘Experiencing the Cloud’, Sept 5, 2013] with detailed information links and videos about the two market leading SoCs used in Mi3:
– NVIDIA Tegra 4 with 4+1 Cortex-A15 CPU, 72 GeForce GPU and the absolutely unique Chimera™ solution for HDR (High Dynamic Range imaging) photography and video recording
– Qualcomm Snapdragon 800 with the high-end Krate 400 CPU cores and Adreno 330 GPU
(Actually the benchmark performances are roughly equal although Qualcomm needs for that a much higher frequency.)
The news came yesterday declaring not less than
A new Android chapter [Hugo Barra on Google+, Aug 29, 2013]
After nearly 5½ years at Google and almost 3 years as a member of the Android team — the most amazing group of people I’ve ever worked with in my life — I have decided to start a new career chapter.
In a few weeks, I’ll be joining the Xiaomi team in China to help them expand their incredible product portfolio and business globally — as Vice President, Xiaomi Global. I’m really looking forward to this new challenge, and am particularly excited about the opportunity to continue to help drive the Android ecosystem.
It has been an amazing ride and true honor to be part of the Android team at Google, and I especially want to thank +Andy Rubin , +Hiroshi Lockheimer , +Sundar Pichai and +Vic Gundotra for their phenomenal support and mentorship over the years.
+Android team, I will truly miss you all!
To which co-founder and president of Xiaomi Corporation Bin Lin responded on his facebook account on August 29:
I am truly grateful to have Hugo joining Xiaomi to help lead our international business.
Being Google’s VP of Product Management for Android, Hugo has a deep understanding of Xiaomi’s unique business model of building a fully compatible Android OS (aka MIUI) by embracing the openness of the internet, building top performance device with great user experience, and selling direct to consumers at substantially lower price. We’ve achieved some level of success in China market. Hugo is the best person to drive this globally.
Being ex-Googler myself, I’ve always made sure that Xiaomi shares many of the believes as Google Android. For instance, we believe in protecting the Android ecosystem and therefore our handsets have always passed Android CTS [i.e. achieving Google Play compatibility]. We believe in top performance device and eCommerce sell-direct would benefit consumers. We are committed to drive the Android ecosystem moving forward.
Welcome to Beijing, Hugo!
Last time we have seen Hugo Barra at a press event in San Francisco with
Google’s Nexus 7 goes full HD [CNETTV YouTube channel, July 24, 2014]:
News were first leaked in: Android’s Hugo Barra Departs Google for China’s Xiaomi [AllThingsD, Aug 28, 2013 at 5:15 PM PT]
What’s going on? After Sundar Pichai expanded his Chrome responsibilities to Android as well, and Andy Rubin left the Android scene, so Hugo Barra became the #1 man in Google’s Android efforts, he is leaving for a much less influential Chinese maker of Android forked smartphones? What is the sense for him to have such a move?
In what follows below I will be able to give all the well justified reasons for that. Moreover, thanks to my earlier posts analyzing the Xiaomi phenomenon in all details, I will be able to convince every reader of this post in the most concise way that Hugo Barra was absolutely right about his decision to move to Xiaomi, as an even bigger thing is on the Horizon than what Google may become in the future.
Let’s start with the all-new RMB799 ($130) low-end superphone segment of Xiaomi: Xiaomi Red Rice (Hongmi) review
[a Xiaomi video on Youku via phonezilla2013 YouTube channel, Aug 21, 2013]
More information: UPDATE 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 [‘Experiencing the Cloud’, Dec 12, 2012; Aug 1, 2013]
Note: Xiaomi Red Rice (Hongmi) manufacturing cost (BOM) has been estimated by TrendForce to be $84.7. See the press release, also included here in the very end of this post.
Then let’s see (note the Sept 5 warning on the illustration which is from Xiaomi itself):
| Previous segments |
Aug 16, 2011: | Aug 16, 2012: | April 9, 2013: |
| USD$326.6 | Xiaomi smartphone | Xiaomi 2 | Xiaomi 2S |
| USD$249.9 | Xiaomi 1S | Xiaomi 2A |
![image_thumb5[1]](https://lazure2.files.wordpress.com/2013/08/image_thumb511.png "image_thumb5[1]")
Detailed further information and market analysis:
– Xiaomi, OPPO and Meizu–top Chinese brands of smartphone innovation [‘Experiencing the Cloud’, Aug 1, 2013]
– The Upcoming Mobile Internet Superpower [‘Experiencing the Cloud’, Aug 13, 2013]
Note: Only when you read The Upcoming Mobile Internet Superpower post (not only the e-book included there) completely (i.e. with the follow-up and global analysis parts) your understanding of the all-new Xiaomi Horizon could be sufficiently complete. It is only possible to give as a teaser certain crucial facts here:
– “The broader vision of Xiaomi, Lei [the founder and CEO of Xiaomi] pointed out, is to ship more than 100 million smartphones annually for one model by 2016” that was published in China Daily back 15 months ago. With Hugo Barra now in charge of Xiaomi Global it will be easy to achieve that, even far overcome.
– There is a new (maybe final before an IPO) round of financing said to be disclosed also on Sept 5 by Xiaomi. The amount was rumored as being not less than $2B and “from Chinese internet and mobile services firm Tencent (0700.HK), with Russian investment firm Digital Sky Technologies (DST) acting as an intermediary”. DST already invested $90 million into Xiaomi in Dec 2011, and another $216 million in Dec 2012.
– Then, DST is controlled by Russia’s richest man Alisher Usmanov with ~20B of private wealth and an additional ~13B wealth of its two business partners also controlled by Usmanov via 100% voting rights in his USM Holdings empire. USM Holdings has three groups of assets in its portfolio: Internet (with DST and a complete Mail.Ru Goup), Telecoms (with Megafon, Russia’s second largest mobile operator in terms of revenue and subscribers and the market leader in the mobile data segment, as well as Yota, the leader of the mobile broadband sector in Russia), Media and Steel & Mining.
– Tencent is controlled by Naspers (33.9%) which also heavily invested into the Mail.Ru Group earlier (29%), and might have some minority share of DST itself, indirectly via Tencent definitely (getting not less than 10.26% of DST with a $300M investment into it in April, 2010). Although Naspers’s CEO, Koos Bekker has a personal fortune of ‘only’ $580M (mid’12, so now closer to $1B probably) but has been the unquestioned leader and decision maker of the company, which has a market capitalisation of about $57B (mid’12, now much higher). Also Tencent’s own market capitalisation is not less than $88.6B (Aug 15, 2013).
– Also, Venture Capital Dispatch reported in January this year that “DST Global counts Chinese e-commerce giant Alibaba and online retailer JingdongMall [pre April 2013 360buy] as part of its Asian portfolio. DST, alongside other private equity firms like Silver Lake agreed to buy shares in Alibaba at a tender offer of $1.6 billion in 2011. That same year, DST Global also participated in a $1.5 billion third round of funding in Jingdong [pre April 2013 360buy] , with media reports stating that DST bought a 5% share in the online retailer for $500 million. … DST Global spent around $1.5 billion on both of those deals, said [DST partner John] Lindfors [responsible for the Chinese market].”
(AND THE FACTS DO NOT END HERE BUT ARE GOING TO EVEN HIGHER ECHELONS OF GLOBAL CAPITALISM. GOLDMANN SACHS AND LARRY SUMMERS ARE THE MOST NOTABLE EXAMPLES. BUT DO NOT FORGET J.P. MORGAN EITHER WHICH IS HAVING A 5% OWNERSHIP OF TENCENT AS WELL. So read The Upcoming Mobile Internet Superpower post completely.)
Now an additional focus on Xiaomi’s design and user experience leadership must be emphasized here, out of all that above (the illustration below is again from Xiaomi):
Xiaomi MI2 Product 3D View [Xiaomi China YouTube channel, Aug 25, 2013]
Xiaomi Fans Festival: MIUI V5 Design Concept [MrMiui YouTube channel, April 9, 2013]
Xiaomi One Minute Show 01 Smooth MIUI [Xiaomi China YuTube channel, May 22, 2013]
0:04 This is our smooth MIUI v5
0:07 You can feel the smooth animation effect from every detail of MIUI v5
0:11 when switching the list in apps like Contacts or App Market
0:18 Feel the smooth switch of the background in the interface of Music
0:22 even the tiny volume icon is smoothly optimized as well
0:25 Your playlist, album photo and lyrics are perfectly combined
0:31 Switch between the camera and gallery swiftly and smoothly
0:37 When you open a photo album, you can see photos smoothly blossom on your screen
0:43 You can also have a quick and smooth slide when there are a lot of photos in your album
0:48 All the icons vibrate smoothly after reordering
0:51 We also redesigned the animation of deleting apps
0:55 You can feel the smooth animation everywhere in MIUI v5
1:00 What do you think of MIUI v5?
1:03 For more Xiaomi One Minute Show, please visit Xiaomi Community
Note: The Xiaomi community is on https://www.facebook.com/xiaomichina. The other shows are available when one click on the “YouTube” in the header (not all of them are one minute long). The “proper” One Minute Shows I found on XiaomiHK: currently 11, unfortunately all in Chinese.
There is also a MIUI community around the world which will make Barra’s job much easier. With ‘MIUI fan clubs’ – already available in 23 countries 15 months ago – the localization problem has been well solved. These fan clubs are producing MIUI ROMs for modding a range of already existing phones. And the results are quite good:
MIUI 5 on Samsung Galaxy s4 !!! (Review) [TheExilimus YouTube channel, July 28, 2013]
Note: this is why 20+ million MIUI users were indicated on the previous illustration by Xiaomi vs. 15+ million Xiaomi phone users.
Moreover, MIUI is continously evolving, and updated every Friday based on feedback from its users. The latest example (full description of the update):
MIUI ROM 3.8.30 Update Highlights [MrMiui YouTube channel, Aug 29, 2013]
Also the marketing hype generated by Xiaomi should be emphasized separately here as well. It is best demonstrated by this:
Xiaomi 2012 Conference Start Show [Xiaomi China YouTube channel, Aug 27, 2013]
What kind of company Xiaomi is, after all?
Explanation: Xiaomi CEO: Don’t call us China’s Apple [Reuters TV YouTube channel, Aug 15, 2013]
Based on this interview Reuters published its news article For China’s Xiaomi, it’s what’s on the inside that counts [Aug 16, 2013] from which the following excerpts are the most relevant ones here:
Xiaomi looks a bit like Apple but is really more like Amazon with some elements of Google,” Lei said in an interview in Beijing, dressed in a blue shirt, blue jeans and brown shoes.
“The mobile phone is only the carrier,” Lei said. “Microsoft used to sell Windows in a box with a CD in it. Does that make Microsoft a paper box company?”
…
The 43 year-old chief executive said it was high time for the Apple comparisons to end and the rivalry with local tech giants Alibaba Group Holding, Baidu Inc and Tencent Holdings Ltd to start.
Xiaomi currently makes around 20 million yuan ($3.27 million) a month in revenue from its mobile Internet platform, which includes a game centre, an online marketplace and a social messaging app that competes with Tencent’s popular WeChat.
In the first half, that figure was equivalent to less than 1 percent of monthly revenue, company data shows.
Lei estimated mobile Internet revenue may rise to as much as 150 million yuan [$24.41 million] a month by the end of next year as Xiaomi develops what he called its software ecosystem.
He declined to give specific details, but said Xiaomi had the hardware it needed to expand into online services.
“Xiaomi selling mobile phones is like Amazon selling Kindles,” he added.
This points quite clearly to the expansion of Xiaomi’s application (and operations) portfolio towards the e-commerce. Only this way would be possible to increase the current annualized revenue of about $40 million from the mobile Internet platform to about $300 million in just one a half year. This also means that in the long-run Xiaomi is going to be a mobile e-commerce company with affordable mobile devices offered as well, and not a premium device company, like Apple. Similarly, there are fundamental differences of the same kind from the business model of Samsung as well. Even more, this means an all-encompassing disruption of the whole industry.
Finally read this 3d party analysis:
TrendForce：Xiaomi’s New Red Rice Phone Takes China by Storm, Carries $US 85 BOM [press release, Aug 29, 2013]
(Note that Xiaomi’s own superphone segments are different as was shown above:
USD$326.6 for high-end superphones, USD$249.9 for mid-range superphones, and
?USD$130? for low-end superphones, with the latest question mark for the reason of not yet announced global prices – as the USD$130 equivalent RMB799 is China only price. Wait for Sept 5.)
According to global market research firm TrendForce, smartphone manufacturing costs are decreasing – in 2014, low-end devices that cost less than US$150 are expected to represent 14% of total smartphone shipments worldwide, up from 11% forecasted for this year. Mid-end smartphones, which cost between US$150 and US$450, are projected to account for more than 50% of shipments in 2014. Clearly, smartphone makers looking to expand their market share cannot overlook the low to mid-end sector. Fully aware of this, Chinese smartphone manufacturer Xiaomi has released a Hongmi, or Red Rice, a device with decent specifications and a low price tag of RMB799 [$130].
Taking a look at Red Rice’s hardware, its MediaTek MT6589 chipset accounts for 20% of total manufacturing cost. The 4.7-inch, 312 ppi IPS display by AUO represents 22% of cost and is a significant upgrade from the 220 ppi display commonly used in similarly priced devices. Based on component cost, total manufacturing cost for the Red Rice device is estimated at US$85 (4Q”13). With a retail price of RMB799, roughly equivalent to US$130, Xiaomi is profiting at a rate difficult for other smartphone makers to keep up with.
Xiaomi is not relying on traditional sales channels for its new device but turning to Internet retailers instead – the company hopes to garner revenue from software, advertising, etc., creating a new smartphone profit model. TrendForce believes Xiaomi is able to offer Red Rice at such a low price because the maker has a solid grasp on three important points of cost control.
– First, Xiaomi usually unveils new products very early, at least a quarter before the actual release date, which gives component cost time to decrease.
– Second, Xiaomi controls inventory better than its competitors. Using an Internet pre-order sales model, Xiaomi is able to get a more exact estimation for initial production, thereby avoiding risk if sales are not as strong as expected.
– Third, by marketing via social networks, Xiaomi cuts down on advertising costs, enabling the manufacturer to continue causing a stir on the market with each new device release.Red Rice’s groundbreaking price will inevitably have an influence on other smartphone manufacturers’ pricing strategies, especially for low to mid-end products. Currently, Xiaomi’s main market is China. The company is eagerly expanding on foreign markets as well, but results have been limited. Whether Xiaomi’s low prices will have an effect on smartphone makers in other markets will depend on the Chinese manufacturer’s foreign sales.
TrendForce believes Xiaomi’s long-term strategy includes continued expansion on the domestic market as well as breaking into foreign markets with high price-performance ratio devices. As social networking platform services and software are the company’s main sources of profit, Xiaomi will need to develop new strategies to attract consumers in foreign markets. As the company’s recently closed funding round has skyrocketed its valuation, Xiaomi is financially set to expand in foreign markets, potentially by acquiring local businesses. Or, the funds could be used to improve manufacturing and ensure timely product delivery, a notable weakness of the growing company.
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
First recent findings about The hierarchy of developer needs: Creativeness, not money is the top motivator [VisionMobile blog, Aug 12, 2013] are showing quite clearly how much Microsoft is in disadvantage in the global developers community not only vs. iOS and Android, but even vs. HTML5 in general, which is already a real third platform for developers. Regarding that read UPDATE: HTML5 Vs. Native Mobile Apps — HTML5 Is Down But Not Out [Business Insider Australia, Aug 14, 2013], HIGHLY RECOMMENDED!
It is even more so as a much better HTML5 platform (than the corresponding Windows 8 subset, so called WinJS) came now to the market with FireFox OS:
– as its “first two devices hitting the market – the Alcatel OneTouch Fire and ZTE Open – the latter just launched in Spain from Telefonica for €69 ($90) contract-free including €30 ($39) of airtime for prepaid” according to p. 12 of the free Developer Economics Q3 2013 [VisionMobile, July 29, 2013] report
– and “In just a short space of time, Firefox OS has managed to amass a respectable Developer Intent share, even before devices hit the market, and while competing for Windows Phone, Windows 8 and BlackBerry 10 all of which are much older platforms, with devices in market and billions of market dollars behind them.” as per p. 24 of the same report.
Now the quite important findings from The hierarchy of developer needs: Creativeness, not money is the top motivator [VisionMobile blog, Aug 12, 2013]
What motivates developers? Is it fame or fortune? Our new Developer Segmentation 2013 report [starting from £1,495.00] addresses this questions, presenting a needs-bases segmentation model that focuses on developer goals, not just demographics. Based on data from our latest Developer Economics survey (6,000 respondents from 115 countries [FREE to download from here: HIGHLY RECOMMENDED]), this article gives you some insights from the report, discussing how the sense of achievement, not money is the prime motivator for developers.
…
Most business are resorting to traditional, textbook marketing techniques to segment developers – by technology (web, Java, Windows, Android, Apple), job function (coders, designers, architects, team leads, IT managers, CxOs), by company size, app category (games vs enterprise developers), by audience (B2C vs B2B) or by demographics (age, income, education or location).
Yet all these segmentation models are bound to fail, as they fundamentally neglect to address how developers make investment decisions in a new platform, API or SDK. In other words, it’s not age, job function, audience or technology background that influences how a developer chooses between Apple, Google, Windows Phone, BlackBerry or Tizen.
To understand the complex mosaic of developer personas we segment developers in terms of their outcomes, or what developers are trying to achieve. This is based on the Jobs to Be Done methodology, popularized by Harvard Professor Clay Christensen and which constitutes today’s cutting edge in segmentation techniques. We have backed this model with unprecedented statistical rigor and hard data, from the largest-ever mobile developer survey of 6,000+ developers.
Building on our earlier Developer Economics 2012 research work, we extracted hard data on thousands of developers in terms of their aspirations, motivations, challenges and plans in app development. We produced a unique model of eight developer segments – the Hobbyists, the Explorers, the Hunters, the Guns for Hire, the Product Extenders, the Digital Content Publishers, the Gold Seekers and the enterprise IT developers.
How do these eight segments and three clusters contribute to the app economy? More importantly, when do these segments interact with platforms?
We find that Explorers and Hobbyists, those seeking to learn, have fun and self-improve, make up 33% of the mobile developer population but only 13% of the app economy revenues. These segments prefer – more than average – BlackBerry 10, Windows Phone as a platform, as these are more often associated with experimentation and learning.
The Hunters and Guns for Hire, those seeking revenues from the app economy, make up 42% of the developer population and 48% of the app economy revenues. These segments prefer – more than average – iOS as a platform, due to the consistent revenue-generating opportunities of the platform.
Product Extenders, Enterprise IT developers, Digital Content Publishers and Gold Seekers, aiming at extending a [non-mobile] business [with apps], make up 29% of the developer population, and a whopping 39% of app economy revenues. These segments prefer – more than average – Android and HTML5 as a platform – due to the reach that these platforms offer across the entire smartphone and feature phone installed base.
… <goes to “The Hierarchy of Developer Motivations” chart, not relevant to this post, so omitted> …
Then Microsoft should take into account The evolution of handset business models: From source of profits to distribution channel [VisionMobile blog, Aug 5, 2013]
The evolution of the PC and mobile handset industry have been mirror images of each other, as both saw two distinct disruptions: a new market disruption, followed by a low-end disruption. Guest author Sameer Singh discusses how the shift from integrated companies to modular competitors will pressure hardware profit margins across the industry, leading to the emergence of a new business model, i.e. hardware-as-distribution.
The mobile handset industry has already seen two waves of disruption: A “new market disruption”, led by Apple, and a “low-cost disruption”, driven by Google and its Android platform. Each wave created distinctly different business models that completely realigned competitive dynamics in the industry. Where do we go from here?
We believe that the coming, third wave of disruption will again reshuffle the deck for all industry players. We will see growth in a new class of business models, where handset hardware is no longer seen as a source of profits, but is treated as a distribution channel for digital products and services.
… <two long sections about “Dual Disruption Patterns in Computing” and “Impact of Value Chain Integration on Business Model Evolution” which are quite important to prove the author’s prediction about the inevitability of the third wave of mobile handset industry disuption, but for us here it is sufficient for our subject to include his “Third Disruption” discussion> …
The Third Disruption: Hardware as a Distribution Channel
As there will be fewer profits left in the handset industry, a third wave of disruption is a certainty.
In the PC industry, once the dominance of modular architectures led to deep commoditization, hardware just became a distribution channel for software (the operating system and applications). The evolution of the mobile handset industry works out slightly differently. Google essentially destroyed the software licensing business model by giving the Android operating system away for free. Consequently, the cost of owning a proprietary operating system became unviable for most players (like Motorola, Sony Ericsson or Nokia) because hardware margins became severely pressured. This ensured that industry focus and profitability would accrue to the next layer of the value chain that was underserved, i.e. Google’s core business – online services.
In the PC industry, OEMs like Dell and Sony used the “hardware as distribution” approach to charge software vendors to pre-install applications on their devices and boost margins. In the mobile industry, we have seen already numerous companies follow this model to create a competitive advantage by leveraging established ecosystems. Many service companies like Baidu, Dropbox, Opera, Facebook and Whatsapp have attempted this strategy by partnering with OEMs to pre-install or use their services by default.
Another variation of this strategy, followed by services and content companies, is selling relatively high-end hardware at cost, in order to enable deeper penetration of the company’s core services. Companies like Amazon and Xiaomi compete asymmetrically with true hardware vendors in order to expand their consumer base. Both strategies have been quite successful – Amazon has expanded Kindle Fire availability to numerous countries based on strong sales and Xiaomi expects to double its handset sales
to 15 millionthis year [to 20 million, see p. 25 of my The Upcoming Mobile Internet Superpower mini e-book]. Many more services companies like Evernote and Spotify are contemplating the low-cost, “hardware as distribution” strategy in the future. We have already seen a smartphone called SmartNamo dedicated to an Indian politician, Narendra Modi. Will we see a “Justin Bieber phone”, “Shah Rukh Khan phone” or even a “Real Madrid phone”?Rapid commoditization will only make it easier for companies to convert hardware into a distribution channel. The tablet industry has seen more price competition than the smartphone market in the absence of carrier-driven price distortions. As a result, commoditization has been much more rapid and the “hardware as distribution” model has come to the forefront in a very narrow time frame. Low-cost tablet hardware has allowed companies like Newscorp to enter the industry with preloaded, education-focused content. We have seen similar models emerge in South Africa, India, China and many more countries. As price competition increases, commoditization pressure in the smartphone industry, variations of “hardware as distribution”, could become one of the primary drivers of profitability.
The expected shift in handset business models will reshuffle the deck once again. Companies that catch the trend early will find plenty of opportunities to create competitive advantages and thrive in the new environment. Those who miss it will be destined to fight the losing battle of “competition to the best”, which Prof. Porter calls “the granddaddy of all strategy mistakes”.
On pp. 32-33 of my The Upcoming Mobile Internet Superpower mini e-book [Aug 14, 2013] it was further noted that:
China Daily reported not less than 14 months ago that Xiaomi, China’s Apple success story?
…
The broader vision of Xiaomi, Lei [Jun, chairman and chief executive officer of Xiaomi Corp] pointed out, is to ship more than 100 million smartphones annually for one model by 2016.
“I know it (the vision) is crazy, but we would like to have a try,” said Lei. Cupertino-based Apple managed to sell more than 90 million iPhone devices last year. It is widely believed that Apple will break the 100 million unit mark this year, although it has been less than five years since the first iPhone launched in 2007.
The difference in business model was even more clearly communicated in this recent interview: Xiaomi CEO: Don’t call us China’s Apple [Reuters TV YouTube channel, Aug 15, 2013]
This shows very well how the above mentioned third disruption could fundamentally alter the current state of mobile intelligent devices market. As far as our subject is concerned my three other posts are giving further clues about growing Microsoft difficulties:
-
Google Play catchup with iOS App Store and its way of assuring compatibility across Android 1.6 to 4.3 [Aug 15, 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 [Aug 17, 2013] from which I include here this major chart (from myself) as well:
Watch also a recent video report closely related to that: In China smartphone market, cheap rules – and Apple suffers [Reuters TV YouTube channel, Aug 19, 2013]
-
Android to overtake the overall PC market? [Aug 20, 2013] from which I include here this major chart (from IDC) as well:
Consider also Apple and Samsung Losing Share to Chinese Smartphone Makers [China Internet Watch, Aug 7, 2013]
The high-end players like Apple and Samsung are losing share to Chinese manufacturers like ZTE, Huawei, and Lenovo, and no-name brands which are willing to make extremely cheap smartphones. As you can see in the picture, Samsung’s Q2 share in 2013 is 1% lesser than that of 2012, and Apple decreases 3.6% share, while Chinese manufacturers grow 3.5%.
Android to overtake the overall PC market?
I came to this after the recent posts of mine (between July 20 and August 17, 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
- Google Play catchup with iOS App Store and its way of assuring compatibility across Android 1.6 to 4.3
- The Upcoming Mobile Internet Superpower
- China is the epicenter of the mobile Internet world, so of the next-gen HTML5 web
- Superphones turning point: segment satured with Tier 1 globals while the Chinese locals are at less than 40% of the Samsung price
- Xiaomi, OPPO and Meizu–top Chinese brands of smartphone innovation
- GiONEE (金立), the emerging global competitor on the smartphone market
- Eight-core MT6592 for superphones and big.LITTLE MT8135 for tablets implemented in 28nm HKMG are coming from MediaTek to further disrupt the operations of Qualcomm and Samsung
as well as after the accumulated contents of my separated website on the whole issue of ‘USD99 Allwinner’ devoted to a multifaceted disruption to not only the traditional PC market but even to the current tablet market as the analyst companies are viewing that.
Those analyst companies are already hinting indirectly to the possibility of Android (sooner or later) overtaking the overall PC market via the following headlines which I derived from their recent press release contents:
- IDC: ‘Tablets will surpass portable PC volumes already this year’
- Gartner: ‘Traditional PC shipments to decline as tablets are becoming the primary consumption device’
- Digitimes Research: ‘Overtaking iPad will happen in 2H13’
- Canalys says ‘Yes’
- EnfoDesk (Analysys International) from China says ‘For sure, as it is already happening against the iPad in China even at a nascent stage of the local tablet market’
You can read those release in the detailed sections given below.
Before that first note: Everything is rooted in the established fact that: TrendForce: iPad Marked Historically Low Market Share 35% of Global Q2 Tablet Shipment [press release, July 25, 2013] (although the exact number differs between the different market research organisations, as you will see in the detailed sections below)
According to the survey by WitsView, the display research division of the global market intelligence provider TrendForce, the global shipment of the 7” tablets with WSVGA resolution and above attained 41.1 million units, dropping 12.4% from the previous quarter. The seasonal factor, the generation shuffles for some mainstream products, and the inventory adjustments amid the weakening sales were all key reasons for declining shipments.
WitsView’s research director Eric Chiou says that Apple, as one single brand that controls the most volumetric tablet shipment, saw its 9.7” iPad entering the end of life cycle in Q2, and iPad mini’s relatively selling prices caused slow sales and the impacts from the inventory adjustments, leading to a dropping shipment of 14.6 million units compared with 19.5 million units in Q1. On top of the quarterly drop as high as 25%, its market share has dropped to 35.5%, the new historical low.
Samsung’s ambition of boosting the tablet shipment was also shown on the Q2 shipment. Despite its slightly decreased shipment of 8.8 million units from the previous quarter, the Korean maker’s market share, supported by the newly launched 8” model, grew from 20.2% to 21.5%, still a remarkable result. As for the two leading PC brands, Asus and Acer, their business cores both were placed on the under-$130 7” products, and the price-cutting strategy helped them become the two of a few brands counter to the declining trend, seeing excellent QoQ growth of 60% and 36%, respectively.
“The two long-term winners of the entry-level tablet segment, Amazon and Google, showed unideal shipment results, holding shipment volumes of only 1.1 million and 0.9 million units, respectively,” Chiou indicates. Amazon’s 2013 new models are all concentrated after September and the brand is in an empty-product period, while Google’s fighter model Nexus 7 had the 1st generation approach the end of life cycle in Q2 and saw a significantly dropping shipment. The single-quarter shipment will bounce back to more than 2 million units in Q3 as the 2nd generation product is projected to ship smoothly.
The white-box tablet couldn’t avoid the decline in Q2. The price increases and the short supply for the key component RAM led to double strikes of cost increase and insufficient supply to white-box tablets that had smaller production scales, in addition to brands’ strongly promoted entry-level tablets that squeezed their room for survival. Under both the internal and external impacts, the white-box tablet saw a shipment volume of only 9.7 million units, declining 7% QoQ
Based on WitsView’s analysis, on top of Amazon’s yearly new 7” model and the 2nd generation of Nexus 7, several highly-anticipated models will be revealed in Q3, including Apple’s heavyweight Generation 5 iPad and the new Android 10.1” tablet intensively designed by PC brands. With the stimulation of improved spec and tempting prices, the Q3 shipment is projected to reach an amount of 49.6 million units, challenging a QoQ growth of 21%. The tablet shipment for the entire 2013 is estimated at 196.5 million units, including 153.2 million units of brand tablets and 43.3 million units of white-box tablets.
The second well established fact affecting the future is that Surface RT was a huge market failure first recognized indirectly via the FORM 10-K submission of the Microsoft on July 18, 2013.
… The general availability of Surface RT and Windows 8 started on October 26, 2012. The general availability of Surface Pro started on February 9, 2013. …
ITEM 6. SELECTED FINANCIAL DATA
… includes a charge for Surface RT inventory adjustments recorded in the fourth quarter of fiscal year 2013, which decreased operating income by $900 million, net income by $596 million, and diluted earnings per share by $0.07. …
RESULTS OF OPERATIONS
…
- Cost of revenue increased $2.7 billion or 16%, reflecting increased product costs associated with Surface and Windows 8, including an approximately $900 million charge for Surface RT inventory adjustments, higher headcount-related expenses, payments made to Nokia related to joint strategic initiatives, royalties on Xbox LIVE content, and retail stores expenses, offset in part by decreased costs associated with lower sales of Xbox 360 consoles and decreased traffic acquisition costs.
- Sales and marketing expenses increased $1.4 billion or 10%, reflecting advertising of Windows 8 and Surface.
…
Windows Division
…
Fiscal year 2013 compared with fiscal year 2012
Windows Division revenue increased $839 million. Surface revenue was $853 million. …
Cost of revenue increased $1.8 billion, reflecting a $1.6 billion increase in product costs associated with Surface and Windows 8, including a charge for Surface RT inventory adjustments of approximately $900 million. Sales and marketing expenses increased $1.0 billion or 34%, reflecting an $898 million increase in advertising costs associated primarily with Windows 8 and Surface.
…
The possibility of such failure was already recognized in my other posts:
- Microsoft Surface with some questions about the performance and smoothness of the experience [Nov 12 –28, 2012]
- Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests [Nov 13-20, 2012]
IDC: ‘Tablets will surpass portable PC volumes already this year’
IDC Forecasts Worldwide Tablet Shipments to Surpass Portable PC Shipments in 2013, Total PC Shipments in 2015 [press release, May 28, 2013]
According to a new forecast from the International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker, tablet shipments are expected to grow 58.7% year over year in 2013 reaching 229.3 million units, up from 144.5 million units last year. IDC now predicts tablet shipments will exceed those of portable PCs this year, as the slumping PC market is expected to see negative growth for the second consecutive year. In addition, IDC expects tablet shipments to outpace the entire PC market (portables and desktops combined) by 2015. (A press release summarizing IDC’s latest PC market forecast can be found here.)
“What started as a sign of tough economic times has quickly shifted to a change in the global computing paradigm with mobile being the primary benefactor,” said Ryan Reith, Program Manager for IDC’s Mobility Trackers. “Tablets surpassing portables in 2013, and total PCs in 2015, marks a significant change in consumer attitudes about compute devices and the applications and ecosystems that power them. IDC continues to believe that PCs will have an important role in this new era of computing, especially among business users. But for many consumers, a tablet is a simple and elegant solution for core use cases that were previously addressed by the PC.”
While Apple has been at the forefront of the tablet revolution, the current market expansion has been increasingly fueled by low-cost Android devices. In 2013, the worldwide average selling price (ASP) for tablets is expected to decline -10.8% to $381. In comparison, the ASP of a PC in 2013 is nearly double that at $635. IDC expects tablet prices to decline further, which will allow vendors to deliver a viable computing experience into the hands of many more people at price points the PC industry has strived to meet for years.
“Apple’s success in the education market has proven that tablets can be used as more than just a content consumption or gaming device,” said Jitesh Ubrani, Research Analyst for the Worldwide Quarterly Tablet Tracker. “These devices are learning companions, and as tablet prices continue to drop, the dream of having a PC for every child gets replaced with the reality that we can actually provide a tablet for every child.”
In addition to lower prices, another major shift in the tablet market has occurred around screen sizes. Apple’s first generation iPad, which included a 9.7-inch display, was perceived by many as the sweet spot for tablets. That is, until 7-inch Android-based tablets began to gain traction in the market. Apple responded with the iPad mini in the fourth quarter of 2012, and in the space of two quarters the sub-8-inch category exploded to overtake the larger-sized segment in terms of total shipments.
Worldwide Tablet Market Share by Screen Size Band, 2011 – 2017
Screen Size
2011
2013
2017
< 8″
27%
55%
57%
8″ – 11″
73%
43%
37%
11″+
0%
2%
6%
Total
100%
100%
100%
Source: IDC Worldwide Tablet Tracker, May 28, 2013.
* Forecast Data
Table Notes:
- Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
- IDC considers all LCD-based slate devices with screens between 7 and 16 inches as tablets, regardless of whether or not they include a removable keyboard (such as the Surface RT). Convertible devices with non-removable keyboards (such as Lenovo’s Yoga) are not counted as Tablets.
Tablet Shipments Slow in the Second Quarter As Vendors Look To Capitalize on a Strong Second Half of 2013, According to IDC [press release, Aug 5, 2013]
As expected, worldwide tablet shipment growth slowed in the second quarter of 2013 (2Q13), according to preliminary data from the International Data Corporation (IDC)Worldwide Quarterly Tablet Tracker. Worldwide tablet shipments finally experienced a sequential decline as total volumes fell -9.7% from 1Q13. However, the 45.1 million units shipped in the second quarter was up 59.6% from the same quarter in 2012, when tablet vendors shipped 28.3 million devices.
Lacking a new product launch in March to help spur shipments, Apple’s iPad saw a lower-than-predicted shipment total of 14.6 million units for the quarter, down from 19.5 million in 1Q13. In years past, Apple has launched a new tablet heading into the second quarter, which resulted in strong quarter-over-quarter growth. Now, Apple is expected to launch new tablet products in the second half of the year, a move that better positions it to compete during the holiday season. Meanwhile, the other two vendors in the top 3 also saw a decline in their unit shipments during the quarter. Second-place Samsung shipped 8.1 million units, down from 8.6 million in the first quarter of 2013, although up significantly from the 2.1 million units shipped in 2Q12. And third-place ASUS shipped a total of 2.0 million units in 2Q13, down from 2.6 million in 1Q13.
“A new iPad launch always piques consumer interest in the tablet category and traditionally that has helped both Apple and its competitors,” said Tom Mainelli, Research Director, Tablets at IDC. “With no new iPads, the market slowed for many vendors, and that’s likely to continue into the third quarter. However, by the fourth quarter we expect new products from Apple, Amazon, and others to drive impressive growth in the market.”
Not all vendors experienced a slowdown during the quarter. PC stalwarts Lenovo and Acer both re-entered the top five this quarter. Lenovo continued to make headway into the world of mobility and for the first time had shipments surpass the million unit mark in a quarter, shipping a total of 1.5 million devices. This was up 313.9% from a year ago and enough to capture 3.3% market share. Rounding out the top 5 was Acer, which shipped 1.4 million tablets in 2Q13 for 247.9% year-over-year growth and an increase of 35.4% over the first quarter of 2013.
“The tablet market is still evolving and vendors can rise and fall quickly as a result,” said Ryan Reith, Program Manager for IDC’s Mobility Tracker programs. “Apple aside, the remaining vendors are still very much figuring out which platform strategy will be successful over the long run. To date, Android has been far more successful than the Windows 8 platform. However, Microsoft-fueled products are starting to make notable progress into the market.”
Top Five Tablet Vendors, Shipments, and Market Share, Second Quarter 2013 (Shipments in millions)
Vendor
2Q13 Unit Ship-ments
2Q13 Market Share
2Q12 Unit Ship-ments
2Q12 Market Share
Year-over-Year Growth
1. Apple
14.6
32.4%
17.0
60.3%
-14.1%
2.Samsung
8.1
18.0%
2.1
7.6%
277.0%
3. ASUS
2.0
4.5%
0.9
3.3%
120.3%
4. Lenovo
1.5
3.3%
0.4
1.3%
313.9%
5. Acer
1.4
3.1%
0.4
1.4%
247.9%
Others
17.5
38.8%
7.4
26.2%
136.6%
Total
45.1
100.0%
28.3
100.0%
59.6%
Source: IDC Worldwide Tablet Tracker, August 5, 2013.
See additional Table Notes following the last table.
Top Tablet Operating Systems, Shipments, and Market Share, Second Quarter 2013 (Shipments in Millions)
Vendor
2Q13 Unit Ship-ments
2Q13 Market Share
2Q12 Unit Ship-ments
2Q12 Market Share
Year-over-Year Growth
1. Android
28.2
62.6%
10.7
38.0%
162.9%
2. iOS
14.6
32.5%
17.0
60.3%
-14.1%
3.Windows
1.8
4.0%
0.3
1.0%
527.0%
4. Windows RT
0.2
0.5%
N/A
N/A
N/A
5.BlackBerry OS
0.1
0.3%
0.2
0.7%
-32.8%
Others
0.1
0.2%
N/A
N/A
N/A
Total
45.1
100.0%
28.3
100.0%
59.6%
Source: IDC Worldwide Tablet Tracker, August 5, 2013
Table Notes:
- All data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.
- 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.
- IDC considers all LCD-based slate devices with screens between 7 and 16 inches as tablets, regardless of whether or not they include a removable keyboard (such as the Surface RT). Convertible devices with non-removable keyboards (such as Lenovo’s Yoga) are not counted as Tablets.
Gartner: ‘Traditional PC shipments to decline as tablets are becoming the primary consumption device’
Gartner Says Worldwide PC, Tablet and Mobile Phone Shipments to Grow 5.9 Percent in 2013 as Anytime-Anywhere-Computing Drives Buyer Behavior [press release, June 24, 2013]
Traditional PC Shipments to Decline 10.6 Percent in 2013, While Tablet Shipments Increase 67.9 Percent
Worldwide devices (the combined shipments of PCs, tablets and mobile phones) are projected to reach 2.35 billion units in 2013, a 5.9 percent increase from 2012, according to Gartner, Inc. The market is being driven by sales in tablets, smartphones, and to a lesser extent, ultramobiles, as PC shipments are on the decline.
Worldwide traditional PC (desk-based and notebook) shipments are forecast to total 305 million units in 2013, a 10.6 percent decline from 2012 , while the PC market including ultramobiles is forecast to decline 7.3 percent in 2013 (see Table 1). Tablet shipments are expected to grow 67.9 percent, with shipments reaching 202 million units, while the mobile phone market will grow 4.3 percent, with volume of more than 1.8 billion units. The sharp decline in PC sales recorded in the first quarter was the result in a change in preferences in consumers’ wants and needs, but also an adjustment in the channel to make room for new products hitting the market in the second half of 2013.
“Consumers want anytime-anywhere computing that allows them to consume and create content with ease, but also share and access that content from a different portfolio of products. Mobility is paramount in both mature and emerging markets,” said Carolina Milanesi, research vice president at Gartner.
Table 1
Worldwide Devices Shipments by Segment (Thousands of Units)
Device Type
2012
2013
2014
PC (Desk-Based and Notebook)
341,273
305,178
289,239
Ultramobile
9,787
20,301
39,824
Tablet
120,203
201,825
276,178
Mobile Phone
1,746,177
1,821,193
1901,188
Total
2,217,440
2,348,497
2,506,429
Source: Gartner (June 2013)
Demand for ultramobiles (which includes Chromebooks, thin and light clamshell designs, and slate and hybrid devices running Windows 8) will come from upgrades of both notebooks and premium tablets, such as the Apple iPad or Galaxy Tab10.1. Analysts said ultramobile devices are gaining in attractiveness and drawing demand away from other devices. This will be even more evident in the fourth quarter of 2013 when the combination of new design based on Intel processors Bay Trail and Haswell running on Windows 8.1 will hit the market. Although these devices will only marginally help overall sales volumes initially, they are expected to help vendors increase average selling prices (ASPs) and margins.
The tablet and smartphone markets are facing some challenges as these devices gain longer life cycles. There has also been a shift as many consumers go from premium tablets to basic tablets. The share of basic tablets is expected to increase faster than anticipated, as sales of the iPad Mini already represented 60 percent of overall iOS tablet sales in the first quarter of 2013.
“The increased availability of lower priced basic tablets, plus the value add shifting to software rather than hardware will result in the lifetimes of premium tablets extending as they remain active in the household for longer. We will also see consumer preferences split between basic tablets and ultramobile devices,” said Ranjit Atwal, research director at Gartner. “With mobile phones, volume expectations for 2013 have been brought down as the life cycles lengthen as consumers wait for new models and lower prices to hit the market in the Fall and holiday season. The challenge in the smartphone market is also that, as penetration moves more and more to the mass market, price points are lowering and in most cases so do margins.”
“Although the numbers seem to paint a clear picture of who the winner will be when it comes to operating systems (OS) in the device market (see Table 2), the reality is that today ecosystem owners are challenged in having the same relevance in all segments,” said Ms. Milanesi. “Apple is currently the more homogeneous presence across all device segments, while 90 percent of Android sales are currently in the mobile phone market and 85 percent of Microsoft sales are in the PC market.”
Table 2
Worldwide Devices Shipments by Operating System (Thousands of Units)
Operating System
2012
2013
2014
Android
505,509
866,781
1,061,270
Windows
346,464
339,545
378,142
iOS/MacOS
212,878
296,356
354,849
RIM
34,584
25,224
22,291
Others
1,118,004
820,592
689,877
Total
2,217,440
2,348,497
2,506,429
Source: Gartner (June 2013)
Additionally, with enterprises’ growing acceptance of bring your own device (BYOD), there is an increase in consumer-owned devices in the computing world. Gartner forecasts that computing devices bought by consumers will grow from 65 percent in 2013 to 72 percent in 2017. This signifies the growing importance of designing for the consumer inside the enterprise.
Gartner’s detailed market forecast data is available in the report, “Forecast: Devices by Operating System and User Type, Worldwide, 2010-2017, 2Q13 Update.” The report is on Gartner’s website athttp://www.gartner.com/resId=2524916.
Gartner Says Worldwide PC Shipments in the Second Quarter of 2013 Declined 10.9 Percent [press release, July 10, 2013]
PC Industry Continues to Shrink as the Installed Base Restructures to Accommodate Tablets as the Primary Consumption Device
Worldwide PC shipments dropped to 76 million units in the second quarter of 2013, a 10.9 percent decrease from the same period last year, according to preliminary results by Gartner, Inc. This marks the fifth consecutive quarter of declining shipments, which is the longest duration of decline in the PC market’s history.
All regions showed a decline compared to a year ago. The fall in the Asia/Pacific PC market continued, showing five consecutive quarters of the shipment decline, while the EMEA PC market registered two consecutive quarters of double-digit decline.
“We are seeing the PC market reduction directly tied to the shrinking installed base of PCs, as inexpensive tablets displace the low-end machines used primarily for consumption in mature and developed markets,” said Mikako Kitagawa, principal analyst at Gartner. “In emerging markets, inexpensive tablets have become the first computing device for many people, who at best are deferring the purchase of a PC. This is also accounting for the collapse of the mini notebook market.”
HP and Lenovo’s neck-and-neck competition continued. This time, Lenovo was back in the top position by only a small difference in share (see Table 1). Lenovo showed mixed regional results, as it experienced strong growth in the Americas and EMEA, while showing a major decline in Asia/Pacific. Weakness in China was most likely the contributor of Lenovo’s shipment decline in the region as the majority of Lenovo’s volume came from China.
While HP was slightly behind Lenovo, HP is a market leader in key regions including the U.S., EMEA and Latin America. Asia/Pacific has been a weakness the last three years for HP, but preliminary second quarter results suggest an improvement of their performance in the region.
Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q13 (Units)
Company
2Q13 Ship-ments
2Q13 Market Share (%)
2Q12 Ship-ments
2Q12 Market Share (%)
2Q12-2Q13 Growth (%)
Lenovo
12,677,265
16.7
12,755,068
14.9
-0.6
HP
12,402,887
16.3
13,028,822
15.3
-4.8
Dell
8,984,634
11.8
9,349,171
11.0
-3.9
Acer Group
6,305,000
8.3
9,743,663
11.4
-35.3
ASUS
4,590,071
6.0
5,772,043
6.8
-20.5
Others
31,041,130
40.8
34,675,824
40.6
-10.5
Total
76,000,986
100.0
85,324,591
100.0
-10.9
Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media tablets such as the iPad.
Source: Gartner (July 2013)
Dell’s shipments declined compared to a year ago, but its 2Q13 results showed a smaller decline than the past several quarters. Dell showed good growth in the U.S. and Japan, but struggled to increase shipments in Asia/Pacific and EMEA. Both Acer and ASUS showed steep declines compared to the second quarter last year. The decline was partly affected by their strategies to exit the mini-notebook market.
“While Windows 8 has been blamed by some as the reason for the PC market’s decline, we believe this is unfounded as it does not explain the sustained decline in PC shipments, nor does it explain Apple’s market performance,” Ms. Kitagawa said.
In the U.S. market, PC shipments totaled 15 million units in the second quarter of 2013, a 1.4 percent decline from the second quarter of 2012 (see Table 2). This decline was less than the past seven quarters, and the market grew 8.5 percent sequentially.
“Our preliminary results indicate that this reduced market decline was attributed to solid growth in the professional market,” Ms. Kitagawa said. “Three of the major professional PC suppliers, HP, Dell and Lenovo, all registered better than U.S. average growth rate. The end of Windows XP support potentially drove the remaining PC refresh in the U.S. professional market.”
Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 2Q13 (Units)
Company
2Q13 Ship-ments
2Q13 Market Share (%)
2Q12 Ship-ments
2Q12 Market Share (%)
2Q12-2Q13 Growth (%)
HP
3,957,761
26.4
3,976,041
26.2
-0.5
Dell
3,681,725
24.6
3,458,736
22.8
6.4
Apple
1,740,500
11.6
1,818,959
12.0
-4.3
Lenovo
1,515,562
10.1
1,266,109
8.3
19.7
Toshiba
848,984
5.7
1,006,900
6.6
-15.7
Others
3,230,717
21.6
3,659,220
24.1
-11.7
Total
14,975,249
100.0
15,185,965
100.0
-1.4
Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media tablets such as the iPad.
Source: Gartner (July 2013)
PC shipments in Europe, Middle East and Africa (EMEA) were weakened in the second quarter of 2013, with a 16.8 per cent decline over the same period last year, marking the fifth consecutive quarter of decreasing shipments.
“The sharp decline in the second quarter of 2013 was partly due to the shift in usage patterns away from notebooks to tablets, and partly because the PC market was exposed to inventory reductions in the channel due to the start of the transition to new Haswell-based products,” said Isabelle Durand, principal research analyst at Gartner. “Touch-based notebooks still account for less than 10 per cent of the total consumer notebook shipments in the last quarter.”
“Shipment levels remained weak in Western Europe in the second quarter of 2013 as PC replacement rates continued to be extremely low, while the challenging economic environment is muting spending in consumer markets,” said Ms Durand. “Shipments in Eastern Europe also remained low as this is typically a quiet quarter for business buyers in the region, and consumers are predominantly looking for Android-based tablets. In the Middle East and Africa, tablet and smartphone adoption also continued to draw demand away from PCs in the second quarter of 2013.”
Despite the steep shipment decline, HP retained the top position in EMEA due to better results in the professional PC market. Lenovo was the only top five vendor to exhibit shipment growth, recording a fourth consecutive quarter of growth and taking second place in the EMEA PC vendor rankings in the second quarter of 2013.
Acer exhibited the worst performance of the second quarter with a shipment decline of 38.5 percent year-on-year. Most of Acer’s decline resulted from its portfolio shifting away from netbooks to Android tablets. ASUS also experienced a PC shipment decline in the second quarter 2013. The drop of its netbooks continued to impact its overall notebook results.
Table 3
Preliminary EMEA PC Vendor Unit Shipment Estimates for 2Q13 (Units)
Company
2Q13 Ship-ments
2Q13 Market Share (%)
2Q12 Ship-ments
2Q12 Market Share (%)
2Q12-2Q13 Growth (%)
HP
3,779,160
17.8
4,683,376
18.3
-19.3
Lenovo
2,641,622
12.4
2,180,362
8.5
21.2
Acer Group
2,456,255
11.5
3,995,518
15.6
-38.5
Dell
1,979,895
9.3
2,173,552
8.5
-8.9
ASUS
1,743,345
8.2
2,670,268
10.4
-34.7
Others
8,675,143
40.8
9,864,285
38.6
-12.1
Total
21,275,420
100.0
25,567,361
100.0
-16.8
Notes: Data includes desk-based PCs and mobile PCs, including x86 tablets equipped with Windows 8. All data is estimated, based on a preliminary study. Final estimates will be subject to change. The statistics are based on the shipments selling into channels.
Source: Gartner (July 2013)
In Asia/Pacific, PC shipments surpassed 26.8 million units in the second quarter of 2013, an 11.5 percent decline from the first quarter of 2012. All country markets across the region showed weakness, but India performed slightly better due to a state PC tender fulfillment. China’s PC shipment remained weak as the consumer market was hampered with lack of new demand generation programs, such as subsidized PC program in the rural cities.
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. Additional research can be found on Gartner’s Computing Hardware section on Gartner’s website at http://www.gartner.com/it/products/research/asset_129157_2395.jsp.
Digitimes Research: ‘Overtaking iPad will happen in 2H13’
Digitimes Research: iPad sees its first on-year shipment drop in 2Q13 [July 29, 2013]
Global tablet shipments reached 29.32 million units in the second quarter of 2013, down 8.2% sequentially, but still up 46.6% compared to the same period a year ago. As overall market demand is declining, both iPad and non-iPad product shipments have been impacted. Because of the iPad mini’s significant shipment drop, Apple’s tablet shipments in the second quarter were only 14.6 million units, down 25.1% sequentially and 2.7% on year, according to Digitimes Research’s latest figures.
As for non-iPad tablet shipments, non-Apple brand vendors’ new products and the second-generation Nexus 7 have both contributed to the volume, helping it to grow 18.5% on quarter and reach 14.72 million units. However, since Samsung Electronics and Lenovo have both increased their in-house production rates, Taiwan’s share of global tablet shipments dropped below 70% in the second quarter with shipments of only 20.38 million units, Digitimes Research figures showed.
In terms of brand vendors’ ranking, Apple and Samsung Electronics were the top-two players, followed by Asustek Computer third, Lenovo fourth and Acer sixth. As for processor rankings, MediaTek was the third-largest supplier in the second quarter thanks to its strategy of pushing mainly in the entry-level segment, only behind Apple and Texas Instruments (TI). Nvidia was the fourth largest with Samsung and Intel following closely behind.
Digitimes Research: Tablet shipments to grow 17.7% on year in 2H13 [Aug 6, 2013]
Tablet shipments in the second half are expected to reach 82.07 million units, up 17.7% on year; however, several changes will also occur during the period: hardware brand vendors will dominate the small-size tablet segment; non-iPad tablet shipments will surpass those of iPad; closed Android platforms will be impacted by the official Android platform; and Qualcomm and MediaTek will replace Texas Instruments (TI) and Nvidia in the non-Apple camp, according to Digitimes Research’s latest figures.
Small-size devices are expected to become mainstream products of the tablet market, accounting for 70% of total shipments in the second half. Non-iPad tablet shipments are also expected to surpass those of iPad and reach 45.07 million units. With the non-iPad camp’s strong shipments, over 50% of global tablets will adopt the Android operating system in the second half, Digitimes Research estimates.
Android’s large market share will also strongly impact closed Android platforms such as Amazon’s operating system for its tablets due to lack of key application support.
The Retina display-featured iPad mini may not appear before the end of 2013 due to the panel’s weak yield rate and the possibility that the device may undermine sales of the new high-end iPad. As a result, Apple’s shipments in the second half may drop to 37 million units with an on-year growth of 3%.
As for Windows-based tablets, although Microsoft is offering more price cuts for its Small Screen Touch (SST) program, the deal is unlikely to help push vendors to release Windows-based devices and the platform will only account for 3.8% of second-half tablet shipments.
Qualcomm became the processor supplier of the second-generation Nexus 7 and the third-generation Kindle Fire, replacing Nvidia and TI. Qualcomm will ship close to 10 million processors in the second half of 2013, becoming the largest CPU supplier of the non-Apple camp. MediaTek, thanks to its hardware brand clients’ small-size tablet orders, will become the second largest supplier, followed by Samsung Electronics and Intel, both of whom will ship over seven million units.
Taiwan makers’s tablet shipments will reach 59.45 million units in the second half, but as Samsung and Lenovo are increasing their in-house production rates, Taiwan makers’ share of global tablet shipments will drop to around 70%. As ODMs are aggressively competing for orders, Apple, Amazon and Asustek Computer will no longer place most of their orders with only Foxconn Electronics (Hon Hai Precision Industry) and Quanta Computer and will spread out their orders more evenly, Digitimes Research believes.
Canalys says ‘Yes’
Small tablets drive big share gains for Android [Canalys press release, Aug 1, 2013]
– Android overtakes iOS with 53% market share in tablets
Over 34 million tablets shipped in Q2 2013, a 43% year-on-year increase. Tablets now account for 31% of worldwide PC shipments. But Apple’s performance faltered. Its tablet shipments declined 14% on Q2 2012 and its market share dropped to 43%. The chasing pack of Samsung, Amazon, Lenovo and Acer each grew annually by over 200%, driven by increasing demand for small-screen tablets. Canalys estimates that 68% of tablets shipped in Q2 had a screen size smaller than 9″. ‘Consumers have been evaluating tablets and the results are now in,’ said Tim Coulling, Canalys Senior Analyst. ‘With touch-screens contributing to a high proportion of the build cost of a tablet, small-screen products can be priced very aggressively.’
Apple’s decline in shipments and share has been partly attributed to its aging portfolio. But Canalys believes that new product launches will have less impact on its shipments in future. ‘When Apple does decide to refresh its iPad range it will not experience the buzz of previous launches,’ said Canalys Analyst James Wang. ‘Tablets are now mainstream products and hardware innovation is increasingly difficult. With branded Android tablets available for less than $150, the PC market has never been so good for consumers, who are voting with their wallets.’ The move to smaller tablets has sparked a price war that has real consequences for the entire supply chain. These products generate little absolute margin for channel partners, vendors or component manufacturers. Content, applications and accessories (especially cases and keyboards) are now even more important to boost margins – areas where Apple remains a leader.
In addition to disappearing margins, inventory management is emerging as a major challenge. If a vendor overcommits at the product planning stage, unsold inventory can play havoc with a company’s balance sheet, even with other hit products in a portfolio. The market for full-sized tablets has stalled and even Apple has found it harder to sell its larger iPads in recent quarters. ‘Microsoft’s inventory issues with the Surface have been well publicized,’ said Coulling. ‘Heavily discounted Surface RTs will fly off the shelves. Expect prices to continue to fall though, as the starting price of $350 is still too expensive to spark an HP TouchPad-style buying frenzy.’
Despite its 53% share, Android still lags far behind iOS in the availability of fully-optimized tablet apps, and tablet app downloads from the Apple App Store dwarf those from Google Play. But Android is expected to continue to close the ecosystem lead iOS has in tablets and increase share in coming quarters. ‘Developers can and will quickly switch their priorities as different opportunities evolve and improve,’ said Canalys Senior Analyst Tim Shepherd. ‘We expect to see a substantial increase in the quantity, as well as the quality, of apps built or optimized for Android tablets over the next 12 months, as Google brings more attention to them through improvements to the Play store, and as the addressable base of devices continues to soar.’
While it is true that Apple is losing its stranglehold on the tablet market in terms of volume, it will remain its most profitable vendor for years to come. Apple has already faced a similar battle in the smart phone market, and it now looks increasingly likely that it is readying a product that can address lower price tiers and high-growth markets in that space. If this is indeed the case, Apple could replicate a similar portfolio play in the tablet market. It will be in no rush – after all, the launch of the iPad mini was designed to address this segment. But its hand could be forced if competitors’ prices continue to plummet. The margin models in the smart phone and tablet markets are very different. It will still make good margin on a cheaper iPhone but will struggle to do so with a cheaper tablet, and would instead need to rely increasingly on accessory sales and, likely, subsidy from apps and content purchases.
PC market flat in Q2 2013, despite tablet growth [Canalys press release, Aug 6, 2013]
– Android takes 17% of PC market in Q2 as PC vendors turn to Google for tablets
The worldwide PC market experienced a quarter without growth, as a 42.9% increase in tablet shipments was offset by declines in desktop and notebook shipments, which fell 7.4% and 13.9% respectively. Despite tablet growth slowing in Q2, Canalys still believes that tablets will outsell notebooks by Q4 of this year.
PC shipments in EMEA fell by 3% year-on-year in Q2, the first decline after two successive quarters of double-digit growth. Western Europe and Central and Eastern Europe continue to be challenging for vendors, with annual declines of 10% and 3% respectively. PC shipments in the Asia Pacific region declined 0.5% year-on-year to just over 40 million units. The region was badly affected by slow shipments in the People’s Republic of China, which accounted for almost 45% of the region’s shipments and declined by approximately 6%. Demand for smart phones and tablets is increasing around the world. Faced by an industry in transition, channel partners are exercising caution when planning and placing orders.
Apple remained the top PC vendor in Q2, with a 4.5 million unit lead over second-placed Lenovo. But Apple’s share fell more than two percentage points to 17.1% from 19.4% in Q2 last year due an annual decrease in iPad shipments. Desktop and notebook shipments only accounted for around 20% of its total PC shipments. With tablet vendors attacking Apple on price it must bring fresh innovation to future generations of its iPad range if it is to maintain the lead it has built in the PC market.
Lenovo had a strong quarter, gaining share in its core notebook and desktop categories, as well as tablets. Its performance in Q2 was helped by strong annual growth in EMEA (34%), the US (28%) and Latin America (93%). Lenovo’s tablet business also performed well – it shipped around 1.5 million units. ‘It is striking how successful it has been in globalizing its PC business and breaking the 1 million unit barrier is an important milestone for its tablet shipments,’ noted Canalys Analyst James Wang. ‘Lenovo is on an upward curve with its tablets, expanding in mainland China and Latin America, where there is little competition from the likes of Google or Amazon.’
HP has overtaken Samsung to regain third place. HP has recently changed its tablet strategy and launched its first Android tablet in Q2, the Slate 7. ‘HP has a broad enterprise portfolio, channel relationships and global reach that others still cannot match,’ said Canalys Research Analyst Pin-Chen Tang. ‘To increase its market share it should look to leverage its strengths in the enterprise to advance Android in business.’
iOS and Android have profited from the shift to tablets, as they have proved to be the only type of PC with any momentum. Android’s share of the total PC market increased to 17% in Q2 2013 from 6% a year ago. With the likes of HP, Lenovo and Samsung looking to use Android to compete with iOS in the tablet space, the platform is well placed to continue increasing its share. Google is targeting the consumer market and has its sights set on beating Apple in the smart phone and tablet space. Android remains weak in management and security, which is preventing commercial uptake. Google, or its partners, must address this shortfall quickly if it is to penetrate the enterprise
There has been rapid innovation in the Windows category, as vendors such as HP, Lenovo, Toshiba and Acer have built PCs using a variety of new form factors. These products are struggling to take off as the difference in price between Android and Windows-based tablets remains high. ‘Component pricing has been an issue, particularly with multi-touch screens, though scale economies make this less of an issue as demand increases. The price of Windows itself is a contributing factor and one that Microsoft must address as a matter of urgency. Its PC OEM partners are in an increasingly difficult position and consolidation in the PC market is inevitable within the next 12 months,’ said Tim Coulling, Canalys Senior Analyst.
Half a billion PCs to ship in 2013 as tablet sales rocket [Canalys press release, June 11, 2013] – Tablet shipments to grow by 59% this year to reach 182.5 million units
Canalys’ latest forecasts for the PC market (desktops, notebooks and tablets) predict that 493.1 million units will ship in 2013, representing 7% year-on-year growth. The key driver behind this growth will be tablets, which will account for 37% of the market, up from a quarter in 2012. Looking ahead to 2017, Canalys expects that 713.8 million PCs will ship worldwide (a CAGR of 9.7%), with 64% being tablets and 25% notebooks.
Worldwide demand for tablets has gone from strength to strength, while that for desktops and notebooks has waned. In the first quarter of 2013, the desktop market fell 10.3% and the notebook market declined 13.1%. The size of the tablet market, however, more than doubled in Q1 2013, with a 106.1% increase in shipments to 41.9 million units. Shipments show no sign of slowing and Canalys forecasts that in 2013 tablet shipments will reach 182.5 million units, with global tablet shipments surpassing those of notebooks in the final quarter of the year.
The reception to Windows 8 has not reinvigorated demand for Microsoft-based PCs but there is a glimmer of hope for OEMs with Microsoft’s plan to release Windows 8.1 as a free upgrade. ‘Microsoft will continue to innovate. New versions will come and its OS release cycle will gain speed. But it must address some of the criticisms that have been directed at the OS’s user interface or it risks losing even more ground to iOS and Android in the PC space,’ said Tim Coulling, Senior Analyst at Canalys.
A plethora of PC vendors have now come to market with cheaper Android devices, notably Acer, Asus and HP, but these vendors are joining a crowded market. ‘Shipment numbers can be high but absolute margins on these products are expected to be small. Low-priced tablets will not be lucrative but it is necessary to compete or a vendor will simply lose relevance and scale. In fact, accessories, particularly cases, as well as the new generation of high-tech ‘appcessories’ will likely provide higher margins than the products themselves,’ said Pin-Chen Tang, Research Analyst. ‘This new influx of Android devices will provide a boost to the platform and
Canalysthereforeexpects Android to take a 45% share this year, behind Apple at 49%[this prediction failed already for Q2 results as was reported on Aug 1 by Canalys: ‘Android overtakes iOS with 53% market share in tablets‘]. The iPad mini is expected to continue selling well, becoming more significant in terms of the product mix and spawning a further increase in consumer demand for smaller tablets.’The great hope for Windows 8 was that it would unleash new PC form factors, combining the best of both PCs and tablets. But James Wang, an Analyst at Canalys, noted, ‘These convertible products have disappointed so far. Convertibles are too heavy in tablet form and too expensive when compared with clamshell products. Canalys therefore expects that, for at least the next 18 months, consumers will buy separate products, rather than compromise on a Windows 8 convertible or hybrid PC. Even for Android products, alternative form factors are not expected to grow rapidly due to the category being sandwiched between low-cost slates and more familiar Windows-based clamshell notebooks.’ Out of the 388.1 million mobile PCs (notebooks and tablets) that Canalys forecasts will ship in 2013, it estimates that less than 2% will be hybrids or convertibles.
Another ray of light for PC vendors is that PC sales to businesses are, and will continue to be, far stronger than those to consumers. This trend favors the likes of HP and Lenovo, though competition will increase as others shift resources toward the commercial channels to maximize their opportunity.
Canalys definitions
Appcessories: Products that connect to applications on smart devices (smart phones, tablets and notebook PCs).
Clamshell: A notebook with keyboard/second screen fixed with a one-directional hinge only enabling movement up to 180⁰.
Convertible: A notebook with keyboard/second screen that can be converted to a tablet form factor.
Slate: A tablet that is not designed by its manufacturer to be fixed to a keyboard accessory with a hinge.
Hybrid: A tablet that is designed by its manufacturer to be fixed to a keyboard accessory with a hinge.
About Canalys
Canalys is an independent analyst firm that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. Our customer-driven analysis and consulting services empower businesses to make informed decisions and generate sales. We stake our reputation on the quality of our data, our innovative use of technology, and our high level of customer service.
EnfoDesk (Analysys International) from China says ‘For sure, as it is already happening against the iPad in China even at a nascent stage of the local tablet market’
Industry data: 2013Q2 Chinese Tablet PC market sales of 3.58 million, the rapid expansion of domestic [products], apple [products] decline significantly [enfodesk.com, Aug 14, 2013] as translated by Google and Bing, with manual edits:
According to Analysys think tank EnfoDesk latest monitoring data shows that in the second quarter of 2013 tablet PC sales in China reached 3,576,000 units, up 5.2% Q/Q growth.
According to Analysis think tank EnfoDesk in the last quarter of 2013 sales growth on the tablet PC market in China slowed down to only 5.2% Q/Q growth rate, mainly due to weak sales of Apple’s tablet computers, as its sales fell for the first time. And Samsung had eye-catching performance this quarter, after N5110 Galaxy Note 8 has been released, and sought after by the market, so the Samsung Tablet PC overall sales increased dramatically, pulling the overall market growth. Worth mentioning this quarter is that domestic brand tablet PCs, such as Teclast (台电) [see Teclast’s Tmall site in Chinese, or Pandawill’ Teclast global online site in English] and ONDA (昂达) [see ONDA’s global site in English] have gained more market share with their low prices, ultra high yield of price/performance, and best selling online channels.
Throughout the three major tablet platforms, iOS declined significantly, it will be difficult to stop its market share erosion trends; Windows was tepid, the release of Microsoft Surface and continuous price cuts did not enhance the Windows market activity; Android cut right through the market, by virtue of many manufacturers to compete, high performance models being abundant, covering all price points of consumer groups, and with product prices constantly being refreshed, quickly seized the tablet PC market. If Apple can not launch innovative tablet PC products in the near future, [the event of] Android surpassing iOS market share is around the corner.
Compare this to the situation in 2012:
- China market: Apple shares over 71% of 4Q12 consumer tablet sales, says Analysys [DIGITIMES, April 19, 2013]
Apple occupied 71.6% of consumer tablets sold in the China market during the fourth quarter of 2012, according to China-based Analysys International.
For business-use tablets alone, Eben had the largest market share at 41.9%, followed by Samsung Electronics with 21.0%, Asustek Computer with 6.6% and Lenovo with 4.5%, Analysys indicated.
Vendor
Market share
Apple
71.6%
Lenovo
10.2%
Eben
4.0%
Samsung
3.9%
Acer
2.3%
Asustek
1.5%
Teclast
1.0%
Source: Analysys, compiled by Digitimes, April 2013
- Analysys International: iPad Sales Share Fell in Q3, 2012 [Analysys International, published in English on May 17, 2013]
According to the Quarterly Survey of China’s Tablet PC Market 2012Q3, 2.60 million sets tablet PC have been sold in Chinese market in Q3, 2012. Apple occupied 71.4% market share with a slight drop, Lenovo ranked second, reaching 10.52% and Ereneben ranked third with its market share being 3.61% and Samsung ranked fourth, taking up 3.53% market share.
EnfoDesk, Analysys International finds that 4 factors require our attention concerning China’s tablet PC manufacturers’ market layout in Q3, 2012:
- Compared with last quarter, Apple’s market share dropped from 72.66% to 71.42%. New iPad marketing promotions were made mainly in Q2. In Q3, iPad 2and The New iPad were in normal sales.
- The sales volume of Lenovo tablet PC rose considerably with its market share being 10.52%. Such a growth is resulted from the issue of its new products S2107 and S2109 and promotions when new semester begins for students.
- Ereneben issued its new product T5 in Q3, which drives the overall sales volume, and the price of T4 came down slightly in some provinces, thus increasing the sales volume of Ereneben.
- Samsung tablet PC enjoyed relatively stable sales in Chinese market. The company doubled their efforts in the marketing of tablet PC Note series (7 inches or above versions). Its branding effects gradually brought about and increased its sales in the Chinese market.
Besides, the research on e-business tablet PC market conducted by EnfoDesk, Analysys International shows that Ereneben ranked first with market share being 41.07%. Samsung offered Galaxy Note 10.1 e-tablet PC to consolidate its positioning in e-business tablet PC market. Its market share was 19.66% of total e-tablet PC market. Lenovo’s Thinkpad was in normal sales, only occupied 3.89% market share.
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Analysys International: iPad took up 73% of Tablet PC Market 2012Q2 [Analysis International, published in English on May 16, 2013]
According to the Quarterly Survey of Tablet Market in China 2012Q2, released by EnfoDesk, Analysys International, market share of Apple rose to 72.66% with a sequential growth rate rising by 20.06%. Top 2 was Lenovo that witness a drop of its market share (Its market share was 8.38%). Eben ranked third with its market share being 3.63% and the market share of Samsung came down to 3.59% with its sequential growth rate dropping by 7.69%.
EnfoDesk Analysys International believes that three aspects should be noticed concerning the market layout of tablet PC market in Q2, 2012.
First, the market share of Apple has risen from 65.21% in Q1 to 72.66% in Q2. New iPad came into the market in March; however, since no substantial improvement has been made on the new products, consumers would rather wait to buy in Q2. The price reduction of iPad 2 promoted the sales volume of Apple products, allowing its market share to grow.
Second, compared with Q1, market share of Lenovo shrank. On one hand, it was a dull season; on the other hand, it was caused by its internal policy. In September, Lenovo will launch its promotion of new products when new term begins in September (during the peak season) and the company would rather clean up stocks of its other products in Q2.
Finally, iOS tablet PC suffers less seasonal factors than Android tablet PC. Currently, Android tablet PC market is getting stabilized. Solely relying on traditional sales channel to educate consumers was too slow and manufacturers could carry out more promotions to increase brand influence and brand concentration, grab the market share of smuggled products and clarify market layout of Android tablet PC. In addition, other tablet PC manufactures except Apple should consider its own market position and offer its unique products, gradually getting rid of homogenization of Android tablet PC. Eben as a leader in business tablet PC market offers unique products and its market positioning is clear.
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- Analysys International: 2.34 Million Tablet PCs Were Sold in China 2012Q2 [Analysis International, published in English on May 16, 2013]
According to the statistics recently released by Analysys International, 2.34 million tablet PCs were sold in China in Q2, 2012. The sequential growth rate has reached 7.8%.
Analysys International holds that sales growth of China’s tablet PC in Q2, 2012(The growth rate has reached 7.8%) is due to the following factors:
iPad directly triggered the market fluctuation. The price reduction of iPad forced the average price of tablet PC to go down. As a result, consumers with cash in hand developed their desire to buy and such a desire transformed into procurement, which allowed the sales volume to grow in the dull season.
EnfoDesk, Analysys International predicts that the future market layout will be even clearer. Android manufacturers and others will target middle and low-end consumers with an attempt to avoid direct competition with Apple. Even though the sales volume of Apple will increase, its market share will continue to shrink. The market share of Android manufacturers is expected to grow and the market concentration will increase. The smuggled products will face the question of survival and the market will get further standardized.
Research Definitions
Tablet PC is a portable mobile internet device accessible to the network. It has independent mobile OS and is able to expand its applications. The screen ranges from 5 to 11 inch. Touch screen or pen is served as a basic input device.
The Sales Volume is tablet PC manufacturers’ sale in China, including some overseas brands which are sold by a purchasing agency (OEM labeling products is regarded as the labeled brand. Some device manufacturers also sell some products to market abroad. This part of sales volume is not calculated in the said report).
Research Statement
The industrial analyses, provided by Analysys International, mainly reflect the current situation, trend, inflection point, commercial law and manufacturers’ situation. The figures and statistics are drawn by adopting a unique industrial analysis model combined with the research and study methods used by market, industry and manufactures. All the data are based on industrial macro and historical data, seasonal end-users’ and business information.
It is believed that data concluded from research into market and trade is within acceptable errors. It can reflect the trend and commercial laws accurately.
Results obtained by the means of professional research methods are for reference. The actual data can be obtained by checking on financial report issued by manufacturers.
About Analysys International
Analysys International is a leading advisor on the technology, media and telecom (TMT) industries in China. We provide data, information and advice to 50,000 clients worldwide representing 1,500 distinct organizations, deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Our clients include executives from companies as technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. Our mission is simple and clear: we help our clients make better business decisions. For more information, please visit our website at http://english.analysys.com.cn.
About EnfoDesk
EnfoDesk is an industrial data base for subscription offered by Analysys International. It aims to help you perceive opportunities and risks in the Internet age with online database search, analyst interaction, market alarms and other functions. EnfoDesk can help you get information in time and know more about:
– The business mode and trend of the Internet and mobile web market
– The trend in policy towards the Internet and Internetized market
– The activities and preferences of Internet and mobile web users
– The potential clients and commercial opportunities
– The more valuable partners and cooperation mode
– The trend and effects of e-marketing
